Background
This past Saturday, Mayor Quinton stood alongside Chiefs President Mark Donovan and Royals CEO John Sherman to publicly endorse a yes vote on the stadium sales tax. Lucas’s endorsement came just three days before the special election and just three after the Royals announced a new stadium redesign. The last minute changes have left many voters more concerned about the Royals’ plans for Crossroads. Lucas, on the other hand, is more concerned about the unproven economic impact.
Mayor Lucas endorses new stadium despite what experts say
“This is about the tens of thousands of jobs that we will generate,” Lucas claimed “This is about our future. This is about progress.”
The idea that a new Crossroads stadium will create more jobs and generate income is based on a flawed theory: people spend more money, more money creates more jobs.
In an article written in 2022, Peter Jacobsen–an Assistant Professor of Economics at Ottawa University–addressed how this perceived “new spending” is actually just “substitutionary spending” meaning people aren’t spending additional money but rather spending the same money, just elsewhere.
The prevalent idea among team owners of “socializing the costs and privatizing the profits” is harmful and unfair to people who are forced to pay for a stadium that will not help them.
– Karthik Vegesna, Berkeley Economic Review
In regards to the promise of job creation, Lucas pointed to the construction industry as a direct beneficiary of a new stadium build.
In a study by J.C. Bradbury, it is explained why construction expenditures are not useful for measuring the economic impact. One, construction is a short-term venture that does not guarantee long-term returns. Two, similarly to the “substitutionary spending”, the new jobs are usually “reallocation of existing construction workers.”
Mayor Lucas promises to protect businesses
During Saturday’s press conference, Mayor Lucas also spoke to conversations he’s had privately with the teams regarding the businesses on Oak Street.
“John [Sherman] and I have had outstanding conversations about how we make sure we protect and preserve local businesses and small businesses throughout downtown and throughout our entire city.”
Lucas did not expand on those conversations or provide the details of those conversations, but did inform that there will be more conversations.
According to a recent facebook post from Mayor Quinton Lucas, local businesses east of Oak Street will not face closure due to condemnation.
“For those wondering,” the Mayor writes, “even with a yes vote on [Stadium Sales Tax], Oak Street won’t be closing and Kansas City will not support any forced business closures by condemnation east of Oak Street”
The Royal’s owner John Sherman also confirmed that the stadium’s design has been revised. In the original proposed stadium design, the Royals intended to build a corporate office, a hotel, and other entertainment venues between Oak Street and Locust Street. The design would have called for the closure and displacement of several businesses on Oak Street. Now, with a statement released on X, Shermans has agreed to leave Oak Street open and change the stadium’s design.
Even with a new design and a vow to keep Oak Street open, businesses in the Crossroads remain uneasy as the “redesign” has not been disclosed. Crossroads Community Association (CCA) has been negotiating with the Royals for a community benefits agreement that includes a 100% relocation assistance, full buyouts for businesses who decide to close, and a commitment to supporting local arts and cultural events. No agreement has been reached at this time.
With his recent facebook post, Mayor Lucas explains that he has the power of veto to ensure that business east of Oak Street will not close due to Condemnation. But what does all that mean? And does he truly have the power to do so?
What is a mayor’s veto power?
A veto is power granted to the Mayor to reject or block a decision or legislation including a referral which is how the stadium sales appears on the ballot.
How does this relate to Lucas and the stadium sales tax?
Mayor Lucas is saying that if the sales tax proposal is passed, then he has the power of veto to reject it. He further explains that, if needed, he intends to do so in order to keep Oak Street open.
Can the veto be overridden?
Yes, the mayor’s veto can be overridden by members of city council. In order to override the mayor’s veto, a two-thirds vote in favor of the override is typically required. In this case, nine votes are required to override the mayor’s veto.
How does this relate to Lucas and the stadium sales tax?
Mayor Lucas is implying that if a governing body were to challenge the veto, then he has majority of the council and their votes on his side to defeat a veto.
Lucas certainly has the power to protect the businesses he has vowed to protect, but whether or not he will be true to his word is just as unknown as the Royals stadium plans.
Special election for the stadium sales tax is tomorrow. Economists suggest economic benefits from a new stadium build may not materialize as expected. The Mayor and our local teams are promising what experts have shown to be unproven. The ongoing negotiations and lack of clarity surrounding the stadium redesign only adds to uncertainty. Ultimately, the unforeseen future of this development hinges on whether voters will lean on expert analysis or trust the intentions of billionaires.
