Bait and switch: The Chiefs' tax credit package
In December, the Missouri Development Finance Board (MDFB) authorized a $25 million tax credit proposal as part of a deal to bring the Kansas City Chiefs' training camp to St. Joseph. The MDFB, chaired by Lt. Governor Peter Kinder, was enthusiastic about the economic activity that would accompany the team, and unanimously agreed to tax credits with the understanding that the team would (1) contribute $10 million to Missouri Western and (2) train on their campus for at least ten years.
However, the agreement with the Chiefs was not drafted as presented to the MDFB. Despite an explicit commitment from the Chiefs that they would train in St. Joseph for a minimum of ten years, they were offered a deal that only required them to stick around for five, with an additional five one-year options. Translation: taxpayers will be on the hook for $25 million no matter what, but the Chiefs can get away with half of what they promised.
The commitment to ten years was not a soft pledge. Here are the the minutes from the MDFB's December 16, 2008 meeting:
[Chiefs' Senior Vice President Bill] Newman stated that with the $25 million in tax credits, the Chiefs are pledging $10 million for Missouri Western State University and to bring the training camp back to Missouri for a minimum of ten years with an anticipated starting date of 2010. [page 4]
Moments after hearing this pledge from the Chief's Senior VP for "a minimum of ten years," the MDFB unanimously approved the deal.
Accordingly, the public was told that the Chiefs would keep their camp at Missouri Western for at least 10 years. From the Star:
The facility in St. Joseph will be state-owned and operated by the university, but the Chiefs will chip in $10 million of its $13.45 million construction cost and hold their three-week training camp there each summer for at least 10 years.
If approved, the deal would have the Chiefs donate $10 million from the sale of the tax credits to Missouri Western for a new indoor practice facility. The facility would be scheduled for completion in time for the Chiefs to pitch camp in 2010, and for the next 10 years.
And yet, despite this unambiguous commitment to a ten year stint in St. Joseph, the Chiefs were offered a a five-year agreement which is completely inconsistent with the package presented to and approved by the MDFB. And for whatever reason, former Gov. Matt Blunt and three state department directors signed off on the five year deal.
Good for the Chiefs, bad for us.
In the press, this dispute is presented as just a run-of-the-mill "glitch" or "friction" between parties acting in good faith. Never mind that without the involvement of the full Board, the deal was privately renegotiated so that the Chiefs would get their full tax break for only half the amount of time.
Also left out of the latest AP and St. Joseph News-Press stories are details of how the agreement was privately renegotiated in a manner contrary to the Board's wishes. How did that happen?
Who decided that it was okay to short the state and St. Joseph of the second five years of the deal?
