KANSAS CITY, Mo. (AP) — The Kansas City Royals are set to relocate from their longstanding home at Kauffman Stadium to the downtown Crown Center area. This move comes as part of a partnership with Hallmark Cards on a substantial $3 billion project that will feature a mixed-use development with a new ballpark as its centerpiece. Royals owner John Sherman, alongside Hallmark chairman Don Hall Jr., Missouri Governor Mike Kehoe, and Kansas City Mayor Quinton Lucas, made the announcement on a Wednesday near Hallmark’s headquarters.

Although the finalized master plan is still in progress, Sherman revealed that the new $1.9 billion stadium is expected to break ground next year in the center of Crown Center. This stadium is part of the first phase of an extensive 85-acre project. Funding for the project will be split, with two-thirds sourced from private investments and the remaining one-third from public partners, which includes funds allocated by the state for stadium initiatives.

“This is a partnership between two treasured Kansas City institutions,” stated Sherman. He emphasized the commitment to creating a vision that honors the rich histories of both organizations while working together towards a revitalized future.

This announcement comes shortly after Kansas City officials had passed an ordinance allowing City Manager Mario Vasquez to negotiate a $600 million deal to assist the Royals in their downtown relocation. Initially, there was speculation that the new stadium would be situated at Washington Square Park, adjacent to Union Station. Instead, the stadium will be positioned just south of it, with the park integrated into the overall development.

Hallmark also plans to construct a new headquarters within the area, which conveniently connects via a streetcar to the Power & Light District. This district features the T-Mobile Center as its anchor, providing a vibrant backdrop for the stadium’s outfield.

Officials highlighted the current availability of public parking in the vicinity and the easy traffic flow from nearby highways as positive factors for the new location. Missouri’s contribution to the funding is facilitated by legislation enacted last year, which authorizes bonds to cover up to 50% of the costs associated with new or renovated stadiums within the state, alongside $50 million in tax credits for each stadium and other support from local governments.

Governor Kehoe asserted that this investment is beneficial for Missouri taxpayers, claiming it will not negatively impact existing programs and that the economic impact will extend into rural Missouri and other regions of the state.

The Royals have made it clear that they intend to leave Kauffman Stadium upon the expiration of their lease at the Truman Sports Complex in 2031. Since acquiring the team in 2019, Sherman has expressed a strong desire to establish a downtown ballpark as a replacement.

However, the path to this announcement has not been without challenges. One significant hurdle arose in April 2024 when the Kansas City Chiefs announced plans to renovate Arrowhead Stadium and replace Kauffman Stadium. This proposal relied heavily on extending a sales tax meant to fund stadium maintenance, but Jackson County voters decisively rejected it, compelling the franchises to pursue independent paths.

Simultaneously, officials in neighboring Kansas aggressively sought to attract the Chiefs, committing last December to issue $2.4 billion in bonds to finance 60% of a new $3 billion domed stadium in Kansas City, Kansas. Ultimately, the NFL team decided to relocate across state lines, where they will also establish a new training facility in the nearby suburb of Olathe, Kansas.

While Kansas officials briefly expressed interest in the Royals, their commitment was always lukewarm. The Royals had explored several options over recent months, ultimately dismissing a proposal in Overland Park, Kansas, and allowing a deadline to lapse for a site north of downtown across the Missouri River in Clay County, Missouri.

Economists have long maintained that subsidizing stadiums is not a valuable investment for communities, arguing that these venues often divert economic activity away from other areas rather than enhancing the overall economy. Yet states and cities continue to financially support stadium renovations or constructions, with 49 out of 60 MLB or NFL stadiums being publicly owned or situated on public land.

Sherman has pointed to Truist Park in Atlanta as a model for what could be accomplished in Kansas City. This project was a public-private partnership where up to $397 million in bonds were issued by the Cobb-Marietta Coliseum & Exhibit Hall Authority, along with additional millions raised from transportation taxes and private businesses. The Braves contributed the remaining funds for the park and an accompanying mixed-use development called The Battery, amounting to a total cost exceeding $1.1 billion.

“There are many great ballpark neighborhoods in Major League Baseball,” Sherman remarked, “but this is a bigger project with more land in downtown and in the heart of the city. We are bringing a modern, state-of-the-art ballpark experience to our fans, closer to our public transportation and where more people work and live.”