Key Takeaways:
- A $540 million Mattel Adventure Park is set to be built in Kansas, featuring famous toys like Barbie and Hot Wheels.
- The project is being funded in part by a $220 million tax incentive package, including $175 million in STAR bonds.
- The park is expected to create $190 million in annual revenue and nearly double the taxable property value of Bonner Springs.
- The project has raised concerns about the state’s use of STAR bonds and the potential risks of committing future tax revenue to large developments.
- The park is expected to open in 2031, the same year as the Kansas City Chiefs’ new stadium.
Introduction to the Mattel Adventure Park
The state of Kansas is set to welcome a new theme park, the Mattel Adventure Park, which will feature famous toys like Barbie and Hot Wheels. The park is part of a $540 million development project that will be built near an entertainment district in Kansas City, Kansas. The project has been made possible in part by a large tax incentive package, including $175 million in STAR bonds, which are loans secured by a municipality and paid off through state and local sales tax revenue generated by the project.
The Use of STAR Bonds
The use of STAR bonds has been a topic of discussion in Kansas, with some arguing that they create new tax revenue to fund projects without using existing dollars. However, others, like Zach Mohr, a public finance expert at the University of Kansas, argue that these kinds of major developments are still tying up the state’s future revenue. Mohr notes that the state is already committed to paying off hundreds of millions of dollars in bonds for various projects throughout the state, and that the state may soon hit a tipping point. The city of Bonner Springs has pledged $220 million to the theme park construction, with $175 million of that coming from STAR bonds.
The Benefits to the City
Despite the concerns about the use of STAR bonds, the city of Bonner Springs is cautiously optimistic about the project. Mayor Tom Stephens notes that the project could bring many thousands of visitors to the small community and nearly double its taxable property value. The city expects the entire property to reach a $500 million assessed value, which would add a considerable amount of property tax revenue to the city, county, and school district. The project is expected to create $190 million in annual revenue and will feature a range of attractions, including a Barbie Beach House and a Hot Wheels rollercoaster.
The Potential Risks
However, there are also potential risks associated with the project. Mohr notes that the tax incentive’s ability to capture increased sales tax may soon be outdated, as more consumers turn to online shopping. This could lead to a significant number of theme park visitors purchasing things like toys online, possibly even after they’ve already left the state, resulting in Kansas missing out on some of the expected increase in sales tax revenue. Additionally, the state is already on the hook for several other STAR bond projects, and the cost of the project must come from somewhere, likely diverting money from the state’s pocketbook.
The Location and Timeline
The Mattel Adventure Park will be built on the northwest corner of Bonner Springs city limits, adjacent to The Legends, a regional shopping mall and commercial area in the Village West development in Kansas City, Kansas. The project is expected to break ground in 2027 and open in 2031, the same year as the Kansas City Chiefs’ new stadium. The location of the park is expected to protect the core of Bonner Springs from losing its small-town identity, while still bringing in significant economic benefits to the city.
Conclusion
In conclusion, the Mattel Adventure Park is a significant development project that is set to bring economic benefits to the state of Kansas and the city of Bonner Springs. However, the use of STAR bonds and the potential risks associated with the project have raised concerns about the state’s commitment to future tax revenue. As the project moves forward, it will be important to monitor its progress and ensure that it is meeting its expected outcomes, while also considering the potential implications for the state’s budget and economy. The project’s success will depend on a range of factors, including its ability to attract visitors and generate sales tax revenue, as well as its impact on the local community and the state as a whole.