The Kansas City Chiefs will build a brand-new domed stadium and mixed-use entertainment district, as well as a new team headquarters and training facility — in Kansas.

The decision, announced in conjunction with Kansas governor Laura Kelly, will not only see the four-time Super Bowl champions leave the intimidating, open air Arrowhead Stadium, but also the state of Missouri in search of their new home as the city straddles state boundaries.

Based on state estimations, the project is slated to deliver more than 20,000 jobs and more than $4.4bn in economic impact for Kansas during the construction phase alone. The development includes two distinct parts, starting with a $3bn stadium in Wyandotte County, which will open at the start of the 2031 NFL season, and including a new team headquarters and training facility in the city of Olathe in Johnson County. Both sites will have mixed-use developments that could include sports, entertainment, dining, shopping, office, hotel and residential properties.

“Today is an extraordinary day in the history of the Kansas City Chiefs,” Chiefs chairman and CEO Clark Hunt said. “We are excited to partner with the state of Kansas to bring a world-class stadium to our fans. This project represents another step in our legacy of innovation and our fan-first mentality, which started with my father, Lamar Hunt. The stadium, practice facility and surrounding development will benefit the entire region, and further elevate Kansas City in the eyes of the country and the world.”

The agreement was approved by the Kansas Legislative Coordinating Council with bipartisan support. It will be a 60:40 public-private partnership between the Chiefs and the state, but will require no funds from the current state budget and no new taxes on Kansans. The public portion is funded through Sales Tax and Revenue (STAR) bonds and the Attracting Professional Sports to Kansas Fund — both mechanisms having been established specifically for this purpose. The bonds have two components, allowing the state to designate a portion of new state sales tax revenues generated by this project in neighbouring communities towards funding, and allowing Wyandotte County and the city of Olathe to designate a portion of their local sales tax revenue generated by this project to pay for it. The Hunt Family is also committing to $1bn in additional development, a portion of which can also be incentivised by STAR bonds.

“This agreement to bring the Chiefs to Kansas takes our state to the next level,” governor Kelly claimed. “With this new stadium, we’re creating thousands of jobs, bringing in tourists from around the world, attracting young people and, most importantly, continuing to make Kansas the best place in America to raise a family. This is a game-changer for Kansas, and it’s a signal to America and the world that our state’s future is very bright.”

Future announcements, including final facility locations, design firms, renderings, and eventual groundbreaking events will be made in the coming months and years. More on the project can be found here.

“This is a great day for Kansas City Chiefs fans,” NFL commissioner Roger Goodell commented. “This public-private partnership, the result of a thoughtful and deliberate process, will build upon the Hunts’ generational legacy by boldly investing in one of America’s greatest fan bases. The Chiefs’ new enclosed stadium will be a stage for unforgettable moments, whether it’s playoff games, concerts or championship events. We congratulate the Chiefs and the Kansas City community on this important achievement.”

In an open letter to Chiefs fans, published on the team’s official website, Hunt reflected on both the past and future of the franchise.

“Since the day Lamar Hunt founded this franchise, our family has been focused on building for the future,” the younger Hunt wrote. “The team won its first championship while playing at the Cotton Bowl, then moved here to Kansas City and won its first Super Bowl while playing home games at historic Municipal Stadium. Soon after, my dad was instrumental in building iconic Arrowhead Stadium, a football gem that was ahead of its time.

“At his core, Lamar Hunt was a pioneer. A visionary. From starting the American Football League to its merger with the NFL, from revolutionising the game to naming the Super Bowl, Dad consistently looked to the future and propelled the game forward for nearly half a century. Every step of the way, he prioritised the fans. And every step of the way, he thought about the next generation.

“A [new] stadium of this calibre will put Kansas City in the running for Super Bowls, Final Fours and other world-class events. A brand new training facility and headquarters will allow the Chiefs to continue to attract top talent. And the vision for a new mixed-use district will rival that of any sports-anchored development anywhere in the country.

“Of course, it will be difficult to bid farewell to Arrowhead Stadium in a few years. Like so many of you, Arrowhead reminds me of family memories and unforgettable moments. But the truth is, what makes Chiefs gamedays so special is you. Seats don’t make noise, concrete doesn’t intimidate opponents, parking lots don’t cook barbecue. You do!

From the day the Chiefs came to Kansas City, you have energised this team, and this team has elevated the profile of the city and the region. It’s the reason kids from coast to coast wear red and gold t-shirts, and sports fans around the world will watch soccer games from our backyard this summer. This next step will further elevate the entire region in the eyes of the country and the world.

“You are the heartbeat of this organization. You are the reason we do what we do. And I can’t wait to stand beside you as we approach this next chapter in Chiefs history. Go Chiefs!”