
Stadiums are becoming more like micro-cities
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Illustration: Brendan Lynch/Axios
Big stadium projects are becoming less like standalone destinations and more like micro-cities with teams trying to create year-round neighborhoods, not just game-day traffic.
Why it matters: That shift turns new stadium projects into complex real estate deals, posing high risks for taxpayers and government officials while promising more revenue for teams and development for cities.
Zoom in: Kansas and the Chiefs announced in December an agreement for a roughly $3 billion stadium, framed as part of a larger district with entertainment, dining, shopping, offices, hotels and residential properties.
- KC Current owners are working on a privately funded soccer village district, and the University of Kansas is in the middle of a stadium-based campus overhaul.
- The Royals have similarly pursued a ballpark anchored by development, but voters rejected the team's 2024 bid for at least $1 billion in public funding for a plan criticized for endangering local businesses.
What they're saying: Parking lots are out, and thriving districts are in, says Jonathan Mallie, managing director for local architecture firm Populous.
- "This is a movement that's going on in the industry," Mallie tells Axios, adding that people want places to gather.
- To that end, Populous hired Cary Hirschstein as its first head of real estate, a position that will give the design firm an edge working with property owners and government officials to create "sustainable environments."
Zoom out: Populous has seen the trend grow through projects over the last 10 years — from Truist Park in Atlanta to a recently announced district in Oklahoma City.
- In Arlington, Texas, as much as $4 billion is going into the Rangers' Globe Life Stadium mixed-use district, including a recently opened 300-unit luxury apartment building.
- Meanwhile, Gary, Indiana, is trying to woo the Bears with a fancy stadium district and tax incentives.
Follow the money: To attract the Chiefs, Kansas agreed to fund about $1.8 billion of the team's new stadium through bonds that will be paid off using future sales tax.
- The state estimates $4.4 billion in economic impact during the construction phase alone.
Populous declined to comment on whether it was currently working with the Royals or the Chiefs on their new stadium designs.
- The firm worked with the Royals on the team's initial downtown stadium designs and designed the Chiefs' $375 million renovation in 2010.
What we're watching: Sam Mellinger with the Royals says the team is "heads down" trying to come up with a deal for their own stadium, even as options dwindle.
