Gov. Katie Hobbs visited Chase Field to celebrate legislation that will use state, county and local tax dollars to upgrade the home of the Arizona Diamondbacks, but the team has yet to sign a new deal to stay at the 30-year-old stadium after its current lease expires in 2027.
House Bill 2704 allows some sales and income tax dollars collected at Chase Field over the next 30 years to be used to fund major repairs.
Hobbs actually signed the bill in June. But she stepped atop a dugout at Chase Field on Wednesday — flanked by lawmakers, team officials and other stakeholders — to sign a ceremonial version of HB 2704, which she backed despite opposition from some members of her own party.
Critics from both sides of the aisle said the government shouldn’t be using public funds to subsidize a multi-billion dollar sports franchise. Several Democratic lawmakers failed to amend the legislation to add public benefits, including lower concession costs and a free Diamondbacks streaming service for residents.
As the bill worked its way through the Legislature, Hobbs repeatedly said she wanted a bipartisan compromise.
And that is what she got. HB 2704 passed both chambers at the Arizona Legislature with Republican and Democratic votes.
Hobbs defended the legislation, saying it will ensure a major economic engine remains in downtown Phoenix.
“It's a simple fact that without the Diamondbacks playing here at Chase Field, Arizona would be worse off, and I was not about to let that happen,” she said.
Dollars and cents
HB 2704 goes into effect on Sept. 26, one day after the Diamondbacks last home game this season.
The bill allows $500 million in public dollars to be used towards renovations, though that number could balloon to over $1 billion due to inflationary adjustments.
“I’m hoping it’ll go that high … I’m not sure,” Diamondbacks CEO Derrick Hall said when asked how much the renovation project could cost.
The money can be used for major renovations and repairs, like replacing the air conditioning system and fixing the roof. The legislation doesn’t allow public funds to be used on luxury amenities, like the stadium pool or suites.
Diamondbacks officials have long said they will contribute $250 million to the project.
But the bill didn’t include any language requiring the team to make good on that promise — a fact not lost on early critics like Phoenix Mayor Katie Gallego.
Hobbs wouldn’t say why such a guarantee wasn’t explicitly spelled out in HB 2704.
“I can't speak to the details of the bill, but it was negotiated by a bipartisan group of folks, and this was a deal that was agreed on by everyone, and I'm proud of what we got done,” Hobbs said.
Hall speculated that legal considerations kept lawmakers from including language requiring the team to contribute to the project. But he said the team is committed to fulfilling its pledge to spend $250 million.
“My understanding was you can't put it in the bill because it would be unconstitutional, but we had committed to it long ago,” Hall said. “You know, when we started negotiating, they asked if it was something we'd be willing to do. And, of course, we said we will.”
The bill also includes language requiring the team to cover outstanding debts for the stadium district that owns the stadium if the Legislature repeals the law because the team did not pay its share. Phoenix can also take ownership of the stadium land if the team’s lease with the county ends.
Rep. Jeff Weninger (R-Chandler), who sponsored the bill, has defended the legislation, pointing out that a county stadium district, not the team, owns the facility.
“The people who are filling this stadium today are the ones who own this stadium, and they're the ones who are going to be helping upgrade it through this plan,” Weninger said.
New lease?
Chase Field is owned by a Maricopa County stadium district, and the deal was pitched as a way to solve a longstanding dispute between the team and county over who is responsible for maintenance and repairs.
But the team has yet to reach a new lease agreement.
Hall said the team is in discussions with the current stadium district that owns the stadium, which is made up of the county’s five elected supervisors. The relationship between the team and the Board of Supervisors has been contentious for years as they haggled over who is responsible for what.
HB 2704 establishes a new county stadium district board, including members appointed by the Phoenix mayor, the Board of Supervisors and residents with qualifying professional experience appointed by the governor. And Hall said the team could wait to sign a lease until after that board takes office by next year.
“And we'll have the oversight over the planning, and then we'll go to them, and they'll have the approval, but they can also approve a lease extension as well,” he said of the new board. “So we've been talking to the county about it.”
Hall said the team is considering a lease similar to the deal the team currently has with the county and that it could last 30 years — the same length of time outlined for the funding deal in HB 2704.
Timeline
Hall said the team is meeting with its stadium consultant this week to start planning out the project.
The funding established by HB 2704 runs for 30 years, and Hall said the renovations will be “ongoing.”
He said the major renovations will take about five years and identified the roof, air conditioning system and concrete that needs to be replaced as top priorities.
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