A proposal backed by the Arizona Diamondbacks that would let the team use state and local taxes to pay for stadium repairs is advancing through the state Legislature.
The team has been engaged in a years-long struggle with Maricopa County over who should pay for maintenance and repairs at Chase Field, the county-owned stadium that opened during the Diamondbacks’ inaugural season in 1998.
According to the team, Chase Field needs a roughly $500 million facelift to fix an array of problems, from the roof to air conditioning and plumbing.
“I first came here via trade in 1999 and Chase Field was a state-of-the-art stadium, the crown jewel of the downtown area,” said former Diamondbacks star Luis Gonzalez, who is now a team executive. “Twenty-six years later, not much has changed, and the stadium is in dire need of improvements and repair.”
In 2018, the county agreed to a deal to settle a lawsuit by the team over stadium repairs. The deal gave the team control of events held at the stadium, allowing the Diamondbacks to collect revenue to help fund those fixes.
But the team said more work is needed and, with the Diamondbacks’ lease at Chase Field ending in 2027, there are concerns the team could leave Phoenix if a deal isn’t reached to pay for repairs.
Rep. Jeff Weninger (R-Chandler) said that’s why he proposed House Bill 2704, which would let the team use sales tax collected at the stadium during games – and income taxes levied against employees, including players – to pay for repairs. He also added a provision requiring the team to pay a $10 million penalty if the team leaves the stadium before 2035.
Those taxes currently flow to city, county and state coffers to pay for services provided by state and local governments.
“I've been seeing this being dealt with publicly and no real resolution coming to improving and making sure a public asset is maintained,” Weninger said.
The Diamondbacks estimated Weninger’s proposal could bring in $15 million to $20 million annually. As part of the deal, the team has agreed to contribute $250 million to $300 million toward repairs on top of $250 million it has already spent on the stadium, said Amilyn Pierce, the team’s vice president for government affairs.
The bill’s supporters called it a no-brainer that will ensure a popular sports team and local economic driver will remain in Phoenix less than a year after the state lost the Coyotes hockey franchise to Salt Lake City.
“I remember downtown Phoenix before the stadium,” Rep. Janeen Connolly (D-Tempe) said before voting yes.
Teddy Myers, who owns multiple restaurants in the downtown area, said Chase Field – along with the Phoenix Convention Center and the Suns’ Footprint Center – are key drivers to keeping downtown businesses in operation, especially during the slow summer months.
“If any of those three were to disappear, I don't know that we could sustain our businesses in downtown Phoenix,” Myers said.
But critics said the move will divert much-needed funding away from city and state services.
“We simply don't believe that a billionaire owner needs his team to receive handouts from working families,” said Margaret Schultz with Worker Power, a group representing organized labor interests, referencing Diamondbacks owner Ken Kendrick.
Kendrick, who has a net worth of around $1.1 billion, is also a prolific donor. Kendrick and his wife are Republican megadonors, who gave tens of thousands of dollars to GOP legislative campaigns last year.
Kevin McCarthy, president of the Arizona Tax Research Association, said approving the bill for the Diamondbacks will only lead to new requests from other organizations that want to take advantage of a similar deal.
“Be comfortable with who you're going to say no to, not who you're going to say yes to, because all the people watching here have got their own idea on how to come back and ask for the same treatment,” McCarthy said.
Lawmakers on the Arizona House’s Commerce Committee approved HB 2704 on an 8-1 vote, though several legislators reserved the right to change their positions when the legislation reaches a full vote on the House floor.
“As a conservative, I'm always mindful of where our tax money goes,” Rep. Michael Way (R-Mesa) said.
And Rep. Cesar Aguilar (D-Phoenix), who took a selfie with Gonzalez before the vote, said he wants to see the Diamondbacks use union labor to repair Chase Field, noting that his father worked on the stadium’s original construction.
Even if the bill passes out of the House, it will need to win approval in the Arizona Senate and be signed by Gov. Katie Hobbs. It’s unclear where Hobbs stands on the bill now.
“The governor wants the Diamondbacks to stay in Phoenix. As with any bill, the governor’s office is engaging with stakeholders and legislators, but it’s too early in the process to comment on any legislation,” Christian Slater, Hobbs’ spokesman, said.
Both Gonzalez and Pierce danced around questions asking whether the Diamondbacks would actually leave Phoenix – or the state – if the bill doesn’t pass.
Pierce said she did not believe there is a scenario where the legislation doesn’t advance.
A key stakeholder – Maricopa County – currently opposes the bill. Assistant County Manager Zach Schira told lawmakers the county wants to ensure voter-approved sales taxes that fund transportation projects and jails are not impacted by the Diamondbacks' bill.
Phoenix also registered opposition to the bill but did not provide a reason by the deadline for this story.
Weninger said he planned to sit down with both the city and county soon to address their concerns.
Schira said the county would remain neutral on the bill if the voter-approved taxes are carved out of the proposal.
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