Legislation to fund stadium improvements for the Arizona Diamondbacks continues to languish at the Arizona Legislature amid opposition from officials in Phoenix and Maricopa County, whose tax dollars would fund much of the project.
Gov. Katie Hobbs confirmed that officials will resume negotiations this month in an attempt to work out an agreement that all sides — including the city, county and team — can live with. 12News first reported that Hobbs' office had stepped in to broker a deal.
“The reason for having the stakeholder meetings is so that we can get all the parties together to hammer out something that's acceptable to everyone,” Hobbs said.
House Bill 2704, which would authorize the use of local, county and state sales tax dollars collected at Chase Field to pay for improvements, passed out of the Arizona Senate’s Finance Committee last month on a 4-3 vote, with bipartisan support and opposition.
Supporters of the legislation have argued the deal is needed to facilitate a new lease agreement between the Diamondbacks and stadium district to prevent the team from leaving when the current lease expires in 2027.
The bill that passed the Senate committee was a pared down version of legislation that passed out of the Arizona House earlier this year. The latest version of the bill would cap the public contribution at $500 million, with adjustments for inflation.
But Phoenix Mayor Kate Gallego said the bill still put too much of the financial burden on the city and argued the inflation adjustment would effectively render the $500 million cap moot.
“The amendment caps public funding at a billion dollars over the time period and it does not require the Diamondbacks to pay any money into it,” she told lawmakers.
Gallego asked the Legislature to adopt a cap on public contributions, ensure public money wouldn’t pay for luxury amenities at the stadium and force the Diamondbacks to commit, in writing, to funding a portion of the improvements.
The Diamondbacks have publicly estimated Chase Field needs around $500 million to fix plumbing, air conditioning and other parts of the stadium.
Team representatives have repeatedly committed to contributing hundreds of millions of dollars alongside the tax revenue they are asking lawmakers to direct to the project.
But, as it stands, the Senate version of HB 2704 includes a clause stating “the Legislature finds” that the team would contribute at least $250 million towards repairs.
Gallego said that clause is unenforceable.
Maricopa County Supervisor Thomas Galvin also said he would like to see something in the legislation guaranteeing the team will cover its portion of the repair costs. On Monday, Galvin posted an ESPN story on social media showing the Washington Commanders football team will pay for approximately 68% of costs to build a new $4 billion stadium in Washington, D.C.
The county remained neutral as the original bill passed through the House of Representatives but changed its stance after the Senate added new language requiring the county’s contribution to equal the amount provided by the city.
Assistant County Manager Zach Schira wrote a letter to lawmakers saying that would require the county to provide money beyond its portion of the sales tax collected at the stadium. That would eat into the county’s general fund, which pays for public safety, sanitation and other county services.
Galvin said that remains a sticking point for the county.
“At the very least, no money from the county’s general fund, which unfortunately was affected in the Senate amendment that passed with Diamondbacks’ support,” Galvin said when asked what changes need to be made to win the county’s support.
Chase Field’s unique ownership structure has thus far complicated negotiations with the three major players — the city, county and team — all arguing they don’t own the stadium and shouldn’t have to bear the full cost of the needed repairs.
The stadium is actually owned by the Maricopa County Stadium District, an arm of the county that has its own board of directors. Schira told lawmakers the stadium district is an entirely separate legal entity from the county.
The bill’s supporters, though, say both the city and county benefit from the boost the team gives to the local economy in downtown Phoenix. They say the city would be in worse shape if the Diamondbacks follow the Arizona Coyotes, a team that left the state altogether after Tempe voters rejected a stadium deal.
And more taxpayers are questioning whether using public dollars to fund sports stadiums is worthwhile, pointing to research showing that those investments don’t always pan out.
Hobbs said she is hopeful that lawmakers ultimately send her legislation to fund the Chase Field repairs, either as a standalone bill or as a part of the state budget that lawmakers must pass by the end of June.
But, she made it clear she would like to see a deal that has support from the county and city.
“So I will sign a bill that has the agreement of all the parties that holds taxpayers harmless and keeps the Diamondbacks here in Arizona,” Hobbs said.
