The Arizona Diamondbacks’ effort to use state and local taxes to fix up Chase Field crossed a major hurdle on Thursday after the state Senate passed a bill that would allow sales tax dollars collected at the ballpark over the next 30 years to be used to fund major repairs.
In addition to sales taxes, the bill would divert income taxes from some team employees – including multimillionaire professional baseball players – into the repair fund, which would be administered by the Maricopa County Stadium District, which owns the facility.
The deal, which still needs final approval from the Arizona House, was pitched as a way to ensure the Diamondbacks stay in Arizona before the team’s lease with the county stadium district that owns the land ends in 2027. The team and Maricopa County have battled for years over who should be responsible for fixing up the aging ballpark, which first opened in 1998.
But the deal has been the subject of fierce debate since it began moving through the Legislature earlier this year as parties who don’t actually own the stadium, including the team and Phoenix, argued they shouldn’t be forced to bear the brunt of the financial responsibility for the repairs.
Phoenix Mayor Kate Gallego argued the bill diverted too much sales tax away from city coffers without including concrete guarantees that the Diamondbacks will make good on a commitment to contribute $250 million.
A change of heart
While legislative budget analysts projected an earlier version of the bill would generate around $500 million for repairs, Gallego estimated that inflation adjustments would drive that number above $1 billion over the course of the deal.
But, the day of the Senate vote, the Phoenix changed its position after the bill’s backers agreed to a number of concessions, including capping the city's contribution at $3.5 million per year, with a 3% adjustment for inflation.
The bill would also divert Maricopa County’s half-cent sales tax.
Other amendments, which were eventually approved by the Senate, included prohibiting the use of public money to build luxury amenities, like the stadium pool or suites.
The legislation also created a mechanism for Phoenix to assume ownership of the stadium land if the Diamondbacks’ lease with the stadium district ends.
The bill caps the tax contribution at a total of $500 million, with that inflation adjustment, and provides for $750 million in repairs, including the team’s $250 million share.
But the bill still does not include that solid guarantee sought by Gallego to ensure the team makes good on that investment.
Instead, it includes an unenforceable clause “finding” the team will pay $250 million. And it puts the team on the hook for any remaining stadium debts for repairs if the Legislature repeals the law due to the team’s failure to contribute the money.
It depends on who you ask
The bill’s supporters call the legislation a win for all parties, saying it will ensure that a top economic driver remains in downtown Phoenix.
Sen. Vince Leach (R-Saddlebrook) argued surrounding businesses would suffer if the Diamondbacks left.
“If they were to go away, you would make the Valley, downtown, equivalent to a Death Valley,” Leach said.
But detractors called the bill a giveaway to the Diamondbacks’ billionaire owner, Ken Kendrick, citing studies questioning whether public funding for professional sporting facilities is a net positive for taxpayers.
“I heard from so many of my constituents, probably more than I’ve heard from on any other bill, that they are tired of being asked for their tax dollars to be spent on private corporations,” Sen. Analise Ortiz (D-Phoenix) said.
Several Democrats sought to amend the bill to create a more direct public benefit. For instance, Ortiz tried to include language requiring the Diamondbacks to lower concession prices, while Sen. Eva Diaz (D-Tolleson) wanted to require the team to provide a free streaming option for Arizonans as part of the deal.
“If we’re going to pay for the stadium, we should be able to watch the games,” Diaz said.
Diaz found an unlikely ally in Sen. Jake Hoffman (R-Queen Creek), leader of the far-right Freedom Caucus, who said he supported her amendment.
The bill ultimately passed the Senate on a 19-11 vote, with some bipartisan support.
The Diamondbacks praised the vote.
“This is obviously another major step after receiving approval of HB2704 in the Senate. This has been a long, yet collaborative and productive process, and I’d say signs are pointing towards a positive solution,” team President Derrick Hall said in a statement.
The bill still needs final approval from the Arizona House, which could happen as soon as next week.
EDITOR'S NOTE: This story has been modified to correct that the bill includes an unenforceable clause “finding” the team will pay $250 million and the city's contribution being capped at $3.5 million per year.
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