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Lawmakers, Governor Concerned Over Cardinals Stadium Funding Impasse

Arizona Capitol Reports Staff//August 20, 2004//[read_meter]

Lawmakers, Governor Concerned Over Cardinals Stadium Funding Impasse

Arizona Capitol Reports Staff//August 20, 2004//[read_meter]

While the state sports authority pushes for resolution of a multi-million-dollar dispute with Glendale over financing work around the new Arizona Cardinals football stadium, several legislators, legislative candidates and the governor have expressed concern about oversight of the authority.

“I’ve never been a supporter of the TSA,” said Republican Sen. Robert Blendu, who represents District 12, in which the stadium sits. “We’ve got to have a monitoring process. I’m not sure we can have one.”

Taxes to fund the TSA, which was renamed the Arizona Sports and Tourism Authority (AZTSA) to avoid confusion with the federal Transportation Security Administration, were approved by Maricopa County voters in 2000. The authority is charged with building the stadium, promoting tourism and Cactus League baseball facilities and providing grants for youth sports.

The AZSTA was created by S1220 contingent on voter approval of surcharges on hotel rooms and car rentals and sales and income tax revenues from the Cardinals organization and players and eventually the stadium itself.

Glendale and the AZSTA had an agreement in July that Glendale would finance projects such as sewers, a plaza around the stadium and road upgrades, the costs of which have escalated to $61 million, the AZSTA said.

Bonding for site preparation work was to have been completed by Glendale last year, said Brad Parker, AZSTA spokesman, but disagreements over financing plans have led to an impasse between the authority and the city.

The Glendale City Council is supposed to come up with an alternative financing plan by Sept. 15, Mr. Parker said.

“Regardless of which financing plan they come up with, we want them to move forward in September, one way or the other,” he said.

The AZSTA has offered to sell the bonds, but Glendale still would be obligated for their repayment, he said.

Additionally, Glendale slowed its process for issuing work permits because it says AZSTA owes the city $665,000 for permit and inspection fees, according to Glendale documents. The sports authority countered by asking the city for $1 million it says is owed as an initial payment to develop a plaza around the stadium.

“I’m nervous about all this money going back and forth between these large entities,” said Leonard Clark of Glendale, a Democrat candidate for a District 12 House seat. “Whenever there’s millions of dollars involved, there’s never enough oversight,” he said.

Another legislator representing the district, Republican Rep. Bill Arnold, said, “They better get it settled. It’s a big project.”

The 63,000-seat stadium is to be done by the beginning of the 2006 National Football League season.

Mr. Blendu said he voted against the S1220 and that the problems with Glendale only exacerbate his opposition to the AZSTA.

“This adds insult to injury now that it’s [the stadium] in my district,” he said. “There’s almost nothing the Legislature can do in those areas. If we tried to do anything, the media and all the entities would be against us. If they all hang together, they all get their little piece.”

Blendu: Voters Didn’t Understand

Mr. Blendu said Maricopa County voters did not fully understand what they were voting for when they approved the taxes to support the authority.

“They’re just voting on professional sports,” he said. “Be careful on what you pray for, you might get it.”

He said the sports authority has an advantage in its dispute with Glendale.

“Their attorneys have crawled all over this stuff — they know it inside out.”

Rep. John Nelson, R-12, said he was not surprised by the dispute between the authority and Glendale. “It’s a typical kind of dispute between a contractor and a governmental agency. Those things happen.”

But, he said, he wished the Legislature would have had oversight on site selection for the stadium, which ended up with Glendale after a proposed Tempe site was deemed a safety hazard to Sky Harbor International Airport, and the AZSTA could not reach an agreement with other local governments who wanted the stadium.

Governor Napolitano says she had heard that some legislators were concerned about the problems between Glendale and the sports authority.

“…That indeed is something we may want to have a conversation about once the new Legislature convenes.

Three of Ms. Napolitano’s recent appointments to the authority, Larry Landry, Jonathan Garrett and Verna Mendez, have said they were not informed of the problems with Glendale.

“Let’s just say I’m unhappy about that,” Ms. Napolitano said, adding, AZSTA officials “haven’t yet heard from the governor.”

By law, the governor appoints five members to the nine-member authority board of directors, and no more than three of her appointees may belong to the same political party. The speaker of the House and president of the Senate each name two persons to the board. Board members serve five-year terms.

Former legislator Kathi Foster, a Democrat who faces Mr. Blendu in the District 12 general election for Senate, says the Cardinals stadium “is a feather in the cap of the West Valley,” but she voted against S1220 when she was in the House.

“I didn’t like the package,” she said.

“My concern always is what’s the price to everyone for the benefit,” Ms. Foster said.

“The TSA is a waste,” said Jerry Weiers, another Republican seeking a House seat in District 12. “It’s an example of a government agency doing its own thing.”

Mr. Parker of the sports authority said the state has plenty of oversight on the AZSTA through monthly reports it must submit to the governor, the Legislature and the Auditor General’s Office. The reports also are available to the public on the authority’s Web site (www.az-tsa.com).

He noted that the Legislature passed a bill that changes the required audit of AZSTA to every five years from the original 10-year requirement. —

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