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Tag: Chase Field

Gov. Hobbs likely to sign bill for Chase Field despite opposition

Gov. Katie Hobbs may not sign a budget this week, but she will likely sign a negotiated measure to use sales tax revenue and state income tax revenue for stadium renovations at Chase Field. 

The House passed House Bill 2704 (tax; distribution; county stadium district) 35-20, with the Freedom Caucus joining some Democrats in opposition.

The bill is intended to keep the Diamondbacks in downtown Phoenix, with the team’s lease at the stadium ending in 2027. 

Other Democrats who were previously hesitant about the bill voted for it because of the jobs it will bring to Arizonans. 

“This morning, I wasn’t ready to vote yes on this bill,” said Rep. Mariana Sandoval. “But because I’ve learned that unions have signed contracts to get work from this bill, I am going to support it.”

The city of Phoenix now supports the bill after fighting against it all legislative session. Before the Senate voted on the bill last week, an amendment was added to bring the city in support of the bill, which caps Phoenix’s annual contribution to the stadium at $3.5 million, adjusted at 3% for inflation. 

Stadium renovations are expected to use $500 million collected from sales tax revenue at the stadium district and from income taxes of Diamondbacks players and staff over the next 30 years.

“I just want to remind the Arizona Diamondbacks that this is public money that should be used for public good,” said Rep. Cesar Aguilar. 

The bill now also restricts the use of tax dollars provided to the Maricopa County Stadium District from being used for luxury amenities such as club seating or pool suites. The Legislature intends for the team to contribute $250 million for the stadium and the bill now has a provision which would put the team on the hook for stadium repairs if the Legislature repeals the tax distributions before 2056. 

House passes D-Backs funding bill 35-25, tosses it to Senate

A legislative proposal intended to keep the Arizona Diamondbacks in Phoenix for the long-term future cleared the Arizona House of Representatives on Feb. 26 as the team officials consider the end of their stadium lease in 2027.

House members passed HB2704 by a vote of 35-25 to get one step closer to stability for where the team will play after the current lease at Chase Field in downtown Phoenix ends. 

Diamondbacks ownership is seeking a funding mechanism for maintenance and repairs at the ballpark, which has been the team’s only home since 1998. 

Rep. Jeff Weninger, R-Chandler, the bill’s sponsor, said, “Let’s make sure we hold onto this economic juggernaut that is the Arizona Diamondbacks. Let’s make sure we hold onto a source of pride for the entire state and let’s make sure the Arizona Diamondbacks are here for years to come and we celebrate many more World Series titles.” 

Lawmakers are working with the Diamondbacks to split future stadium repair costs between the team and sales tax revenue without creating a new tax. 

The bill adopts the model of how the Arizona Cardinals pay for stadium maintenance at State Farm Stadium in Glendale by using income tax revenue from team staff and players combined with sales tax collected from stadium-related purchases.

“This is a proven way to maintain a sports facility and the smartest way to create a partnership between the city, county and state that all benefit from a world-class baseball team,” Weninger said. 

A fiscal note on the bill from the Joint Legislative Budget Committee estimates HB2704 would reduce the state’s general fund revenue by more than $9.2 million annually. Nonpartisan budget analysts also estimate the city of Phoenix would lose $3.5 million annually and Maricopa County would lose $1.1 million annually. 

The Diamondbacks estimate more than $500 million of repair costs for essential stadium projects, including HVAC, plumbing and roof repairs. Diamondbacks leadership has verbally committed to paying for more than half the costs needed for stadium repairs and has projected to contribute between $250 million to $300 million. 

The Diamondbacks don’t own Chase Field. Maricopa County owns the stadium, and a 2018 agreement between the county and the team states that the team is responsible for stadium operations and maintenance as its facility manager. 

“When you own a house and your air conditioning goes out, it’s on you to pay for it,” said Rep. Justin Wilmeth, R-Phoenix. “Much is the case in my opinion on this measure with the D-backs and Chase Field.”

Phoenix Mayor Kate Gallego said in a post on X that the bill subsidizes public taxes and would negatively impact the city’s ability to pay for police and fire services. City officials are estimating the city will lose $200 million over a 30-year period from the deal. 

“Two-thirds of Phoenix’s general fund supports public safety. Phoenix’s tax dollars are best spent supporting our firefighters who respond to emergencies, helping police fight crime, and combating homelessness — not used to pay for subsidies for those at the very top,” Gallego wrote in her post.

The House amended the bill on Feb. 24 to include some transparency measures, including requiring the team’s board of directors to report to the Legislature and Governor’s Office for all reconstruction, repair and maintenance projects at Chase Field.

The amendment also would end the stadium’s tax revenue method after 30 years, leaving future lawmakers to decide on the team’s location. 

Gov. Katie Hobbs said on Feb. 26 that she supports a bill keeping the Diamondbacks in Phoenix and would not veto it just because the city of Phoenix opposes it. 

“I am really hopeful that the points of disagreement between the city, the county and the state can get worked out so that we can get a deal done,” Hobbs said.

Republican political consultant Barrett Marson said he thinks it would be wise for Hobbs to sign the measure in whatever fashion it’s presented to her. 

“Hobbs doesn’t want to be the governor that loses the Diamondbacks,” Marson said. 

The House vote was bipartisan with a handful of Republicans and Democrats voting against the measure. House Democratic leadership and members of the Arizona Freedom Caucus voted against the bill. 

“I am old enough to remember when Democrats opposed taking money from regular taxpayers and giving it to rich corporations,” Rep. Alexander Kolodin, R-Scottsdale, said as he voted against the bill. 

The bill must now pass the Senate before it can reach Hobbs’ desk, where she will decide its fate. 

Panel gives bill to keep Diamondbacks initial OK

A bill meant to keep the Arizona Diamondbacks playing in Phoenix got through its first hurdle at the Legislature. 

The House Commerce Committee passed HB2704 8-1 Tuesday afternoon. The measure would create a funding source to maintain the Diamondbacks’ home of Chase Field to ensure fans have a modern and safe experience at the ballpark. 

The Diamondbacks’ lease at the stadium ends in 2027 and lawmakers are seeking a solution that provides the Diamondbacks with funding for stadium repairs without creating new taxes.

The sponsor of HB2704 Rep. Jeff Weninger, R-Chandler, said Tuesday that the decision to build a stadium with taxpayer money was made 30 years ago and the state should treat Chase Field like a public asset. 

Rep. Jeff Weninger, R-Chandler

“What other public asset would we just let deteriorate and go down the tubes?” Weninger asked. “Especially one that has a revenue-generating juggernaut attached to it for all of downtown Phoenix and the entire state.”

The measure is modeled in a similar way to how the Arizona Cardinals generate tax revenue at State Farm Stadium in Glendale through the Arizona Sports and Tourism Authority.

As of 2022, Chase Field has generated $5.4 billion in the state’s gross domestic product, according to Diamondbacks Vice President, Government Affairs, Amilyn Pierce. That number doesn’t include the revenue generated from the Diamondbacks’ recent World Series appearance in 2023, nor the revenue generated from World Baseball Classic games played at Chase Field in 2023.

Weninger’s proposal would transfer sales and income taxes associated with Chase Field and the Diamondbacks and direct them to a fund for stadium repairs and maintenance. 

The Diamondbacks intend to pay more than half of the costs needed for stadium repairs. The team projects to contribute about $250 million to $300 million of an estimated $500 million needed for repairs to several projects including, HVAC, plumbing and roof repairs.

“This solution avoids any new taxes and demonstrates civic pride for a franchise that cherishes its role in creating jobs, impacting the economy, bettering the community, and providing an exciting product,” said Diamondbacks President, CEO, and General Partner Derrick Hall in a Jan. 29 news release.

Weninger said his measure also has “clawback” to incentivize the Diamondbacks staying in Phoenix until 2050. 

If the Diamondbacks were to leave, then the money in the fund for repairs would be transferred to the state. The team would also be issued a fine of $10 million if it leaves before Oct. 1, 2035. A $5 million penalty would be issued if the team leaves before 2045 and a $1 million fine would be issued if it leaves before 2050.

Some groups are opposing the bill, including Worker Power, a nonprofit social welfare organization whose members say the tax revenue generated at the stadium could be better spent elsewhere.

“It’s a request from the Diamondbacks’ billionaire owners for the team to capture millions of dollars in tax revenue that would otherwise go to public services,” said Margaret Schultz, who spoke in committee on behalf of Worker Power.

The Diamondbacks estimate the stadium generates about $15 million to $20 million annually in sales and income tax revenue.

But without the Diamondbacks and their annual 81 regular season home games, there’s little reason for the stadium to exist. 

Rep. Justin Wilmeth, R-Phoenix, said there are 150 non-baseball events scheduled at Chase Field, which gives the stadium at least 231 events in the year where people will be attending the stadium and contributing to the local economy with the various shops and restaurants that are near the stadium. 

“With no team and no Chase Field, then there’s no revenue to be had so I really don’t buy that argument,” Wilmeth said. 

Rep. Junelle Cavero, D-Phoenix, is a cosponsor of the bill and said the stadium is vital in bringing jobs to her district’s residents and contributing to the local economy.

“Those jobs and this industry is key to the success of Arizona,” Cavero said. 

Cavero said she was disappointed that officials from neither the city of Phoenix nor Maricopa County delivered remarks about the bill Tuesday.

Maricopa County Board of Supervisors Chairman Thomas Galvin said in his January state of the county speech that he’s committed to keeping the Diamondbacks in Arizona and his role would be to look out for taxpayers’ best interest. 

 

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