PHOENIX — The Arizona Diamondbacks remain confident that Arizona House Bill 2704, which would redirect sales taxes and employee income taxes from Chase Field into ballpark renovations, will pass as it enters its next phase.
D-backs president and CEO Derrick Hall said he believes the bill could go through Senate committee next week and then onto the floor. The Arizona House of Representatives already passed the legislation, so Senate approval would place it on the desk of Gov. Katie Hobbs to sign into law.
The bill, Hall said, has been met with bipartisan support, as evidenced by the House’s 35-25 vote to pass.
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The city of Phoenix, however, continues to push back on the legislation as written. Phoenix mayor Kate Gallego sent a letter to Hobbs on Tuesday voicing concerns over the diverted funds.
“The Diamondbacks belong in downtown Phoenix — it’s where the team clinched Arizona’s first major sports championship — and I believe there is a reasonable path forward that can secure the team’s future in our community,” Gallego wrote in the letter obtained by KTAR News.
“Many of the provisions included in H.B. 2704, though, defy responsible governance. I urge that, as someone who has voiced support for the legislation, you use your unique position to protect Arizona taxpayers and help improve H.B. 2704. I am hopeful that with your leadership, there will be a resolution that all of Arizona can celebrate.”
The Diamondbacks have played at Chase Field since the team’s inaugural season in 1998, and the building is in need of updates. D-backs leadership has said renovations would cost $400-$500 million and claimed it will contribute $200-$300 million of team money into repairs.
The bill redirects a 5% state sales tax into a fund, as the club wants to address the air conditioning, scoreboard, plumbing and electrical concerns. The bill also pulls a 2% tax from the city and 0.5% from Maricopa County.
Gallego explained that the Joint Legislative Budget Committee’s estimate that the bill would cost $471 million in sales taxes over 30 years is actually closer to $720 million over 30 years. She urged Hobbs to demand parameters for the amount of taxpayer dollars spent.
What concerns does Phoenix have about the Chase Field bill?
Gallego listed out six specific concerns in her letter:
– Cost projections by the Joint Legislative Budget Committee underestimate taxpayer contributions
– H.B. 2704 does not require the Diamondbacks to contribute to Chase Field renovations, although the team publicly said it will
– The bill’s cost to taxpayers exceeds the team’s publicly stated needs
– Taxpayers could pay for luxury amenities
– Adjacent buildings language creates a loophole if the Diamondbacks develop around the stadium
– Phoenix taxpayer money will be used for property the city does not own
Gallego mentioned the Phoenix Suns’ arena renovation, which did not include funding from the state nor the county for the city-owned building.
Maricopa County owns Chase Field, and the Diamondbacks’ lease runs out in 2027. The D-backs have been clear about wanting to remain in downtown Phoenix, as building a new ballpark is a much more complicated economic endeavor.
Hall addressed the team’s latest negotiations with Phoenix on Tuesday. He did not address the letter, which was obtained after he spoke with reporters at the annual “What’s New at Chase” event.
“We’ve given in for a lot of those scenarios and deal points that were important to them, making sure, again, that we didn’t impact public safety. Of the 2.3%, we gave that 0.3% back, which was identified as police and fire and public safety,” Hall said.
“They wanted a cap. We’re working on that, whether there could be a cap in years or dollars or both. We’re working on that right now. They wanted the income tax portion to be left out, because they actually get a distribution from the state, all the cities do. They asked for us not to make that a part of it.
“I think with all of that, there’s a lot of city support right now. We’re to the point now where we’re probably not going to be changing the bill much from a deal point standpoint because we’re so far down the down the track.”
Hall said the bill would allow the team to “borrow” $200 million right away to begin updating the park, which will take four or five offseasons to complete.
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