Arizona lawmakers debate who can tax stadium district developments
PHOENIX - State legislators are debating what entities are in charge of taxing stadium and arena projects that are being built in Arizona.
The debate comes on the heels of a decision by the NHL to move the Arizona Coyotes to Utah after team executives were unable to acquire land to build a new stadium district in the Valley.
Concerned state senators are saying the bill will only benefit stadium builders.
"Nobody should be taking our public goods to make a private person profit. That's not what taxes are for," state senator Juan Mendez said.
In the wake of the Coyotes move to Utah, the new bill would allow counties to control the taxation of entertainment districts instead of cities. The Coyotes failed bid to acquire land in Tempe, which was voted down by Tempe voters in May 2023, would have relied on approval by Maricopa County instead of Tempe voters if the new law was in place.
"It's crazy the way things work here at the legislature, the timing of this," Mendez said.
What other entities would this affect?
At a hearing for the bill, former business officer of the Coyotes Nick Sakiewicz testified he wants to build a stadium for a Major League Soccer team in Mesa using a theme park district.
"This bill will help us to generate more income on the property and create a win-win situation for Maricopa County and the state of Arizona," Sakiewicz said.
The Coyotes declined to comment on the bill, but whether the team comes back or not should not have a major impact on the state economy. The Grand Canyon Institute says the team leaving amounts to a $17 million loss on the economy.
Dave Wells of GCI says that is just .004% of the state's economy.
What are the supporters of the bill saying?
Proponents like state senator Jake Hoffman said in a statement the bill fixes a rigged system for the city of Phoenix.
"The bottom line is that the bill will increase taxpayer protections and strengthen private property rights, while leveling the playing field so more cities and the county have the opportunity to utilize this tool, ensuring a more equitable system," Hoffman said.
A lobbyist for the city of Phoenix said they are neutral. Changes to the bill could be presented tomorrow to allow larger cities to have an elevated role in building new stadium districts.