Craig Harris

The Republic | azcentral.com

Key lawmakers say a public financing bill for a new Arizona Coyotes arena lacks votes for passage

Two influential Republicans and many Democrats oppose plan, lawmakers say

A plan that would provide $225 million in public financing for a new $395 million Arizona Coyotes arena likely does not have the votes to pass the state Senate, key lawmakers told The Arizona Republic/azcentral Thursday.

Sens. Debbie Lesko, R-Peoria, and John Kavanagh, R-Fountain Hills, said they definitely were going to vote against the plan, while Minority Leader Katie Hobbs, D-Phoenix, said there is little support among the chamber's 13 Democrats. Meanwhile, Senate President Steve Yarbrough, R-Chandler, said he had "serious reservations" about the plan that would allow the National Hockey League team to build an arena in downtown Phoenix or the East Valley.

It would take at least 16 votes to pass Senate Bill 1149 in the GOP-controlled Senate, where Republicans have a 17-13 advantage. Statements from those lawmakers make it appear unlikely that there is enough support to move the plan to the House.

ROBERTS: A $225 million subsidy for Coyotes? Really?

"We are still working on it. It's not easy," said Sen. Bob Worsley, R-Mesa, the bill's sponsor.

Worsley, needing bipartisan help, took the unusual approach of appealing directly Thursday to Senate Democrats during their caucus meeting. Hobbs said she allowed Worsley to pitch to Democrats because he's been friendly to their causes. Yet, she said he didn't win over many supporters.

Coyotes continue push

The Coyotes want out of Gila River Arena, a 13-year-old facility built specifically for the team and funded chiefly by Glendale taxpayers. The city in 2015 stopped subsidizing the team by canceling an arena management deal with the Coyotes. The team says playing in the West Valley is not financially viable because the arena is not close to the majority of its fans and sponsors.

Coyotes Chief Executive Anthony LeBlanc said the team will continue seeking support at the Legislature.

"There are a lot of moving parts in this legislative process and everything is malleable and open for discussion until the very end. We will continue to educate lawmakers about a complex project that creates a true public-private partnership and offers the Coyotes an economically viable solution to remain in the Valley for the long term," LeBlanc said.

The bill would allow creation of "community engagement" districts of up to 30 acres. Up to half of the state's share of sales taxes generated from retail and hotel stays within a district would be dedicated to paying bond debt for new sports or entertainment facilities there. It also would allow an additional 2 percent district sales tax to be applied to all purchases within the district, with those revenues also dedicated to defraying the cost of facility construction.

For the Coyotes, the plan envisions public funding covering 57 percent of a new arena's cost, with new sales taxes covering $170 million and the host city contributing $55 million. The Coyotes said the team's portion would be $170 million, amounting to a 43 percent contribution toward the planned $395 million total cost of a new facility. The Coyotes also would control real estate and hotel development planned within the district, giving the team additional revenue. The team wants a slightly smaller arena with a larger lower bowl than its currently home, allowing the Coyotes to raise ticket prices for premium seats.

SB 1149 last week passed out of the Senate Transportation and Technology Committee, which Worsley chairs. On Thursday, it sailed through the Senate Rules Committee, typically a perfunctory move before heading to the full Senate. A vote before the full Senate could occur next week.

Glendale officials lobby against bill

The team and Glendale officials have aggressively lobbied lawmakers on the bill, with Glendale trying to kill it. West Valley lawmakers in the House also have voiced opposition to the legislation.

The Coyotes are contractually bound to stay in Glendale through the 2017-18 season. The city has a $13 million annual debt payment on the arena through 2033, bearing most of the construction debt.

Yarbrough, who chairs the Rules Committee, said while he allowed the bill to continue moving, he was leaning against it.

"You are using taxpayers' money to prefund a significant private enterprise," Yarbrough said. "And those don't always turn out so well."

Lesko, the Senate's chief budget writer who also is its president pro tempore, said Glendale taxpayers already paid for a new arena for the Coyotes, and the state shouldn't give the team another facility. Kavanagh, also one of the budget writers, said taxpayers are not in favor of using public money for a private sports arena.

Hobbs, the Democrats' leader, said Glendale taxpayers already provided the Coyotes with a "pretty sweet deal."

"I suspect most of the Democratic members are 'no,' but there is a lot of lobbying going on right now, and a lot can change in a few days," Hobbs said.

Majority Leader Kimberly Yee, R-Phoenix, said she hasn't decided how she will vote on the bill, but she said Glendale and the Coyotes should spend more time trying to find a resolution rather than spending time at the Capitol.

"They are negotiating among legislators when they should be talking face to face," Yee said.