Homeless in Arizona

I suspect it is issues like this which caused the founders to create the Second Amendment.

Our government masters are nothing but crooks and they will use every trick in the book to steal our money and put it in the wallets of the special interest groups that help them get elected.

Source

Arizona Diamondbacks push stadium deal

Team seeks revenue by having Phoenix, not county, own field

by Craig Harris - Jul. 20, 2012 11:54 PM

The Republic | azcentral.com

The Arizona Diamondbacks are proposing a deal that would give them more control of Chase Field and significantly increase their bottom line by transferring stadium ownership from Maricopa County to Phoenix.

Team executives say the plan benefits all involved, but a key critic cast the deal as financially risky for city taxpayers and said it would lead to higher ticket prices for fans.

The downtown stadium opened as Bank One Ballpark in 1998. Roughly two-thirds of the $354 million cost was financed through a public quarter-cent-per-dollar sales tax that was approved in 1994 and expired in 1997.

Transferring control of the stadium would allow the Diamondbacks to stage more non-baseball events to boost revenue, team officials say.

Chief Executive Derrick Hall said his team is not seeking a government subsidy for the facility. He said the Diamondbacks already pay for stadium maintenance and capital improvements. Shifting stadium management from the Maricopa County Stadium District to Phoenix would give the team more say in the facility's management. The Diamondbacks would pay Phoenix rent, the amount of which has not been determined.

The team no longer would have to make roughly $4 million in annual rent and maintenance payments to the county stadium district, whose governing board is the county Board of Supervisors.

"We are exploring all of our options to improve our financial situation for competitive reasons," Hall said. "We would only do this if it made sense for all parties, and we assume all of the risks, and no liability would be placed on our partners."

But former Phoenix Mayor Skip Rimsza said Phoenix residents, as the stadium's landlords, could end up paying for renovations expected to be needed in the next several years. He said it might cost fans more to see games because the Diamondbacks, with greater control of the stadium, would be allowed to remove some of the nearly 50,000 seats, then raise prices when ticket demand increased at the smaller facility.

"It's all about reducing the number of seats -- and they can't do it while the county still owns it," Rimsza said. "They are trying to push up the premium for the seats by having less of them."

Hall acknowledged the Diamondbacks would like to eventually reduce capacity, which would increase revenue for the team. But he said that is not driving current discussions.

Rimsza became aware of the deal through city and county officials.

He said he opposes it because county taxpayers were promised that there would be inexpensive seats when Maricopa County imposed a quarter-cent sales tax to help fund its construction. The tax raised $238 million.

Comparable lease

Hall said the Diamondbacks, who made the playoffs last season, want a new lease that is comparable with other Major League Baseball franchises and other professional sports teams in the Valley.

The Diamondbacks, who are about halfway through their 30-year lease, are not the first local team to seek new terms. Glendale recently approved a 20-year, $324 million contract with a prospective new owner of the National Hockey League's Phoenix Coyotes to keep the team in the Valley.

Hall said the Diamondbacks are not looking to leave downtown, nor is the team seeking a government payment to operate Chase Field. Instead, it wants more control over the building it plays in and more control over the money it is required to set aside for improvements.

Hall said the Diamondbacks cannot make any major renovations at Chase Field without approval from the stadium district, which controls a capital-improvement account funded entirely by the team.

That account has a balance of about $8.5 million, according to the stadium district. The team also helps fund a stadium district operational reserve account of roughly $8.5 million.

Hall said the stadium district has identified about $125 million in needed renovations -- including updated scoreboards, suites, concession areas and kitchens -- before the lease ends. The Diamondbacks agree that fixes are needed, but they want full control over how and when they are done.

"We know the building better than anyone, and we know what the needs are," said Tom Harris, the team's chief financial officer.

Daren Frank, director of the stadium district, declined to comment on the team's proposal. But he said there is mutual agreement that Chase Field needs to be maintained.

"The concern is over the asset and how we best preserve the asset," Frank said. "At some point, there is a possibility the amount of money that will be needed to maintain the asset might be more than what we have. At that point, we would have to work within the partnership to define a way to do it."

However, Frank said, taxpayers would not be liable for any improvements.

Those involved in or aware of the discussions said a new deal for the Diamondbacks would guarantee the team stays in downtown Phoenix for the long term.

The franchise has a business relationship with the Salt River Pima-Maricopa Indian Community, which built the club a shared spring-training facility east of Scottsdale on Loop 101.

Cari Gerchick, a Maricopa County spokeswoman, said the county is open to discussions with the Diamondbacks about the stadium.

"It's a critical part of the downtown economy, and we have to make sure it's cared for properly," Gerchick said.

Phoenix City Manager David Cavazos acknowledged discussions with the team but said no formal agreement has been reached.

"Everyone wants to do what is possible to keep a vibrant economy in Phoenix," Cavazos said. "We have a baseball team that has been successful, and when anyone comes to us with ideas, we want to listen."

Charles Johnston, who manages the stadium for non-baseball events through Select Artists Associates, said he was unaware the Diamondbacks wanted more control of the stadium.

He said his firm has a contract through June 30, 2017.

Plenty of seats available

The Diamondbacks won the National League West Division last year, before bowing out in the first round of the playoffs.

Despite that accomplishment, the team drew an average of just 25,992 fans, or about 53 percent of capacity, according to records compiled by ESPN.

This year's team has been inconsistent on the field, but home attendance is up slightly, averaging 28,207 heading into this weekend's home stand. That is just 58 percent of capacity at the 48,635-seat stadium.

The empty seats drive down prices because of weak demand.

The Diamondbacks have boasted about keeping tickets affordable. The team's $15.74 average ticket price this season ranked second-lowest among major-league teams.

The franchise said it did not increase average ticket prices this season, and tickets are more than $11 below the league average.

But those low ticket prices also hinder the team's ability to spend money on players. The Diamondbacks have one of the lowest payrolls in baseball.