Arizona Gov. Katie Hobbs has signed House Bill 2704, which will allocate $500 million in public funding for Chase Field renovations, into law on Friday, a major victory for the Arizona Diamondbacks.
The bill will move along with the state budget, which has been approved by the House and Senate to be signed by Hobbs on Friday. The governor is expected to hold a ceremonial, public signing of the Chase Field bill later Friday.
Monies from sales taxes collected at the stadium and adjacent buildings, as well as income taxes from select team employees, will be redirected into a fund to update the facility.
Chase Field is owned by the Maricopa County Stadium District, and with a funding mechanism in place, the team’s focus will turn toward negotiating a lease extension. The Diamondbacks have played at the ballpark in downtown Phoenix since their debut season in 1998, and their lease expires in 2027.
The Diamondbacks intend to put $250 million in team money to help fund renovations, which include rehauling the HVAC system, replacing the scoreboard, working on the roof, and fixing under-the-hood infrastructure such as concrete, plumbing and electrical issues.
The bill was first introduced in the Arizona House of Representatives by Rep. Jeff Weninger in January, and it passed through the chamber on Feb. 26, 35-25. The state Senate, after nearly four months of negotiations and amendments, passed HB2704 late Thursday night, 19-11.
The amended bill needed to hit the House floor again, and it passed on Monday, 35-20. HB2704 received bipartisan support and backlash.
Hobbs has been supportive of the initiative to fund ballpark refurbishment and keeping the team downtown.
“I’m thrilled that the legislature has passed a bill that will keep the Diamondbacks in Phoenix and create good-paying jobs,” Hobbs posted on social media after the House vote. “This is a huge win for every Arizonan.”
What is in the Chase Field tax recapture bill?
The public-private partnership will reinvest sales tax dollars from Chase Field back into the ballpark for renovations. Additionally, 82% of income taxes from players and members of the traveling party will be transferred to the district fund. The bill has a cap at $500 million in public money over 30 years with an annual inflation adjustment at 3%.
The state’s transaction privilege tax (TPT) rate is 5.6% with a general tax of 5% and an education tax of 0.6%. The bill will redistribute money from the 5% general tax, not the 0.6% education tax.
The county TPT diversion will match the city of Phoenix’s, much to the chagrin of the county, including a one-half cent transportation tax from Maricopa County.
The Joint Legislative Budget Committee estimates the bill would cut into the state General Fund revenue by $9.2 million and local government revenue by $5.8 million annually.
A new Maricopa County Stadium District Board will be appointed to oversee how the money is being used.
Tax dollars cannot fund suites, pool suites or club seating, as they must go toward infrastructure.
“The costs will be covered by revenue generated through team activity, not by pulling from the pockets of Arizonans who never set foot in the stadium,” Weninger said in a press release. “We’re protecting jobs, preserving economic impact and keeping our beloved world champion Major League Baseball team in Phoenix — all without new taxes.”
How long does this bill keep the Diamondbacks at Chase Field?
The amended legislation includes penalties if the Diamondbacks depart Chase Field by 2050.
The D-backs would face a $10 million fine for leaving on or before Oct. 1, 2035. That penalty decreases to $5 million if the club leaves between Oct. 2, 2035, and Oct. 1, 2045. The fine becomes $1 million if the team leaves between Oct. 2, 2045, and Oct. 1, 2050.
The Diamondbacks have been clear in their intentions to remain in downtown Phoenix throughout the process, although there have been points of contention. Managing partner Ken Kendrick caught attention with a remark in spring 2024, “We may run out of time in Phoenix.”
The team’s stadium negotiations in the past year have also come in the aftermath of Arizona losing the NHL’s Coyotes to Utah, largely due to the lack of a long-term arena.
Diamondbacks president and CEO Derrick Hall sent an email to D-backs season ticket holders before the Senate vote with the subject, “Help Us Keep the D-backs in Arizona.”
The email and a stand at Chase Field directed fans to a website called “Keep Arizona Major League,” which contains a frequently asked questions section. One of such questions reads, “Is it really possible that the Diamondbacks could leave Arizona?” The answer to which involved the phrase “we know from experience, seeing the Coyotes moving to Utah, that these things can happen.”
Hall told KTAR News 92.3 FM’s The Mike Broomhead Show after the Senate vote that the Diamondbacks never threatened to move, nor did they look.
What comes next for the Diamondbacks at Chase Field?
The Diamondbacks and the county will need to agree on a lease extension.
“This could all be for naught if we don’t have a new lease extension, and we’re gonna start negotiating that,” Hall told Arizona Sports’ Bickley & Marotta on Thursday. “I don’t see any issue there. I don’t have any fear. I think we’re gonna get there.”
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