House committee advances stadium funding plan, draws hours of testimony from Diamondbacks and opponents

The House Commerce Committee advanced House Bill 2704 on a roll-call vote after more than two hours of testimony that split business, tourism and labor groups from taxpayer and worker advocates.

The bill would create a funding mechanism that transfers specified state, city and county transaction privilege tax (TPT) revenues and certain income tax revenue to the Maricopa County Stadium District to maintain and improve the Chase Field facility. It also includes reporting requirements, conflict-of-interest language and penalties if the professional baseball franchise leaves Arizona. Bill sponsor Chairman Wenninger said the proposal would reinvest tax revenue collected in the stadium footprint into a public asset the public owns.

Why it matters: supporters said Chase Field drives downtown Phoenix business, tourism and jobs and that the county-owned facility has critical maintenance needs — HVAC, roof and plumbing — that threaten long-term use if they go unaddressed. Opponents said state tax dollars should not subsidize a professional sports franchise and warned of precedent-setting “sales tax increment” financing that diverts funds from general state and local services.

Supporters’ arguments: Luis Gonzalez of the Arizona Diamondbacks told the committee the team sees Chase Field as “a community asset,” listing the franchise’s charitable work and saying the club would pay for a majority of identified repairs but needs a stable funding source for the remaining work. Kim Grace Sabo of the Arizona Lodging and Tourism Association told lawmakers HB 2704 would keep Chase Field “a premier event venue” without raising taxes and protect a tourism anchor that draws visitors to hotels and restaurants in the summer months. Mike Hawkins of the Greater Phoenix Chamber said critical building systems need upgrades and that downtown businesses rely on events that bring fans and visitors.

Opposition and concerns: Kevin McCarthy of the Arizona Tax Research Association and researchers from Worker Power and the Arizona Center for Economic Progress urged a no vote, arguing that stadium subsidies have limited economic benefit and that the bill would divert an estimated $15–20 million annually in state and local general funds. Maricopa County’s assistant county manager, Zach Scherer, told the panel he was concerned about impacts to voter-approved county excise taxes and said the county was discussing changes with staff and the Diamondbacks.

What the bill does: among other provisions the bill (as amended) requires annual reporting by the stadium district, subjects certain individuals to conflict-of-interest laws, authorizes the state treasurer to stop distributions if the franchise leaves Arizona, and sets tiered penalties if the franchise departs before specified dates. The amendment also clarified oversight and reporting details and added a clawback mechanism if the team left the state.

Outcome: Committee members adopted the Wenninger amendment and voted to return HB 2704 with a “do pass” recommendation. The committee recorded 8 ayes, 1 nay and 1 present on the due-pass recommendation.

What’s next: the bill was returned out of committee as amended and will move to the House floor. Lawmakers and county officials said they planned follow-up talks on technical details including how the plan interacts with voter-approved taxes and construction labor agreements.

Speakers quoted in this article are affiliated with organizations listed in the committee record and are named in the committee transcript.