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Friday, February 5, 2010

White Sox and Diamondbacks trying to block Cubs deal with Mesa

From the Phoenix Business Journal -
The Chicago White Sox and Arizona Diamondbacks oppose a plan to have the entire Cactus League bankroll the $84 million stadium being built in Mesa for the Chicago Cubs.
Arizona lawmakers are crafting plans that could impose new ticket charges on all Cactus League games and raise rental car taxes Valleywide to help pay for the Cubs’ new spring training complex.
Cactus League President Robert Brinton said ticket surcharges previously have been used by specific cities to fund baseball stadiums within their jurisdictions, but this is the first time a leaguewide fee could be imposed for one project. In a nutshell, the D-backs, Sox and spring training fans Valleywide would help foot the bill for Mesa to build a 15,000-seat stadium for the Cubs.
“We’re opposed,” said White Sox owner Jerry Reinsdorf.
He said other teams and their fans did not finance development of the new White Sox stadium in Glendale, and he thinks it’s unfair to have other teams pay for the Cubs complex in Mesa. The Sox share the new Camelback Ranch stadium with the Los Angeles Dodgers.
D-backs President Derrick Hall also doesn’t like the idea of leaguewide ticket surcharges to benefit the Cubs.
“We want the Cubs to stay here badly, but not at the expense of our fans,” Hall said. “I’ve heard the argument that the other teams should be willing to because of the visiting crowds that the Cubs bring to their games. They do draw well, as do we, yet we were creative in our search for a new site to identify a partner willing to finance the entire project without public dollars.”
The Salt River Pima-Maricopa Indian Community is building a new spring training stadium east of Scottsdale for the D-backs and the Colorado Rockies. The tribe is taking a $23 million loan backed by federal stimulus money to help fund that $100 million project. The tribe, which operates two casinos, is paying for the remainder of the new complex.
Cactus League tickets this year range between $4 and $45 per game.
TO THEIR BENEFIT

Brinton said the Cubs are a linchpin of the Cactus League, and he supports the ticket surcharge idea as well as raising car rental rates. The Cubs are the biggest draw in the Cactus League, with more than 203,000 fans attending its spring training games in 2009. The team’s owners, the Ricketts family, threatened to move to Naples, Fla., to play in the Grapefruit League unless Mesa built a new ballpark to replace the aging Hohokam Stadium.
Arizona House Majority Leader John McComish, R-Ahwatukee, is formulating a financing bill for the Cubs. McComish said he is looking at options to pay for the new stadium, including ticket surcharges and increased taxes on hotels and car rentals. He hasn’t finalized the bill, but said it could be introduced soon. It has not been determined how much the surcharge would be.
The Phoenix area already has high car rental taxes, with current rates totaling 18.53 percent.
McComish understands the skepticism from other teams, but he pointed out that the Cubs have a substantial regional economic impact and draw fans to other Cactus League parks.
“When the other teams play the Cubs, they sell out. It’s to their benefit,” he said.
McComish said he’s looking at long-term revenue streams to help the entire league, not just the Cubs.
Keeping the Cubs in Mesa has the backing of key lawmakers, including House Speaker Kirk Adams, R-Mesa. Adams confirmed that ticket surcharges and car rental tax increases could be part of the Cubs package.
“The Cubs are a $138 million impact on the economy annually,” Adams said.
BAD TIMING

Legislators also may face criticism if they fast-track taxes for the Cubs as they cut education and social welfare programs in the face of a multibillion-dollar deficit.
“It’s a tough climate to be making those kind of promises,” said Gretchen Jacobs, president of Arizona Governmental Affairs, a lobbying firm in Phoenix.
Mesa City Manager Chris Brady said in addition to ticket surcharges and higher car rental taxes, Mesa voters will be asked to approve bond money as well as infrastructure and services spending for the new complex. Brady said tentative plans call for two-thirds of the $84 million to come from regional sources and one-third from the city. That translates into a split of $56 million to $28 million. McComish said the split could be more even.

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