SB 1149, which would provide funds for new Coyotes arena, explained
Feb 15, 2017, 9:45 AM | Updated: 11:58 am
On Tuesday, an Arizona Senate committee passed a bill that would help provide funding to build the Coyotes a new $395 million arena.
It is Sen. Bob Worsley’s second attempt to provide money for a new arena for the Coyotes, and he said other Valley teams such as the Phoenix Suns or Arizona Diamondbacks would likely be unable to use the bill to fund their own new buildings since it would expire in 2019.
Now, the bill taking this step does not mean an arena will be built, but what it does do is lay the groundwork for the possibility of one being funded.
As reported Tuesday, Senate Bill 1149 now moves on to a debate within the senate, and, if it passes there, will then be sent to the house to be voted on.
In other words, we are still a long way from having any shovels put into the ground. But in a slideshow presented by the Coyotes, they laid out how the building could be funded without a negative impact on the state or its taxpayers.
But what this could mean is the groundwork for the arena’s funding is set in place, with the agreement working for whatever Valley city would ultimately be home for the venue. To build it, the team would contribute $170 million and the host city $55 million. Another $170 million would be raised through bond sales.
As part of the Coyotes’ pitch for the bill — which included a slideshow presentation — they noted that most other sports facility projects around the country are funded with a variety of taxes, and while theirs will also require government funds, it will not require any tax increases or state financing.
Therefore, they reason, there is no risk to the state nor use of existing state funds. Instead, the project will bring in new revenue with the franchise assuming all construction risk.
According to the Coyotes, once the arena is built their annual cost to maintain it will be around $24.4 million, which is among the highest for comparable NHL teams.