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Arizona State University is planning a face lift for its aging Sun Devil Stadium that could cost as much as $170 million to transform into a modern sports and entertainment venue.
University officials propose levying a tax on new commercial development on university-owned land to fund the refurbishment of the decaying 50-year-old stadium. They plan to ask state lawmakers to create a special Arizona university-stadium tax district in 2009 in the hope that work could begin on improvements to the Tempe structure in about three years. ASU officials say that their financing plans would not be a big burden on the state or university and that improved seating and facilities would allow the stadium to be used for other events besides college football.
"This is a great opportunity to make Sun Devil Stadium a venue that the whole East Valley can be proud of," said Steve Miller, ASU deputy vice president for public affairs. Miller is part of an 11-member athletic-facilities planning committee appointed by ASU President Michael Crow in May 2007 to study options and proposals for upgrading athletic facilities.
That committee, working from two engineering analyses of the stadium, found that $60 million to $65 million is required for structural work that needs to begin within roughly a decade. The costs climb to $170 million when the committee adds infrastructure improvements to electrical and plumbing systems, plus better restrooms, concession stands, kitchens and more comfortable seating.
The legislation being proposed by ASU officials would give a board of supervisors in any county containing a state university the power to form a stadium-taxation district much like a school or water district, meaning the University of Arizona and Northern Arizona University also could benefit.
It was unclear what sort of reception the plan would receive in the state Legislature, where some conservative legislators want to hold off on all building projects during the economic downturn.
The state Board of Regents, which oversees the three state universities, would need to approve the concept.
One regent, Ernie Calderon, cautioned that the regents need time to properly vet it.
"Let's not start talking about new taxes until the regents have had a chance to review this," he said.
Regents President Fred Boice said a separate source of revenue for stadiums could be helpful, especially given the price tag to fix Sun Devil Stadium alone.
Maricopa County Supervisor Mary Rose Wilcox said she would be open to considering forming such a district if it didn't levy additional taxes on homeowners and businesses.
"We know sports are a big generator for economic development," Wilcox said. "If it is limited to what the university uses and doesn't impact the greater community, it is an interesting concept."
The new tax would be similar to a property tax and levied only onnew commercial development on university-owned land. In ASU's case, that includes undeveloped land along Tempe Town Lake. University officials did not have estimates of how much money the stadium district would generate.
Taxes would go into a stadium fund, and the district, working through an intergovernmental agreement with the university, would issue bonds to pay for stadium improvements. The bonds would be obligations of the district and not of the state, city or county. They would be payable within 50 years.
"This is not a big, huge burden on the state or the university and allows for future development money to be captured," said Miller, who also envisions a partnership with Tempe to use the stadium for soccer and entertainment events.
Virgil Renzulli, ASU vice president for public affairs and a planning-committee member, compared the stadium to a car or bus.
"It's got to be fixed, and what's the alternative? This is a win/win where everybody benefits," she said.
Private fundraising, like that acquired for an indoor football-practice facility and basketball-practice facility, is not realistic for a project of this magnitude. Work also is needed on Wells Fargo Arena, Packard Stadium and Sun Angel Track Stadium, and there are plans for a new aquatics center.
The next step for ASU is to find a legislative sponsor.
"We'll be as open to suggested changes as we need to be to make this more viable," said Miller, who estimates that it will take up to three years before there would be sufficient revenue to begin work on Sun Devil Stadium.
The idea builds upon existing stadium-district legislation enacted in 1990 and modified in 1997 that created funding for Cactus League stadiums and University of Phoenix Stadium. ASU officials feel those private-enterprise opportunities help their case.
Sun Devil Stadium was built in 1958 with a seating capacity of 30,000. Additions were made from 1971 through 1992 that raised the capacity to more than 70,000. The capacity could eventually be reduced if seats are widened and more seat backs are installed. ASU has spent $10.8 million on the stadium since 2005 for repairs on the main concourse and loge, waterproofing and fixing rust problems on steel beams.
State Rep. Ed Ableser said the tax plan would raise funds for much-needed stadium improvements without diverting money from faculty and students.
"It is all about economic development for these communities," said Ableser, D-Tempe.
Ableser also said Tempe businesses don't oppose a stadium district.
"I know from our business community these are not sticking points at all," he said. "It is a realization that these assessments would create a more business-friendly environment. They would see it as an investment."
But Kevin McCarthy, president of the Arizona Tax Research Association, predicts the proposal will get a chilly reception at the Legislature.
http://www.azcentral.com/sports/asu/articles/2008/10/17/20081017asustadium1017-CP.html
