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East Valley Tribune
By Paul Giblin, Tribune
Two years after awarding the Arizona Cardinals stadium to Glendale, the state sports authority is picking up $32 million of the city's costs to keep the project on schedule, angering East Valley leaders.
The authority is in the process of absorbing the costs of building infrastructure such as sewer lines and a plaza to surround the 63,000-seat stadium.
The authority's sudden generosity is jolting, considering financial responsibility for infrastructure and the plaza clearly was assigned to potential host cities during the bidding process in 2002, East Valley leaders said.
Mesa Mayor Keno Hawker said it may be time to consider removing members of the recently renamed Arizona Sports and Tourism Authority for violating the public trust.
"I think the governor appoints the (authority) board members, so she would have to say they are not complying with her wishes and replace them,” Hawker said.
The authority is overseen by a nine-member board of directors, all volunteers and appointed by the governor, the president of the Senate and the Speaker of the House of Representatives.
The issue is that Mesa, Tempe and other municipalities included infrastructure and plaza costs in their bids to land the stadium. Without those costs, Mesa would have been able to offer a much more attractive package, Hawker said.
Tempe Mayor Hugh Hallman said his city is at issue with the authority for seeking $1 million from the city for its failed stadium site.
"I'm just glad to know that they've got that much extra money that our financial resources are not required," he said.
The authority's willingness to assume the costs is being driven by an impasse between Glendale and the authority, according to authority, Cardinals and city documents obtained by the Tribune though public records requests.
Glendale's failure to begin the work threatens to throw the entire project off schedule, according to a five-page letter by authority president Ted Ferris and Cardinals vice president Michael Bidwill.
"Time is of the essence if there is any hope of completing the work within the estimated budget and in time for the expected opening of the Cardinals Stadium," they told Glendale City Manager Ed Beasley in the Aug. 3 letter.
The authority agreed to assume the cost because the city's continued delay has compromised the construction cost and schedule of the required infrastructure, Ferris and Bidwill stated in the letter.
Neither Ferris nor Bidwill returned several interview requests this week.
The Glendale City Council agreed in principal to transfer the financial responsibility to the authority on July 13, according to press releases issued by both Glendale and the authority the following day.
"We have worked in partnership with the AZSTA and the Arizona Cardinals to develop these refinements to our existing agreements," Glendale Mayor Elaine Scruggs said in the press release.
However, the new financing deal has yet to be formally approved by Glendale's council. The sides have not even agreed on who should meet to negotiate the final details.
Beasley responded to Ferris and Bidwill on Aug. 5 that there never was a "council-approved finance plan." Beasley could not be reached for comment late Wednesday.
Glendale spokeswoman Julie Frisoni said, "From the city's perspective, we continue to stand behind the facts that we have done, and will continue to do, everything we agreed upon."
The Glendale council is on summer vacation and not expected to meet until Sept. 7.
The stadium, which is under construction at Loop 101 and Bethany Home Road, is scheduled to open in time for the 2006 NFL season.
The stadium's projected cost is $370.6 million, excluding the authority's presumed new portion of the infrastructure. The authority is responsible for $266.6 million of the total, while the Cardinals are responsible for $104 million.
Authority board member Rod Williams, a strong supporter of West Valley stadium sites during the selection process, said he doesn't understand why Glendale has not funded the entire infrastructure and plaza costs itself.
"Who knows why? I can't answer that question," he said.
According to the July 14 press releases, the authority agreed to take on $32 million of the projected $61 million total infrastructure and plaza costs. The city's remaining $29 million portion is earmarked for road and freeway improvements.
The authority plans to cover its new costs through bonds repaid with the collection of city sales tax for business at the stadium and parking surcharges. Previous agreements called for the city to use that revenue.
The authority awarded the stadium to Glendale after first awarding and withdrawing it from both Tempe and Mesa when difficulties arose.
By Paul Giblin, Tribune
Two years after awarding the Arizona Cardinals stadium to Glendale, the state sports authority is picking up $32 million of the city's costs to keep the project on schedule, angering East Valley leaders.
The authority is in the process of absorbing the costs of building infrastructure such as sewer lines and a plaza to surround the 63,000-seat stadium.
The authority's sudden generosity is jolting, considering financial responsibility for infrastructure and the plaza clearly was assigned to potential host cities during the bidding process in 2002, East Valley leaders said.
Mesa Mayor Keno Hawker said it may be time to consider removing members of the recently renamed Arizona Sports and Tourism Authority for violating the public trust.
"I think the governor appoints the (authority) board members, so she would have to say they are not complying with her wishes and replace them,” Hawker said.
The authority is overseen by a nine-member board of directors, all volunteers and appointed by the governor, the president of the Senate and the Speaker of the House of Representatives.
The issue is that Mesa, Tempe and other municipalities included infrastructure and plaza costs in their bids to land the stadium. Without those costs, Mesa would have been able to offer a much more attractive package, Hawker said.
Tempe Mayor Hugh Hallman said his city is at issue with the authority for seeking $1 million from the city for its failed stadium site.
"I'm just glad to know that they've got that much extra money that our financial resources are not required," he said.
The authority's willingness to assume the costs is being driven by an impasse between Glendale and the authority, according to authority, Cardinals and city documents obtained by the Tribune though public records requests.
Glendale's failure to begin the work threatens to throw the entire project off schedule, according to a five-page letter by authority president Ted Ferris and Cardinals vice president Michael Bidwill.
"Time is of the essence if there is any hope of completing the work within the estimated budget and in time for the expected opening of the Cardinals Stadium," they told Glendale City Manager Ed Beasley in the Aug. 3 letter.
The authority agreed to assume the cost because the city's continued delay has compromised the construction cost and schedule of the required infrastructure, Ferris and Bidwill stated in the letter.
Neither Ferris nor Bidwill returned several interview requests this week.
The Glendale City Council agreed in principal to transfer the financial responsibility to the authority on July 13, according to press releases issued by both Glendale and the authority the following day.
"We have worked in partnership with the AZSTA and the Arizona Cardinals to develop these refinements to our existing agreements," Glendale Mayor Elaine Scruggs said in the press release.
However, the new financing deal has yet to be formally approved by Glendale's council. The sides have not even agreed on who should meet to negotiate the final details.
Beasley responded to Ferris and Bidwill on Aug. 5 that there never was a "council-approved finance plan." Beasley could not be reached for comment late Wednesday.
Glendale spokeswoman Julie Frisoni said, "From the city's perspective, we continue to stand behind the facts that we have done, and will continue to do, everything we agreed upon."
The Glendale council is on summer vacation and not expected to meet until Sept. 7.
The stadium, which is under construction at Loop 101 and Bethany Home Road, is scheduled to open in time for the 2006 NFL season.
The stadium's projected cost is $370.6 million, excluding the authority's presumed new portion of the infrastructure. The authority is responsible for $266.6 million of the total, while the Cardinals are responsible for $104 million.
Authority board member Rod Williams, a strong supporter of West Valley stadium sites during the selection process, said he doesn't understand why Glendale has not funded the entire infrastructure and plaza costs itself.
"Who knows why? I can't answer that question," he said.
According to the July 14 press releases, the authority agreed to take on $32 million of the projected $61 million total infrastructure and plaza costs. The city's remaining $29 million portion is earmarked for road and freeway improvements.
The authority plans to cover its new costs through bonds repaid with the collection of city sales tax for business at the stadium and parking surcharges. Previous agreements called for the city to use that revenue.
The authority awarded the stadium to Glendale after first awarding and withdrawing it from both Tempe and Mesa when difficulties arose.
