Mesa Plans to Borrow from Peter to Pay Paul

Looking at the press releases, the public has been led to believe that the City of Mesa has somehow miraculously found the resources to build a new Chicago Cubs spring training facility without the help of any state assistance. The miracle is in the form of thousands of acres of unneeded Pinal County land owned by Mesa which can now be sold off to service the debt which will be incurred to build this development. While the impression given is that this is new-found money, a closer examination shows this is not the case at all.

The Pinal County land in question has been listed for sale for over three years. At the time these parcels went on the market, the city issued a press release which stated, “The proceeds from the land sale have already been projected in the City’s budget forecasts.” In other words, whatever amounts could be anticipated from selling this asset was already allocated to some future expense. If the funds from land sales are now diverted to the Cubs project, some other means will have to be found to replace a budget revenue gap in years to come. This amounts to nothing more than “kicking the can down the road” and almost guarantees the need to cut additional essential services or raise taxes.

Economic Viability of Cubs Spring Training Project in Doubt

The latest pledge by the City of Mesa towards financing the Chicago Cubs spring training complex has virtually no chance of showing a return on the investment. Whereas the initial plan unveiled back in January stated that the State of Arizona would pick up at least one-half the cost of the development, the city has now committed to fund the entire public portion of this project in an effort to meet a July deadline regarding financing.

The primary way government agencies generate income as a result of business and development projects is through the receipt of taxes. Of all the money spent in connection with Cubs spring training activity only a portion is taxable and, of that total amount, just a small portion flows to cities. In the case of the new Cubs facility, most tax revenue would go to the state and county. Of the overall sales tax of 9.05% in Mesa, the city receives 1.75%. Also, keep in mind that money spent at away games in another jurisdiction will not benefit the City of Mesa. In the end, Mesa will get far less than $1 million per year in revenue from this enterprise while paying out many millions of dollars annually in bond debt service to pay off the stadium and practice fields.

New Mesa Spring Training Plan Involves Selling Assets

The latest City of Mesa funding idea for a new Chicago Cubs spring training complex relies primarily on the sale of land which the city acquired years ago in Pinal County. This idea basically puts Mesa in the same position as the City of Glendale regarding their spring training facility for the White Sox and Dodgers. In plain language, the city will sell bonds sufficient to build the new baseball development and hope the money shows up later. Of course, a concerned taxpayer might wonder, if the land over in Pinal County was not needed for the original intended purpose, why wasn’t it already on the market before now? And, if the land really is worth anywhere near $100 million, is the subsidy of out-of-state millionaires the best use of that money?

The other source of proposed funding for this project would come from an increase in the hotel tax from the current rate of 3% up to %5. City officials estimate this tax increase would generate an additional $1 million per year.

Spring Training Announcement Planned For Thursday

Officials at the City of Mesa have announced a press conference for 10:30 AM on June 3rd. The stated purpose of this meeting is to reveal a new funding plan for the Chicago Cubs spring training facility. Participants include the mayor, the city manager, Cactus League representatives and various business leaders within the community. Perhaps of significance is the mention of hotel executives to be present at this time.

Since this is the fourth or fifth financing plan to be publicly revealed, it is hard to tell whether it will be the last, but the clock is ticking toward the July 12 final agreement deadline stated in the memorandum of understanding signed back in January. Also, it is unclear whether the Cubs preferred development site at Red Mountain Ranch will finally be made official at this meeting.

More Confusion and Secrecy on Proposed Cubs Spring Training Project

City of Mesa mayor Scott Smith was quoted today in the Arizona Republic as saying the odds are very good that the city and the Chicago Cubs will have a deal in place for financing the proposed new spring training facility for the team within the time frame described by the Memorandum of Understanding signed back in January. While the mayor did not say how the development would be financed, he did say “Yes, there will be something for voters.” The mayor contradicted recent comments from Cubs officials by emphasizing there would not be an increase in property or sales taxes. So, it remains unclear just exactly what the “something” he referred to is.

At this juncture, it appears the city is continuing a purposeful campaign to conceal details of this project in an effort to blunt opposition.

Two-Team Stadiums Draw Most Spring Training Fans

The Cactus League team which drew the most fans this past spring training season was the San Francisco Giants playing in the City of Scottsdale. However, the stadiums which had the greatest attendance, ahead of Scottsdale and in order of rank, were Camelback Ranch in Glendale, the Peoria Sports Complex and Surprise Stadium. Hohokam Park in Mesa, where the Chicago Cubs play, came in fifth place. This set of circumstances came about because the top three facilities were each shared by two baseball teams. Obviously, it is the number of people attending games which is the most important factor in determining the economic impact and potential tax revenue generated by a spring training project. Next year there will be another two-team stadium in Maricopa County which will be shared by the Arizona Diamondbacks and the Colorado Rockies.

Unfortunately for City of Mesa taxpayers, the Chicago Cubs early on in negotiations rejected the two-team format for a proposed new spring training facility. In January of this year the Cubs president was quoted as saying they had been approached by other teams about the possibility of a shared project, but they rejected the concept. Too bad nobody asked the opinion of the people who will be asked to pay for this development.

Mesa City Council Meets to Discuss Cubs Stadium Deal

The Mesa City Council met today to discuss new proposals to fund the proposed Chicago Cubs spring training project. Unfortunately, as with most of the previous official gatherings on this subject, this meeting was not open to the public. Perhaps there will be some announcement within a few days as to what was discussed. Recently, far more information about this development has been revealed by the Cubs organization than by the city. Representatives of Mesa have dodged questions and misled taxpayers for several months on this matter.

Hopefully, one of the proposals discussed at the latest meeting deals with bringing in private funding for at least some portion of this undertaking. This option has the best chance of overcoming objections which have arisen since the spring training proposal was first announced in January.

Mesa Promises Facts on Cubs Stadium

After weeks of silence on the subject, the City of Mesa has announced that they will be revealing new facts concerning the proposed Chicago Cubs spring training facility to be built in east Mesa. Mayor Scott Smith was quoted on May 11th as saying there has been a lot going on behind the scenes and he expected to provide details during the week of May 17th. Perhaps this will include the exact location for the project at Red Mountain Ranch or maybe specifics on the planned new property tax to pay for this development. In any case, it would be a pleasant change to get any information from the city since almost all news recently has been leaked by Cubs representatives.

Mesa Plans to Double Property Tax to Pay for Cubs Spring Training Facility

The City of Mesa has decided the best way to fund a new Chicago Cubs spring training project is to implement a new property tax. This is the second time in two years that the city has proposed using a secondary property tax to raise bonding money. The last occasion was in 2008 when $170 million in bonds were approved by voters to pay for roadways and essential safety services. Back then officials estimated that the impact of the tax would be about $50 annually on a home valued at $250,000. However, as frequently happens with government estimates, the actual amount has ended up being 50% higher. There is no reason to believe the current situation would be any different. Today, officials estimate the impact of the Cubs tax as being about $60 on a $250,000 home. No doubt the actual amount will again be somewhat more.

Still No Information on Source of Funds for Cubs Spring Training Project

While the State of Arizona Legislature has concluded its 2010 session without taking any action on raising funds for a proposed new Chicago Cubs spring training facility, the City of Mesa insists the project is still alive and that it would be “insanity” not continue to pursue the development as outlined in the Memorandum of Understanding signed by the baseball team and the city. Interestingly, Mesa has never said how it intends to come up with any portion of the money necessary for this venture. Since the months are passing by, it would seem prudent to advise the community about whatever plans may be under consideration. Perhaps Plan B has always been to proceed without the assistance of the state or any private source and to place the entire burden of funding upon Mesa taxpayers.