DALLAS - The Arizona House passed a measure on Wednesday to allow the creation of a special regional taxing district that could issue up to $750 million of revenue bonds to finance a rock 'n' roll-themed amusement park between Phoenix and Tucson.
The House approved an amended SB 1450 on a 39-to-17 vote. The bill, which the Senate passed March 20 by a 17-to-11 margin, will be returned to the upper chamber to reconcile minor differences between the two versions. A final decision in the Senate is expected within two weeks.
"We got through the House with a fairly lopsided vote, and now the only hurdle remaining is the governor's office," said Jason Rose, a spokesman for the project sponsors. "[Gov. Janet Napolitano has] been a strong proponent of economic development in Arizona and we believe she'll sign the bill. But until that happens we'll keep our noses to the grindstone and won't uncork the Champagne bottles."
The governor declined to comment on the measure at a recent news conference, but did say she "likes rock 'n' roll."
The Decades Music Theme Park would be located in the Pinal County city of Eloy along Interstate 10 near its intersection with Interstate 8. Eloy, which has a population of approximately 11,700, is 65 miles from downtown Phoenix and 60 miles from downtown Tucson.
The park is expected to cost $800 million. It is scheduled to open in 2012.
The measure allows the creation by the city of a regional attractions district upon the petition of landowners within the district. The district will be a municipal property corporation.
Park sponsors must line up $100 million of private money for the project before the bonds could be issued. The law also requires the revenue bonds to be insured or otherwise guaranteed by a financial institution rated double-A or higher.
The five-member board overseeing the district will consist of two representatives nominated by the city and one each nominated by the governor, the speaker of the House, and president of the Senate. The district board will be able to levy a sales tax of up to 10% within the district to support up to $750 million of 40-year revenue bonds.
The sales tax within the district will be in addition to the current 9.6% sales tax in Eloy, which includes the state's 5.6% tax, Pinal County's 1% tax, and the city's 3% sales tax. Eloy also levies a 3% hotel tax.
The park, with sections and attractions focusing on music from the 1950s, 1960s, 1970s, and 1980s, will be located on 144 acres within the 950-acre district. The sales tax would be levied throughout the district. Property within the park itself would be exempt from property taxes, but hotels and other operations within the district but outside the park would be subject to property taxes.
In addition to the amusement park, plans include an 850-room hotel, a 17,000-seat concert arena, and 122,000 square feet of retail space.
Rose said the process of establishing the attractions district, raising the $100 million in private investments, and issuing the bonds will begin as soon as the legislation is signed into law. He said Kutak Rock LLP is serving as a consultant to the investors.
"We have had good discussions with a number of bond houses, and they have expressed a great deal of interest in this project," Rose said. "At the same time, they want to see the legislation passed before beginning any serious talks."
"The group of investors is focused on getting through door number one before we go through door number two," he added. "We have put together a tremendous structure that will make something significant happen fairly soon."
An economic feasibility study of the project by amusement park consultant Peter Alexander of Totally Fun Co. said the music park can expect to attract more than six million visitors a year. That's about as many visitors as the Universal Studios amusement park in Orlando draws each year and 2 million more a year than at San Diego's SeaWorld.
Rose said he has no doubts about the study's validity.
"There will be almost six million people living within a three-hour drive of this park by the time it opens," he said. "You also have to remember that 23 million to 25 million come in to Arizona each year to areas within an hour of the park, and this is the only amusement park in the state that will have these sorts of attraction."
An economic impact study by Elliot Pollack & Associates said the district would generate $267.6 million in state revenues over the first 10 years of operation, with another $180 million for Eloy.
