DALLAS - After nearly two frustrating years searching for a stadium site for the ArizonaCardinals and overcoming legal obstacles to bond issues, Arizona's Tourism and SportsAuthority is nearing a clean sweep of its commitment to the professional sports teamsthat play and practice in the Phoenix area.
After selling $222 million of revenue bonds last week to build a new Cardinals footballstadium in Glendale and $32.4 million of revenue bonds for a new Cactus League springtraining ballpark in the suburb of Surprise this week, the TSA will use some of theproceeds from the smaller deal to keep the Oakland Athletics practicing in Phoenix byrefurbishing a deteriorating facility.
On Wednesday, the TSA board agreed to spend $4.3 million for the renovation of PhoenixMunicipal Stadium, where the A's hold spring training. Of the nine Major League Baseballteams that practice in Arizona, six hold camp in the Phoenix area and three are based inTucson.
By law, the TSA can cover up to two thirds of the costs of a major sports project usingrevenue from a sales tax on rental cars and hotels in Maricopa County. Phoenix isexpected to cover the remaining $2 million of the $6.3 million stadium renovationproject.
The Oakland A's, who have been conducting spring training activities at Phoenix Munisince 1982, are expected to sign a new 10-year contract when the current stadiumcontract comes due next year. Team officials had indicated that they might move to LasVegas if the stadium was not improved.
The danger of losing the A's as a spring tourism draw came as the TSA was nearingresolution of a lawsuit that had tied up the issuance of the Cardinals revenue bonds formore than a year. The suit by developer John F. Long, which challenges the TSA'sconstitutionality, also held up the $32.4 million in bonds for the Surprise stadium,which forced Surprise to finance construction with the understanding that the authoritywould reimburse the city once it was able to sell bonds. The Surprise ballpark hosts theKansas City Royals and the Texas Rangers.
The $32.4 million raised by Tuesday's bond issue will be used to pay the $26.7 millionbalance owed to Surprise. The remaining $4.3 million will cover the Phoenix MunicipalStadium repairs.
The sale of subordinate tax revenue bonds for the Surprise stadium was lead-managed byRBC Dain Rauscher Inc. The insured bonds will pay an average of 4.9% interest and havematurities ranging from one to 13 years. The deal is expected to close next week.
The sale of the Cardinals stadium bonds, also managed by RBC Dain Rauscher, closedWednesday with an average interest cost of 4.9%. The insured deal, which represented theTSA's first bond sale, was oversubscribed by $882 million.
"The market was very interested in our offer and allowed us to secure some veryfavorable interest rates," said TSA chief executive Ted Ferris.
