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A proposal would require Phoenix to pay $150 million upfront, with the Suns kicking in 80 million, to renovate Talking Stick Resort Arena.
Arizona Republic

The Phoenix City Council approved a controversial deal with the Phoenix Suns that will keep the NBA franchise in downtown Phoenix through at least 2037. 

The council voted 6-2, with Vice Mayor Jim Waring and Councilman Sal DiCiccio opposing it, to approve the $230 million deal. The city will pay $150 million from its Sports Facilities Fund, which is composed of a 1 percent tax on hotels and a 2 percent tax on car rentals.

The council added a number of tweaks to the deal, including:

  • Requiring the Suns to spend $10 million on community benefits (either through nonprofits or city programs), including at least $2.6 million to the city’s preschool program this year.
  • The city will hire someone to oversee Phoenix’s expenditures on the renovations.
  • The city will commit the $1.5 million rent increase from the Suns to homeless issues.
  • 80 percent of any additional revenues generated by the city from the arena will go toward city public-safety costs.

Details of the deal were released to the public in December — less than a week before the council was initially supposed to vote on it. After public backlash, the council  postponed the vote and hosted a series of public meetings to educate residents about the details of the agreement. 

About a month ago, interim Councilwoman Vania Guevara came out against the arena deal. She said during Wednesday’s meeting that she changed her mind after working with the Suns to ensure they would increase their investment in the community, notably in the city’s Head Start preschool program. 

Without the money, city staff had warned, the program would have to decrease the number of students it served because the city needed to raise salaries for teachers in the program to keep up with state Legislature-approved teacher raises.

After the vote, Suns owner Robert Sarver, who has faced criticism from fans, said he was glad he could demonstrate the team’s commitment to the community through the donation.

He also said he believes the arena investment will be a “win-win” for both the team and Phoenix.

“I’m glad that we can carry on the vision that (former owner Jerry Colangelo) had and that this council had 26 years ago to get this building built,” Sarver said. 

What is the deal?

  • Phoenix pays $150 million for arena renovations.
  • Suns pay $80 million for renovations and any cost overruns.
  • After the renovation, Phoenix will pay $2 million annually for 12 ½ years into a new renewal and replacement fund, which will be used for future renovation needs.
  • Suns will pay $1 million into the new fund for 12 ½ years.
  • Suns will continue to operate and maintain the building, including booking concerts and other events.
  • Suns will continue to pay rent to the city (calculated as a percentage of annual proceeds).
  • Suns will build a new practice facility (estimated to cost $25 million to $50 million) somewhere in Phoenix.
  • Suns commit to staying in downtown through 2037 with an option to extend the lease to 2042. If the team leaves before 2037, it will face up to a $200 million fine.

Criticism of the deal

The council chambers were packed with residents eager to weigh in on the deal. The council allowed more than 30 people to comment before voting. 

Most of the speakers, ranging from business leaders to nonprofit directors, favored the deal and spoke heartily about the Suns’ community commitment. 

But the deal was not without its critics.

Several individuals chided the deal as lopsided, since Phoenix will pay nearly double what the team will invest. 

The internet’s favorite critic, 90-year-old Greta Rogers, told the council that she had no disaffection for the Suns, but she was dismayed by the way the city negotiated the deal. 

She lambasted the city for not including the public in conversations until it was too late. She also scoffed at the notion that the not-even-30-year-old building is obsolete.

“I’m three times that old and my facility’s doing pretty well,” Rogers said. 

Mary Rose Wilcox shooter appears

The meeting took a bizarre turn when former Councilwoman and Maricopa County Supervisor Mary Rose Wilcox testified in favor of the renovations. 

She had voted in favor of the original deals for both the Suns arena and Chase Field, where the Arizona Diamondbacks play. The latter vote resulted in a man shooting and wounding her in 1997 and claiming it was justified because of her support of sports subsidies.

About five minutes after she spoke, Larry Naman, the man who shot Wilcox and served time in prison for the offense, approached the council, admitted to shooting Wilcox, and then insisted that the council put the Suns deal up for a public vote.

He said not allowing the public to vote on the matter was the equivalent of an “act of violence against the public.”

Naman was allowed to stay in the council chambers for the remainder of the meeting, but police officers were present. He told a 12 News reporter after the meeting that he’s off parole and doesn’t own a gun. 

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