So apparently Arizona Coyotes owner Anthony LeBlanc did say something about how he planned to pay for a new hockey arena in Tempe yesterday. And it was: Give us great gobs of tax money.
The Arizona Coyotes will ask the state Legislature to divert up to $200 million in tax dollars to help pay for the team’s planned $400 million arena in Tempe, Coyotes executives said at a news conference Monday.
The team would contribute the other $200 million to a project that “pays for itself,” said Anthony LeBlanc, the Coyotes’ chief executive officer.
“There’s no question that we’re going to have some form of public-private partnership to make this work,” LeBlanc told reporters.
“That is a very typical model. We are not going in and asking for government to build us an arena.”
The state money would come in the form of rebates to the team on sales tax and other tax revenue generated by the arena.
Well, yes, actually you are asking for government to build you an arena — or to build you half an arena, anyway. There’s a longstanding gambit among sports team owners to consider “tax rebates” as different from straight-up cash, but this is nonsense: Money is money, and if I’m running a business, it doesn’t matter to me whether I get it in the form of a check to the construction company or as a check from the state tax agency that I can then use to pay the construction company. (There’s a reason the term “tax expenditures” exists.)
While “sales tax and other tax revenue generated by the arena” is a bit vague, it seems clear that what LeBlanc is talking about here is tax increment financing, or a TIF; or, really, a STIF in this case, since it would kick back sales taxes from money spent at the arena (and maybe team employee income taxes, too?) instead of the more typical property taxes. I’ve gone on about TIFs before and how they cannibalize money that would otherwise go to the public treasury — Good Jobs First has an excellent primer on them as well — but suffice to say that when you’re talking about state money, they’re especially ludicrous, since there’s no way that the state of Arizona will bring in significantly more sales tax revenue just because the Coyotes move from Glendale to Tempe.
Anyway, this appears to be the opening salvo in LeBlanc reopening the TIF discussion that he started last spring. There’s no reason to assume that this will be the final subsidy figure he arrives at — there’s still the matter of operating and maintenance costs to be decided on, and remember Judith Grant Long‘s figure that the average stadium costs taxpayers 40% more than the announced subsidy figure. But at least we know his initial ransom demands, even if we don’t know what he’s willing to settle for.