Arizona Training Site Hits a Financial Snag

Amid new financial concerns that could jeopardize the construction of the Dodgers’ proposed spring training complex in Arizona, officials from the Fort McDowell Indian Community might ask the team to contribute to the $50-million project.

In a meeting with Dodger President Bob Graziano and other club executives today, officials of the Yavapai tribe--on whose reservation the complex would be built--will explain how revised estimates of Arizona tax revenue have thrown a giant financial curveball into the project.

Tribal officials had planned to pay for the complex with a combination of casino profits and bank loans, recovering some of that cost with tax money generated by a county surcharge on rental cars and reserved for the construction and renovation of spring training facilities.

However, the tribe learned this week, that money may not be available to Fort McDowell until 2017. The gaming compact--the agreement with the state that permits the tribe to operate the casino--expires in 2003, and tribal officials may not want to gamble $50 million on the renewal of that agreement.

“If the compact is not renewed, the tribe is in a real pickle,” tribal attorney Edward Roybal said Wednesday.

The tax money cannot be allocated to new construction, Fort McDowell included, until bonds to cover $71 million spent on six other Phoenix-area stadium projects are paid off. The Maricopa County Stadium District pushed back that target date from 2010 to 2017 this week, and district director Bill Scalzo said he would not advise Fort McDowell to count on any contribution from the stadium district.

“I don’t think they can,” Scalzo said. “We’re not in a position to do that. They’re aware of that at this point.

“There’s a lot of support to have the Dodgers here. But the process takes a while, and it’s a great deal of money. This is a unique situation.”

The $50-million price tag, unprecedented in the Cactus League, includes about $10 million to cover infrastructure costs--water, power and the like--associated with developing barren land and usually assumed by cities. The bill also covers the costs of housing and recreational facilities requested by the Dodgers, duplicating comforts of their current home in Vero Beach, Fla., but included in no other spring training complex.

Pima County increased its rental car surcharge from $2.50 to $3.50 to help pay for the $35-million Tucson Electric Park, spring home of the Arizona Diamondbacks and Chicago White Sox. Fort McDowell officials could ask state and county officials to adopt a similar increase in Maricopa County, although current bond obligations still would be paid first.

Tribal officials also could ask the Dodgers to scale back their requests and/or contribute to the project. Fred Coons, the Dodgers’ director of business development, said the club would consider spending money now if it could make more money later from a greater share of revenues from ticket sales, parking, concessions and advertising.

“We’ll want to discuss the entire gamut of options,” Coons said. “We understand, while they do have the gaming revenues, it’s not a bottomless revenue source. We need to see what other potential sources there are.”

The city of Vero Beach, which wants to keep the Dodgers in their spring home of 51 years, is trying to assemble $20 million in city, county and state funds to buy Dodgertown from the team and make improvements to the complex. Tribal representatives have cited that financial aid package in trying to persuade county and state officials in Arizona to pitch in.

“Every other deal in Arizona has been subsidized,” Coons said. “It’s a challenge for them.”

If the Arizona deal collapsed, the Dodgers could renew discussions with Las Vegas or solicit new interest in Arizona and Florida. However, Coons said, Vero Beach would get the first shot should the city secure the proposed financing.

“If Arizona did not come through, Vero Beach has come up with something very compelling,” Coons said. “We’d focus in on Vero as long as we felt it was a good deal.”