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Lost Arcos

Officials suppress documents that say how much developers would profit from a hockey arena and commercial complex that's seeking at least $350 million in public subsidies

A A A Comments By John Dougherty Thursday, Oct 28 1999

Instead, Kaufman suggested that the court order Scottsdale and the Facilities District to send additional information and new ballots to voters prior to November 2.

But time is running out. Maricopa County Superior Court Judge Barry Schneider will hear additional arguments on the case today, October 28.

Taxpayers will pump more than $352 million into the project, which is expected to generate up to $32 billion in sales over 30 years.

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The lawsuit potentially could postpone or invalidate the election, which could sink the entire project. The state law that allows for diversion of state sales taxes for stadium projects expires on November 3.

State law requires the Facilities District to be formed by three cities, even though sales taxes will only be diverted in Scottsdale.

Avondale and Carefree originally joined the district, but then withdrew under legal and political pressure applied by Alan Kaufman and his supporters.

Arena supporters then pulled out their checkbooks and offered up to $1 million to Fountain Hills and Guadalupe if they agreed to join the district and approve the tax. The city council in both cities accepted the offer and joined the Facilities District.

Voters in only one of the two cities -- along with Scottsdale -- need to approve the taxing authority for the Facilities District for the project to move forward.

If voters in Fountain Hills and Guadalupe reject the measure, then those cities won't receive a dime.

If voters approve the measure, Fountain Hills and Guadalupe residents will receive $2 million -- a windfall that conceivably could come out of the $352 million in taxes Scottsdale residents will give to developers.

Contact John Dougherty at his online address: jdougherty@newtimes.com