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TEN YEAR RETROSPECTIVE
An Economic | Fiscal Analysis & Review
Prepared in partnership with Elliott D. Pollack & Company
December 22, 2010
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Table of Contents
1. Overview
2. History/Mission Statement of AZSTA
3. Economic Analysis
4. Youth and Amateur Sports impact in
and around Maricopa County
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Overview
Elliott D. Pollack & Company reviewed and summarized the economic and fiscal
benefits created by Proposition 302 from 2001 to 2010 throughout Arizona.
The following report prepared in partnership with Elliot D. Pollack & Company and The
Arizona Sports and Tourism Authority highlights the 10 year impact of the passing of
Proposition 302.
1,915.6
5,651
1,462
4,476
369.5
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131.9
669.0
463.2
171.2
31.2
86.2
10-Year Economic
Impact of Prop 302
$3.8 Billion
Annual Jobs Created
University of Phoenix
Stadium Construction
Cardinals & Stadium
Operations
Super Bowl
Fiesta Bowl
Cactus League
University of Phoenix
Stadium and Cardinals
Fiesta Bowl
*Economic Impact does not include impact to
Cactus League or Youth and Amateur Sports
BCS
Band Championship
Other Stadium Events
Tourism
Band Championship
Other Stadium Events
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Does not include economic impact of funding new Cactus League Facilities,
or $12.6 million of Youth and Amateur Sports Grants.
University of Phoenix Stadium Construction
Super Bowl
BCS
Other Stadium Events
Cardinals and Stadium Operations
Fiesta Bowl
Band Championship
AZ Tourism Promotion
$114.2
$75.5
$41.4
$19.2
Prop 302 approved Tax
Collections to Arizona
Sports & Tourism
Authority
$369.5
$1,915.6
$669.0
$463.2
86.2
31.2
171.2
303.8
250.3
Hotel Bed Tax
NFL Income Tax
Car Rental Tax
Sales Tax
Comparison of 10-Year
Economic Impact of
Prop 302 to 10-Year
Taxes Collected ($ millions)
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History of Arizona Sports and
Tourism Authority
Formed as a result of voter approval of Proposition 302 in November 2000, AZSTA is
responsible for:
• Owning and operating the University of Phoenix Stadium;
• Funding tourism promotion in Maricopa County;
• Funding the construction and renovation of Cactus League Spring Training facilities;
• Funding youth and amateur sports projects and programs.
Support for this effort came from our partners;
• The Arizona Cardinals
• Fiesta Bowl
• Tourism Industry
• Cactus League
• Youth & Amateur Sports
• The citizens of Maricopa County
The success of Proposition 302 could not have been realized without the citizens of
Maricopa County who approved this measure.
AZSTA Mission Statement
The Arizona Sports and Tourism Authority is a Municipal Corporation dedicated to
enhancing our economy and our community’s quality of life through the development of
professional and amateur sports facilities, the attraction of entertainment, sporting and
business events and through tourism promotion.
“Today, we are fortunate to have one
of the best facilities in the world at
University of Phoenix Stadium. We
have an expanded Cactus League,
we have the Fiesta Bowl and BCS
Championship. Proposition 302’s
collective impact will be felt for years
to come.”
Mike Welborn - Chairman Plan B taskforce
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Arizona Sports and Tourism Authority
Statutory Flow of Funds
Source of Funds
Tourism Revenue Clearing Account
1% Hotel Bed Tax
3.25% Car Rental Surcharge
1st Priority = Senior Bond Debt Service
$277 million in principal plus interest (final maturity in 2031 - 2036)
2nd Priority = Tourism Fund
Maricopa County tourism marketing and promotion (through May 2031)
3rd Priority = Cactus League General Fund
Funding for building or renovating Cactus League stadiums in
Phoenix, Surprise, Scottsdale, Tempe, Glendale, Goodyear,
Peoria, Mesa and the Maryvale community.
4th Priority = Youth and Amateur Sports
Funding YAS activity throughout Maricopa County
($12.6 million since inception)
5th Priority = AZSTA Operating Budget
Includes the operating budget for the stadium management operator
Reserves
The Authority is required to fund three reserves:
Youth & Amateur Sports, Operating and Capital Repair and Replacement
Facility Revenue Clearing Account
NFL Income Tax
Sales Tax Recapture
Facility Event Revenues
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Economic Analysis
Economic impact analysis examines the regional implications of an activity in terms of
three basic measures: output, earnings and job creation. Fiscal impact analysis, on the
other hand, evaluates public revenues created by a particular activity. In a fiscal impact
analysis, the primary revenue sources of a city, county or state government are analyzed
to determine how the activity may financially benefit them. Elliott D. Pollack & company
has relied on the data provided by the AZSTA in terms of stadium operations along
with a number of existing surveys and studies regarding the tourism dollars spent and
resulting economic impacts. The following key points are the results of this analysis:
n The construction of the University of Phoenix stadium generated a total economic impact of $669 million (or $223
each year for 3 years) and created 2,032 jobs each year during construction.
n The daily operations of the University of Phoenix Stadium along with the Arizona Cardinals home games played
throughout the season generate an annual impact of $478.9 million and create a total of 5,651 jobs in the economy.
n Spending by tourists to Super Bowl XLII generated a total economic impact of $369.5 million (excluding additional
advertising impacts).
n Other events at the University of Phoenix stadium also generated tourism impacts. Each of the four Tostitos Fiesta
Bowls generated an average economic impact of $115.6 million dollars (for a total of $462.5 million). The Bowl
Championship Series game generated another $171.2 million. The four National Band Championships generated a
total of $31.2 million and other stadium events generated a total of $10.3 million.
n In total, the construction and operations of University of Phoenix stadium and the Arizona Cardinals organization
along with tourism spending associated with other events has generated $3.6 billion in economic activity from the
beginning of construction in 2004 through operations in 2009.
n In addition to the above impacts, annual tourism generated from operations related to the Cactus League generates
an estimated $337.9 million in economic activity each year.
n Further, the Arizona Office of Tourism reports that for every dollar spent to market Arizona as a destination, a return of
seven dollars is realized. To date AZSTA has distributed $44 million to tourism resulting in a $292 million tax benefit
to the state of Arizona.
n Construction of the University of Phoenix Stadium generated a total $32.2 million in taxes over the three years
collected by the State, Maricopa County and local governments.
n The State of Arizona collects an estimated $12.0 million annually from the operations of the Stadium and Arizona
Cardinals Organization. Local governments collect an additional $11.5 million each year, for a total of $23.5 million
in primary and secondary tax collections.
n Tourism spending during the Super Bowl generated an estimated $17.7 million for the State of Arizona, Maricopa
County and local governments.
n The four Tostitos Fiesta Bowls that have been held at the University of Phoenix Stadium have generated a total of
$22.1 million in State and local taxes from tourist spending during that time period.
n The 61,000 out-of-state visitors to the Bowl Championship Series game generated $8.1 million in State and local
taxes (such as sales tax, bed tax, and rental car tax).
n Each year the National Band Championship attracts 3,200 out-of-state visitors that spend a total of $4.5 million and
generate $379,000 in taxes (or a total $1.5 million over the four years).
n Tourism generated from other stadium events is based on a conservative estimate of 10% of attendees visiting from
out-of-state for the event. This creates an annual fiscal impact of $521,200 in State and local government taxes.
Economic Impacts
Fiscal Impacts
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Proposition 302 Summary of Estimated Annual Economic Benefits
Construction (1) Cardinals +
Stadium
Operations (2)
2008 Super
Bowl (3)
Fiesta Bowl (3) 2007 BCS (3) Band
Championship (3)
Other Stadium
Events (3,4)
Cactus League
Economic Impact
Direct
Spending
($ mil)
$120.4 $250.6 $213.0 $66.6 $98.7 $4.5 $6.0 $191.0
Total Jobs
Created
2,032 5,651 4,667 1,462 2,189 97 128 4,476
Total
Wages
($ mil)
$51.8 $225.1 $146.0 $45.8 $67.9 $3.1 $4.1 $128.6
Total
Economic
Output
($ mil)
$223.0 $478.9 $369.5 $115.6 $171.2 $7.8 $10.3 $337.9
Fiscal Impact
State of
Arizona
($ mil)
$6.1 $12.0 $9.0 $2.8 $4.2 $0.19 $0.25 $12.3
Counties
($ mil)
$2.3 $5.7 $1.8 $0.6 $0.8 $0.04 $0.07 $4.8
Cities
($ mil)
$2.4 $5.8 $6.9 $2.2 $3.1 $0.15 $0.20 $6.4
Total Fiscal
Impact
($ mil)
$10.7 $23.5 $17.7 $5.5 $8.1 $0.38 $0.52 $23.5
(1) Annual stadium construction impact each year for 3 years.
(2) Impact of cardinals home games and total stadium operations including concession jobs, security, executives and maintenance.
(3) Annual impact of event driven tourism dollars spent, excluding game spending (included in stadium operations), excludes secondary
impact of employees
(4) Estimate based on a conservative 10% of event attendance coming from out-of-town, staying an average of 1.5 days
Note: All figures based on surveys and data provided to EDPCo from other sources. No studies or surveys were conducted by this firm.
“The monies generated by Proposition 302 are an integral part of the tourism
promotional efforts of Maricopa County. These valuable dollars play a critical role in
marketing hotels, attractions, arts & culture, sporting events and other attributes that
attract visitors to our destinations. Those visitors, in turn, support tens of thousands of
tourism jobs and generate millions in state, county and city tax revenues.”
Debbie Johnson, CAE - President & CEO | Arizona Hotel & Lodging Association
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Youth and Amateur Sports
Arizona Sports and Tourism Authority has awarded 141 grants
totaling more than $12.5 million dollars in grants to youth and
amateur sports programs across Maricopa County since 2001.
The many organizations benefiting from these funds include Valley of the Sun YMCA, the
cities of Fountain Hills, Buckeye, Glendale, Avondale and Phoenix. School districts including
Deer Valley Unified, Balsz, Laveen, Glendale and Chandler. Various Boys and Girls Clubs,
Special Olympics, Phoenix Children’s Hospital, Children’s Museum of Phoenix, Grand
Canyon State Games, Arizona Recreation Center for the Handicapped, Florence Crittenton
among many others. AZSTA financial grants continue to positively effect large numbers of
youth programs and facilities throughout Maricopa County.
The generous support of Arizona Sports & Tourism have
enabled Miracle League of Arizona to bring about these
positive, life-enhancing components.”
Dan Harran Sr. - Miracle League of Phoenix
Thank you to the Arizona Sports and Tourism Authority
for your terrific support of this much needed “Tot Turf”
project for Arizona’s blind and visually impaired children.
Lisa Ashton - Foundation For Blind Children
While it is possible to count the number of youth that participate in the
programs that have been affected by the grants provided by AZSTA
it is impossible to gauge the impact that these programs have had in
the lives of children and their families along with the communities they
represent. Having positive and safe places for children and youth to play
and participate in sporting activities is one of the most important things
a community can provide for their younger members. AZSTA has been
not only a valuable asset to our community by awarding grants but has
affected untold number of lives.
Amy Gibbons, President and Executive Director, Boys and Girls Club Metropolitan Phoenix
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Since the Mesa Boys & Girls Club was opened in
1994, we have been able to offer a positive and safe
place for the kids of our community to go to everyday.
Outside of our walls, the neighborhood has a city park
that unfortunately is full of drug and gang activity. Even
though of the many dangers that park has, kids of the
community would still go there at night because of the
stadium lights that illuminate the field for them to play
on. Seeing that this was a huge safety issue for our kids
and teens, we felt that we needed to bring what the kids
needed to a more safe environment. With the grant that
we received from Arizona Sports and Tourism Authority,
we were able to build the field of our kids dreams. The
kids of our community now have everything they need to
enjoy the sports activities they love in a safe environment
regardless of the time of day.
Eric Rodriguez, Branch Executive – Boys & Girls Clubs of the East Valley
– Grant Woods Branch - Mesa
Our organization has hundreds of youth on our
courts every day and the condition of our gyms
is crucial. This grant from the Arizona Sports and
Tourism Authority ensures our youth have a safe, and
attractive gymnasium in which to play – Thank you!
Erin Lovell, Grants Manager
Boys & Girls Clubs of Greater Scottsdale
With the generous support of the Arizona Sports & Tourism Authority
(AZSTA), the Museum was able to complete construction of the
amazing three-story, 50 tons of steel Climber! The Climber opened
to great fanfare on May 21, 2010. Since that time, the Museum has
seen an increase in visitors and anticipates an even greater increase
for the summer months. As anticipated, both children and adults
are exploring the Climber as they exercise and play. The climber
completion was made possible due to the AZSTA. Thank you!
Lisa Glow, Director of Development, Children’s Museum of Phoenix
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This analysis demonstrates the enormous
contribution professional sports and tourism
in Arizona make to state and local economies.
The tax revenues generated from facilities and
programs made possible by Proposition 302
create investments in infrastructure and vital
services statewide.
Elaine Scruggs – Mayor, Glendale
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