What you need to know about the Talking Stick Resort Arena renovations and the partnership between the City of Phoenix and the Phoenix Suns
There’s been a lot of talk about the proposal of much-needed renovations to Talking Stick Resort Arena (TSRA), a venue drives Phoenix tourism, and the economy. We want to break down the facts about this economic driver, and share why the business community stands in strong support of the TSRA renovation plan.
Did you know…
- TSRA is owned by the City of Phoenix. The Phoenix Suns serve as the lead tenant of the building.
- TSRA, like all homes and buildings, needs to keep current with repairs and standard maintenance. The City of Phoenix funding would support public infrastructure.
- Suns Legacy Partners (comprised of the Phoenix Suns, Phoenix Mercury, Sports & Entertainment Services) as lead tenant, manage TSRA free of charge. They incur ALL operational costs and risks associated with operations.
The Suns are invested in Phoenix! In addition to renovations, the team is committed to building a new practice facility, fully funded and operated by the team.
Read our lips…no new taxes!
A common myth is that the funding of the remodel will come from new taxes on residents. The reality is that the stadium renovations will be funded with revenue from tourism related taxes.
- 1% hotel excise tax
- 2% rental car excise tax
These taxes are primarily paid by out-of-town visitors and those directly utilizing the benefits of the arena.
Breakdown of the renovation
The partnership between the City of Phoenix and the Suns is strategic, and designed to provide maximum benefit to downtown Phoenix.
- The City of Phoenix will contribute $150M to the renovation, which will provide public infrastructure:
- A new roof
- Updated plumbing
- Efficient ice rooms for beverage distribution
- Infrastructure required by visiting performers to support their shows
The updates provided by the City of Phoenix will ensure that all guests of TSRA—whether they are there for sporting events, concerts, or conventions—will have access to state-of-the-art amenities. These renovations will drive the Phoenix economy!
- The Phoenix Suns will contribute $80M in additional renovations, to ensure Phoenix remains a competitive NBA market.
- In addition, the Suns will continue to pay rent to the City, cover operational expenses, and a 10% profit share with the City.
- The Suns also agree to cover additional renovations that exceed the planned $230M.
To date, the City has invested approximately $80M into the arena, to the Suns $150M. This current proposal will provide a 50/50 split in costs between the City and the team.
What have you done for me lately?
TSRA, along with the Phoenix Suns, is a huge economic driver for the city of Phoenix. This facility has been crucial to the revitalization of downtown Phoenix, and creates revenue and jobs that support the entire region.
- TSRA generates a direct economic impact of $182M annually
- Indirect economic impact increases that figure to $335M
- TSRA directly provides 1140 jobs and $82M in payroll
More than sports
- Suns games represent only 30% of arena activities.
- TSRA hosts more than 135-ticketed events a year, and 200 non-ticketed events per year, including some of the top acts in entertainment and charity events.
Simply put, without TSRA, Phoenix suffers!
- Hundreds of jobs will be lost
- Existing businesses and hospitality will lose revenue, and potentially more jobs
- The City of Phoenix loses the 10% of profits generated by the Suns
- Downtown Phoenix becomes a less attractive location for businesses to open and expand
It would take 35+ years to rebuild the areas where TSRA is housed, if necessary renovations are not made!
This is why the Greater Phoenix Chamber supports the renovation of TSRA, and the partnership between the City of Phoenix and the Phoenix Suns.
Share your support of the renovation on social media, using #SupportTSRA, #PHXBizForTSRA and #TSRAMeansBusiness.
Reach out to your city council representative and express your support of the TSRA renovations. Click here to find your city council member.
Attend one of five public meetings about the arena, and get the facts! Details on the January 2019 public meetings coming soon.