A.R.S. tit. 9 ch. 6 — Arizona Revised Statutes Title 9 Chapter 6 — Convention Centers

9-601. Arizona convention center development fund; purpose The Arizona convention center development fund is established to encourage and enable eligible cities under section 9-604 to develop and expand municipally operated major convention center facilities designed to serve large conventions and trade shows attended primarily by residents of other states and to encourage the tourism and visitor industries in this state. 9-602. Fund operation A. The Arizona convention center development fund consists of monies deposited pursuant to sections 42-5029 and 42-5030. B. The state treasurer shall administer the fund. The state treasurer shall invest and divest monies in the fund as provided by section 35-313 as needed to facilitate distributions from the fund, and monies earned from investment shall be credited to the fund. C. On or before August 1 of each year, the state treasurer shall distribute the amounts computed in subsection D of this section to each eligible city that has filed a certificate of completion of construction pursuant to section 9-622 for each eligible project under section 9-605. D. The amount to be distributed pursuant to subsection C of this section shall be computed by dividing the total cost of the eligible project not funded from municipal sources as identified in the certificate of completion of construction filed pursuant to section 9-622 by three hundred million and multiplying the quotient by the following amounts: 1. In fiscal year 2009-2010, five million dollars. 2. In fiscal year 2010-2011, ten million dollars. 3. In fiscal year 2011-2012, zero dollars. 4. In fiscal year 2012-2013, $5,595,000. 5. In fiscal years 2013-2014, 2014-2015, 2015-2016 and 2016-2017, $20,449,000. 6. In fiscal year 2017-2018, $22,499,000. 7. In fiscal year 2018-2019, $22,996,250. 8. In fiscal year 2019-2020, $23,499,950. 9. In fiscal year 2020-2021, $23,997,900. 10. In fiscal year 2021-2022, $24,498,450. 11. In fiscal year 2022-2023, $24,999,400. 12. In fiscal year 2023-2024, $25,498,550. 13. In fiscal year 2024-2025, $25,998,700. 14. In fiscal year 2025-2026, $26,497,375. 15. In fiscal year 2026-2027, $26,997,100. 16. In fiscal year 2027-2028, $27,495,125. 17. In fiscal year 2028-2029, $27,998,700. 18. In fiscal year 2029-2030, $28,499,525. 19. In fiscal year 2030-2031, $28,999,575. 20. In fiscal year 2031-2032, $29,495,550. 21. In fiscal year 2032-2033, $29,999,150. 22. In fiscal year 2033-2034, $29,996,250. 23. In fiscal year 2034-2035, $29,995,775. 24. In fiscal year 2035-2036, $29,999,975. 25. In fiscal year 2036-2037, $29,995,825. 26. In fiscal year 2037-2038, $29,995,850. 27. In fiscal year 2038-2039, $29,996,750. 28. In fiscal year 2039-2040, $29,995,225. 29. In fiscal year 2040-2041, $29,997,975. 30. In fiscal year 2041-2042, $29,996,150. 31. In fiscal year 2042-2043, $29,996,175. 32. In fiscal year 2043-2044, $29,998,925. E. If sufficient distributions have been made to provide for all of the uses of the fund monies pursuant to section 9-603 for an eligible project, the chief financial officer of the eligible city shall certify to the state treasurer that no additional distributions are required for the project, and on receiving the certification the state treasurer shall make no further distributions to the city for that project. F. After the distributions required by subsection C of this section, any monies remaining in the fund on receipt of the certification of satisfaction of annual obligations pursuant to section 9-623, or on the first Monday in August if a certificate of completion of construction has not been previously filed pursuant to section 9-622, shall be transferred to the state general fund. 9-603. Use of fund monies A. The monies in the Arizona convention center development fund shall be used only for the purposes specified in this chapter. B. The state treasurer shall disburse monies from the fund as provided in section 9-602. Any amounts remaining in the fund after the distributions made pursuant to section 9-602, subsection C shall be held in reserve for the purposes of the distributions until the certificate of satisfaction of annual obligations is received by the state treasurer or until the first Monday in August if a certificate of completion of construction has not been previously filed pursuant to section 9-622. C. A city that receives monies distributed from the fund: 1. Shall segregate and separately account for the monies and shall not commingle the monies from the fund with monies from any other source. Those monies shall be designated as a special fund of the eligible city, separate from the city's general fund. Any amount not immediately used to meet scheduled payments or current expenses shall remain in the special fund, shall not be transferred to the city's general fund and shall be used only for the permitted purposes in the future. 2. May use monies from the fund only for the following purposes in connection with an eligible project under section 9-605: (a) The design, development, construction and related costs for a convention center and related development. (b) Financing costs and any other costs incurred in connection with any financings undertaken to facilitate the accomplishment of the uses of the monies in the fund as provided in this section. (c) Funding financial reserves created in connection with any financings undertaken to facilitate the accomplishment of the uses of the monies in the fund as provided in this section. (d) Reimbursement of any amounts plus interest advanced by an eligible city but for which the eligible city does not have ultimate responsibility to pay any portion of financing or related costs incurred in connection with any financings undertaken to facilitate the accomplishment of the other uses of the monies in the fund as provided in this section. (e) Any other costs necessary to effectuate the uses and purposes specified in this article. D. Amounts distributed from the fund are in addition to any other amounts distributed to eligible cities pursuant to any other law. 9-604. Eligible cities To be eligible to receive distributions from the Arizona convention center development fund a municipality must: 1. Be a charter city. 2. Have a population of more than: (a) One million persons according to the most recent United States decennial census at the time of the distribution. (b) Five hundred fifty thousand persons according to the most recent United States decennial census, or a special census conducted pursuant to section 42-5033, at the time of the initial distribution. 3. Operate a convention center facility with at least two hundred thousand square feet of exhibition space that was constructed with monies from municipal sources. 9-605. Eligible projects A. An eligible city may not spend monies from the Arizona convention center development fund for uses other than those permitted by section 9-603 and only in connection with an eligible convention center development project. B. A project is eligible only if: 1. The voters of the eligible city have approved the project and any required financing for the project. 2. Specifically identified municipal sources have been dedicated to provide funding for at least one-half of the total project cost. 3. The total cost of the project does not exceed six hundred million dollars. C. In the case of an eligible city described in section 9-604, paragraph 2, subdivision (b), a project is eligible under this section only if: 1. The joint legislative budget committee has conducted a financial analysis of the proposed project that indicates that the project will result in an increase in state general fund revenues greater than the amounts of distributions pursuant to section 9-602 in connection with the project. 2. The total cost of the project does not exceed sixty million dollars. 9-621. Authority to receive and spend distributions In addition to any other powers conferred by law, an eligible city described in section 9-604 may receive and spend distributions from the Arizona convention center development fund pursuant to this chapter. 9-622. Certification of completion of construction A. When construction or expansion of an eligible convention center development project is complete, the chief financial officer of the city shall certify the completion to the state treasurer and transmit a copy of the certification to the auditor general. B. As a part of the certification, the chief financial officer of the city shall: 1. Notify the state treasurer if the city has entered into any agreements that require future scheduled payments and the amounts of any such payments. 2. Certify to the state treasurer that a project meets all of the eligibility requirements of section 9-605 before any distributions for the project from the Arizona convention center development fund to the city. 3. Certify to the state treasurer the total cost of the eligible project and the part of the total cost to be funded from municipal sources. 9-623. Certification of satisfaction of annual obligations A. In any year that a scheduled payment is due as stated in the certification of completion of construction from monies in the special fund established by the eligible city for receipt of distributions from the Arizona convention center development fund, on receiving distributions from the Arizona convention center development fund, the chief financial officer shall deposit into the appropriate account a sufficient amount from those distributions to make any scheduled payments or deposits for the current fiscal year. B. The chief financial officer shall certify to the state treasurer the satisfaction of the annual obligations on depositing into the appropriate funds or accounts sufficient monies to make any scheduled payments or deposits for the current fiscal year. 9-624. Request for state lease purchase A. The chief financial officer may file a notice with the director of the department of administration requesting this state to undertake lease purchase financing in connection with an eligible project pursuant to section 41-791.04. The notice shall include a detailed description of the part of the eligible project that the state is requested to lease purchase. B. The department of administration shall promptly respond to the proposal in the manner prescribed by section 41-791.04. C. If a notice is filed and the lease purchase financing is completed pursuant to this section, no distributions shall be made by the state treasurer pursuant to section 9-602 to the eligible city for the eligible project. 9-625. Tax exemption An eligible city is regarded as performing a governmental function in carrying out the purposes of this chapter and the eligible project is considered to be municipal property for the purposes of article IX, section 2, Constitution of Arizona. 9-626. Construction progress reports; auditor general performance measures A. The eligible city shall report progress on the development of any eligible project to the joint committee on capital review twice annually during construction of the eligible project. B. Within five years after the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622, and after consultation with the eligible city, the auditor general shall conduct or contract for an economic and fiscal impact analysis of the eligible project in its fifth year of operation following the filing of the certificate of completion of construction. At a minimum, the analysis shall: 1. Estimate the effects of direct, indirect and induced economic activity in this state associated with: (a) Regional and national conventions and trade shows held at the site of the eligible project, the total amount of state general fund revenues derived from that economic activity and the estimated average annual attendance at those events assuming: (i) The eligible project had not been completed. (ii) The eligible project has been completed. (b) The construction of the eligible project and the total amount of state general fund revenues derived from the construction activity. 2. Compute the total cumulative amount of distributions pursuant to section 9-602 for the first through fifth years following the filing of the certificate of completion of construction for the eligible project pursuant to section 9-622 and from the first through each subsequent fifth year. 3. Compute the net cumulative distributions for the eligible project by subtracting the amount determined pursuant to paragraph 1, subdivision (b) of this subsection from either the amounts determined pursuant to paragraph 2 of this subsection or, if applicable, the amount of state monies paid under a lease purchase agreement pursuant to section 41-791.04. 4. Based on the analysis conducted pursuant to this subsection, estimate the minimum required attendance at the eligible project for the fifth year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter. The estimates shall be computed as follows: (a) Divide the total state general fund revenues estimated pursuant to paragraph 1, subdivision (a), item (ii) of this subsection by the attendance estimated pursuant to paragraph 1, subdivision (a), item (ii) of this subsection. (b) Divide the net cumulative distribution amounts for the fifth year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter computed pursuant to paragraph 3 of this subsection by the quotient computed pursuant to subdivision (a) of this paragraph. (c) Add the average annual attendance estimated pursuant to paragraph 1, subdivision (a), item (i) of this subsection to each of the quotients determined pursuant to subdivision (b) of this paragraph. The resulting sums are the minimum required attendance amounts for each year. C. Beginning in the fifth calendar year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter, the auditor general shall: 1. Estimate the average annual attendance at regional and national conventions and trade shows held at the site of the eligible project using any appropriate method to estimate the attendance. The eligible city shall cooperate with and assist the auditor general in developing the estimates. 2. Compute the ratio of the cumulative sum of the estimated attendance amounts developed pursuant to paragraph 1 of this subsection for all years through the current year to the cumulative sum of the minimum required attendance amounts for those years computed pursuant to subsection B, paragraph 4, subdivision (c) of this section. 3. Notify the president of the senate, the speaker of the house of representatives and the governor of: (a) The minimum required attendance amounts for those years computed pursuant to subsection B, paragraph 4, subdivision (c) of this section. (b) The attendance estimate developed pursuant to paragraph 1 of this subsection. (c) The ratio computed pursuant to paragraph 2 of this subsection. D. Except as provided in paragraph 4 of this subsection, if the ratio computed pursuant to subsection C, paragraph 2 of this section is less than one: 1. The auditor general shall compute the difference between the estimated state general fund revenues and the net cumulative distributions by multiplying the net cumulative distributions computed pursuant to subsection B, paragraph 3 of this section by the difference between the ratio computed pursuant to subsection C, paragraph 2 of this section and one. 2. The auditor general shall notify the state treasurer of: (a) The ratio computed pursuant to subsection C, paragraph 2 of this section. (b) The difference computed pursuant to paragraph 1 of this subsection. 3. At the time of the next regularly scheduled distribution, the state treasurer shall withhold from the amount that would otherwise be distributed to the eligible city pursuant to section 42-5029 an amount equal to the amount stated in the notice received pursuant to paragraph 2 of this subsection. If the amount available for distribution is less than the amount to be withheld, the state treasurer shall continue withholding from subsequent distributions until the full amount stated in the notice has been withheld. 4. The eligible city may request and the auditor general shall conduct or contract for a complete economic and fiscal impact analysis of the eligible project. If an analysis is requested: (a) The auditor general shall not notify the state treasurer pursuant to paragraph 2 of this subsection, and the state treasurer shall not withhold pursuant to paragraph 3 of this subsection, pending completion of the analysis. (b) The analysis shall be similar to the analysis described in subsection B of this section, except that the analysis shall examine the operations of the eligible project in the year for which the ratio is less than one. (c) The analysis, at a minimum, shall estimate the total cumulative incremental revenues to the state general fund resulting from the completion of the eligible project including the revenues resulting from the construction activity associated with the completion of the eligible project. (d) And the analysis demonstrates that the total cumulative incremental revenues to the state general fund exceed the total cumulative amount of distributions pursuant to section 9-602 as computed in subsection B, paragraph 3 of this section, the auditor general shall not notify the state treasurer pursuant to paragraph 2 of this subsection and the state treasurer shall not withhold pursuant to paragraph 3 of this subsection. (e) And the analysis demonstrates that the total cumulative incremental revenues to the state general fund are less than the total cumulative amount of distributions pursuant to section 9-602 as computed in subsection B, paragraph 3 of this section: (i) The auditor general shall subtract the amount of the total cumulative incremental revenues to the state general fund from the amount of the total cumulative distributions. (ii) The auditor general shall notify the state treasurer of the difference computed pursuant to item (i) of this subdivision. (iii) At the time of the next regularly scheduled distribution, the state treasurer shall withhold from the amount that would otherwise be distributed to the eligible city pursuant to section 42-5029 an amount equal to the amount stated in the notice received pursuant to item (ii) of this subdivision. If the amount available for distribution is less than the amount to be withheld, the state treasurer shall continue withholding from subsequent distributions until the full amount stated in the notice has been withheld. E. The eligible city shall reimburse the auditor general for any costs incurred in complying with the requirements of this section.