stadium districts; eminent domain
Purpose
Sets forth standards for the use of eminent domain by a multipurpose facilities district to
acquire real and personal property of an existing retail business. Requires the municipalities in which
a multipurpose facility site is located to pay 50 percent of the costs associated with a multipurpose
facility and limits the ability to form a multipurpose facility from and after October 31, 1999.
Background
Laws 1997, Chapter 297, expanded the county stadium district concept to multipurpose
facilities defined as facilities located in the district designed to accommodate sporting and
entertainment, cultural, civic, meeting or convention events. Additionally, the Legislature expanded
the ability to form a district to two or more municipalities located within a county. Revenue
generating mechanisms and bond issuances were authorized.
Pursuant to §48-4203, Arizona Revised Statutes, the board of directors of a multipurpose
facilities district, may on behalf of the district, acquire real and personal property, and interests in
property, by eminent domain. H.B. 2640 requires a district establish by clear and convincing
evidence, prior to acquiring retail property through the use of eminent domain, that the acquisition
is compatible with the greatest public good and the least private injury.
H.B. 2640 clarifies that a multipurpose facilities district is a "displacing agency." This
designation requires districts to follow relocation assistance procedures, including project planning
that identifies actions that may cause displacements and provide problem resolution to minimize
adverse impacts. Relocation assistance also requires a displacing agency to make a payment to a
displaced person for actual reasonable moving expenses, actual direct losses of tangible personal
property as a result of moving or discontinuing a business, actual reasonable expenses for searching
for a replacement business and actual reasonable expenses to reestablish a small business at its new
site.
There is no general fund impact.
Provisions
1. Requires a multipurpose facilities district, prior to utilizing its power of eminent domain, to establish by clear and convincing evidence that the acquisition is compatible with the greatest
public good and the least private injury. Applies this requirement to the acquisition of real
or personal property of existing retail commercial businesses in the district.
2. Specifies the question of compatibility is a judicial one, to be determined without regard to any legislative assertion of compatibility.
3. Designates that a district is considered a displacing agency for the purpose of providing relocation assistance.
4. Limits the ability to form a multipurpose facilities district from and after October 31, 1999. Specifies that a multipurpose facilities district may only be formed after October 31, 1999 if,
prior to that date, the governing body of one or more of the municipalities identified the
location of the proposed multipurpose facilities district and voted with the purpose of forming
the proposed district. Specifies that these provisions supersede similar provisions in House
Bill 2026, Forty-fourth Legislature, First Regular Session.
5. Specifies that in order for a multipurpose facilities district to receive state transaction privilege tax revenues, the municipality in which the multipurpose facility site is located must pay an
equal amount as received by the district from the state.
6. Withholds a portion of the state transaction privilege tax distribution base, that would otherwise be payable to the municipality, that is equal to the amount that the municipality was
required to contribute but was not received by the district. The amount withheld will be
distributed to the district to satisfy the municipality's financial commitment to the district.
7. Directs Legislative Council to blend any multiple enactments to sections of statute that provide for the distribution of state transaction privilege tax monies from the distribution base
to a multipurpose facilities district for the securing of bonds.
8. Adds a conditional repeal, of November 2, 1999, of statute authorizing the board of directors of a multipurpose facilities district to levy taxes, including a transaction privilege tax. This
statute will not repeal if, before November 2, 1999, funding for at least one multipurpose district facility is authorized by an election.
FACT SHEET
H.B. 2640 - Revised
Page
9. Makes conforming changes.
10. Specifies that the portions of this act relating to the use of eminent domain by a multipurpose facilities district and the 50 percent contribution by a municipality for the costs associated
with a multipurpose facility district are effective retroactively to June 30, 1998.
Amendments Adopted by GES Committee
1. Limits the ability to form a multipurpose facilities district from and after December 31, 1998.
2. Specifies criteria to be met to form a multipurpose facilities district after December 31, 1998.
3. Adds a conditional repeal of statute authorizing the board of directors of a multipurpose facilities district to levy taxes.
Amendments Adopted by Committee of the Whole
1.
The GES amendment was withdrawn.
2. Establishes a 50-50 match for municipalities for costs of a multipurpose facilities district. Withholds portions of the state transaction privilege tax, otherwise payable to the
municipality, in an amount equal to the amount the municipality was required to contribute
to the district under the 50-50 match.
3. Notwithstanding any other law, limits the ability to form a multipurpose facilities district from and after October 31, 1999.
4. Adds a conditional repeal.
5. Contains provisions to prevent any conflicting enactments.
House Action Senate Action
GOV REF 2/10/99 DP 5-0-1-1 GES 3/22/99 DPA 9-0-0-0
3rd Read 3/1/99 31-22-7-0 3rd Read 4/28/99 23-6-1
Prepared by Senate Staff
April 29, 1999
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