Theme-park plan pushed as a boost for tourism
Williams, W. Valley proposed locations
Chip Scutari
The Arizona Republic
Mar. 18, 2005 12:00 AM
An investment group is seeking the Legislature's help to reclaim Grand Canyon tourism from Nevada with a $3 billion venture including a 1,000-acre theme park in Williams.
The project also would attempt to stimulate the West Valley's economy with a 60-acre amusement park featuring roller coasters and an indoor water park next to Cricket Pavilion in west Phoenix.
Legislation is expected to be introduced next week to create a special taxing district that would help finance the plan. Those who use the parks would pay an extra 9 percent sales tax on their purchases, but Arizonans who never visited the district would pay no additional taxes. advertisement
Proponents say the venture could bring the state $75 million to $150 million in new state tax revenues annually by tapping into the millions of tourists who crisscross the state to visit the Grand Canyon. Rep. John Nelson, R-Phoenix, is sponsoring the "theme park" district bill, House Bill 2365. It will be heard in the Senate Finance Committee next Thursday.
"There is no drain on the state," said Nelson, who successfully pushed through money for the expansion of the Phoenix Civic Plaza two years ago. "This would be an enormous boon to northern Arizona and west Phoenix."
The pitch for the project goes like this: Magic Mountain of California meets Branson, Mo., which has been called the "Ozark Disneyland." The 1,000 acres in the northern Arizona town of Williams would include a Route 66 strip of shops and sock hops, roller coasters, bumper cars, a Navajo learning center and a concert hall, among other things.
Capitalizing on tourists
A goal would be to capitalize on the millions of tourists who travel through Williams on Interstate 40 each year, many of whom go to the Grand Canyon through Williams and nearby Flagstaff. The Grand Canyon Railroad in Williams has thrived by capturing a share of the canyon tourist business.
The theme-park district would consist of a five-member board: three Coconino County supervisors and two Phoenix City Council members.
The district, whose boundaries would be defined in the legislation, would levy an additional 9 percent special sales tax on top of the ordinary state and local sales taxes at the district location only. Only tourists using the parks and rides would pay the additional costs.
The district is a legal mechanism that private investors can use to issue about $1 billion worth of bonds in the private market. That additional 9 percent levy would finance the bonds, which would be paid off in 30 years. The bonds would pay for the infrastructure for the two sites.
The sales-tax rate inside the district would be about 17 percent, similar to what other entertainment and hotel venues charge their customers. The project backers point out that Arizona receives no tax revenues from either plot of land. They estimate that the project would bring in about $75 million to $150 million annually.
Hurdles facing project
But there are several hurdles facing the massive project, which would use a comprehensive business plan to attract private investors. The land in Williams, which is owned by the U.S. Forest Service, would have to be leased to the Navajo Nation. That should happen by October. Environmental permits would have to be issued.
Former Page Mayor Gary Scaramazzo, who is part of the project team, said northern Arizona is a prime spot to tap into the trove of Grand Canyon tourist dollars.
Each year, about 500,000 people take the Grand Canyon Railroad from Williams to see the canyon.
Scaramazzo said that people may see "red flags" when they hear about a taxing district, but he said the project would not hike taxes. Only people who used the parks would have to deal with the heightened tax rate.
In recent months, Democratic Gov. Janet Napolitano has pledged to reclaim the Grand Canyon from Nevada. Many tourism experts say Nevada has gained the upper hand in winning the marketing battle for the 277-mile canyon. Napolitano has not yet been briefed on the theme-park plan.
The group pushing the project is called the Grand Canyon Northland Amusements and Entertainment LLC. It includes the Navajo Nation and Mike Morgan, who helped broker the deal for the Cricket Pavilion. They have a letter of intent from media giant Clear Channel, which has pledged to bring its marketing prowess to the project.
A developer has not been chosen for the project.
HB 2365 would ban casinos within the theme-park districts and require that both projects be built simultaneously. It is estimated that the venture would create at least 1,000 full-time and seasonal jobs.
Waiting a long time
Phoenix Councilman Claude Mattox, who represents part of west Phoenix, said the city has been waiting for a long time to find a compatible use for the area around Cricket Pavilion.
"We've always looked at that area being an entertainment district," Mattox said. "So this would fit well."
Mattox and other city officials say they are not worried about the proposed park and a higher-profile Cricket Pavilion detracting from such popular downtown entertainment venues as the Dodge Theatre and America West Arena. They see them catering to crowds looking for completely different forms of entertainment.
"Downtown isn't an amusement-type entertainment use," Mattox said.
"We're talking about waterpark features and amusement rides, which is very different. So I don't see any problem there."
The proposed development could also be a boon to the city's west-side revitalization plans. Phoenix is in the process of trying to spruce up that section of the city and has been seeking input from residents about the possibility of having cultural and performing-arts facilities, more park rangers and increased neighborhood cleanups.
Reclaiming the Canyon
Kurt Davis, who heads the project's lobbying team, said it's good public policy to reclaim the Grand Canyon from Nevada.
"Arizona has utterly failed in claiming the benefits of tourism to the Grand Canyon," said Davis, a top aide to former Gov. Fife Symington.
"For too long now, we have let Nevada take Arizona's finest asset and use it for their benefit. These new tax revenues could be used for schools and all-day kindergarten.
"We are failing as a state to capture the Grand Canyon."