Arena forum draws large business crowd

Arena proponent Tom Pancrazi and opponent Tom Kelly once again squared off over Referendum 400 on the Nov. 4 general ballot, which asks city voters to approve proceeding with plans to develop a multipurpose events center.

This time the venue was the Yuma County Chamber of Commerce's monthly "Good Morning Yuma!" that drew 141 people who came for breakfast and to hear the arena forum sponsored by the chamber.

Pancrazi reiterated his belief that the arena would provide a critical tool in efforts to attract new business to Yuma, while Kelly warned that the project would be a financial disaster for the city.

Pancrazi, head of A.T. Pancrazi Real Estate, works with businesses interested in locating in Yuma. As he shows his clients around, he said, he can point to Yuma Regional Medical Center and its advances, the new Yuma County libraries, Arizona Western College building projects and Yuma Commerce Center.

"But when we take the tour, I get asked what is there to do in Yuma. We really don't have anything.

"We've got to be competitive with quality of life," Pancrazi continued. "If we aren't, we will lose. I think we would be better able to attract new good-paying jobs with the center.'

Kelly, a Yuma attorney, refuted that argument, saying that the tremendous growth Yuma has experienced over the past 10 years occurred without an arena. "There's no proof an arena would help drive new development."

He added that he isn't opposed to a multipurpose events center, but he opposes it being publicly funded.

"I don't believe it will be profitable," he said, fearing that the money for the arena would have to come out of the city's general fund, resulting in the reduction of other services.

"I don't think that is a good trade-off," Kelley said. He later stated that with the current economic downturn, when the city is tightening its budget and delaying other projects, now is not the time to be thinking about a multimillion-dollar arena.

To a question about whether plans for the arena would go back to voters for final approval if the city does proceed with the project, Kelly responded that he thinks the city council has a legal obligation to follow the will of the people.

Pancrazi, in turn, said that citizens elect the council to make decisions. "You have to have faith in them."

If the arena proceeds, he pledged to help form an advisory committee to ensure that the public would have continued input.

Asked whether there are any privately funded arenas, Kelly replied that he's aware of a few but they're not profitable and that's why municipalities take them on as projects. "But I see that as a bad deal."

Pancrazi noted that the city of Yuma has other recreational facilities that never generate revenue and need public subsidy. At least with the multipurpose events center, he said, there is a possibility of generating revenue to pay off the building, revenue that can then go to the city's general fund.

Funding would include establishment of an improvement district to pay for roads and sewer, formation of an entertainment district to apply sales tax revenue from new businesses to help pay off the arena bonds and revenue from the arena itself, Pancrazi explained.

Another question was about the economic impact of Yuma Palms Regional Center.

"It had a great impact on us," answered Pancrazi. "The key thing here ... Yuma Palms was so successful it brought new retailers."

That meant money that was leaving the community with people going out of town to shop is now staying in Yuma and benefiting the local economy, he said. "It will be the same with the arena."

Kelly responded: "You can't compare Yuma Palms to the arena. That was private so the money (sales tax revenue) goes to the city. If it was a privately owned arena, all that sales tax would to the city. Now it would go to pay for the arena."

---
Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.