Group drops referendum effort for vote on Phoenix Suns arena

An attempt to send the controversial $230 million Phoenix Suns arena renovation deal to the voters is dead, The Arizona Republic confirmed Tuesday.

The Phoenix City Council approved the deal, which will keep the Suns in downtown Phoenix through at least 2037, in late January.

But a group calling itself Common Sense Phoenix immediately launched a referendum campaign — hoping to collect enough signatures to send the deal to the ballot later this year and give voters the final say.

Attorneys for Phoenix sent Common Sense Phoenix a letter late last week warning that the city clerk would not accept its petitions because only "legislative acts" are subject to referendum, and the city does not believe the arena deal was a "legislative act."

Rather than fight the city in court, the group is bowing out.

"After careful consideration and long conversations with my clients, we have decided to pull the plug on our petition effort to refer the Phoenix Suns arena deal to the ballot," Petition Partners owner Drew Chavez said in a statement.

"We thank the thousands of voters who signed the petitions over the past week. Rather than press ahead with a bitter conflict, we believe it is time for the city to move forward to more important issues and less partisan battles," he said.

Chavez has refused to disclose who was paying for the referendum effort. City officials said they will proceed with the Suns deal as planned.

What is the deal?

❚ Phoenix pays $150 million for arena renovations. ❚ Suns pay $80 million for renovations and any cost overruns.

❚ After the renovation, Phoenix will pay $2 million annually for 12 1⁄2 years into a new renewal and replacement fund, which will be used for future renovation needs.

❚ Suns will pay $1 million into the fund for 121⁄2 years. ❚ Suns will continue to operate and maintain the building, including booking concerts and other events.

❚ Suns will continue to pay rent to the city (calculated as a percentage of annual proceeds).

❚ Suns will build a new practice facility (estimated to cost $25 million to $50 million) somewhere in Phoenix.

❚ Suns commit to staying in downtown through 2037 with an option to extend the lease to 2042. If the team leaves before 2037, it will face up to a $200 million fine.