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The deadline for residents to register to vote in May at the Arizona Coyotes’ new arena and entertainment district in Tempe passed Monday. (Photo courtesy of Arizona Coyotes)
TEMPE – As voters filed their registration forms for May’s vote on the building of the Arizona Coyotes Tempe entertainment district, questions still loom over the project’s potential benefits and costs to the city.
On Monday, two studies, one conducted by the Grand Canyon Institute (GCI) and the other by the Seidman Institute at Arizona State University’s WP Carey College of Business, offered different perspectives based on their findings.
GCI’s research examines the impact of new venues and cites the pressure the market may experience if they are built. Currently, the Phoenix metropolitan area is home to two large arenas, the Footprint Center and the Gila River Arena. Building a third venue could pit venues against each other for a limited number of events and reduce the leverage of all venues in negotiating events and shows.
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The study also claims that “assuming 45 games at the arena plus hockey is probably optimistic,” and suggests that even if that number is reached, game losses at the Footprint Center and Gila River Arena could negate any positive results from the new venue.
Meanwhile, an independent review by the Seidman Institute concluded that the Tempe Recreation District could “generate hundreds of millions of dollars to the city of Tempe.”
Seidman’s research emphasizes that the construction of the arena will be privately funded. The review also concluded that Hunden Strategic Partners and Conventions, Sports & Leisure International (CSL) had actually “underestimated” the revenue the project would generate for the city.
If the district doesn’t use any taxes, it will be Arizona’s first privately funded arena in Arizona. According to Seidman’s comments, using private capital would also prevent residents who don’t use any of the amenities the district offers the city from paying surcharges.
“A review of the draft development and disposition agreement between the City of Tempe and Bluebird Development (on behalf of the Arizona Coyotes) indicates that the proposed project financing for the new NHL arena will be different from the professional sports facility previously built in the Valley,” Seid Mann reported. “In particular, the Tempe Arena and related developments require no new tax revenue streams or general fund obligations for Tempe taxpayers.”
However, GCI’s review concluded that while Tempe would not lose money from its general fund if the project went ahead, the development would limit the fund’s growth, the report said.
The Arizona Coyotes’ new entertainment district in Tempe will feature an arena, hotel, restaurant, store, sports lounge and theater. (Photo courtesy of Arizona Coyotes)
“For every $2.70 diverted from the city to community facility districts (CFDs), the city receives only $1 in new revenue due to new spending attracted by arenas and music venues and their recycling within Tempe,” Grand Canyon Institute said.
On Saturday, Tempe 1st — a group that opposes the Tempe Recreation District because it doesn’t want a “new handout for billionaires” — posted a statement on social media claiming that approval of Propositions 301, 302 and 303 would allow Tempe sells Coyotes owner Alex Meruelo city land for $25 an acre.
However, after the idea was dismissed, the post was deleted. In fact, under the development and disposal agreement, sold at $25 per square foot, the price tag for the four phases is $50.37 million.
Monday is the deadline to register for the May 16 election, and mail-in ballots are expected to arrive on Wednesday. Any voter who fills out a mail-in ballot must return it by May 9 for it to be counted in the election. Ballots can also be returned at the drop box or polling place until the evening of May 16.
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