Tempe City Council reviews findings, study of Coyotes’ proposed arena and entertainment district

The fate of the Coyotes’ Tempe Arena and Entertainment District proposal may be on its way to its home turf. City staff are expected to present to the Tempe City Council the findings, research and progress made in negotiating with the Coyotes on outstanding issues surrounding the proposal. Council will review this information at an executive meeting Thursday, before a public meeting that evening.

Any information presented to Council by city staff at executive meetings will not be discussed at public meetings.

Assemblyman Randy Keating Attend the PHNX Coyotes Show on July 27 Discuss the status of the proposal ahead of the Four Peaks Brewing Co. meeting in Tempe.

“Each council member presents a different pain point to the coyotes,” Keating said. “They’ve been working with Coyotes to try and solve some of the issues that don’t really matter.”

Those issues include nearby residents’ concerns about noise and traffic, the use of unionized labor for construction and future employment, financing structures and well-documented disagreements with Sky Harbor International Airport officials.

“Through conversations with the mayor and another colleague of mine, I hope to have it done by the end of the year at the latest,” Keating said. “My preference is before the holidays, just because when the public has all sorts of holiday events and stuff like that, it’s hard for them to get involved, and we want to make sure that’s a strong public process. If we can do it before Halloween I’m going to be thrilled when this is over.”

Keating made it clear that Coyotes has a responsibility to work with the council and the public to resolve any remaining issues, while convincing all stakeholders that this project is the right move for the city.

“It’s something they need to do because, look, at the end of the day we’re all politicians out there and nobody wants to do something very unpopular,” Keating said. “Coyotes has a responsibility to sell it, but I think the structure of the deal right now is something that can be sold to the people of Tempe, as long as it’s done in a thoughtful manner.

“I think the reason this deal is different is because it’s fan-funded, and I’m so grateful for how Coyotes came up with that model. When people say, ‘I don’t want to pay for the arena,’ I say, “I don’t want to either. “The problem is, if you don’t go to the games, none of your money is going to repair the land to build the arena.”

While the airport remains an issue in the eyes of Sky Harbor and Phoenix officials — particularly the construction of residential units along the Salt River — Keating said city staff, including the city council intergovernmental agreement The clash between Tempe and Phoenix came after hearing Coyotes attorney Nick Wood address the issue for the first time at a June 2 meeting.

“I really felt a change in the energy in the room after the coyote showed up, and I think we’ve seen that in the public comments,” Keating said. “I can tell you from what we’ve got from the city, it’s gone from completely negative to maybe 50/50 on a pro or a con.”

Here’s what Keating had to say about the airport.

“It’s a complex issue. Looking at the 1994 intergovernmental agreement, it seems to me that it’s something we’re absolutely allowed to do. I know Phoenix and Sky Harbor understand this differently. I can tell You, our legal team is working on it. In fact, they have to go through decades of paperwork and various other agreements that could conflict. So there’s a lot of work going on on the Tempe side to see if this is something we can do Legally doing things. Not only that, but doing things that are good and friendly to all parties; Sky Harbor and Phoenix. No one wants to do it in an ugly way. We are a city of 20+ Region. Everyone wants to resolve this in the friendliest way, and I’m sure we’ll fix it.”

Some believe the piece was critical for Coyotes to secure funding for construction projects, including Richard Rodieran attorney who worked for the NHLPA. Rodier is also the principal advisor In 2009, Research In Motion CEO Jim Balsillie was involved in the billionaire’s bankruptcy plan to buy Phoenix Coyotes and relocated the team to southern Ontario.

Coyotes declined to comment on Rodier’s claims.

On June 2, the Tempe City Council approved the RFP by a 5-2 vote and continues to negotiate with the Coyotes to create a new arena and entertainment district in Tempe. NHL Commissioner Gary Bateman approved the plan “without reservations,” adding that a 30-year no-relocation agreement was needed to underscore the league’s commitment to the Valley. Bateman also promised Tempe to host an NHL All-Star Game and an NHL draft if the proposal is approved.

On September 2, 2021, the City of Tempe reported that the Coyotes was the only group to submit a proposal in response to its request for proposals to include a professional sports franchise and entertainment district in a project on two city-owned lands covering 46 acres , on the northeast corner of Priest Drive and Rio Salado Parkway. Located on the south bank of the Salt River, the site was previously used as a sand and gravel mining operation and as a dump.

Coyotes has proposed a $1.7 billion development that includes a hockey arena, hotel, apartments, retail and a sports book. The team said the project will be privately funded, although it hopes to use some of the city’s sales tax revenue generated by the development to help cover an additional $200 million.

Coyotes will need to remove approximately 1.5 million tons of waste from the site. The team then needed to repair the site before construction began, at a cost of about $70 million. The team will pay $40 million for the Eastside cleanup and commit $8 million to repair the Westside, with the remainder paid through bonds. The bonds will also pay for infrastructure such as power lines, water lines, sewers, roads and parking lots on the northeast corner of properties owned and operated by the city.

The project could generate $154 million in new taxes for the city over 30 years, $5.9 billion in direct spending for the city, and create 6,900 permanent jobs, the team said.

We are advancing our proposed arena development with the City of Tempe.

See what we hope to build. pic.twitter.com/7sSZBujGuA

– Arizona Coyotes (@ArizonaCoyotes) June 3, 2022

Keating didn’t outline any specific timeline for events following Thursday’s meeting, although he did point out that both the Coyotes and the City will be soliciting public feedback; a process that has already begun.