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Coyotes Arena Saga Heading to Conclusion With June 27 Auction
Thomas Hawthorne/The Republic via Imagn Content Services, LLC

June 27, 2024 will be the day of reckoning for the Arizona Coyotes. PHNX’s Craig Morgan reported that the Arizona State Land Department officially put the 95-acre lot in Northeast Phoenix up for auction on Thursday. The land department set the auction date for June 27 with a minimum bid for the lot starting at $68.5 million.

This is sounding like the last chance for owner Alex Meruelo and the Coyotes to stay in Arizona. Meruelo and the team had previously tried to obtain land in Tempe last year but were voted down by the citizens. Now, the Coyotes face a public bid that will decide the future of the franchise that has recently been under scrutiny by the media for not speeding up the arena process.

“It’s very easy to get distracted by a lot of noise, but we’ve been very focused and committed,” Coyotes president Xavier Gutierrez told Morgan. “There was this narrative that we weren’t doing anything to make this happen, but a month after the Tempe vote, we submitted the application for a project to buy land that was zoned for all of our uses while not subjecting ourselves to a public referendum vote. A month! We were not idle.”

About the Project

The 95-acre lot will feature an entire complex built by Meruelo. It features six parts. The Residences will have apartments, a community ice rink, a dog park, and a farmers market. The Lifestyle District will have a Coyotes retail store, restaurants, more apartments, and bars. Luxury Living will feature condos and a parking garage. The Office Park will include corporate offices and another parking garage. The Headquarters will have the team’s offices and headquarters along with more parking. 

Finally, the Entertainment District will include the arena that will be used for the Coyotes, other sports, and concerts, a retail and dining district, a live music theater, and a watch party zone that is fully covered to protect everyone from the Arizona sun. The arena will seat 17,000 fans and will add 1,500 more fans for non-hockey events.

The practice facility will hold three sheets of ice. The Coyotes have stated that it will also support youth hockey in the arena. It will also be available for the broader community once again supporting the team’s statement that hockey belongs in the desert.

Just as important, the Coyotes are estimating that the site will bring in an extreme amount of jobs and revenue for the city of Phoenix. The district is estimated to generate $581 million in new tax revenue for the city and $232 million for Maricopa County. The team also reported that it will create 10,800 new jobs in Phoenix and 16,700 jobs throughout Maricopa County as the Coyotes return to Phoenix for the first time since 2003.

It’s an opportunity to bring another professional sports team back to the city of Phoenix,” Gutierrez said. “Just as important, a professional sports team gets to stay in Arizona. But think of the economic impact for the City of Phoenix alone. You’re looking at over 10,000 new jobs, almost $600 million in taxes, and almost a $33 billion economic output. Almost 3 million new visitors. That’s a big deal.”

Final Chance in Arizona

However, the Coyotes must win the public bid. The bid can be entertained by anyone. No other party has applied for the parcel at this point in time. Other bidders will not be revealed to the public until the day of the auction.

Reports had stated that the Mayo Clinic was once interested in the parcel of land. The clinic owns land on the other side south of Loop 101. However, the vice chair of communications for the clinic stated that they are not interested in the land at this time.

This will be the final opportunity for the Coyotes to stay in Arizona. Gutierrez confirmed that this is the plan and the only plan the team has left.

“Alex is very committed to NHL hockey in Arizona,” Gutierrez said. “He’s very committed to this project. He is very committed to being the winning bidder because obviously, if there is not a successful or winning bid, then we will have to explore relocation of this franchise. There is no other option that we are exploring at this point.”

Gutierrez went on to confirm that it would be extremely expensive and long-term to renovate Footprint Center. The Findlay Toyota Center in Prescott is the only other viable arena in the state but is two hours away from Phoenix and raises a whole flurry of concerns and questions.

It’s Different Than Tempe

Meruelo will be funding the whole district by himself. Similar to the Tempe project, the taxpayers will not be paying a single penny which is something Gutierrez wanted everyone to know.

“It’s privately funded, we’re buying the land, we’re paying for all of the building,” Gutierrez said. “I want to be very clear so people understand. Alex is putting up the money to do this. He’s on the hook for it and that is not the case with any other building in the state of Arizona. That somehow got misconstrued even in Tempe. We were paying for it all.”

Unlike the Tempe project, the Coyotes won’t be facing nearly as many hurdles as they had last year. The site is nowhere near an airport meaning the Phoenix Sky Harbor Airport, which publically opposed the team’s plans last year, will not have a single chance to try to destroy the plans of building this complex. The land doesn’t have to be renovated since it’s not on a toxic landfill, unlike the Tempe project. This also means the team can finish building the land faster. It will need to have infrastructure placed on it, though. Sewers, streets, water, bus access, and most infamously flood control, which has been a critique circling the internet, will all need to be built into the land. Fortunately, that will all be easy to do.

The soonest the team is projected to start construction of the complex if they win the bid will be 2025. The first and main building that will be constructed is the actual arena. It is projected to be completed by the start of the 2027-28 NHL season. The Coyotes will continue playing at Mullett Arena until the arena is finished if the bid is won.

The team has been meeting with the State Land Department since the failure of the Tempe vote. After meeting with the department, the Coyotes narrowed it down to the Northeast Phoenix parcel. They also decided to cut down the original 200-acre lot to 95. If won, the department will most likely proceed with the process to require a close 30 days after the bid.

The bid will be a live and open, verbal auction. It will be similar to what you see with fundraising auctions with paddles. The auction will be open to the public and the media. It will be held at the Arizona State Land Department, 1110 W. Washington St., Phoenix.

NHL Commissioner Gary Bettman and the league is monitoring the situation. He restated that he and the league want the team in Arizona and are hoping for the best outcome for the bid and the team.

The Coyotes’ official video of the complex

“Obviously, we want a new arena and we want the team in Arizona,” Bettman said. “Alex wants to win the auction to make that happen.”

It’s All Up to Alex Meruelo

This is Meruelo’s last chance in Arizona. It’s all up to him now. In Tempe, the public and outside noise affected the public vote. Now, it’s not about what the public thinks. It’s not about anyone’s opinion. It’s about how much is Meruelo willing to spend out of his pocket to win the land and secure the Coyotes’ future in Arizona. It is on his shoulders and his shoulders alone to win the bid. There is nowhere else the Coyotes can go in the state.

The long and excruciating arena drama of the Coyotes is almost nearing a conclusion. When Meruelo bought the team back in 2019, he made a promise to keep the Coyotes in Arizona. This is the final step and chance for the billionaire to keep his promise and prove hockey belongs in the desert. 

This article first appeared on The Hockey Writers and was syndicated with permission.

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