Arizona Coyotes Arena Project Nears Key Vote

The Arizona Coyotes could be on the path to a new arena, but the next steps are fraught with complications.

Tempe’s city council will vote on Thursday whether or not to begin formal negotiations on a $1.7 billion mini-city development centering on a new arena for the NHL team. 

• Bluebird Development, owned by Coyotes owner Alex Meruelo, submitted a proposal for an arena project that would include hotels, offices, stores, and housing on 46 acres of city land.
• Bluebird is seeking $200 million from the city in sales tax revenue derived from the project to help pay for infrastructure costs.
• A “yes” vote from the council does not indicate approval of the project, but allows Bluebird to enter a lengthy negotiation phase with the city.

The project would fall under Phoenix Sky Harbor Airport’s flight path, and airport officials have stated concerns around building heights and the development’s proximity to runways. The project will need approval from the Federal Aviation Administration.

The city of Phoenix has stated that plans for 1,000 residential units would violate a 1994 agreement on land use agreed to by the two cities.

Cozy Confines

The proposed project represents a path out of the team’s peculiar playing arrangement. 

After facing a potential lockout from the city of Glendale over unpaid taxes, the team will play at least the next three seasons at Arizona State University, which has a capacity of 5,100.