The ongoing up and down quest on the part of the Arizona Coyotes hockey team to build a new stadium is suddenly facing yet one more challenge.
The team has had its eye on a site in north Phoenix that would have room enough for the construction of both a massive $1.7 billion new arena, as well as a surrounding entertainment district.
To acquire the land, which is currently owned by the Arizona State Land Department, the team was prepared to participate in an auction conducted by that department and scheduled for June 29.
According to earlier reports, a minimum bid of $68.5 million was required for the 95-acre property, located near the intersection of Rio Salado Parkway and Priest Drive.
But just as the Coyote ownership was anticipating the auction event, the Land Department announced that it is requiring a special use permit from the team. That permit, said the agency in a press release, will provide certainty that “the applicant can build what it intends to build.”
In a correspondence with the team, the Land Department made certain to add that it is not uncommon to require applicants to secure zoning and use permits prior to an auction.
In perhaps what might be regarded as an understatement for the Coyotes, the Land Department also commented: “We understand the delay in an auction is a disappointment for our applicant and members of the public,” before adding that the action is nevertheless a prudent one for the agency.
Once the permits are obtained, the Land Department declared, it would work with the team on the scheduling of a new auction date.
The decision was badly received by the Coyotes. In a statement, the team said the Land Department action “seriously jeopardizes the future of National Hockey League hockey returning to the desert.”
As revenue from Land Department sales and leases go directly to public school needs in Arizona, the Coyotes statement mentioned: “By cancelling the land auction, the State is forgoing millions, and potentially billions, of dollars that would have gone directly to K-12 education.”
Exactly what happens next remains unclear, with some reports indicating that the Coyotes will most likely secure the required zoning/use permits in the hope of being able to participate in a future Land Department auction.
Other sources think the Coyotes may well now be planning to leave the Grand Canyon State: “The future of NHL hockey in Arizona turns bleak,” headlined the publication Burn City Sports.
The earlier announced Coyote plans for the north Phoenix site included construction of a 17,000-seat arena, as well as a 3,500-seat theater, 400,000 square feet of retail space, and a practice facility measuring 150,000 square feet.
The Coyotes had previously wanted to build a $2.1 billion arena and entertainment district at a 46-acre site in Tempe, only to see voters there in the spring of 2023 reject the plan.
By Garry Boulard
