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Arizona land auction ignored ‘seriously endangers professional hockey’

Arizona land auction ignored ‘seriously endangers professional hockey’

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Exactly two months after the owners of the Arizona Coyotes sold the team to a Salt Lake City businessman, team management says the future of hockey in Arizona is in serious jeopardy.

That’s because the Arizona Department of Lands announced Friday that it has canceled an auction for desert land north of Phoenix that hockey team owner Alex Meruelo was eyeing to develop a new arena.

The Land Administration said in a press statement that “it is in the interest of the Fund to cancel the auction and reschedule the steps.”

According to the Land Department, the proposed development would require a special use permit, which the department now requires the applicant, the Coyotes, to secure before purchasing the land.

The NHL franchise had been eyeing the land totaling about 100 acres, located on Loop 101 west of Scottsdale Road, for an arena and mixed-use development. The land was scheduled to be sold at auction on June 27, with a starting bid of $68.5 million.

Coyotes destroy Land Department in statement

The Coyotes issued a scathing statement on the cancellation of the auction, which they said “seriously threatens the future of NHL hockey’s return to the desert.”

The team described the cancellation as a “unilateral” move by the department over the Coyotes’ objections after they said they had met all legal obligations.

“The organization was working with ASLD in good faith and was on track to win next week’s auction, until ASLD’s abrupt reversal today,” the team said in a statement.

Canceling the auction means the state is giving up “millions, perhaps billions, of dollars that would have gone directly to K-12 education,” the statement said.

“The Arizona Coyotes are exploring all of our legal options in light of this short-sighted decision by the state,” the statement said.

The Phoenix location does not currently allow a yard

Phoenix spokeswoman Telia Galaviz said the Land Department had requested an explanation of the zoning at the site and that the city determined a sports arena was not allowed under current zoning. She said the arena “requires the approval of a special permit through the rezoning process.” Rezoning is a process that changes the permitted uses on a site, which requires a series of public hearings and can take several months.

The Coyotes have not yet applied for a special use permit, “but we look forward to receiving the application and working through the process with (the team),” Galaviz said.

Previously, a spokesperson for the state Department of Lands said the team needed city approval to move forward.

“We understand that the delay in the auction is a disappointment to our applicant and the public, but a change in timing is a prudent decision for the Fund,” a department spokesperson said in a news release. The state-owned company “remains open to working with our applicant to offer the land for auction in the future if a special use permit is obtained.”

Fans and Valley leaders are taking aim at Meruelo’s leadership

Phoenix City Councilman Jim Waring, whose district the proposed arena would fall in, said Friday that the Wolves should “get a zoning attorney.” They don’t have a lawyer. Go into town, come up with a plan and go through the process. Then buy it.”

An employee who works for Phoenix Councilman Kevin Robinson in District 6, which the site does not belong to, previously criticized the Coyotes’ statement and intentions on X, Twitter.

Jack Kenny wrote: “You idiots have never worked in good faith. No one trusts you and no one wants to work with you.” “Being a bad actor for years means you have to overcome a number of hurdles to regain trust, and instead you complain on Twitter.”

Rich Nairn, the former Coyotes executive vice president of communications who worked for Meruelo until September 2023, criticized Meruelo’s ownership of social media.

“Hopefully he finally withdraws so the NHL can start conversations with other real potential owners,” Nairn wrote on X, formerly Twitter, in response to Craig Morgan of PHNX Sports.

The land is in Phoenix but is along the border with Scottsdale, whose mayor has publicly criticized the project.

Scottsdale Mayor David Ortega said Friday that he had previously indicated the land had “questionable zoning rights.”

“Mr. Meruelo’s fantasy hockey proposal was just a smokescreen when he came out after running the franchise,” Ortega said in a text message. Ortega also criticized Meruelo’s intentions to acquire the title of “theme park district” as a mechanism to to fund the development, however, Phoenix Mayor Kate Gallego previously said she was not interested in providing a tax break like a theme park district.

Meruelo must pursue the expansion team himself

Meruelo sold the team’s hockey assets to Utah Jazz owner Ryan Smith in April but retained the Coyotes name and brand, with the goal of bringing an expansion team back to Arizona. The NHL gave Meruelo a five-year deadline to build an arena suitable for professional hockey so an expansion team could emerge.

Under the agreement, Meruelo can only engage partners for a maximum of 20% of the project, meaning he must retain the lion’s share of ownership.

In April, NHL Commissioner Gary Bettman said the league would need about 18 months’ notice to reactivate the franchise, and said the league would monitor the milestones the project reaches, especially progress on the physical buildings. Meruelo said at the time that he was determined to win the auction.

The team has released designs for the proposed arena and the mixed-use neighborhood surrounding the new facility, which will include restaurants, retail, a hotel, office space, a 3,500-capacity theater and 1,900 residential units.

When the team’s move to Salt Lake City was announced, Bettman said it became clear the Coyotes would play at Arizona State University’s Mullett Arena too long to be eligible for the NHL.

“As a college course, it’s a good facility, but it’s not a major league facility,” Pittman said at the time.

The average NHL player’s career lasts between four and five years, so Bettman said it’s unfair for professional players to play their entire careers in the college arena.

Al-Jumhuriya correspondent Sam Kamak contributed to the writing of this article.

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