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City Of Glendale, Hulsizer Agree On New Jobing.com Arena Lease
Published December 13, 2010
|Jobing.com Arena Lease Deal Would Provide
Hulsizer $197M Over The Next Five Years
The city of Glendale has struck a deal that would pay Coyotes prospective owner Matthew Hulsizer $197M “over the next five years, more than the city spent to build" Jobing.com Arena for the team seven years ago, according to Rebekah Sanders of the ARIZONA REPUBLIC. Hulsizer would get $100M, which Glendale “will raise from a bond issue, as soon as the deal is signed.” The city “would then pay the Coyotes organization $97 million over five years to operate the arena during concerts and other non-hockey events, a cost that had previously been borne by the team.” The Glendale City Council “will vote Tuesday on whether to approve the deal.” Glendale Council member Phil Lieberman on Friday called the deal "ridiculous" and said that the city “cannot afford the terms of the agreement.” Hulsizer “plans to pay $170 million to buy the team from the NHL” as soon as this week, and he “is expected to use the city's $100 million to offset the cost.” In exchange for the up-front payment, Glendale “will take over rights to 5,500 parking spaces in lots surrounding the arena.” Glendale officials said that the city “will charge parking fees at arena lots to help cover the cost of the $100 million in bonds.” The lease deal “aims to ensure Glendale has an anchor tenant for the taxpayer-funded arena until at least 2033.” The city “has done preliminary work to find investors to purchase $125 million in bonds to cover the up-front payment to Hulsizer.” The deal allows the city after 5 1/2 years to “sell the arena to Hulsizer for no more than $130 million.” Hulsizer at the end of the lease “could purchase the arena, as well as the rights to charge for arena parking, for $40 million.” In return, Hulsizer would agree to “keep the team in Glendale for the next 23 years, the remaining time the city has on its lease with the team.” He would “pay the same amount of arena rent and fees to Glendale as previous owners, as much as $6 million a year.” He also will “work to rename the team the Arizona Coyotes” (ARIZONA REPUBLIC, 12/11).