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SBD/June 11, 2012/Franchises
City Of Glendale Approves Coyotes' Proposed $325M Lease Agreement
Published June 11, 2012
SHOW ME THE MONEY: In Phoenix, Mike Sunnucks noted Jamison "still needs to get the money and financing in place to finalize a purchase of the team." The deal will be "challenged next week in court by the Goldwater Institute." Scruggs said that the money for the arena deal "will come from a proposed city sales tax increase." The move "could be challenged this fall in referendum" (BIZJOURNALS.com, 6/10). Also in Phoenix, Sonu Munshi noted the Goldwater Institute sought to delay the vote with a restraining order, "arguing that the city had not yet released documents key to understanding the financial deal proposed." The restraining order was denied, and the judge said that Glendale "could be sanctioned for proceeding on a vote" (AZCENTRAL.com, 6/8).
MORE COURT TIME COMING? An ARIZONA REPUBLIC editorial stated that by rushing to vote, "Glendale confirmed its reputation as the Valley city with the greatest disdain for transparency." In the process, "it assured itself of more time in court and less trust from residents." This was "pure arrogance." Goldwater "will be back in court Monday, before a judge who handed it an engraved invitation." The editorial: "The city will likely lose. Why? Because leaders unnecessarily rushed a vote, instead of allowing the full public participation necessary in a democratic society" (ARIZONA REPUBLIC, 6/9). But in Phoenix, E.J. Montini writes, "Just because they can sue, should they?" The bigger questions are: "Will gutting what is clearly a bad deal make things better? Or will the possible loss of the hockey team and everything that goes with that in terms of jobs and adjacent businesses make the situation in Glendale even worse?" Goldwater officials "preach purity." They say that they "are motivated by their belief in privatization and lack of taxpayer participation in enterprises like professional sports." Montini: "But how pure can those beliefs be when on the institute's board is the wife of Ken Kendrick, owner of Arizona Diamondbacks, a business that would not exist without taxpayer participation?" (ARIZONA REPUBLIC, 6/11).