SBD/June 14, 2012/Franchises

Goldwater Files Suit Against Glendale Over Approval Of Coyotes Lease Deal

Glendale Council last week approved a $324M lease deal
Phoenix-based conservative watchdog group the Goldwater Institute is “suing Glendale in an attempt to invalidate last week's City Council approval of a $324 million lease deal with a likely Phoenix Coyotes buyer,” according to Lisa Halverstadt of the ARIZONA REPUBLIC. Goldwater filed a complaint in Maricopa County Superior Court yesterday “on behalf of two Glendale residents.” Goldwater notes that the Glendale city charter “requires five of seven council members to approve emergency measures like the Coyotes deal, which was effective immediately.” Four council members “approved the deal with Coyotes suitor Greg Jamison, with one councilwoman absent.” The group also cites the city's mandate that any service "of more than $50,000 include a written request for proposals or an invitation for businesses to place bids.” The charter “does include exceptions, such as one that allows the city manager to bypass the bid process when it's unlikely to reduce expenses or could cause delays or unnecessary spending.” Goldwater in a separate filing yesterday claimed that Glendale “should be held in contempt of court and its vote invalidated because of a failure to release two exhibits to the 20-year lease with Jamison before the council vote.” Goldwater President Darcy Olsen said, "All of these issues are related to the single point of having Glendale follow the law and give taxpayers the information they need and the time to be heard." Glendale and NHL officials have said that they “believe the lease agreement with Jamison is likely to go forward despite any lawsuit because it does not require a bond sale as the previous deal did.” The lease agreement “calls for all parties to bear the costs of contesting any court challenges" (ARIZONA REPUBLIC, 6/14).
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