NHL Commissioner Gary Bettman worries political opposition could hamper Phoenix arena efforts
NHL Commissioner Gary Bettman expressed confidence in Coyotes owner Alex Meruelo’s capability to get a new arena for the now-dormant franchise, but he acknowledged that political opposition to such a plan could be an issue.
“If there's outright hostility to another arena, and there are forces at bay that are going to do everything to prevent it, that'll be a problem,” Bettman said. “But I don't doubt Alex's commitment to try to deal with all of those head-on.”
Bettman and Meruelo jointly addressed the media today at a hotel in Phoenix, one day after the league announced that the Coyotes franchise would be deactivated while its players and hockey operations assets transfer to a new franchise in Utah. Meruelo would have the right to reactivate the Coyotes franchise if he is able to get an NHL-caliber arena built in the next five years. Bettman revealed today that the deal requires Meruelo to give 18 months' notice for the franchise to be reactivated.
Many of the questions Meruelo faced focused on his expressed interest in establishing a theme park district, a type of “special taxing district,” to help fund the proposed $3 billion mixed-use development. Under Arizona law, a theme park district can levy sales tax of up to 9% on purchases made within its bounds that a developer can use to service construction-related debt.
As the law stands, the Coyotes would need approval from both Maricopa County and Phoenix to establish a theme park district. The Arizona Senate Government Committee recently recommended legislation that would take the city out of that process, but it has yet to reach the senate floor.
Meruelo said he has a meeting coming up later this month with Phoenix’s mayor to discuss the enactment of the theme park district as well as permitting.
Public opposition to similar funding mechanisms was a key factor in Tempe voters' defeat of a previously proposed arena district project for the Coyotes last year. The Coyotes' hope is that they would be able to avoid a public referendum this time around in Phoenix.
“Referendums in sports are kind of tough,” Bettman said. “They generally don't pass, we've learned. Kansas City with the Super Bowl champions just had a referendum fail. This project as currently outlined doesn't require a referendum."
The first step toward a new arena would be Meruelo successfully winning an auction to acquire the 95-acre site (110 gross acres) in Northeast Phoenix where he hopes to build the entertainment district. The auction is scheduled for June 27 with a minimum bid of $68.5 million.
“The most important and critical thing we have to do now is win that land auction June 27,” Meruelo said. "I have full commitment that I will win that land auction.”
