Arizona Coyotes Plan for New Arena and Entertainment District in Phoenix
In a bold move that could significantly change the landscape of professional sports facilities in Arizona, the Arizona Coyotes have set their sights on acquiring a large tract of land in Phoenix to establish a new arena and entertainment district. This endeavor is not just ambitious for its scale but also for its financial strategy, aiming to operate without dipping into taxpayer funds. The proposed project promises to be a substantial boost to the local economy, creating thousands of jobs and generating billions in economic activity over the next few decades.
The pivotal moment for this plan is an upcoming public auction scheduled for June 27, where the Coyotes will bid on the 110.06-acre site necessary for this massive development. With Coyotes Chairman Alex Meruelo at the helm, the organization is fully committed to securing this land to bring their vision to life.
Financial Strategy and Commitment
The financial figures tied to this project are staggering, starting with the auction's minimum bid set at $68.5 million. To underscore the commitment behind this endeavor, Meruelo has announced that the project, including the construction of a 17,000-seat arena, a concert venue, and various other amenities, will be developed without relying on public funds. This approach is a departure from the norm in Arizona and many other regions where taxpayer money often plays a significant role in sports infrastructure projects.
Should the Coyotes win the auction, they plan to kickstart a development that could redefine entertainment options in Phoenix. This includes not only the proposed arena and concert venue but also expansive living spaces and commercial areas comprising 1,900 apartments and 400,000 square feet of commercial space.
Economic Impact
The economic implications of such a development are considerable. With a projected creation of 10,800 new jobs and an estimated $15.5 billion generated over 30 years, the impact on the local economy could be transformative. The initiative is not just about providing entertainment but also about nurturing economic growth and community development.
Alex Meruelo and Coyotes President and CEO Xavier A. have both expressed enthusiasm for the project's potential. They envision the development not merely as a home for the Coyotes but as a vibrant gathering place for the community and a landmark that would create lifelong memories for fans and visitors alike.
Logistics and Challenges
The road ahead for the Coyotes involves several logistical and financial hurdles. The land, appraised at $68.5 million, sets the stage for a competitive auction process with minimum bid increments of $100,000. Moreover, the development will have to address about $80 million in additional infrastructure costs, which the city of Phoenix has outlined as part of the public infrastructure obligations for the project.
Another significant challenge is the project's total estimated cost of $1 billion, a figure that the Coyotes aim to meet through private investments and sponsorships. If successful, this would mark the creation of Arizona's first privately funded sports arena and district, setting a new precedent for how sports franchises engage with their surrounding communities and finance their facilities.
Conclusion
With their lease at Glendale Arena expired after the 2021-2022 season, the Coyotes are in dire need of a new home. This project not only offers a solution but also promises to usher in a new era for the franchise, the fans, and the city of Phoenix. By emphasizing private funding and focusing on community benefits, the Coyotes are positioning themselves as pioneers in the sports world.
The project's success would not only secure the Coyotes' future in Arizona but also potentially set a new standard for sports facility development across the nation. As the June 27 auction approaches, all eyes will be on the Coyotes and their bold vision for the future of sports, entertainment, and community development in Phoenix.
