April 7, 2024

Arizona Coyotes' Ambitious Plan for a New Arena and Entertainment District in Phoenix

The Arizona Coyotes are set to make a game-changing play not on the ice, but in the real estate market of Phoenix, as they look toward securing a 110.06-acre site for a new arena and an all-encompassing entertainment district. The move marks a significant step forward for the team and its ambitions in Arizona, with an eye on a public auction scheduled for June 27 to acquire the land necessary for this ambitious project.

A Vision of Growth and Development

At the heart of this initiative is Coyotes Chairman Alex Meruelo, whose vision extends beyond merely constructing a new home for the Coyotes. He plans to develop a district that will be self-sufficient, not relying on taxpayer dollars for its realization. Details of the proposal include a 17,000-seat arena primarily for the Coyotes, a concert venue poised to attract major acts, and an array of additional amenities designed to offer a comprehensive entertainment experience. The stipulated minimum bid for the auction stands at $68.5 million, a figure equal to the appraised value of the land. This development is not just about sports and entertainment; it's projected to be an economic catalyst for the region. Over the next 30 years, the project is expected to create 10,800 new jobs and generate an impressive $15.5 billion in economic impact.

Funding and Infrastructure

Beyond just winning the auction, there are substantial commitments that the Coyotes' ownership must prepare to undertake. The city of Phoenix has outlined specific public infrastructure obligations that need to be met as part of the development. Additionally, estimated infrastructure costs hover around $80 million, a hefty sum that outlines the scale of the project. The venture into this development follows the expiration of the Coyotes' lease at the Glendale Arena after the 2021-2022 season, necessitating the search for a new home. The plan for the new development is ambitious, encompassing 1,900 apartments and 400,000 square feet of commercial space, signaling a transformational change not just for the Coyotes but for Phoenix as a whole.

Private Funding: A Novel Approach

Chairman Meruelo is committed to achieving a historic feat with this project: building the first privately funded sports arena and entertainment district in Arizona. The estimated total project cost is $1 billion, with plans to secure private investments and sponsorships to bring this vision to life. The development not only focuses on providing a new sporting venue but also on bolstering the local economy by creating approximately 10,800 construction jobs and 3,500 permanent jobs upon completion.

Leadership's Enthusiasm

The leadership of the Arizona Coyotes is palpably excited about the prospects of this development. "My family and I are committed to winning this land auction and building a transformative entertainment district that will not require taxpayer funding for the first time in Arizona history," said Alex Meruelo. He emphasized the significance of creating a vibrant gathering place for fans and the community—a landmark poised to generate lifelong memories. Echoing this sentiment, Coyotes President and CEO Xavier A. expressed his excitement about the project. "We are thrilled by the prospects of building this historic development for Arizona Coyotes fans and fans in waiting," he stated. This project represents not only a new chapter for the Coyotes but also a leap forward for community engagement and economic development in Phoenix.

Conclusion

The Arizona Coyotes' ambition to secure a new arena and entertainment district in Phoenix is a clear indicator of the team's commitment to their fans and the community at large. With a vision that promises economic growth, job creation, and a landmark development that eschews taxpayer funding, the project stands as a testament to innovative approaches in sports and entertainment infrastructure. As the public auction date approaches, all eyes are on the Coyotes and their bid to transform a significant swathe of Phoenix into a bustling hub of activity, entertainment, and sporting excellence.