The residents of Tempe rejected a proposal to build a new arena for the Arizona Coyotes, putting at risk the team’s future in the area.
City council, through Propositions 301, 302 and 303, was seeking approval from the public to go ahead with a $2.1 billion Tempe Entertainment District plan to develop 46 acres/19 hectares featuring a 16,000-seat arena, 1,900 luxury residential units, a 3,000-seat music venue, high-end retail, upscale restaurants and boutique hotels.
Tempe city council counted the ballots and made the announcement of the final voting tally on Tuesday night in a special referendum called specifically for this project, with 56 per cent of the voters rejecting two of the propositions and 57 per cent rejecting the other. In November, council approved taking the proposal to the city’s residents.
“The National Hockey League is terribly disappointed by the results of the public referenda regarding the Coyotes’ arena project in Tempe,” NHL commissioner Gary Bettman said in a statement. “We are going to review with the Coyotes what the options might be going forward.”
The Coyotes also released a statement.
“We are very disappointed Tempe voters did not approve Propositions 301, 302, and 303,” Coyotes president/CEO Xavier Gutierrez said.
“As Tempe Mayor Corey Woods said, it was the best sports deal in Arizona history. … While we wanted a different outcome, we remain grateful to all those who volunteered their time and talent. What is next for the franchise will be evaluated by our owners and the National Hockey League over the coming weeks.”
Supporters of the project said it will bring 6,900 permanent jobs and a tax benefit of $215 billion to Tempe over 30 years, in addition to a permanent, NHL-calibre arena for the Coyotes. Developers are also touting that all funding will be private, with “no risk to the taxpayers or the city.”
Opponents decried conditions for the deal that included property tax “relief” for 30 years, which reportedly amounts to $700 million, plus the $200 million the city would pick up in infrastructure costs, such as sewers, roads, etc. The lack of affordable housing, the proximity to the airport and the presence of a sportsbook so close to Arizona State University also drew criticism.
The parcel of land in question is currently a landfill.
The Coyotes have played in three arenas in the Phoenix area since relocating from Winnipeg for the 1996-97 season. They currently play in ASU’s new arena, which holds 4,600 for NHL games, a capacity that is about 10,000 smaller than the next-smallest rink.
