The Arizona State Land Department recently made the decision to cancel a land auction that was set to take place, a decision that may have significant implications for the future of the Arizona Coyotes. This auction was seen as a crucial step in reactivating the dormant NHL franchise owned by Alex Meruelo. The NHL board of governors had already approved the establishment of a new franchise in Utah, with Meruelo in the process of transferring the Coyotes‘ hockey assets to Smith Entertainment Group while retaining the team’s intellectual property. However, the plan for the Coyotes to become active again was contingent on the construction of a new, state-of-the-art facility suitable for an NHL team within five years.
The Coyotes had set their sights on a 95-acre parcel of land in north Phoenix as the potential site for their new arena. The ASLD board of appeals had approved a $68.5 million appraisal of the land and had scheduled the auction. The team had released detailed plans for the new facility, including an arena, practice facility, theater, and housing units. Construction was expected to begin in the second quarter of 2025, with a target completion date of 2027. However, sources have revealed that the cancellation of the auction was related to concerns over the type of hockey arena that Meruelo intended to build on the land.
The ASLD stated that the proposed arena would require a Special Use Permit, as the existing zoning for an indoor hockey arena did not extend to a 17,000-seat NHL stadium that could potentially seat 18,500 for other events. This requirement for a Special Use Permit led to the decision to cancel the auction, with the ASLD emphasizing that it is not uncommon for such permits to be required before an auction takes place. The Coyotes expressed frustration with this development, claiming that they had met all of the obligations set forth by Arizona law and were on track to win the auction before its cancellation.
In response to the cancellation, the Coyotes released a strongly-worded statement condemning the ASLD’s decision and vowing to explore all legal options available to them. The team argued that the cancellation jeopardized the future of NHL hockey in the desert and accused the state of forgoing potentially significant revenue that could have benefited K-12 education. Scottsdale mayor David Ortega also weighed in on the situation, suggesting that Meruelo’s plans for the arena were not viable due to questionable zoning entitlement.
The cancellation of the land auction has left the future of the Arizona Coyotes uncertain. The team’s plans to reactivate the franchise and build a new arena have hit a major roadblock, with legal challenges likely to follow. The ASLD’s decision has significant implications not only for the Coyotes but also for the broader community and economy. Only time will tell what the next steps will be for the Arizona Coyotes and whether they will be able to overcome this setback.
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