The idea that one of Glendale's problems could help create a solution was broached by the Goldwater Institute, but shot down by Mayor Elaine Scruggs.

City leaders are struggling to finalize a deal with a potential buyer to keep the Phoenix Coyotes at the city-owned Jobing.com Arena. On another front, they are waging a protracted court battle to stop a tribe's attempt to establish a reservation for a casino near the city's sports and entertainment district.

Glendale city attorney letter to Goldwater

Representatives from the Goldwater Institute in a meeting late last week with Scruggs and the city attorney pitched a proposal that the Tohono O'odham Nation put money into the hockey deal.

Goldwater's litigation director Clint Bolick said a partnership with the tribe was "worth exploring" because it would get taxpayers off the hook and keep the Coyotes.

The mayor rejected the notion.

Scruggs said "members of the business community and others" have approached her with the idea. "All we have to do is drop our lawsuit . . . against the Tohono O'odham Nation," Scruggs said she was told. "Does that pass any kind of smell test or anything else?"

The mayor said, "That could be considered blackmail, couldn't it, by some?"

Scruggs said the city's hands are tied anyways because Arizona is suing the tribe on the grounds that the proposed casino would violate the state compact that regulates Indian gaming.

She said a proposed deal with the tribe would "engage us to violate the law."

A Tohono O'odham spokesman told The Arizona Republic that tribal leaders put forth no such proposal to Glendale, although they also have been approached with the idea.

Tribal leaders have said they are willing to sit down with Glendale.

Scruggs declined further comment.

Potential Coyotes buyer Matthew Hulsizer, who attended last week's meeting, wasn't opposed to the tribe's casino plans.

"I'd love it if the Indian tribe could come in," he said. "If the Indian tribe wants to put in a casino, we have no issue with that, officially."

A partnership with the tribe, which appears unlikely to go anywhere, was one of several that Glendale and Goldwater discussed.

The conservative watchdog has said it would sue Glendale if the city moves ahead with its current deal with Hulsizer, which involves the city selling $100 million in bonds. In return, the city would get the right to charge for parking at the arena, but Goldwater views it as an illegal subsidy.

Goldwater's threat of litigation has hampered Glendale's efforts to complete the deal. The city has been unable to sell the bonds at a more favorable market rate.

Time is running out for Glendale. If the city fails to secure a buyer, the National Hockey League may relocate the team.

Goldwater has not heard from Glendale since the meeting.

However, City Council members Phil Lieberman and Norma Alvarez plan to meet with Goldwater officials next week.

Lieberman said he asked to attend last week's meeting but the mayor said they could not attend because the whole council would have to be invited.

Alvarez and Lieberman, who oppose the city's deal with Hulsizer, stirred a tempest with their plan to meet separately with Goldwater.

Goldwater attorney Nick Dranias asked for City Attorney Craig Tindall's blessing to meet with the council members because the city is in litigation with Goldwater over public records.

Tindall sent a letter to Goldwater saying such a meeting was inappropriate.

Lieberman and Alvarez say they will go ahead.

"We're just doing exactly what the mayor's doing. We're expressing our opinion," Alvarez said. "There's no reason why I can't speak to the institute."