Jeff Metcalfe, and Craig Harris

The Republic | azcentral.com

The Arizona Coyotes unveiled a plan Monday to build a new home in Tempe, with the team proposing to pick up half the cost of a new $400 million hockey arena and taxpayers picking up the balance.

The proposed deal would make the Coyotes one of the first tenants in Arizona State University's Athletic Facilities District, but it would need approval from lawmakers when they convene in January. The team said it does not yet have any lawmakers lined up to push needed legislation through the Republican-controlled Legislature. The National Hockey League franchise also would need concessions from ASU as part of a land lease.

At this point, it is unclear if there is state support for the plan. No ASU officials or lawmakers attended Monday's announcement, and Gov. Doug Ducey's office declined to comment on it.

Coyotes majority owner Andrew Barroway promised a "world-class facility" would be built near ASU to house a team that has migrated from Canada to downtown Phoenix and on to Glendale — looking each time for greener financial pastures. The franchise, once in bankruptcy protection, has lost tens of millions of dollars annually. Barroway said the Coyotes finally might break even with a new Tempe arena.

The public's contribution to development costs would come from a portion of sales taxes generated by the arena, a proposed luxury hotel and a mixed-use commercial development at the site. The team floated a similar idea for a special taxing district earlier this year, but lawmakers told the Coyotes to hold off until 2017.

If successful, the building would open for the 2019-2020 season. Until then, the Coyotes would keep playing in Glendale.

“It’s good news. It’s early," said Coyotes coach Dave Tippett. "There’s a lot of us who have been through a lot of this before. Hopefully, everything turns out as wonderful as it sounds."

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Monday's announcement was the latest turn in an ongoing drama involving Valley sports teams seeking better facilities. The Arizona Diamondbacks and Phoenix Suns also want new homes. Only the Arizona Cardinals are content playing in University of Phoenix Stadium in Glendale.



Phoenix Mayor Greg Stanton, who has pushed for a new hockey-basketball arena downtown, threw cold water on the Coyotes' plan.

"A deal is far from complete, and appears to require new levels of support from both state of Arizona and City of Tempe taxpayers," Stanton said. "My thinking hasn’t changed: Building a third professional arena in this market doesn’t make sense, especially when it would likely require new public dollars as a part of the deal.”

Glendale officials also were skeptical, noting that their city already had shelled out at least $180 million for an 18,000-seat arena to lure the Coyotes from Phoenix in December 2003. Glendale taxpayers are on the hook for $145 million in debt on Gila River Arena through 2033.

When the Glendale arena was opened, Coyote officials said it would provide them with the revenue needed to be successful. In addition, Glendale for years provided the team a subsidy.

Glendale City Manager Kevin Phelps said the city will keep operating as if their arena will house the Coyotes long-term, noting that "new arenas are very expensive to construct."

"I don't think the last chapter of this book has been written — and until it is written, we're going to keep doing our part to see how we can add value to the Coyotes," Phelps said.

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Tempe Mayor Mark Mitchell said he didn’t hear about the ASU deal until Monday’s announcement became public. He said he didn’t yet know what the city’s involvement would be in the negotiation or the project’s development.

However, he expressed optimism about what the move could mean for the Southeast Valley. He also noted Tempe was no stranger to hosting major sporting events and accommodating large numbers of fans.

“We know how to handle events, so having the opportunity to have an event with NHL, I think it’s not gonna be hard for us to handle,” Mitchell said. “But at the same time, we have to see how everything plays out.”

The mayor also highlighted the city’s close relationship with ASU, but said that he had not talked to anybody about the project just yet.

IceArizona Holdings, the company that owns the NHL's Coyotes, is entering into a negotiating agreement with Catellus Development Corporation to create a development plan for approximately 58 acres in the ASU district.

The proposed project would include a 16,000-seat arena for the Coyotes and attached 4,000-seat multi-use arena for ASU hockey and other sports, Coyotes practices, plus youth hockey and community events.

Catellus, master developer for the district, and the Coyotes have until June 30, 2017, to create a budget, design and operational plan for the development.

The 58 acres, out of 330 in the district, are at the northwest corner of McClintock Drive and Rio Salado Parkway, near the intersection of the Loop 101 and Loop 202 freeways and across McClintock from Tempe Marketplace.

The Coyotes are planning to continue playing at Gila River Arena until a new facility is built.

In June 2015, the Glendale City Council voided a 15-year agreement with the Coyotes, who later signed to continue playing at Gila River Arena short term while exploring options for a new arena elsewhere in metro Phoenix.

"Over the past year we have been exhaustive in our research regarding the most optimal location for our new home," Coyotes President/CEO Anthony LeBlanc said. "It became clear that the East Valley is home to a majority of our fans and corporate partners. Our fans in the West Valley have shown us tremendous support over the past 13 years, and we look forward to working with them as we transition to our new home in the future."

“We are thrilled to partner with Catellus on this tremendous project that will include our future new home in the East Valley. The Coyotes are committed to Arizona, and we are extremely excited about our bright future," Barroway said.

ASU's athletic district was approved by the Arizona legislature in 2010 as a funding mechanism for a portion of ASU athletic capital projects such as the current $268-million renovation at Sun Devil Stadium. Catellus was chosen as district developer in 2014 and its work on that massive project overlaps with ASU's master planning for athletic facilities including options for a new multi-use arena.

ASU also plans to move its outdoor/indoor football practice facilities to the north side of Sun Devil Stadium and track and tennis facilities to the east side of Rural Road. The west side of Rural Road between University and Rio Salado will be developed as part of the district.

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ASU still plans to renovate Wells Fargo Arena and remain there for men's and women's basketball and some Olympic sports. It's possible that a men's game with high demand like ASU vs. Arizona or postseason game could be played at the Coyotes arena.

"As the first major partner for the ASU Athletic Facilities District, the Coyotes campus will set an exciting tone for this innovative urban corridor," said Greg Weaver, Catellus executive vice president.

The ASU hockey team, in its second varsity season, is playing a few home games at Gila River Arena and the rest at Oceanside Ice Arena, where it played as a club team. One is too large and the other too small, but a 4,000-seat venue would be a good fit for college hockey and Olympic sports.

ASU would pay for part of the construction and operating costs for the smaller arena and have naming rights. It also will brand the facility with ASU markings and signs like it has with Phoenix Municipal Stadium, now its baseball home.

The negotiating agreement between Catellus and the Coyotes does not require approval from the Arizona Board of Regents.

Reporters Sarah McLellan, Jessica Boehm, Dustin Gardiner and Rafael Carranza contributed.

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