Exactly two months after the owners of the Arizona Coyotes sold the team to a Salt Lake City businessman, team officials say the future of hockey in Arizona is in serious jeopardy.
That’s because the Arizona Department of State Lands announced Friday that it had canceled an auction for desert land north of Phoenix and that hockey team owner Alex Meruelo was considering the development of a new arena.
The Land Department said in a press release that it was “in the best interests of the Trust to cancel the auction and re-arrange the steps”.
According to the Land Department, the proposed development will require a special use permit, which the Department is now requiring the applicant, the Coyotes, to obtain before purchasing the land.
The NHL franchise was considering the land, totaling about 100 acres, located at Loop 101 west of Scottsdale Road, for an arena and mixed-use development. The land was scheduled to be sold at auction on June 27, with an initial bid of $68.5 million.
Coyotes criticize Department of Lands in statement
The Coyotes released a scathing statement about the auction’s cancellation, which they said “seriously jeopardizes the future of NHL hockey as it returns to the wilderness.”
The team called the reversal a “unilateral” decision by the ministry over the Coyotes’ objections, after saying they had complied with all legal obligations.
“The organization worked in good faith with ASLD and was on track to win the auction next week until ASLD’s sudden reversal today,” the team said in a statement.
The release said canceling the auction meant the state was giving up “millions, if not billions, of dollars that would have gone directly to K-12 education.”
“The Arizona Coyotes are exploring all of our legal options in light of this short-sighted decision by the state,” the statement said.
The Phoenix venue does not currently allow an arena
Phoenix spokeswoman Teleia Galaviz said the Department of Lands requested an interpretation of the site’s zoning and the city determined a sports arena was not permitted under existing zoning. An arena would require “special permit approval as part of the rezoning process,” she said. A rezoning is a process that changes the permitted uses on a site. It requires a series of public hearings and can take several months.
Galaviz said the Coyotes have not yet filed for a special use permit, “but we look forward to receiving an application and working through the process with (the team).”
Earlier, a spokesperson for the state Land Department said the team needed those approvals from the city to move forward.
“We understand that the delay of an auction is a disappointment for our applicant and for members of the public, but the change in timetable is a prudent decision for the Trust,” a ministry spokesperson said in a statement. Press. The state trust “remains open to working with our applicant to offer the land for auction in the future if a special use permit is received.”
Valley fans and leaders target Meruelo’s leadership
Phoenix City Councilman Jim Waring, in whose district the proposed arena would be located, said Friday the Coyotes should “get a zoning lawyer. They don’t have one. Get into town, work out a plan and follow the process. Then buy it.”
A staffer who works for Phoenix City Councilman Kevin Robinson in District 6, which does not include the venue, blasted the Coyotes’ statement and intentions on X, formerly Twitter.
“You fools have never worked in good faith – no one trusts you and no one wants to work with you,” wrote Jack Keeney. “Years of being a bad actor means you have to jump through a few hoops to regain trust, and instead you complain on Twitter.”
Rich Nairn, the Coyotes’ former executive vice president of communications who worked for Meruelo until September 2023, criticized Meruelo’s ownership on social media.
“Hopefully he finally steps down so the NHL can begin discussions with other potential real owners,” Nairn wrote on X, formerly Twitter, in response to Craig Morgan of PHNX Sports.
The land is in Phoenix but borders Scottsdale, whose mayor has also openly criticized the project.
Scottsdale Mayor David Ortega said Friday that he previously pointed out that the land had “questionable zoning rights.”
“Mr. Meruelo’s fantasy hockey proposal was just a smokescreen when he left the team after leading the franchise,” Ortega said in a text message. Ortega also criticized Meruelo’s intentions to seek a “theme park district” designation as a development funding mechanism. However, Phoenix Mayor Kate Gallego has previously said she is not interested in providing a tax incentive like that of a theme park district.
Meruelo must pursue expansion team himself
Meruelo sold the team’s hockey assets to Ryan Smith, the owner of the Utah Jazz, in April, but kept the Coyotes name and brand, with plans to bring an expansion team back to Arizona. The NHL gave Meruelo a five-year deadline to build an arena suitable for professional hockey in order to be granted an expansion team.
Under the terms of the deal, Meruelo can only bring in partners for 20 percent of the project, meaning he must retain the lion’s share of ownership.
In April, NHL Commissioner Gary Bettman said the league would need about 18 months’ notice to reactivate the franchise and said the league would keep an eye on the project’s milestones, in especially advances in physical buildings. At the time, Meruelo said he was determined to win the auction.
The team released renderings of the proposed arena and mixed-use district surrounding the new facility, which would include restaurants and retail, a hotel, offices, a 3,500-person theater and 1,900 residential units .
When the team’s move to Salt Lake City was announced, Bettman said it became clear the Coyotes would play at Arizona State University’s Mullett Arena too long for the NHL’s liking.
“As a college rink, it’s a good facility, but it’s not a major league facility,” Bettman said at the time.
The average NHL player’s career lasts between four and five years. So Bettman said it’s unfair for professional players to potentially play their entire careers in a college arena.
Republic reporter Sam Kmack contributed to this article.