Scottsdale and Ellman Face Off in Debate Over $575-Mil Development

PHOENIX-Not long after Phoenix developer Steve Ellman closed the purchase of the Phoenix Coyotes, his face off with the city of Scottsdale began. Each side has taken a hard stance in preparation for difficult negotiations between the two parties regarding the $575-million, mixed-use project to be anchored by a 17,500-seat arena for the team. Over the next two weeks, Scottsdale and Ellman will try to hammer out an agreement that will allow the city to recoup an investment of up to $200 million in public funds earmarked for the project.

Not long after he and partner Wayne Gretzky took ownership of the team, Ellman began talking about how easily he could find a home elsewhere in the Valley for the ice hockey arena. The West Valley, recently spurned in the race for the Arizona Cardinals stadium, is eager to have a signature project that will put them on the map. Ellman has met with West Valley officials, as well as others throughout the Valley, about putting the arena in a community other than Scottsdale.

But Scottsdale’s attitude toward Ellman has taken on an air of indifference. If Ellman fails to produce substantial teams for his redevelopment plans for the former Los Arcos Mall site by March 5, then he can go ahead and locate the team elsewhere, city officials have said. March 5 is when the Los Arcos Stadium District, which allows Ellman access to the millions in public funds, is set to expire.