Scottsdale has lost a $540-million entertainment center and the Phoenix Coyotes to fast-growing Glendale after the City Council approved a development deal that will have the city contributing as much as $180 million in public funds for construction of an ice hockey arena and entertainment site.

Coyotes owner Steve Ellman reportedly has been working with Glendale officials for the past six weeks-- most intensely over the weekend--to draft a deal enticing enough to get him to move the team out of Scottsdale. Glendale Mayor Elaine Scruggs made no secret that she was going after the development, publicly announcing her meetings with Ellman and other Coyotes officials. She hopes to make the Coyotes arena and surrounding development an anchor for further developing the city's southwestern corner.

Ellman has targeted a 220-acre parcel at the southeast corner of Glendale Avenue and the Loop 101, fronting on 91st Avenue. Ellman is in negotiations to buy the unincorporated parcel, which would be annexed by Glendale as part of the deal. The site would be large enough to accommodate a 17,000-seat or larger arena and the retail component. The vacant parcel has been on the market for sometime, at an asking price of approximately $60,000 an acre, which makes the sale price close to $13 million. Although just what Ellman plans to build on the site beyond the ice hockey arena hasn't yet been announced, he's expected to build an entertainment/retail center similar to the $540-million project he had proposed in south Scottsdale.

In a closed-door meeting this morning, the Glendale City Council voted on an incentive package. Scruggs contends that any incentive package the city might offer Ellman won't require a vote of the public. In a public council meeting following the executive session, which was attended by Ellman and part owner Jerry Moyes, owner of Swift Transportation, the City Council formally approved the development deal.

Even though Ellman has talked for months about moving the team someplace other than Scottsdale, city official there were blindsided by Glendale's power play. In fact, Scottsdale officials were scheduled to meet with Ellman later today. Scottsdale Mayor Mary Monross says a call she placed to Ellman on Tuesday has never been returned.

Scottsdale and Ellman have had a contentious relationship since last year, when his efforts to the buy the team were stalled and he stonewalled city officials' request for disclosure of sensitive financial information to them. Relations were further strained by the initial revenue sharing proposal that Ellman offered, not nearly enough for Scottsdale, which was expected to contribute up to $200 million in public funding toward the development. Last month, a split council voted to extend the life of the Los Arcos Stadium District, which would provide access to the $200 million in public funds.

The plan in Scottsdale has been to redevelop the aging Los Arcos Mall, located at the southeast corner of McDowell and Scottsdale roads. An ice hockey arena was to be the cornerstone of a $540-million, 1.75 million-sf entertainment development that would have included hundreds of thousands of square feet of retail and office space, movie theaters, a 7,000-space parking lot and luxury condominiums. Demolition of the mall is ongoing, but nothing has been developed on the 42-acre site, which Ellman purchased for less than $5 million just a few years ago.

Instant Insights /

Glendale Stealing Scottsdale's $540-Mil Hockey Arena

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