Developer Steve Ellman says he met with Tempe Mayor NeilGiuliano and some of the city's economic development team to pitchthem on the idea of having the facility along the shores of theTempe Town Lake, a two-mile long lake near downtown Tempe andArizona State University. Ellman says the new arena could also beused by the ASU basketball team and for other indoor sports.

"We're talking to a lot of people," Ellman says. "We're going toget the best deal for the Phoenix Coyotes and the taxpayers. We'restill committed to Scottsdale, but the city council is making ittough." If located in Tempe, the arena-anchored complex would bebuilt on land between Rural Road and Mill Avenue, on a parcel thatis almost entirely owned by ASU.

"That is a great area down there," says Patrick Flynn, Tempe'schief financial officer. "They showed us a mock-up of what it wouldlook like, with an arena, an entertainment center, retail andrestaurants. We're keeping our options open."