The Arizona Coyotes were left stunned after the Arizona State Land Department unexpectedly canceled a land auction that was crucial for the reactivation of their NHL franchise. The owner, Alex Meruelo, had transferred the team’s assets to Smith Entertainment Group in preparation for establishing a new franchise in Utah. However, the plan was contingent on Meruelo building a new arena within five years to reactivate the Coyotes.
The Coyotes had identified a 95-acre parcel of land in north Phoenix as a potential location for their new arena. The auction was set to take place, and the team had ambitious plans for constructing an arena, practice facility, theater, and housing units on the site. The goal was to have the arena ready for the NHL team by 2027.
However, the cancellation of the auction has put a major roadblock in the Coyotes’ plans. The issue seems to revolve around the type of arena that could be built on the land. While the land was zoned for an indoor hockey arena, it was not clear if it could accommodate a 17,000-seat NHL arena, with the capacity potentially expanding to 18,500 for other events.
The Arizona State Land Department cited the need for a Special Use Permit for the proposed arena as the reason for the cancellation. The department emphasized the importance of securing zoning/use permits before the auction to ensure that the applicant could build the intended facility for its anchor tenant.
In response to the cancellation, the Coyotes expressed disappointment and frustration, stating that they had fulfilled all their obligations under Arizona law and were prepared to win the auction. They criticized the State of Arizona for jeopardizing the future of NHL hockey in the region and claimed that the decision would result in a loss of significant revenue for K-12 education.
The situation took a political turn when Scottsdale mayor David Ortega raised concerns about the zoning entitlement of the land before the auction. He accused Meruelo of using a “fantasy hockey proposal” as a distraction and leaving the franchise in a challenging position.
Overall, the Coyotes’ future in Arizona remains uncertain as they navigate the aftermath of the canceled land auction. The team is exploring legal options to address the setback and ensure the continuation of NHL hockey in the desert.