Arizona lawmakers are mulling over modifications to the state’s theme park district legislation, which could impact the Coyotes’ planned $3 billion arena project in northeast Phoenix. If approved, the changes, proposed as an amendment to House Bill 2274, would expand the authority to establish theme park districts from just cities to counties as well. This move, however, has ignited concerns among local officials and community groups who fear it could undermine local control and make it easier for wealthy developers and sports teams to evade their tax obligations. The Coyotes’ proposed arena complex stands to benefit from these potential legal tweaks. While Coyotes owner Alex Meruelo has pledged to fund the project entirely through private means, critics have highlighted the possibility of tax breaks and sales-tax revenue that the team could secure by establishing a theme park district. Sen. Jake Hoffman, the Republican sponsor of the amendment, maintains that it will rectify inequities in the current system, which he contends favors the City of Phoenix. He emphasizes that the changes will introduce new taxpayer protections and empower more areas within the growing valley to leverage this development tool. Conversely, Sen. Juan Mendez, a Democrat, decries the amendment’s potential to diminish local decision-making authority. He argues that the bill favors the interests of developers and sports team owners, making it easier for them to bypass cities in securing tax dollars. The Coyotes’ recent relocation to Salt Lake City has not dampened Meruelo’s plans for an arena in Phoenix. As part of the relocation deal, Meruelo retained the Coyotes name and the ability to reactivate the NHL franchise within five years if a suitable new facility is constructed. The Coyotes’ previous home was at Arizona State University’s Mullett Arena after the City of Glendale declined to renew their lease at what is now Desert Diamond Arena. Meruelo’s group initially targeted Tempe for their entertainment district but faced voter rejection of the $2.1 billion development in May 2023. After considering various alternatives, they settled on a parcel of state trust land in north Phoenix and are determined to acquire it through a state land trust auction scheduled for June 27th. Meruelo’s ambitious vision for the site includes a $3 billion entertainment complex encompassing an arena, a Coyotes practice facility, a movie theater, restaurants, and housing, along with substantial retail and office space totaling 900,000 square feet.
Arizona Lawmakers Consider Changes to Special Taxing Districts for Coyotes Arena Project
