TEMPE, Ariz. — A 46-acre lot near Tempe Town Lake is the proposed site for a new entertainment district and Coyotes arena, and the source of a divisive debate over whether or not the project should happen.
On Tuesday, May 16, voters will get to settle the score and decide the fate of the Tempe Entertainment District.
The Coyotes and their owner, billionaire Alex Meruelo, want to build a new arena and entertainment district near Rio Salado Parkway and Priest Drive.
The arena would be the centerpiece, surrounded by retail, entertainment, and residential space. Currently, the property is home to a city-owned landfill.
If voters pass three propositions during the May 16 special election, the $2.1 billion project would be built on the banks of the Salt River, just West of Tempe Town Lake.
WHAT ARE VOTERS DECIDING?
The May 16 special election is focused on three propositions that would pave the way for the entertainment district's creation.
Two are focused on the City of Tempe's zoning and land use codes, while the third would authorize Mayor Corey Woods to execute a development agreement with Bluebird Development LLC, the Coyotes' development arm.
All three propositions would need to pass in order for the project to proceed on schedule.
WHAT'S THE CONTROVERSY?
The site sits directly under a major flight path to Sky Harbor airport. A similar stadium proposal was torpedoed in the 1990s when the Arizona Cardinals wanted to build their stadium in a similar location.
In late March, the City of Phoenix sued Tempe to prevent the entertainment district's development. They claimed that the project was too close to Sky Harbor, violating a 1994 agreement where each municipality made concessions to help mitigate noise from the airport.
In return, the Coyotes and Bluebird Development lodged a complaint against Phoenix, seeking roughly $2.3 billion in damages -- reportedly the value of the proposed entertainment district at the time.
Meruelo has said the development would be privately funded, but Tempe would give Meruelo $215 million to reimburse him for cleaning up the site. That money would come from new taxes collected from the property, even though Tempe has agreed that it would not charge the arena itself property taxes for 30 years.
Critics of the project, such as former Tempe vice mayor Lauren Kuby, claim that it's nothing more than subsidizing an arena and paying off Meruelo's debts. A study by the Grand Canyon Institute found that for every $2.70 collected by the Community Facilities District, Tempe would only gain a dollar of new tax revenue.
Whatever the case, it's up to the voters now.
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