Coyotes working on deal to play at College Arena

[2014olympicgold]

https://www.sportsnet.ca/nhl/article...-with-coyotes/

Coyotes are going to be negotiating a deal with Tempe City Council. The Council voted 5-2 after 7 hr meeting that included comments from 100+ citizens and 220+ written comments from citizens. The proposal has hotels, retail, offices and housing in the 46acre tract of land on the western side of downtown Tempe. Part of an issue brought up was the Sky Harbor Airport which expressed concern over the housing portion of the proposal being 9,800ft from the end of a runway saying sound isolation wouldn't be sufficient enough at that distance (1,000 units are directly under the flightpath). They did not oppose the arena build though.

Bettman said he endorsed the plan without hesitation, but said it would need to include a 30yr no-relocation agreement. So no hesitation except a 30yr hesitation. The proposal is a near $2billion development.

[Rylant]

https://www.sportsnet.ca/nhl/article...-with-coyotes/

Coyotes are going to be negotiating a deal with Tempe City Council. The Council voted 5-2 after 7 hr meeting that included comments from 100+ citizens and 220+ written comments from citizens. The proposal has hotels, retail, offices and housing in the 46acre tract of land on the western side of downtown Tempe. Part of an issue brought up was the Sky Harbor Airport which expressed concern over the housing portion of the proposal being 9,800ft from the end of a runway saying sound isolation wouldn't be sufficient enough at that distance (1,000 units are directly under the flightpath). They did not oppose the arena build though.

Bettman said he endorsed the plan without hesitation, but said it would need to include a 30yr no-relocation agreement. So no hesitation except a 30yr hesitation. The proposal is a near $2billion development.

It seems strange to me to need to include a 30 year no relocation agreement. Is that normal? If that is necessary, it seems to indicate that this might not be a viable market, don't you think?

Rylant

[kovalchuk17]

It does seem unusual but I see it as Bettman's lawyer training protecting the NHL given all the shit that has gone down to the Coyotes lately (both their own and outside forces)

[2014olympicgold]

It seems strange to me to need to include a 30 year no relocation agreement. Is that normal? If that is necessary, it seems to indicate that this might not be a viable market, don't you think?

Rylant

I think the league has belief it'll work, but the city likely is like "we have seen what you've done in the past" and the only way the city would entertain this would be through an agreement they'd stay in the city for a LONG time. 30yrs is likely based off 2x the Coyotes 15yr lease with Glendale, but Glendale broke the lease this yr.

I can't see it was the NHL pushing the 30yr thing.

[butch]

whats the next step ?

I remember when the isles lighthouse project was denied by the town of hempstead they switched gears to try and simply have a new arena built via bonds and the citizens of the area voted it down which led to Wang negotiating with Barclays/Brooklyn

[rataylor22]

It seems strange to me to need to include a 30 year no relocation agreement. Is that normal? If that is necessary, it seems to indicate that this might not be a viable market, don't you think?

Rylant

So I am pretty sure that the Oilers have a no relocation agreement with their new arena, but I'm not totally certain on that. I no for sure part of the arena deal that fell apart in Calgary had a 30 year no relocation agreement, but that was a city requirement (IE, we're not getting 22 years into this and having you threaten relocation again to get another new building). What is uncertain here is if the league is pushing that agreement or if Tempe is. If it's the league, that speaks volumes. If it's Tempe, I think it's probably more standard than we think.

[LawMan]

So I am pretty sure that the Oilers have a no relocation agreement with their new arena, but I'm not totally certain on that. I no for sure part of the arena deal that fell apart in Calgary had a 30 year no relocation agreement, but that was a city requirement (IE, we're not getting 22 years into this and having you threaten relocation again to get another new building). What is uncertain here is if the league is pushing that agreement or if Tempe is. If it's the league, that speaks volumes. If it's Tempe, I think it's probably more standard than we think.

I think relocation clauses are pretty standard, and most municipalities are going to want them, for a long-term before committing to building an arena. No sense pumping tons of money into a plan surrounded by an arena if the main tenant can pull out after 5 years. I also recall the Oilers having a relocation clause in their new building, especially after Katz made hints and threats of moving to Seattle and/or Hamilton, not sure if the non re-location clause is 20, 25 or 30 years or what the penalties would be but some sort of assurance that the Coyotes are in it for the long haul only makes sense given the total potential investment from the City of Tempe.