The minimum sale price for state-owned land is $68.5 million. A vote is planned for this week on putting land up for auction.
PHOENIX — The Arizona Coyotes are a step closer to securing a large tract of state-owned land in north Phoenix for a new arena.
The organization's application for 95 acres of state land for a new arena will be taken up Thursday by the Arizona Land Department Board of Appeals. The board could approve a land auction.
An appraisal for the Arizona Land Department filed last week sets the minimum sale price at $68.5 million, according to Arizona Land Department documents obtained by 12News.
The team has targeted 95 acres of pristine Sonoran Desert at the northwest corner of North Scottsdale Road and the Loop 101.
JUST IN Arizona Coyotes’ application for 95 acres of state land for new arena will be taken up Thursday by Arizona Land Department Board of Appeals. Board could approve land auction. pic.twitter.com/ExqwcmJV86
— Brahm Resnik (@brahmresnik) March 13, 2024
VERSIÓN EN ESPAÑOL: La nueva arena de los Coyotes de Arizona pudiera venir con un precio muy alto
What's next?
With the appraisal in hand, the Land Department and the team's development arm, Miracle Development, can discuss financing arrangements for a purchase.
But because this is state-owned land, that's not the end of the saga.
The next step is a vote by the Land Department's Board of Appeals, planned for Thursday, March 14, on whether to put the land up for a public auction.
The auction date would be at least 10 weeks later, possibly in late May or early June.
The market value set by the appraisal - more than $700,000 an acre - is the minimum price for the land.
The Coyotes' developer could be one of several bidders. The winner is the "highest and best" bidder.
What is the Land Department?
The Arizona Land Department was a byproduct of Congress' enabling act that made Arizona a state in 1912.
The department manages millions of acres of state land to provide a funding source for the state's public schools and other public services.
The bulk of the proceeds from state land sales or leases is earmarked for K-12 education.
Application projects 2027 opening
The Coyotes' application last year projected construction on the site starting this year, with the first phase opening in 2027.
If this project comes to fruition, the Coyotes will be playing in their fourth hockey home in 31 years in the Valley.
The project would be a major upgrade from the 5,000-seat college arena the NHL team plays in on the Arizona State University campus.
But based on a 2027 timeline, that means the Coyotes will have played in a college arena for at least five seasons.
The application is for a mixed-used development. It doesn't say that a professional hockey area will be built on the site.
The land is sandwiched between Desert Ridge Marketplace and a JW Marriott resort on the west, and Scottsdale's upscale Grayhawk subdivision on the east.
An arena, including parking, would likely take up a quarter of the 95 acres.
The balance could be the kind of retail, entertainment and lodging project the Coyotes had envisioned in the City of Tempe.
Last May, Tempe voters overwhelmingly rejected the project.
Total project cost unknown
The total cost of the Coyotes project is unknown. Securing the land is just the start.
The Tempe project - pegged at $2.1 billion - sought large tax breaks from the city.
The City of Phoenix's required response on infrastructure in the desert area says there is no sewer or water service to the desert property.
The site lies within a floodplain area designated by the Federal Emergency Management Agency.
"The site is 'vulnerable to flooding threats that trigger a variety of potential mitigation requirements,'" according to the City of Phoenix letter to the Land Department, dated Feb. 29.
Those mitigation requirements could include higher elevations for buildings on the site.
The largest unknown
The largest unknown in the Coyotes project is NHL Commissioner Gary Bettman's patience.
Bettman has been the team's staunchest defender during more than 15 years of financial struggles.
Meanwhile, Salt Lake City is embarking on a downtown revitalization that would include an NHL arena.
The billionaire owner of basketball's Utah Jazz has indicated he wants an NHL team.
Two weeks ago, the Utah Legislature approved a new tax that could help pay for a downtown arena.
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