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Sunday, October 31, 1999
Voters decide whether NHL team gets new home
Although owner Richard Burke hasn't said, the team's future in Arizona could be tied to the success of a developer's proposal to build an 18,000-seat arena in a refurbished Scottsdale mall.
The Coyotes want to leave America West Arena in downtown Phoenix, where Burke claims to be losing up to $10 million a year because of reduced revenue streams and the relatively small capacity for hockey (16,210).
Millions of tax dollars helped build homes for the NBA's Phoenix Suns and baseball's Arizona Diamondbacks. Both projects were pushed through in the infancy of a taxpayer backlash.
But the electorate has caught up.
"I grew up in Michigan playing hockey," said project opponent Alan Kaufman, who helped found Redevelopment Imposes Generally Higher Taxes. "I'm not opposed to the Coyotes -- they're a fine organization. I'm not opposed to the Ellman Cos. -- they're fine developers. I'm opposed to squandering $352 million in tax dollars on corporate welfare."
A recent poll showed voters favoring the project, though recent elections suggest winning approval could be a struggle.
The Arizona Cardinals -- the only other team to face an arena vote -- came away empty May 18 when residents in Mesa rejected a $1.8 billion complex that included a domed stadium.
On Sept. 7, Scottsdale residents rejected a $653 million plan to create a waterfront cultural complex along a city canal.
The canals project had no sports ties but the funding mechanism was the same tax rebate for developers proposed for the Coyotes arena at Los Arcos Mall.
Scottsdale voters already have approved the creation of a stadium district with taxing authority for the Coyotes arena. Now they have to authorize the use of public funds.
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