PHOENIX — Arizona lawmakers could make changes to the special taxing districts that Coyotes owner Alex Meruelo is seeking for his proposed $3 billion arena complex in northeast Phoenix.
The players are relocating to Salt Lake City, but Meruelo will get an expansion team from the NHL if he builds a new arena within five years.
But the groups that successfully campaigned against the Coyotes’ failed arena proposal in Tempe last year are now mobilizing against House Bill 2274.
“Arizonans need livable wages, equitable solutions and funding for schools, parks and roads, not bills that will make it easier for wealthy developers and sports teams to come in and make residents cover their costs with increased taxes,” said Jessica Walburn of AZ AANHPI.
Sen. Jake Hoffman, a Republican who represents District 15, is proposing a strike-everything amendment to HB 2274 that would modify the state law on theme park districts.
These special taxing districts are exempt from state and local income and property taxes, and they can charge patrons a sales tax – revenue that can be used to help pay for the development.
Under current state law, theme park districts are created by cities. Hoffman’s amendment would allow counties to also create them – and potentially override any objections or input from cities.
Sen. Juan Mendez, a Democrat who represents District 8, said the bill would reduce local control.
“It makes it easier for developers like sports teams, owners, of all people, to get tax money by cutting out our cities from the decision-making process,” he said.
Meruelo has said his arena complex will be privately funded.
"We’re going to fund this 100% on our own when it comes to the land, purchasing the land, when it comes to the building, when it comes to the infrastructure, all that comes on my nickel, my money,” he told ABC15 Arizona earlier this month.
But Mendez pointed to the tax breaks and sales-tax revenue that the Coyotes could generate with a theme park district.
“They just don't understand how taxes work, or they're purposely trying to misframe how taxes work,” he said.
A spokesperson for Arizona Senate Republicans said Hoffman is working on a new version of his amendment.
“Theme park districts have the potential to create robust economic development for Maricopa County communities; however, under the current rules, the system is rigged to benefit the City of Phoenix alone,” Hoffman said in a statement. “HB2274 corrects that inequity by allowing more areas of our growing valley to utilize this tool, while also adding new protections for taxpayers that have never previously existed. The bottom line is that the bill will increase taxpayer protections and strengthen private property rights, while leveling the playing field so more cities and the county have the opportunity to utilize this tool, ensuring a more equitable system.”
The Arizona Coyotes player contracts and hockey operations were sold last week to Ryan Smith, the owner of the NBA’s Utah Jazz. As part of the deal, Meruelo kept the Coyotes name and can reactivate the NHL franchise if he builds “a new, state-of-the-art facility appropriate for an NHL team within five years,” the league said.
The Coyotes played for two seasons at Arizona State University’s Mullett Arena after the city of Glendale chose not to renew the team’s year-to-year lease at what is now named Desert Diamond Arena.
Meruelo's group had hoped to construct an entertainment district in Tempe near Rio Salado Parkway and Priest Drive, butvoters shot down the $2.1 billion development in May 2023. The team explored other options before settling on a piece of state trust land in north Phoenix.
Meruelo’s group has told ABC15 they are committed to winning a June 27 state land trust auction for the property, which sits just west of Scottsdale Road.
He hopes to build a $3 billion entertainment complex with an arena, a Coyotes practice facility, a movie theater, restaurants and housing. Plans call for 400,000 square feet of retail and about 500,000 square feet of office space.
