Coyotes denounce cancellation of June 27 Arizona land auction

The Arizona State Land Department has canceled a June 27 land auction that the owner of the Arizona Coyotes was counting on to reactivate its dormant NHL franchise.

In April, the NHL Board of Governors approved the creation of a franchise in Utah, with Coyotes owner Alex Meruelo moving his team’s hockey assets – from roster and draft picks to hockey operations department – to Smith Entertainment Group while retaining team rights. intellectual property.

As part of the sale, the NHL approved a plan that made the Arizona Coyotes franchise inactive, with the right to reactivate it if Meruelo had completely built “a new, state-of-the-art facility suitable for an NHL team of here five years.” “

The Coyotes had targeted a 95-acre parcel of land north of Phoenix as a potential new home for an arena. Earlier this year, the ASLD appeals board unanimously approved a $68.5 million valuation of the land and set the date for the auction.

The Coyotes released images of what they intended to build on that land if they won the bid, including an arena, practice facility, theater and housing. The Coyotes planned to begin construction in the second quarter of 2025 with an eye toward being ready to host an NHL team in 2027.

Multiple sources told ESPN that the auction issue had to do with what type of hockey arena Meruelo might build on the land.

The Coyotes said the land was already zoned for an indoor hockey arena, which was a relic of a previous attempt to build a youth hockey facility in the area. But that apparently doesn’t cover the construction of a 17,000-seat NHL arena, whose capacity could increase to 18,500 for other events.

“ASLD recently confirmed that the proposed arena would require a special use permit,” the land department wrote in its letter announcing the cancellation. “Accordingly, we request that the applicant apply for and receive a special use permit prior to the auction. This gives the applicant and ASLD confidence that the applicant can build what they intend to build for its main tenant.”

ASLD added: “It is not uncommon for ASLD to require the applicant to obtain zoning/use permits prior to the auction. »

The Coyotes released a statement Friday condemning the cancellation and saying they were “exploring all of our legal options in light of this short-sighted decision” by ASLD.

“After more than a year of planning and complying with all obligations required by Arizona law, the Arizona Department of State Lands has unilaterally canceled the auction scheduled to take place on the 27th. June for the site that has been identified as the future home of the Arizona Coyotes,” the Coyotes said. “This unprecedented action by the State of Arizona seriously jeopardizes the future of NHL hockey as it returns to the desert.”

The Coyotes say they expected to win the auction.

“The organization worked in good faith with ASLD and was on track to win the auction next week until the sudden reversal,” the team said. “By canceling land auctions, the state is foregoing millions, if not billions, of dollars that would have gone directly to K-12 education.”

Scottsdale Mayor David Ortega told the Arizona Republic Friday that he noted the land had “questionable zoning rights” before the auction.

“Mr. Meruelo’s fantasy hockey proposal was just a smokescreen when he stepped down after leading the franchise,” Ortega told the newspaper.