Coyotes to bid on arena site at June land auction

The Arizona Coyotes‘ future could be decided on June 27, when they will bid on a parcel of land in the hopes of finally securing a site for their new arena.

In March, the Arizona State Land Department Board of Appeals unanimously approved a $68.5 million appraisal of a 95-acre parcel of land in north Phoenix. On Thursday, the department officially posted an auction for that parcel, with the auction set for June 27.

The Coyotes released images of what they intend to build on that land should they win the bid, including an arena, a practice facility, a theater and housing units.

Coyotes president Xavier Gutierrez said the team plans to start construction in the second quarter of 2025, adding, “We hope to drop the puck in the fall of 2027.” He said that was the same timeline the team had for its arena project in Tempe, which was defeated in a public vote in May 2023.

Gutierrez said the project will be developed without taxpayer funding.

The proposed arena would have 17,000 fixed seats for NHL games and capacity for roughly 1,500 additional temporary seats for non-hockey events. The Coyotes’ new home would also include a 150,000-square-foot practice facility and headquarters, a live music theater for 3,000 concertgoers, 400,000 square feet of retail and a multipurpose watch party plaza equipped with a supersized screen for viewing events.

The main entertainment district will also have a 170,000-square-foot roof canopy extending from the arena to the theater.

The Coyotes’ development plans also include approximately 1,900 luxury residential units, 400,000 square feet of Class A office space, branded retail, dining and other amenities.

The Coyotes have played their home games at Mullett Arena, a 5,000-seat facility on the campus of Arizona State University, since the 2022-23 season. Gutierrez said their deal with ASU was for three years plus two one-year options that would take them through the 2026-27 season.

“This has been a very good financial arrangement for Arizona State University,” Gutierrez said. “Should we have to extend it, we don’t believe that will be a problem,” Gutierrez said.

The Coyotes’ time at Mullett, and the overall length of their arena construction plans, have come under fire from critics such as NHLPA executive director Marty Walsh, who believes the team should relocate if there isn’t a suitable arena plan in place by the end of this season.

“I think the league feels that Arizona is a good market and I can understand that,” Walsh said at NHL All-Star Weekend in February. “The issue I have, and the players have, is how long do you wait to get a home? They’re playing in a college arena and they’re the second tenant in that arena. This is not the way to run a business.”

NHL commissioner Gary Bettman has supported the Coyotes’ bids to remain in the market for well over a decade. He said last month that Arizona owner Alex Meruelo had informed the league that “he was certain he was going to get this done” and “I’m both hopeful and reasonably confident that he’s going to do what he says.”

At last month’s general managers meetings in Florida, deputy commissioner Bill Daly was asked whether the NHL would be able to pivot and have the Coyotes play elsewhere next season if this auction bid were not successful. Daly indicated that the timing of the auction means the Coyotes are likely in Arizona next season.

“I’m focused on the current,” he said. “Currently, they are going to play hockey games in Arizona next year.”

While Bettman has stressed that the NHL is not looking to expand or relocate teams, the NHL has received overtures from several markets seeking to join the league. Chief among them is Salt Lake City, where Utah Jazz owner Ryan Smith has formally petitioned the NHL for a franchise.

“The Utah expression of interest has been the most aggressive and has carried a lot of energy with it,” Bettman said.

While he said he can’t speak for how the NHL feels about this land auction plan, Gutierrez said “this is the way to finally resolve the facility challenge” that’s plagued them.

Is there a chance that the Coyotes could go through this process and the NHL still decides to relocate the franchise?

“I have no idea,” Gutierrez said. “I can’t comment on that because I have no idea. I can tell you that they are very happy with the plan that we’ve put [in] front of them. They believe that it’s a solution. I don’t know if it resolves the concerns that they may have or other folks may have, like the players’ association or what have you. The sense I’ve gotten is they’re happy that we have this plan that it’ll be public and that we can move forward.”

When asked if the NHL might force Meruelo out from his ownership spot if Arizona fails at to win the land auction, Daly said it was “not a hypothetical I would entertain” and confirmed the league is in constant communication with Meruelo that has been “businesslike and fine.”

The Coyotes have been searching for a permanent home since their former owner took the franchise into bankruptcy in 2009. The team appeared to have stable footing at then-Gila River Arena, but the city of Glendale backed out of a multimillion-dollar lease agreement in 2015. The Coyotes had leased Gila River Arena on a yearly basis before the city terminated its lease following the 2021-22 season.

The team moved to Mullett Arena while seeking an arena solution in Tempe. The Coyotes believed they had one with a 16,000-seat arena in a proposed $2.1 billion entertainment district, but voters rejected that plan in May 2023.

A month after the vote in Tempe failed, the Coyotes said they met with the Arizona State Land Department and submitted an application for 212 acres of state-owned land on the corner of Scottsdale Road and Arizona State Route 101. Gutierrez said this was happening parallel to other potential arena projects the franchise was exploring.

The Coyotes knew the city of Phoenix would require the project to bear the cost of infrastructure. Their initial analysis was that it would cost the team about $150 million. But by December 2023, the Coyotes realized that actual cost for that land would be over $230 million.

Gutierrez said that “changed the equation” for the team. The Coyotes opted to resubmit their application for 110 acres of land instead. He said it’s zoned for 2 million square feet of commercial use. In an interesting twist, the land the team is trying to acquire is zoned for an indoor hockey arena, a relic of a previous attempt to build a youth hockey facility in the area.

The new parcel of land carries an estimated infrastructure cost of $120 million for the team.

“We’re not taking any taxpayer dollars. We’re not asking for taxpayer money,” Gutierrez said. “We’re going to buy the land, we’re going to build every building, we are going to maintain it and we’re also going to pay for the public infrastructure. So that is coming out of our pockets.”

At the GM meetings, Bettman reiterated that the NHL wants to have a team in the greater Phoenix area. Gutierrez believes that team is still the Coyotes, and that this arena deal will finally help them find stability.

“This is a hockey town,” he said. “There is wealth here to spend on entertainment. It’s all about the facility.”

ESPN’s Kristen Shilton contributed to this report.