CXLVIII - Coyotes owner Alex Meruelo had 'productive' meeting with Phoenix mayor

[aqib]

I hope the auction is live streamed somewhere. I imagine it going like this episode of the Cosby Show:

 

[TheLegend]

Been trying to catch up on this since the auction notice dropped.

For those wondering if someone besides the Coyotes can just show up and grab a paddle, I’m going to suggest you read the actual auction notice (PDF) I’ve linked above.

Have not read it myself, but I’m monitoring someone who has and she is well plugged into the political world here. I’m using her interpretations below.

That document spells out who can be qualified to bid and the requirements to the winning bidder are somewhat extensive.

Aside from the $16 million cashiers check…

- There must be proof of sufficient funds in place to close the deal at the end of 30 days. No form of financing is acceptable. Balance will be due in total at close, in cash.

- There must be an acceptable plan in place to initiate the infrastructure plan within the first 6 months of close and be completed within 36 months. Estimate cost for this is $80-100 million and is the responsibility of the winning bidder to finance it all.

Most of the state land auctions are structured this way, which is why leas than a quarter of them end up attracting more the one bidder.

 

[Legion34]

Do they “have” to sell? If less than 1/4 have 2 bidders. How is that an auction.



Can’t AM just put his paddle up on the opening bid and then it’s over?

 

[LT]

Do they “have” to sell? If less than 1/4 have 2 bidders. How is that an auction.



Can’t AM just put his paddle up on the opening bid and then it’s over?

They don't have to, but you're gonna have a hard time convincing any city to not take 65+M in cash for an empty plot of land.

 

[Llama19]

Arizona Coyotes' new arena plans hinge on buying state land. What to know about the auction

To quote:

"How will the team pay for the development?

[President and CEO Xavier] Gutierrez said the project would be privately funded, though that rang hollow among some critics.

That's because the team is likely to seek the creation of a special taxing district to help Meruelo finance the massive project. It would need Phoenix and Maricopa County to sign off. Called a theme park district, the area would be overseen by a board that can issue bonds to pay for construction and levy a tax on transactions to repay the bonds.

Gutierrez said the tax is more like a user fee because people choose to come to the district. And he said Meruelo could finance the project without the theme park district designation, which would be considered after the land auction.

But the power to tax transactions is much like the team sought in Tempe, where it also pursued a property tax break.

And importantly, the appetite among local leaders to create a special district for the Coyotes isn't yet clear. Those discussions could factor in Tempe voters' resounding rejection of the team's proposal there last year, and public opposition to taxpayer dollars supporting sports complexes nationally."

Source: www.azcentral.com/story/news/politics/arizona/2024/04/06/arizona-coyotes-new-arena-what-to-know-about-state-land-auction/73221890007/

 

[TheLegend]

^^^^^^

IOW… the local politico experts aren’t sure how they’re going to do this yet.

Meruelo isn’t going the normal route with this and they are having a hard time figuring that out, so they take the skeptical position.

 

[mouser]

- There must be an acceptable plan in place to initiate the infrastructure plan within the first 6 months of close and be completed within 36 months. Estimate cost for this is $80-100 million and is the responsibility of the winning bidder to finance it all.

Most of the state land auctions are structured this way, which is why leas than a quarter of them end up attracting more the one bidder.

Expanding on this point, one of the objectives of the Land Department is to have development start relatively quickly. They don't want bidders purchasing land then sitting on it to resell for more at a later date. If the land is going to lay fallow and appreciate in value the state wants to hold onto the land themselves to sell for a higher valuation on a later date.

 

[TheGreenTBer]

I really don't see how they can lose this auction. I know it's the Coyotes but this seems like the biggest freaking layup of all time.

 

[Tom ServoMST3K]

If there’s another bidder who will be serious, I would think someone would find that out. But until that happens, it seems to me the only thing standing in the way is whether or not the city thinks the money is actually there based on what’s happened before.

For this project in particular the most likely roadblocks are for sure the second bidder, and figuring out the zoning.

And I guess I'm just assuming they actually have the cash to develop this too.

Do they “have” to sell? If less than 1/4 have 2 bidders. How is that an auction.



Can’t AM just put his paddle up on the opening bid and then it’s over?

There seems to be a bunch of hurdles pre-auction to make sure it's a good deal for the city.

 

[Llama19]

I really don't see how they can lose this auction. I know it's the Coyotes but this seems like the biggest freaking layup of all time.

 

[TheGreenTBer]

How did you get my private photo

 

[SirJW]

Parking for an event looks like a nightmare. Even though it's closer to Scottsdale, it's still not centrally located and on the edge of the greater area of the Phoenix community (even most of the Eastside).

Loop 101 Frontage Rd · Scottsdale, Arizona 85255, USA

Scottsdale, Arizona 85255, USA

maps.app.goo.gl

 

[Coyotedroppings]

Been trying to catch up on this since the auction notice dropped.

For those wondering if someone besides the Coyotes can just show up and grab a paddle, I’m going to suggest you read the actual auction notice (PDF) I’ve linked above.

Have not read it myself, but I’m monitoring someone who has and she is well plugged into the political world here. I’m using her interpretations below.

That document spells out who can be qualified to bid and the requirements to the winning bidder are somewhat extensive.

Aside from the $16 million cashiers check…

- There must be proof of sufficient funds in place to close the deal at the end of 30 days. No form of financing is acceptable. Balance will be due in total at close, in cash.

- There must be an acceptable plan in place to initiate the infrastructure plan within the first 6 months of close and be completed within 36 months. Estimate cost for this is $80-100 million and is the responsibility of the winning bidder to finance it all.

Most of the state land auctions are structured this way, which is why leas than a quarter of them end up attracting more the one bidder.

My understanding as well and no easy task, at this juncture. Time is on their side. Perhaps all the silence has been golden for Yote fans.

 

[Coyotedroppings]

Arizona Coyotes' new arena plans hinge on buying state land. What to know about the auction

To quote:

"How will the team pay for the development?

[President and CEO Xavier] Gutierrez said the project would be privately funded, though that rang hollow among some critics.

That's because the team is likely to seek the creation of a special taxing district to help Meruelo finance the massive project. It would need Phoenix and Maricopa County to sign off. Called a theme park district, the area would be overseen by a board that can issue bonds to pay for construction and levy a tax on transactions to repay the bonds.

Gutierrez said the tax is more like a user fee because people choose to come to the district. And he said Meruelo could finance the project without the theme park district designation, which would be considered after the land auction.

But the power to tax transactions is much like the team sought in Tempe, where it also pursued a property tax break.

And importantly, the appetite among local leaders to create a special district for the Coyotes isn't yet clear. Those discussions could factor in Tempe voters' resounding rejection of the team's proposal there last year, and public opposition to taxpayer dollars supporting sports complexes nationally."

Source: www.azcentral.com/story/news/politics/arizona/2024/04/06/arizona-coyotes-new-arena-what-to-know-about-state-land-auction/73221890007/

Can you blame them for trying?

Either way the entire structure of how that is written would need to change, as Phoenix can't sign off. The Suns lease prohibits it.

Another thing to consider is that Meruelo would have to be nuts to put up this kind of money w/o having the amusement district in place, if it's indeed necessary. Of course, we've all seen "nuts" before.

 

[TheLegend]

Parking for an event looks like a nightmare. Even though it's closer to Scottsdale, it's still not centrally located and on the edge of the greater area of the Phoenix community (even most of the Eastside).

Loop 101 Frontage Rd · Scottsdale, Arizona 85255, USA

Scottsdale, Arizona 85255, USA

maps.app.goo.gl

There are at least three multi-story parking garages in the plan.

 

[dj4aces]

I really don't see how they can lose this auction. I know it's the Coyotes but this seems like the biggest freaking layup of all time.

Murphy's Law, friend.

I genuinely hope the auction (and everything else) goes well, and the Coyotes can begin playing in their new building in a couple years. But until that building opens, and the Coyotes are skating on their brand new ice surface, Murphy's Law will always be in the back of my mind.

 

[TheGreenTBer]

Murphy's Law, friend.

I genuinely hope the auction (and everything else) goes well, and the Coyotes can begin playing in their new building in a couple years. But until that building opens, and the Coyotes are skating on their brand new ice surface, Murphy's Law will always be in the back of my mind.

I mean, like, I don't care if he has to go to the auction wearing assless chaps and biting a corn cob pipe named "Gary", there is no try.

EDIT : OK that would be kind of awesome and I might become a secondary Coyotes fan if that happened

 

[hammer42]

I think June 27 is too little to late for the Coyotes there is no guarantee they will win the auction & doubt they can go another year at mullet arena if they don't win that auction which they won't when you consider they will need public money to build this arena & doubt anybody would front the money to do it so in my opinion they should just start talking to Salt Lake City & Houston see if they will relocate them there .

 

[Coyotedroppings]

There are at least three multi-story parking garages in the plan.

I didn't even respond because it seemed to me he was talking about ingress/egress, as opposed to parking.

Murphy's Law, friend.

I genuinely hope the auction (and everything else) goes well, and the Coyotes can begin playing in their new building in a couple years. But until that building opens, and the Coyotes are skating on their brand new ice surface, Murphy's Law will always be in the back of my mind.

Hell, Murphy was lucky as shit compared to the Yotes!

 

[Coyotedroppings]

I mean, like, I don't care if he has to go to the auction wearing assless chaps and biting a corn cob pipe named "Gary", there is no try.

EDIT : OK that would be kind of awesome and I might become a secondary Coyotes fan if that happened

Chaps never have asses and I don't know how the hell you relate a corn cob pipe to felicio, a cob itself yes, but a pipe?

Edit: no offense man, I’m just amusing myself by being a prick!

I think June 27 is too little to late for the Coyotes there is no guarantee they will win the auction & doubt they can go another year at mullet arena if they don't win that auction which they won't when you consider they will need public money to build this arena & doubt anybody would front the money to do it so in my opinion they should just start talking to Salt Lake City & Houston see if they will relocate them there .

Man, do you ever need to get up to speed!

 

[TheLegend]

I didn't even respond because it seemed to me he was talking about ingress/egress, as opposed to parking.

Yeah I know…..

But welcome to B.O.H. where you almost always have to correct even the most obscure ideas because it’ll get amplified.

Hell, Murphy was lucky as shit compared to the Yotes!

Yeeeup!!

 

[TheLegend]

Man, do you ever need to get up to speed!

No… he needs to realize Hamilton isn’t going to get a team.

 

[Coyotedroppings]

No… he needs to realize Hamilton isn’t going to get a team.

Ah, didn’t notice the user name, gotta love a die hard!

 

[mouser]

Do they “have” to sell? If less than 1/4 have 2 bidders. How is that an auction.



Can’t AM just put his paddle up on the opening bid and then it’s over?

The Arizona state Land Department has already “approved”** the developer’s proposed use for the land as a precondition to conducting the auction. The Department has also had the land appraised, and set the minimum bid at what they consider a fair price for the land, any increased bidding over the minimum is a bonus, not a requirement. The Department has also ensured all necessary public rights of way and easements for public needs are formally legalized in the land sale contract.

The mandatory minimum bid is similar to an auction with a Reserve limit—the seller has established a minimum price they are willing to accept for the property.

**The Land Department doesn’t approve every last detail of the development project. They approve that the high level planned development of the land is worthwhile enough for the state to merit auctioning off the requested land parcel for development.

 

[Rob]

[re-upping post from previous thread]

Arizona Coyotes 'fully committed' to winning June state land auction, building new arena

To quote:

"A roughly 100-acre rectangle of desert land in north Phoenix will be auctioned for sale on June 27, and the president of the Arizona Coyotes says the team’s owner is “fully committed to being the winning bidder.”

Even if they are the highest bidder, the Coyotes will have to clear other hurdles before breaking ground.

Those include reconciling with Phoenix whether an arena is allowed on the property under its current zoning. Team leadership is also likely to seek a special taxing arrangement to help finance construction.

Zoning and tax issues to come

One issue to be resolved is whether Meruelo’s planned development is allowed on the land under current zoning.

But arenas are not specifically allowed under the current zoning, according to Dan Wilson, spokesperson for the city. That means the property owner could argue an arena is allowed and seek an evaluation of the current zoning designation, or possibly need to rezone, according to Wilson.

But the team will likely ask Phoenix and the Maricopa County Board of Supervisors for help in a way that could come at a cost to Arizonans who go to games or shop at the proposed development.

Meruelo would need those governments to create a special taxing district for the project, called a theme park district, which would establish a board that can issue tax-free bonds to finance construction.

The bonds are often repaid by revenue from an additional tax of up to 9% charged on transactions within the development."

Source: www.azcentral.com/story/news/politics/arizona/2024/04/04/arizona-coyotes-commit-to-winning-june-state-land-auction-for-new-arena/73184176007/

Can they not clear this all up before the actual bidding takes place? It just seems they could win the bid and negotiations drag on forever.