The Arizona Coyotes and its development arm, Bluebird Development, say they have had enough of Phoenix’s bullying bureaucrats. And now the City of Phoenix is facing a $2.3 billion claim after the Coyotes claim it broke its word and decided to undermine a plan to convert a hazardous unlined Tempe-owned landfill into a new sports and entertainment district next to Tempe Town Lake.
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Here is a response from the City of Phoenix: “The City of Phoenix received the notice of claim letter today. Phoenix will respond in due course, but the developer restates the same arguments that the airport, and more importantly, the FAA has already debunked. At the same time, we can understand and appreciate the developer’s frustration. But their frustration is misdirected. They should be frustrated with Tempe. After a meeting with the mayors of both Tempe and Phoenix and two negotiations between the city managers of Tempe and Phoenix, we understood that Tempe was open to a reasonable compromise that would protect the airport, the communities around the airport, and allow these developments to proceed. That compromise was, at Tempe’s request, reduced to a simple document that would have amended the IGA to allow current projects, including the TED, to proceed, while also restating the commitment to prohibit future residential development within the 65DNL. That document was sent to Tempe on February 7, 2023, as our Complaint makes clear. We expected to promptly hear input or agreement on that amended IGA. Instead, after over a month of delay, Tempe abruptly ended discussions with its March 17 letters, and the City of Phoenix was forced to sue. A clear and reasonable resolution was in Tempe’s hands and they elected to reject it. We join the TED developer in their frustration.”
On March 27th, Sky Harbor unexpectedly filed a complaint against the City of Tempe claiming the Tempe Entertainment District plan could not include previously approved multi-family housing because of noise issues. Oddly, both cities had agreed for decades that multi-family housing was permitted in airport flight paths as long as the apartments were designed to minimize external noise.
Indeed, Tempe’s decision to move forward was based in part on assurances from Sky Harbor not to interfere. On November 29th Sky Harbor’s Chad Makovsky told the Tempe City Council, “A positive and productive relationship between Tempe, Sky Harbor and the City of Phoenix has been and continues to be incredibly important to us.” He added, “I wish you the best as you make this important decision for your community.” Following that statement The Tempe City Council unanimously approved the project’s entitlement, zoning, and development agreement.
Those supportive statements followed weeks of negotiations in which Bluebird had agreed to indemnify Sky Harbor against any noise complaints generated by future residents of the sports and entertainment district, eliminating any risk to the airport and City of Phoenix.
Bluebird is seeking damages because it says Phoenix is knowingly and intentionally interfering with its business, because Bluebird relied on Sky Harbor’s previous statements indicating it would not be in opposition, and because Phoenix initiated a lawsuit against Tempe, “for the purpose of stonewalling development of the Tempe Entertainment District.” The claim goes on to say that Phoenix appears motivated by “spite and ill will.”
Phoenix is demanding Tempe prevent future residential development in the 65 DNL, and for Tempe to agree to Phoenix’s expansion effort, yet details of those expansion efforts have not been finalized. Despite its agreement with Bluebird, Phoenix is trying to undo the zoning decisions Tempe has already made. The lawsuit from Phoenix to Tempe is ridiculous and nothing more than a political stunt and meritless lawsuit. Indeed, the City of Phoenix tried to get the Coyotes to “lean on” Tempe to accept Phoenix’s proposed IGA amendment.
The damages being sought are $2.3 billion, equal to the entitlement value of the Tempe Entertainment District.
Beyond ultimately untruthful assurances made by the City of Phoenix, there are decades of correspondence between Phoenix and Tempe indicating that multi-family housing is permitted in Sky Harbor flight paths. Collectively the two cities have approved more than 4,000 residential units in the flight zone.
Coyotes President and CEO Xavier A. Gutierrez said, “Phoenix City Hall’s bad behavior seems intended to preserve its downtown sports venue monopoly and has nothing to do with safety or soundness of the airport. While Phoenix bureaucrats have allowed developers to build a basketball arena, a ballpark, and apartments in flight paths, when Tempe attempts to do the same a manufactured crisis arrives.”
Propositions 301, 302, and 303 would clean up an unlined polluting landfill next to Tempe Town Lake and create a sports and entertainment district that includes new restaurants and retail, new multi-family housing, and a new permanent home for the Arizona Coyotes. It is expected to generate more than $690 million in economic benefits to Tempe and create 6,900 permanent jobs. And Tempe and its residents don’t have to pay for it.
Ballots on Props 301, 302, and 303 will be mailed April 19th and must be returned by May 16th. To learn more about this plan go to www.TempeWins.Com.
