Glendale officials meet privately on Coyotes dealPosted: Updated:
GLENDALE, Ariz. -- A proposed 20-year agreement for a new operator of Jobing.com Arena could cost Glendale taxpayers hundreds of millions of dollars.
The City Council is meeting in private for most of the day Thursday, and planning a public vote Friday on the agreement.
City officials and the NHL, which owns the team, are hoping businessman Greg Jamison's proposal to buy the team will go through.
The following is from the city of Glendale and outlines the tentative agreement between the city and Arizona Hockey Partners LLC, the group Jamison put together.
The NHL team stays in Glendale for 20 years, the same amount of time remaining on the original bonds for the arena.
The NHL team continues to pay rent for use of the city-owned arena, approximately $13 million over the term of the lease.
The city will continue to receive a ticket surcharge on every ticket sold for events at the arena, estimated to be approximately $60 million over the life of the lease.
The city receives 15 percent of the naming rights revenue for the arena, estimated between $4 million and $10 million over the life of the agreement.
The city does not issue any new debt.
The city is not responsible for parking operations.
The city estimates sales tax from events at the arena to be approximately $30 million over the term of the agreement.
The city pays an average arena management fee of $15 million per year.
The arena manager keeps an anchor tenant at the arena.
Analysis conducted by independent outside experts concludes that, in their opinion, the deal:
1. Meets the constitutional test against gifting by the city.
2. The financial position for the city with the team in place will be better than managing the arena without the team.
3. This conclusion was arrived at without the inclusion of any revenue from the Westgate development, which is expected to at least double over the life of the team’s stay.