The Coyotes and their development firm, Bluebird Development, announced a $2.3-billion claim against the City of Phoenix. The suit is for damages caused by Phoenix’s legal filing on March 27 for a breach of contract, which is “asking the court to rescind Tempe’s recent zoning and land use changes and prohibit future residential uses in an area that the Federal Aviation Administration says is incompatible with residential development.”
Here is the full news release Bluebird Development:
The Arizona Coyotes and its development arm, Bluebird Development, have had enough of Phoenix’s bullying bureaucrats. And now the City of Phoenix is facing a $2.3 billion claim after 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.
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 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.
We will not stand for Phoenix bullying Tempe and will vigorously push back on Phoenix’s shenanigans.
In addition to this claim, the Coyotes and Bluebird will continue to investigate Phoenix and Sky Harbor’s use of taxpayer dollars to interfere with a neighboring city’s election. Furthermore, they will be seeking any and all communications, documents, and negotiations between the City of Phoenix, Phoenix council members, and Phoenix city staff with any and all developers and property/business owners within Phoenix city limits and similar proximity to Sky Harbor as Tempe Entertainment District.
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.
In addition to the claim, attorneys for the Coyotes are also seeking documents from Phoenix related to a malicious dark money newsletter opposing the entertainment district which was sent to Tempe residents. They are also pursuing other claims against the City of Phoenix such as the illegal use of government resources by the Phoenix City Council and staff to influence an election. That influence extends to the newsletter as well as Sky Harbor’s actual complaint filed just before ballots go out in Tempe.
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 great plan go to www.TempeWins.Com.
Here are the associated legal documents that include the notice of claim and litigation hold sent to the City of Phoenix, along with a motion to intervene and a motion to dismiss filed in court.
0 Comments (3 conversations)
Robert
I can’t invest emotionally in this team until the results of the referendum come out on our side.
Don’t get me wrong, I’ll always be the first to buy a season ticket and I bought mine for next year in March.
There are all types of fans I think. Many of them as I looked around all these years obviously hadn’t an athletic bone in their bodies.
My entire life was centered around it on a participatory level…
It’s hard to describe but I feel a kinship with those guys on the ice more than the fans sitting around me in the stands. I realize the generalization.
It’s not hockey, it’s sport and city and comraderie.
I only went to 25 games this year. I gave away 16 to fans who used to have a ST but don’t anymore.
( all 25 games I was still first in line though ha)
I’m on pins and needles about May 16, I was on pins and needles just before that Glendale city hall meeting right before Ice Arizona took over….( Joyce Clark is really mad at the YOTES because she thought that other guy was going to get the team.. can’t recall the name)
I hope to emotionally re-invest on May 17th.
In the meantime, in my last years, I’m trying to find all my old running posters I used to have 45 years ago, put em up on the wall crooked with tape, go back to being a distance running hippie again ( until I was managed by a determined wife) train twice a day and wait for May 16th
I used to wear Coyotes gear to all my races here in AZ, hat, socks, singlet.. everything
The YOTES shoulda paid my entry fee…
That’s how they sold me.
They still do but I can’t take the stress.
Always wait with great anticipation for your excellent articles.
Signed
REL
STH since 2012
2000 mile a year runner
TheLegend
The “other guy” was Greg Jamison.
Joyce went to great lengths on her personal blog site to justify why she thought Jamison’s bid was better. Moneywise both lease agreements were virtually the same long term. The only big difference was Jamison had the option to buy the arena from Glendale in the last five years of the lease.
But also understand the NHL sank Jamison’s bid because he had no clear cut “majority” shareholder in his group and that was a requirement they weren’t going to budge on. And in the end that cost Glendale that second $25 million they put up so the NHL could run the team for another year. That probably turned Joyce sour on everything (NHL, Coyotes…. etc.).
That’s when IceEdge (nee IceArizona) went out and eventually found George Gosbee to lead their group.
Also, even if Jamison had been able to purchase the Coyotes, he was also looking to eventually move the team to Scottsdale. I know this from someone who did some work for him with his bid.
Monsoon19
We didn’t really expect it to be easy, did we? After 14 years since they declared bankruptcy, I’m exhausted and was relieved that it was finally going to be over on May 17th. Now that there are going to be legal battles, it could be another year or two of uncertainty, and that’s IF the referendum passes. I’m with you LDR, I was at every single painful Glendale council meeting and have lived and breathed this drama on an almost daily basis for 14 years. I love this team, but am tired.
The worst part for me about the Phx lawsuit is they had a chance to have the Coyotes at Footprint, but allowed Sarver to boss them around. How’d that work out?? Now they’re regretting it and the competition that they created, and we’re gonna suffer for it.
RobB
My thought, brilliant move by the Coyotes. Basically they are calling Phoenix’s bluff. Phoenix knows they will lose this fight if it goes to court. With this move it now means it will cost Phoenix big time if they lose. It’s a no win. I expect Phoenix to drop its suit, soon followed by this one.