New Tempe Arena

After years of informal negotiations between City of Tempe Economic Development Manager Maria Laughner and Arizona Coyotes management, the Coyotes proposed a 16,000-seat arena that would be located on a parcel of city owned land adjacent to the Salt River. The project would be built on an old city dump site, requiring remediation and would also have to relocate the city's municipal maintenance and storage facility currently on the site. [2]

On June 2, 2022, the Tempe City Council voted 5 to 2 to begin formal negotiations with the Coyotes, with a final agreement at least several months later. The City of Phoenix implied that litigation over development around the arena is likely if Tempe approves the development the Coyotes proposed. The FAA would have to approve all building heights and locations, as the proposed arena is directly under the centerline of runway 7L/25R. The Coyotes are also seeking city sales tax revenues and a 30 year waiver of property taxes to help pay for $200 million in additional costs, including infrastructure work.[3][4]

On May 16, 2023, The Tempe voters have voted no on the new arena and entertainment district. The Coyotes have looked into Mesa’s Fiesta Mall as a different site for a new arena.[5]

Due to the site location, Phoenix Sky Harbor International Airport officials have expressed concerns that the Tempe Entertainment District will cause a risk for inbound and outbound aircraft. Phoenix is also concerned that residential uses would occur within the 65db contour, violating a 1994 intergovernmental agreement between Tempe and Phoenix. In 2001, a similar roadblock prevented the Arizona Cardinals from building a stadium near Rio Salado Parkway, which resulted in them moving to Glendale in 2006. Local residents have also raised concerns about the community’s cost-benefit based on traffic congestion, quality of employment opportunities and impact on adjacent neighborhoods. [6]