Sunday, March 6, 2011
Glendale may sue Goldwater
The City of Glendale is planning to launch a lawsuit on Monday against the Goldwater Institute, a public watchdog board, over the potential sale of the Phoenix Coyotes, according to ESPN.com. The City is trying to sell a municipal bond issue to raise money which would be part of a transaction critical to keeping the Phoenix Coyotes in Glendale.The $100 million in bonds is intended to be used to purchase from potential owner Matthew Hulsizer the parking rights to Jobling.com arena where the Coyotes play. Hulsizer will put the Glendale money towards the purchase of the Coyotes from the NHL who are looking for about $170 million. Without the Glendale money Hulsizer walks and the NHL relocates the team to Winnipeg. The Arizona constitution prohibits governments from providing the private sector with gifts, loans, subsidies, etc. The Goldwater Institute is a conservative public policy research organization established in 1988 that advances public policies with emphasis on lower taxes and limited government spending. They have threatened the City with lawsuits if it goes ahead with the bond issue which has scared off already scarce investors.
Glendale contends that it could lose over $500 million in taxes, revenues and lost jobs in the Coyotes leave. That might not that much of a stretch as they are on the hook for the $180 million spent on the arena. They arena isn't going to provide much in the way of taxes and other revenue if it's vacant and someone who have to spend money to maintain it.
So the moving vans to Winnipeg may have to wait a little longer.