"We finally have an opportunity to look
forward," Commissioner Bettman said. "There's been
enough looking back. It's taken a lot of hard work by a lot of people
to get to this point, and we're grateful to the council for all of
their efforts on behalf of our fans here in the Valley, on behalf of
all the businesses and people whose employment depends on the
Coyotes, and on behalf of everything that's gone into this, all the
hard work, all the effort, it's nice to have an opportunity to focus
on the future."
The city agreed to pay RSE $15 million annually
across the next 15 years, a fee that is $9 million more than the city
has budgeted for arena-management fees. But RSE agreed to return a
projected $6.7 million in additional revenue streams, including
parking revenues, ticket surcharges and additional arena-naming
rights. "To all the residents and taxpayers of Glendale, we
are looking forward to a solid partnership and filling the building,"
Anthony LeBlanc of RSE said. "We are here for the long term
and focused on keeping the Coyotes in the Valley and making this a
long-term success. We have been cautiously optimistic that this would
happen, but we're very grateful to council for making what we feel is
the right decision, but not any easy one."
Vice Mayor Yvonne Knaack and council members Sam
Chavira, Manny Martinez and Gary Sherwood voted to accept the arena
deal, while Mayor Jerry Weiers and council members Norma Alvarez and
Ian Hugh voted against the measure. If the vote had not passed,
League officials had said that the Coyotes likely would end their
17-year run in the state.
"The City of Glendale made a commitment by
originally building the building and by the additional things that
were done over the last few years, and we wanted to make sure that
this franchise finally had a chance to go forward,"
Commissioner Bettman said. "When the franchise is being run
by the League and there's uncertainty, you never know exactly how
things are going to work out. With ownership that's committed to
making the franchise a success, with an opportunity for businesses
and fans to know that there's no uncertainty, we think that this
franchise can do very, very well."
The ownership group, comprised of Canadian
businessmen LeBlanc, George Gosbee, Daryl Jones, Dave Duckett,
William Dutton, George Fink, Robert Gwin and Avik Dey, negotiated an
out-clause that allows it to leave Jobing.com Arena in five years if
its financial losses total more than $50 million. The city asked for
the same five-year out-clause, but it was not part of the final
agreement. However, RSE did make some last-minute alterations to the
deal. Early Tuesday, RSE reached an agreement with Global Spectrum,
the arena management arm of Comcast-Spectacor and the manager of
nearby University of Phoenix Stadium, to assist in running Jobing.com
Arena, including initiatives to increase the number of non-hockey
dates at the venue. RSE also said that if the team opts to exercise
its out-clause and leave Glendale, it will reimburse the city for any
losses beyond the $6 million arena fee it has budgeted annually.
"We've been looking for the right deal,
the right transaction, the right ownership group, the right
arrangements with the City, and it's been complicated,"
Commissioner Bettman said. "It's been difficult, and it's
finally all come together."
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