Frequently Searched

Avoiding a multi-million tax dollar 'emergency' in Glendale

November 5, 2014

Months after cries of “emergency,” the City of Glendale will be given another season to try to keep the Phoenix Coyotes hockey team playing in the desert.

Last year, the Glendale City Council approved a contract with Chicago millionaire Matthew Hulsizer to buy the team with the help of $116 million in municipal bonds backed by taxpayer dollars. The council declared that the bonds were an “emergency,” which took away the taxpayers’ right to petition for a public vote on the deal.

Four months later, the bonds still haven’t sold and the deal hasn’t closed. The council members themselves said they were rushed and misinformed when they voted last year. One city economic analysis showing that the taxpayers could lose on the deal wasn’t released until after the emergency vote. The deal committed the city’s hockey arena (previously funded by $180 million in taxpayer bonds) to the Coyotes for another 30 years, and required the city to pay a $97 million management fee over the first five years, on top of the $116 million in new bonds. This certainly was not the kind of decision to be made quickly.

Scottsdale Mayor Jim Lane has written that he is glad his city isn’t in Glendale’s shoes, after having lost the bidding war a decade ago to lure the hockey team. The New York Times reported in September 2010, “With more than four decades of evidence to back them up, economists almost uniformly agree that publicly financed stadiums rarely pay for themselves.” Glendale has already racked up more than $3,000 per person in sports-related debt—not including what might be required to keep the Coyotes.

Tonight’s decision before the City Council would commit Glendale to spend another $25 million, for a second year in a row, to keep the Coyotes playing at Jobing.com Arena while a deal is made to sell the team to a new owner. If approved, Glendale will have another year for those negotiations. So there would be no reason to cut the time down to the wire. The city should take the time to study the economics and make all the information public, and it should not cut off any avenues for voter participation. This should not be another multi-million-dollar emergency.

Carrie Ann Sitren is an attorney with the Goldwater Institute’s Scharf-Norton Center for Constitutional Litigation.

Learn More:

Goldwater Institute: Consultant in Phoenix Coyotes arena deal named in fraud lawsuit

Goldwater Institute v. City of Glendale: A challenge for taxpayers to see public records

Arizona Republic: Phoenix Coyotes deal with Glendale raises concern

 

 

More on this issue

Donate Now

Help all Americans live freer, happier lives. Join the Goldwater Institute as we defend and strengthen freedom in all 50 states.

Donate Now

Since 1988, the Goldwater Institute has been in the liberty business — defending and promoting freedom, and achieving more than 400 victories in all 50 states. Donate today to help support our mission.

We Protect Your Rights

Our attorneys defend individual rights and protect those who cannot protect themselves.

Need Help? Submit a case.

Get Connected to Goldwater

Sign up for the latest news, event updates, and more.

Wait! Don’t close this yet!

We are grateful for your support of the Goldwater Institute’s efforts to advance and defend liberty throughout the United States. For over 36 years, we’ve been defending the rights of Americans to live their lives free from government interference.

And Goldwater is unique in that we direct our efforts to the 50 states where we introduce and advance innovative ideas that expand freedom. And we fight in courtrooms and capitals nationwide to defend individual liberty.

In 2024 alone, we scored over 50 policy and litigation victories defending liberty!

And that’s just the beginning.

Our plans for 2025 include:

  • Stopping pernicious DEI and other woke programs in America’s universities.
  • Ensuring that patients suffering from rare and terminal diseases have access to cutting-edge, lifesaving medical treatments, without having to first seek permission from the government.
  • Defending parental rights across the United States so that parents can send their kids to the school that best fits their needs, free from leftist indoctrination.
  • Eliminating government interference in the fundamental right of individuals to own property and use it as they see fit.
  • And much, much more

We seek to restore the presumption of liberty; that people are free to act without first asking permission from the government.

But we cannot do this without you. Will you join us as we fight to preserve and advance liberty throughout the country? As we seek new and innovative ways to defend freedom in all 50 states?

And there’s great news: Thanks to a generous Goldwater supporter, your donation today will be doubled!

So please, join us in fighting to advance liberty and score real wins for freedom from coast to coast!