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Goldwater Institute raises concerns over latest attempt to sell Coyotes

ALLAN MAKI, The Globe and Mail, Jun 07 2012

The latest in the on-going sale of the Phoenix Coyotes has drawn another stern look from the Goldwater Institute.

With city of Glendale officials prepared to vote on a tax payer funded, arena management deal that would help Greg Jamison purchase the NHL Coyotes, the Goldwater Institute issued a statement raising multiple concerns over the use of public money.

Glendale city council is looking to approve a 20-year deal that would pay out a total $300-million for someone to manage the city-owned Jobing.com arena. The Goldwater Institute, which scuttled a previous deal involving the Coyotes and Matthew Hulsizer, published its letter to Glendale mayor Elaine Scruggs and council members with an opening paragraph that noted the city was considering a deal that “will add substantially to its existing financial obligations, at a time when it is overloaded with debt and has had to cut city services and lay off city workers …”

The letter raises questions over actual cost minus capital expense, parking rights and the city’s decision to adopt the deal “as an emergency measure, which would deprive Glendale citizens of their right to refer the matter to a vote.”

Glendale council was slated to meet Thursday and Friday to examine the deal and will allow public input. NHL commissioner Gary Bettman and deputy commissioner Bill Daly will be in Glendale to talk to council members on Friday, when the matter is put to a vote.

In its letter, the Goldwater Institute does not threaten any legal action. Instead, there are directions as to what council should do.

“We hope that these inquiries will assist the Council in its deliberations over the proposed deal. We further urge you to not to rush to a vote,” states the letter. “The terms of the 100-page proposal were released to the public for the first time on Monday, and not all the exhibits and associated documents have been released yet. There should be an adequate public comment period …”

The Arizona Republic has reported that no other professional sports team in the area – the Arizona Cardinals, Arizona Diamondbacks or Phoenix Suns – receives tax-funded subsidies to operate its facility.