Study: Glendale better off with Coyotes than without
Jun 7, 2012, 11:07 PM | Updated: Jun 8, 2012, 12:07 am
A study conducted by a Valley economist said that the city
of Glendale will be better off financially by keeping the
Phoenix Coyotes rather than losing the team.
According to the study, the cost of operating a Coyotes-
less Jobing.com Arena would total $315.3 million over 20
years, the length of the proposed team purchase agreement
between Greg Jamison, the city and the NHL.
Should the Coyotes stay, it would cost the city of
Glendale about $17.8 million less over the 20 years, when
certain discount rates are applied. However, the study
said that the gross loss to the city could be doubled with
no team in the arena.
“The worst of all possible scenarios for Glendale would be
for the hockey team to leave,” the study said.
The Coyotes account for about 59 percent of all the events
at Jobing.com Arena and, according to the study, the
Cardinals’ ten-home game season, along with other events
held in the arena, do not present a viable way for nearby
businesses and hotels to remain open. If the Coyotes
leave, it could create a ripple effect to outlying offices
and residences as well.
The arena is only used 85 days per year on average, thus
meaning it has excess capacity. Should the Coyotes leave,
demand for the arena could fall off more and property
values and tax revenue would decline, despite the city
still by liable for bond costs.
