NHL insider Greg Wyshynski reveals reason why Arizona Coyotes' billion dollar arena auction plan fell through

The Arizona Coyotes may not have their own arena in Phoenix but they sure were looking to auction for a 95-acre parcel of untreated Arizona state trust land this June. However, things didn't go as expected and NHL insider Greg Wyshynski reported that the auction has been stalled due to zoning issues.

The Arizona State Land Department announced on June 14 that it has canceled the auction for a piece of land in Loop 101 west of Scottsdale Road. One key reason cited for this decision is that the proposed development by the Coyotes reported requires a special use permit to allow the land to be used for purposes that are not currently permitted under its existing zoning designation.

ESPN’s Greg Wyshynski reported that the land is currently zoned for an indoor hockey arena intended for youth hockey, not for a large-scale 17,000-seat NHL arena. He tweeted:

“Multiple sources tell ESPN that the Arizona land auction issue is related to the kind of hockey arena that Alex Meruelo could build there. Coyotes said the land was already zoned for an indoor hockey arena, except that was for youth hockey – not a 17,000-seat NHL arena.”

The Land Department reportedly stated that the franchise needs to reorder the procedural steps involved in the land sale. It is now requesting that the Coyotes secure this special use permit before proceeding with the purchase of the land. This means the Coyotes need to obtain permission to use the land for their $3 billion arena project, which is different from its current zoning for smaller, youth hockey facilities.

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The Arizona Coyotes might have to relocate if arena project doesn’t kick-off

If the proper zoning permit for the land is not obtained, the team's three-year search for a new location within Maricopa County would conclude unsuccessfully. Club president Xavier Gutierrez feels the Coyotes will have to relocate if team owner Alex Meruelo is outbid for the land.

“If we are not the winning bidder, then we would more than likely have to entertain a relocation of the franchise. This would be our only option,” Gutierrez said. [H/T Sportico]

The Coyotes originally had a $3 billion multi-use development plan that included residential homes, retail stores, a 17,000-seat arena, a training center, and a theater, to be constructed over several years. The part of the project focusing on the arena and training facility is projected to cost about $1 billion over three years.

The club is currently playing their games at Mullett Arena, which is a relatively small venue with a capacity of 4,600 seats located on the campus of Arizona State University in Tempe, Arizona.

The Coyotes have a lease agreement to play at Mullett Arena for the next season, with additional options to extend this arrangement for two more seasons if necessary.