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Phoenix Coyotes deal: Goldwater seeks restraining order by Cecilia Chan - Jun. 7, 2012 10:03 PM The Republic | azcentral.com An economist and an attorney told Glendale leaders Thursday a proposed $325 million Phoenix Coyotes lease agreement would benefit the city financially and pass legal scrutiny, hours before officials for a watchdog group said they will go to court Friday to try to stop a council vote on the deal. It will cost less for Glendale to keep the Coyotes than to let them go, according to economist Jill Welch, who placed the savings at $17.8 million over the 20 years of an agreement with proposed buyer Greg Jamison. Jamison's deal would cost the city an average annual cost of $7.9 million, said Welch, whose firm, Elliott D. Pollack & Co., was paid by Glendale to study the economics of the proposed deal. If the team leaves, taking with it rent payments and other revenue sources, the city would see an average annual cost of $8.8 million to manage the arena, Welch said at a council workshop. The worse possible scenario for the city is if the team leaves, which would harm retail and restaurants at Westgate City Center, according to the Pollack study. Attorney Gary Birnbaum, also hired by the city, said the proposed agreement does not amount to a subsidy because the financial benefits outweigh the costs. He based his conclusion on the Pollack study. Birnbaum was brought in to address concerns by the Goldwater Institute that the agreement amounts to a subsidy, which would violate the state's gift clause. But shortly after the council workshop ended, Goldwater officials said they will be in Maricopa County Superior Court at 8:30 a.m. Friday to try to stop a council vote expected about 10 a.m. Goldwater President Darcy Olsen, in a statement, said the group plans to stop a vote because some documents central to understanding the arena proposal have not been made public. "The 100-page deal released on Monday refers to a number of exhibits that are central to analyzing the impact of the deal on Glendale's finances, which the city must make public," the statement reads. "Per respecting Open Meetings Law requirements, the Goldwater Institute will be requesting a temporary restraining order to prevent the Glendale City Council from voting on the contract Friday morning." Glendale spokeswoman Julie Frisoni said Goldwater is wrong about the documents and the city has been transparent . "As exhibits were completed, they were posted. There are still one or two outstanding that are still being worked on," Frisoni said, adding those are minor and don't affect the agreement. "The city will definitely be there to present our position and to argue on the city's behalf," Frisoni said. "At this point our meeting is on, and we are moving forward." A majority of the council is expected to approve the lease agreement to operate and improve the city-owned hockey arena. Councilwoman Joyce Clark, who supports the agreement for the arena facility in her district, said at the Thursday workshop that the city needs to keep the team playing in Glendale. "We cannot afford to let that arena sit vacant," Clark said. In the three previous deals that have come before Glendale, they either required the city to issue bonds or asked for a higher management fee payment, Clark said. "This deal has none of those components," she said. "It's a much cleaner deal." Glendale Mayor Elaine Scruggs, who has said that the deal is too costly given the city's finances, did not attend the workshop because she had a conflict. |