Tempe residents voice concerns over planned Coyotes' entertainment district
As election approaches, Tempe 1st says ‘vote no’
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Preserving community
We cannot let these developers grab more land while the city ignores the demands from the community like having more affordable housing, funding for public schools, support for small businesses, more elder and childcare and more equitable solutions that uplift ethnic communities.”
A growing opposition to the Tempe Entertainment District is voicing concerns with the plan’s billionaire funding and potential negative community impacts while seeking a compromise for the new development.
This proposed project, which will take up 46 acres at the corner of Rio Salado Parkway and Priest Drive, will entail the construction of numerous new attractions including the Arizona Coyotes hockey arena, a new music venue, hotels and more.
In the upcoming special election on May 16, three propositions are on the ballot that will allow the formation of the Tempe Entertainment District. Propositions 301, 302 and 303 amend city zoning laws, tax rates and general plan to award Bluebird Developments the plot of land to create the project.
Alex Meruelo, the billionaire owner of Bluebird Developments and the Coyotes, will pay the city $50.3 million for the land, including $40 million of non-refundable cash due up front.
Meruelo’s grip on the project is one reason some Tempe residents oppose the entertainment district. On its website, opposition group Tempe 1st lists a number of grievances with Meruelo’s past actions, alleging he has a history of unpaid taxes, creating toxic workplace cultures and failing to pay employees, vendors and other partners.
A representative for Bluebird Development has publicly rejected negative claims made about Meruelo.
Speaking at a March 20 rally at a Tempe residence, Dawn Penich-Thacker, one of the Tempe 1st organizers, denounced Meruelo’s actions and invited community leaders to speak on the negative impacts to be brought on with the Tempe Entertainment District.
Tempe 1st emphasized its goal throughout the rally to reject the district’s formation, imploring the city to consider another use for the land and to invest in the other areas of need.
“We will not be harassed into silence by a Las Vegas billionaire looking to profit from exploiting us,” Penich-Thacker said.
(Independent Newsmedia/Caroline Yu)
Tempe 1st also takes issue with the propositions “publicly subsidizing and allowing” the building of Meruelo’s sports franchise and entertainment district at the expense of neighboring residents.
Penich-Thacker specifically spoke of small, local businesses that would be unable to compete with the high-end, more luxury retail options to be brought along with the district, resulting in loss of livelihood and unstable living situations.
Several community leaders spoke at the Tempe 1st rally, including former City Council Member Lauren Kuby, director at Asian American Native Hawaiian Pacific Islanders for Equity May Tiwamangkala and Changing Hands Bookstore owner Gayle Shanks among others.
In particular, Tiwamangkala, whose group advocates for equity and justice by building power through community engagements, spoke of the threat of gentrification and how that would impact students, families and residents in need of affordable housing near the proposed project.
“These kinds of establishments only care about profit, not people. Otherwise, they would make their products more accessible for everyday people,” Tiwamangkala said.
One example close to home she spoke of was the historic Phoenix Chinatown, which was driven out by the Phoenix Suns arena and finally fully demolished in 2017.
“We cannot let these developers grab more land while the city ignores the demands from the community like having more affordable housing, funding for public schools, support for small businesses, more elder and childcare and more equitable solutions that uplift ethnic communities,” she said.
Other speakers echoed a lot of Penich-Thacker and Tiwamangkala’s sentiments, delving into the negative economic effects on existing community residents and businesses.
What now?
Those against the propositions have become increasingly vocal and signs urging residents to vote no littering the city.
Having gone through council late 2022, the city’s deal with Meruelo for the development was reviewed and discussed at length before being approved on Nov. 29, 2022. Bluebird was able to collect more than 2,134 petition signatures to move the propositions to ballot.
In their discussions, council and Bluebird Developments talked about potential impacts to the surrounding community. Some project considerations were traffic, noise pollution and interactions with Phoenix Sky Harbor Airport.
According to the city’s website, the project is expected to generate positive elements for the city including:
More than $200 million in public benefits;
A 1,500-square-foot emergency response and public safety facility;
$50,000 each to Tempe Union High School District and Tempe Impact Education foundations; and
$414,000 per year for additional ride-sharing and shuttle services.
Despite these supposed benefits, residents are still concerned about other effects, hence the increased presence speaking out against it.
Addressing the Tempe residents responsible for the negative signs on the propositions, Nicolas Wood of Bluebird Developments spoke during the March 17 city council meeting, representing Meruelo and explaining his own involvement crafting the Coyotes deal.
Wood reminded residents council had already unanimously approved this deal and this project will not be costing residents anything as Bluebird will assume responsibility for construction costs among others.
(Special to the Independent/Arianna Grainey)
The Tempe Entertainment District would mark another large-scale development in the city like Marina Heights (above), which is one of the largest office developments in the state.
Going on, he went on to criticize claims Tempe residents against the district have made about Meruelo.
“That is nothing more than a reprehensible, sinister attempt to lie about a man whose integrity outshines any of the people who are opposing us,” Wood said at the meeting.
He commended Meruelo’s accomplishments as a successful entrepreneur and businessman of many operations.
Closing his comments, Wood that those responsible for “vote no” signs associating Meruelo with criminal activity have “exposed themselves to significant civil liability” and that they will not be standing by to defamation of any sort.
Bluebird Developments did not provide additional comment on this issue prior to publication.
If the propositions pass, the development will proceed. But if voters reject the measures, the project will not move forward.
The deadline to be registered to vote is April 17, and ballots will start being received April 19. Additional information about the May 16 ballot is available at www.tempe.gov/election.
Reporter Caroline Yu can be reached at cyu@iniusa.org. To voice your opinion on this story, connect with us at AzOpinions@iniusa.org.
Meet Caroline Caroline Yu joined Independent Newsmedia, Inc., USA, in 2020 as a summer intern covering Scottsdale. As an intern, she continued her coverage of Scottsdale, Paradise Valley and Tempe. After graduating in 2022, Caroline became a full-time reporter for Scottsdale and Paradise Valley. She is currently reporting for the Tempe market.
Community: She is a supporter of the environment and tries to get involved with related community events.
Education: Arizona State University with a BA in Journalism and Mass Communications, with a minor in French.
Random Fact: She used to be a ballet dancer for 10 years.
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