The opposing and supporting sides of the proposed Tempe Entertainment District have come out with statements on competing studies that report on the potential economic benefits to come with the development.

Firstly, the resident coalition Tempe 1st has released a statement regarding the recently published, independent economic analysis by the Grand Canyon Institute of the Tempe Entertainment District, which will be passed or rejected with Propositions 301, 302 and 303. 

The Grand Canyon Institute released its economic analysis of the project on April 17.  In its report, it specifically analyzed the Arizona Coyotes arena and music venue components, also looking into its other potential uses and their impacts. 

Key takeaways on the arena and music venue's economic impact, as listed on the Institute's website are:

• Arena events will squeeze the concert/show event market in the Phoenix Metropolitan Statistical Area,
• For every $2.70 diverted from the city to the community facilities district, the city only receives $1 in new revenue as a consequence of new spending drawn by the arena and music venue and its recirculation within Tempe,
• The study paid for by the city and the study the developer’s consultant provided which show net gains for the city rely on highly speculative, fairly arbitrary numbers to evaluate the entire project,
• The impact on the greater Phoenix MSA economy is negligible because of the Coyotes' over 30-year presence.

Additionally, the study also found that the tax revenue to the city generated by the development would likely not exceed any other use of the site that does not require a community facilities district. For the full report, visit www.grandcanyoninstitute.org. 

In the statement from Tempe 1st, the group expressed thanks for the Institute's work in creating this report and looking into the potential negative impacts to come with the new project. 

"We’re grateful to finally have an unbiased economic analysis that proves what we feared - that this proposed development is a financial drain on Tempe that can’t possibly live up to the developer’s rosy predictions. Tempe residents are better off rejecting this scheme so our city can start fresh and invite better, more responsible and profitable projects for our land," the press release stated. 

Tempe 1st encourages all Tempe voters to vote no on Propositions 301, 302 and 303 when ballots arrive this week and to return their ballots via mail by May 9.

More benefits to come

However, despite the critics, the Coyotes project has received unanimous support from Tempe City Council, former city officials and other stakeholders.  In contrast to Tempe 1st, Tempe Wins, the Bluebird Developments-sponsored group, holds its position on the economic benefits to come, based on an independent review by Arizona State University's Seidman Research Institute. 

According to an April 17 press release, the report "confirms the Tempe Entertainment District will generate hundreds of millions of dollars for the City of Tempe and residents won’t have to pay for it – a first in Arizona’s history."

Key findings from the Seidman Research Institute review:

• Both the Hunden and CSL reports underestimated the revenues that would be generated for the city of Tempe by the Tempe Entertainment District;
• The Tempe Entertainment District requires no new tax revenue streams and no general fund obligations for Tempe taxpayers;
• The Coyotes Arena will be the first sports facility in the history of Arizona to pay property taxes.

Previously, Bluebird submitted an economic impact report summer of 2022 to the city from the firm CSL, which has handled more than 2,000 sports and entertainment projects across the country, according to the release.

In addition, Hunden Strategic Partners provided Tempe with a third-party analysis of the development project and a review of the CSL report.

The Hunden analysis and review was the basis for the Tempe city staff’s decision to recommend the Coyote’s proposal and the basis for Mayor Corey Woods and council's decision to approve the project and deal by a unanimous 7-0 vote. 

To dispel any doubts, the Coyotes’ development arm, Bluebird Development, commissioned an independent peer review of the CSL report, and a review of the Hunden report by the Seidman Research Institute, which serves as a link between the local, national, and international business communities and the ASU W. P. Carey School of Business.

The Seidman review concluded that the CSL report was conservative in key assumptions for new revenue creation and tax generation in Tempe. Seidman concludes that the average earnings per new job will be 35% higher than CSL report estimates ($100k per year vs. $73k per year). Seidman also concludes that the CSL report estimates for new tax revenues are significantly understated. 

The report shows that if current consumer spending trends continue, CSL's original projection of $244 million dollars is short by $34 million.  The release added that the Seidman review confirms the city will not assume any costs. 

"Notably, the Coyotes’ arena would be the first sports venue to pay property taxes in the history of Arizona," the release stated.

(Independent Newsmedia/Caroline Yu)

In Tempe Wins's release, Coyotes President and CEO Xavier Gutierrez (above) commented that the developers went the extra step of having both the city's and its own reports independently reviewed.

All Tempe Entertainment District facilities are exclusively paid for by the developer and users of the facility. Tempe general fund dollars are not being used to pay for any portion of the project, nor does the development require the imposition of new taxes.

The ASU/Seidman report states:

“A review of the Development and Disposition Draft Agreement between the city of Tempe and Bluebird Development (on behalf of the Arizona Coyotes) suggests that proposed project financing for the new NHL arena will be unlike prior professional sports facility built in the Valley. In particular, the Tempe arena and related development require no new tax revenue streams and no general fund obligations for Tempe taxpayers.”

The project includes a voluntary surcharge on purchases within the limited boundaries of the new entertainment district. Those who don’t shop, eat or purchase in the district would pay no surcharge.

Revenues from the surcharge would be used exclusively for landfill cleanup and public infrastructure.

Ballots for Propositions 301, 302 and 303 are due by May 16. If approved, the Arizona Coyotes’ development arm would buy the old, unlined, polluting landfill near Tempe Town Lake for $50 million and clean up the site.  For information, go to www.tempewins.com.