UNRESOLVED CONCERNS FROM THE CITY OF GLENDALE:
Since the NHL Coyotes unexpectedly went into bankruptcy in 2009, the city of Glendale has worked
consistently to protect its investment in the Sports and Entertainment District and bring a resolution to this
matter. The city has worked with the NHL and several prospective buyers to determine a solution in the best
interest of the city. There are unresolved serious concerns with the current proposed agreement including:
Risk to the city:
o The city bears all the risk if the revenue projected by Renaissance is not realized.
o The deal requires a $15 million management fee to Renaissance. The city has budgeted
$6 million to pay for part of the $15 million arena management fee and Renaissance has
projected shared revenue streams to help bridge the gap. Should those projections not be
realized, and the city does not receive the projected revenues, then the city would need to
make up that loss.
o The proposed agreement is for 15 years and does not allow for the city to terminate the deal if
revenue projections are not met as long as the Coyotes play in the arena.
o The proposed contract can be terminated by Renaissance if their cumulative losses reach
$50 million, and, in any event, after five years.
o Approximately $3 million, of the proposed revenue is not new to the city and includes
revenue previously included in the city’s budget for next year.
o The timeframe for this current proposed agreement has been extremely tight making it very
difficult for the city of Glendale to perform due diligence and negotiate a $225 million deal.
The first proposal deal points were submitted to the city in early June with an expectation for
completion by July 2. The city appreciates the urgency pressing the Renaissance Group, but
has a duty to be transparent and provide sufficient time to the public to provide input.
o The proposed agreement needs to be completely vetted and approved by the city’s legal team
and management to determine any issues. The most recent contract proposal was received
from the Renaissance Group for review by the city of Glendale at approximately 9 p.m. on
Wednesday, June 26. The Renaissance Group expects the Glendale City Council to vote on
the agreement on Tuesday, July 2.