Sunday, June 28, 2009

Coyotes Sued Over Records Access


((HT: Arizona Republic/Sanders))

The Goldwater Institute has sued Glendale over public records involving the Phoenix Coyotes.

The institute announced today it is pressing legal action. Representatives said Glendale thwarted its efforts to obtain documents related to negotiations with potential new owners of the bankrupt National Hockey League team.

The institute says it also asked the city to forward all future records that are created.

"Glendale denied both parts of the request, saying the negotiations were confidential and that it would be burdensome to send future records."

The city issued a statement criticizing the lawsuit.

"The legal action filed today in Maricopa County Superior Court by the Goldwater Institute is without a factual or legal basis," the statement reads. "The city has and will continue to honor Arizona Public Records Law."

"Releasing documents at this time related to a matter in bankruptcy court and subject to complex business negotiations is not in the best interest of the public," Glendale added.

The city has also denied The Arizona Republic's request for public records. An attorney for the company has met with city officials to discuss the issue.

Carrie Ann Sitren, an attorney with the Goldwater Institute, blasted the city for keeping its books shut.

"The denial of this records request is a clear violation of Arizona's public records law," Sitren said in a statement. "If Glendale is considering offering taxpayer money to potential buyers of the Coyotes, taxpayers have an interest in those negotiations. There is no reason taxpayers shouldn't have access to those records."

Before the bankruptcy, Coyotes executives wanted Glendale to give up as much as $12 million to $15 million from revenue the city currently collects from ticket surcharges and other fees at Jobing.com Arena.The city financed the arena and controls the lease.

Glendale officials say concessions were never on the table, and instead the team should have cut expenses and raised ticket prices to survive.

However, an attorney for Chicago sports mogul Jerry Reinsdorf said in bankruptcy court this weekthat Reinsdorf, who is interested in buying the Coyotes, has been in negotiations with Glendale over the arena lease. City attorney Craig Tindall called the Reinsdorf talks informal "discussions."

Glendale officials maintain the city would modify the lease for a new owner only, for instance, to let the team raise ticket prices, not lower the city's money-making fees. The City Council would have to approve lease changes.

The Goldwater Institute has made public subsidies a focus of fierce court challenges recently.

The conservative group successfully sued Phoenix last year over tax breaks given to a mall developer, over a project known as CityNorth.

Glendale may be next on the institute's list, if taxpayers end up paying anything to keep the Coyotes from leaving the state.

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