Glendale Votes Unanimously For Covering NHL Losses

After about an hour and a half of debate, the City of Glendale unanimously approved the idea of City Manager Ed Beasley to continue negotiations with prospective suitors and to cover the National Hockey League's losses up to, roughly, US$25-million for a "one-time only" act to keep the Phoenix Coyotes in the town of Glendale ((pictured very pleased, thanks NHLI/Getty))

If an owner is found, other than the NHL, the requirement goes away from the table. According to Beasley, the passing of Resolution 4377 "assures operation of the Jobing.com Arena" and will be used as a "funding mechanism." Beasley also admitted that the City of Glendale is negotiating with two parties and that "nothing has changed." Beasley also said in the meeting that "everything is right on track" to have everything done by the end of June.

Jim Colson, Deputy City Manger for Glendale, referred to the Resolution as an "insurance policy for the city."

Glendale Mayor Elaine Scruggs, in a discussion with the City's Craig Tindal, asked about the formation and dissolution of the proposed tax district. Mayor Scruggs asked what would happen if the NHL went in a different direction:

"The CFD would serve no purpose, and the board can terminate it at any time..."

But Tindal also said that it would take up to four months to form the district- which would put it ((at earliest)) in use by September. But Tindal indicated the time frame would be "shorter if everything lines up..."

The NHL's Bill Daly addressed the council and admitted that the league wants to keep the team in Glendale: "We are committed to that objective."

Daly also said that the league remains confident that matters can be taken care of on an "expedited basis." In an interview with KPNX-TV/News12's Brahm Resnik after the meeting, Daly said he expects a deal done by June 30 and that the team will not be moving.

Here's Scott Oake's tete-a-tete with Gary Bettman during the Vancouver-Chicago game last night...
((HT: CBC/NHL/fiXxed98))


The HQ's Dime Store Analysis:
While Committee Member Joyce Clark ((Yucca District)) said in session that no taxpayer dollars will be used for this CFD and apparent covering of the Coyotes losses for 2011, there are still too many questions here...

1) How long will it take for the Goldwater Institute to serve the City of Glendale with papers...?

2) If Reinsdorf doesn't sweeten his bid with some actually cash...? Then what...?

3) If Ice Edge never gets anymore cash, then what...?

At the least, as of right now the Phoenix Coyotes are in Glendale for one more year... and we'll go through this all over again next summer at the latest...