The dispute between Phoenix and Tempe dates back to 1994 when Tempe sued Sky Harbor over a planned runway expansion that would have increased airplane noise over Tempe neighborhoods. Tempe agreed to drop the lawsuit when Phoenix signed an intergovernmental agreement (IGA) that required Sky Harbor to reduce noise by flying planes over the empty Salt River corridor until they were high enough not to disturb nearby residents.
The IGA also required Tempe to prohibit the construction of new homes under the flight path or anywhere else that typically experiences at least 65 decibels of airplane noise, which is about as loud as a vacuum cleaner. However, the IGA made an exception for apartments that are sufficiently soundproofed. The conflict resurfaced in 2020 when Tempe announced a $2.1 billion deal with the Arizona Coyotes to build a 16,000-seat arena, an entertainment district, and 1,975 apartments on 46 acres of city-owned land west of Tempe Town Lake on Priest Drive and Rio Salado Parkway. The project would be partially funded by tax incentives and lease payments from the Coyotes. The project sparked opposition from Sky Harbor officials, who argued that it would violate the IGA and pose safety and noise risks for residents and airport operations. They also claimed it would interfere with their plans to expand the airport’s capacity and economic impact. Tempe defended the project, saying it would create jobs, revenue, and amenities for Tempe and enhance its reputation as a sports and entertainment destination. They also argued that the apartments would be soundproofed and compatible with the airport. They had consulted with Sky Harbor and the Federal Aviation Administration (FAA) throughout the planning process.
After months of negotiations and public hearings, Tempe City Council approved three propositions to send to voters in a May special election. The propositions would authorize the city to lease the land to the Coyotes, create a special taxing district for the project, and amend the city charter to allow for tax incentives. However, on March 28, 2023, Phoenix filed a lawsuit against Tempe in Maricopa County Superior Court, alleging breach of contract and asking the court to cancel Tempe’s zoning and land use changes and ban any residential buildings from being built in the area. Phoenix also requested a preliminary injunction to stop the special election from taking place.
The Repercussions on the Arizona Coyotes
The lawsuit has serious repercussions for the Arizona Coyotes, who have been looking for a new home for years. The Coyotes have faced several challenges: low attendance, poor performance, ownership changes, financial losses, and disputes with Glendale officials. The Coyotes have expressed their desire to move to a more central location in the Phoenix metropolitan area, where they believe they can attract more fans and sponsors. The deal with Tempe seemed like a perfect opportunity for them to build a state-of-the-art arena and entertainment district that would revitalize their franchise and secure their future in Arizona. However, if Phoenix wins the lawsuit and stops the project, the Coyotes may have to look for another location for their arena or leave Arizona altogether. The Coyotes have said that they are committed to staying in Arizona and working with Tempe to make the project happen.
