[troutman]

Glendale earmarks $17 million operations fee for Phoenix Coyotes Jobing.com Arena

Management fee will be in city's preliminary budget

http://www.azcentral.com/community/g...com-arena.html

A finalized lease agreement with a potential Phoenix Coyotes buyer has yet to emerge publicly but a Glendale City Council majority appears poised to approve a $17 million fee to operate the city-owned arena.

That's the price City Manager Ed Beasley said former San Jose Sharks chief and Coyotes suitor Greg Jamison has verbally agreed upon to manage Jobing.com Arena next year.

The figure is expected to be included in Glendale's preliminary budget, which council members will vote on Tuesday. The budget must close a $35 million shortfall city officials blame on decreased tax hauls, state assistance and two $25 million pledges to the National Hockey League to keep the Coyotes in Glendale.

Vice Mayor Steve Frate said he feels comfortable approving the fee in the preliminary budget because it won't be effective until council sees a finalized deal. He expects one soon.

"The $17 million is a placeholder and not allocated until an agreement is voted on by council," he said.

Mayor Elaine Scruggs and Councilman Phil Lieberman say they want more information about what it costs to operate the arena before they vote.

Scruggs said she plans to vote against the proposed budget, which also includes increases in sales and secondary-property taxes.

The City Council is set to vote on finalized budget on June 12.