Meruelo is clearly a charlatan and I've had no problem criticizing him for years, but I don't think the Scottsdale mayor saying this changes anything at all. He's a politician who doesn't want an arena to profit off his city without actually being located in his city.
If all it ends up being is a spat over utility line relocation, I'd imagine the end result would be the team extending them from 56th St. in Phoenix as the Scottsdale mayor says. But as Lanny said, there'll be more of this before June 27. I'd actually consider it news if it was the Phoenix mayor saying it, but this is really beyond Scottsdale's purview.
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