Scott Burnside of ESPN reports that the City of Glendale and the Ice Edge Holdings "have agreed on all points on a new lease agreement" and that the Phoenix Coyotes would remain in Arizona if it's voted through. From ESPN:
Ice Edge will not, however, agree to have its new memorandum of understanding submitted to the City Council for a vote until Glendale agrees to a number of conditions outlined by the NHL, chief among them that the city will agree to pay any operating losses the Coyotes might incur next season if a deal to sell the team collapses.
Those requirements will be discussed by City Council at its public meeting Tuesday in Glendale.
Although it's possible the city could find itself on the hook for between $20 million and $30 million in operating losses if a deal with Ice Edge or any other potential buyer moving forward collapses, it's believed Glendale will agree to the league's conditions because the NHL will exercise its right to move the team without those assurances.
In other words, sign off on this or get those Stu Barnes and Teppo Numminen jerseys out of mothballs.
Rebekah L. Sanders of the Arizona Republic wrote about how the city plans to handle the losses and some of the criticisms of the plan:
Glendale officials have said that they would not cover the team's losses with the city's general budget, which provides services to residents. Rather, Glendale expects to pay the operating losses through taxes and fees in the city's sports and entertainment district.
That includes setting up a taxing district, called a community-facilities district, to charge landowners near the arena and Westgate City Center. The council would vote on the guarantee before the team's ownership is clear and before any such district is in place.
Still, skies are sunnier for the future of hockey in Phoenix today than when news the Jerry Reinsdorf deal fell apart broke. Meaning the NHL may Keep It Six, rather than Make It Eight or Ten as Globe & Mail columnist Stephen Brunt hoped for in his piece "Coyotes first in NHL's stampede to Canada."