The Arizona Coyotes declared on Thursday night their determination to win a land auction that could be a crucial step toward allowing the NHL club to stay in the Phoenix area, resolving years of uncertainty surrounding their arena situation.

After the Arizona State Land Department released a public land auction notice for 110 acres of state-owned land at the Northwest corner of Scottsdale Road and the Loop 101 in Phoenix, the Arizona Coyotes expressed their ambition to create the first privately funded sports arena and entertainment district in Arizona's history, with the initiative aiming to establish a long-term home for the team.

The auction for the site is scheduled for June 27, with the starting appraisal price set at $68.5 million.

The Arizona State Land Department Board of Appeals has granted approval for the auction of the land sale. According to established law, the land must now undergo a public notice period of 10-15 weeks before the online auction can take place.

The land auction is open to bids from any individual or entity. Should Arizona Coyotes owner Alex Meruelo be outbid, it would mark the conclusion of the club's three-year search across multiple sites in Maricopa County to secure a location.

It’s now or never for the Arizona Coyotes

“If we are not the winning bidder, then we would more than likely have to entertain a relocation of the franchise. This would be our only option,” said Xavier Gutierrez, the club's president, in a recent telephone interview via Barry Bloom of Sportico.

Several interested parties are eyeing the franchise. Ryan Smith, owner of the NBA's Utah Jazz, has expressed interest in bringing an NHL team to Salt Lake City and has urged the NHL to begin an expansion process earlier this year.

“Arizona is our home, and an incredible market where the Coyotes belong,” said Meruelo in a statement.

“This district would provide a beautiful home for the Arizona Coyotes for decades to come. Our loyal fans deserve this vibrant gathering place that would serve as a landmark to create lifelong memories.”

The Coyotes are approaching the conclusion of their second season at a 5,000-seat rink in Mullet Arena on Arizona State's campus as they continue searching for a permanent venue. NHL Players' Association executive director Marty Walsh has expressed unease about being the secondary tenant in such a small facility, noting that multiple deadlines have already elapsed.

The Coyotes’ plan and potential economic impact

Arizona has a comprehensive plan that includes residential areas, retail stores, an arena, training center, and a theater. The entire project is estimated to cost around $3 billion and will be developed over several years. The initial phase, which involves constructing a 17,000-seat arena and training facility, is expected to be completed in three years at a cost of approximately $1 billion, aiming for readiness by the 2027-28 season.

The Coyotes' development plans also encompass around 1,900 luxury residential units, 400,000 square feet of high-quality office space, branded retail outlets, diverse dining options, bars, a farmer’s market, a dog park, multiple parking structures, and various communal spaces.

These developments will be conveniently located along major thoroughfares on the sought-after Phoenix-Scottsdale border.

The proposed Coyotes development is expected to generate significant economic benefits, including the creation of 10,800 new permanent jobs and the generation of $15.5 billion in new spending over the next 30 years.

Additionally, the project is projected to generate $581 million in new tax revenues for the City of Phoenix and $232 million in new tax revenues for Maricopa County.

Staying at Mullet Arena?

The team would consequently have to continue playing in the Mullett Arena for an additional three seasons. This arena is located 23 miles away in a high-traffic corridor.

The Coyotes currently have a lease to play at Mullett Arena for the upcoming season, and they have options for the subsequent two seasons.

NHL deputy commissioner Bill Daly indicated that the team will probably remain in Tempe for the 2024-25 season, regardless of the auction outcome, stating that it's becoming too late to develop a contingency plan. He also noted that moving the Coyotes before the next season is unlikely.

The Coyotes must win the auction; otherwise, the NHL's 27-season tenure in the Valley will come to an end.