Coyotes' bid for new arena hits another snag with cancellation of land auction

An auction for a tract of land where Arizona Coyotes owner Alex Meruelo had hoped to build a new arena has been cancelled.

The Arizona State Land Department announced Friday it was cancelling next Thursday's auction and reordering the steps so the applicant can file for a special use permit.

"We understand the delay in an auction is a disappointment for our applicant and members of the public, but the change in timing is the prudent decision for the Trust," ASLD said in a statement. "ASLD remains open to working with our applicant to bring the land forward to auction in the future if a special use permit is received."

The 110-acre tract of land in North Phoenix had been targeted by Meruelo in hopes of ending the Coyotes' long-running bid to find a permanent home. When the auction for the land appraised at $68.5 million US was pushed back until this summer, Meruelo followed the advice of the NHL and opted to sell the franchise to Utah Jazz owners Ryan and Ashley Smith in April.

The Smiths moved the franchise to Salt Lake City, renaming it the Utah Hockey Club. Meruelo retained the Coyotes' name, logo and trademark with plans to resurrect the team as an expansion franchise if a new arena is built within five years.

Cancellation of the land auction now puts that in doubt.

"Today, after a year of planning and meeting every obligation required under Arizona law, the Arizona State Land Department unilaterally canceled the auction that was scheduled to occur on June 27th for the site that has been identified as the future home of the Arizona Coyotes," the Coyotes said in a statement. "This unprecedented action by the State of Arizona seriously jeopardizes the future of NHL hockey returning to the desert."

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