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Coyotes developer seeking damages from Phoenix for 'sabotaging' arena project

The NHL team's development firm said Wednesday they're seeking damages against the City of Phoenix for trying to "sabotage" the Tempe Entertainment District project.

PHOENIX — The Arizona Coyotes are getting involved in the legal fight between Phoenix and Tempe after one of the cities filed litigation seeking to thwart a proposed project that would provide the NHL team with a new arena.

The City of Phoenix recently took legal action against Tempe for allegedly violating an agreement the two cities made years ago regarding development near Sky Harbor International Airport. 

Phoenix has argued that the Tempe Entertainment District, which would include a large sports arena for the Arizona Coyotes, is too close to the airport's flight paths and objects to the residential component of the complex.

Phoenix's lawsuit seeks to have a judge order Tempe to rescind any zoning or land-use changes the city made in relation to the entertainment district.

The Coyotes and its development arm, Bluebird Development, announced Wednesday they were seeking damages from Phoenix for allegedly "sabotaging" the arena complex.

Bluebird and team officials have called Phoenix's lawsuit "ridiculous" and "meritless."

“Phoenix City Hall’s bad behavior seems intended to preserve its downtown sports venue monopoly and has nothing to do with safety or soundness of the airport," Coyotes President and CEO Xavier A. Gutierrez said in a statement.

Gutierrez also spoke with 12News about the potential lawsuit hours after the announcement. 

“Really what we want to do is push back against Phoenix and say we are not going to be bullied,” he said.

Gutierrez also claims that his organization, Tempe, and Phoenix were all on board with the plan back in November when the Tempe City Council approved the ballot measures that will be decided on in a special election set for May.

“We took them at their word and now they’re reneging on it,” Gutierrez said.

The damages being sought are $2.3 billion, which is reportedly equal to the value of the Tempe Entertainment District.

A spokesperson for Phoenix said Wednesday that the developer's frustration is "misdirected" and should be steered toward the City of Tempe.

"A clear and reasonable resolution was in Tempe’s hands and they elected to reject it. We join the TED developer in their frustration," the spokesperson said.

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