Shane Doan, Phoenix Coyotes Could Be Affected by Glendale Sales Tax Setback
According to Mike Sunnucks of the Phoenix Business Journal, the Arizona Court of Appeals ruled that the city of Glendale’s sales-tax increase should go on the November ballot.
The ruling reverses a 0.7 percent sales-tax increase that was passed in June and came into effect on Aug. 1. The city of Glendale does have the option of appealing the court’s decision.
The tax increase would bring in approximately $20 million this year and help the city avoid making significant cuts, according to Lisa Halverstadt of azcentral.com. Halverstadt also reports that the Glendale City Council agreed during the past budget season that "the sales-tax hike was the only way to immediately solve a $35 million operating deficit."
The city of Glendale is set to enter a $300 million lease agreement on Jobing.com Arena with potential Phoenix Coyotes owner Greg Jamison. The tax increase would help cover the $17 million arena management fee that Jamison would be owed next year.
The failure to increase the sales tax in Glendale doesn’t mean the sale of the Coyotes to Greg Jamison won’t happen, but it could further complicate the process and leave the city of Glendale strapped for cash.
According to Sarah McLellan of The Arizona Republic, Doan will sign with a team before Sept. 15—the day the current collective bargaining agreement is set to expire. The report also indicates that contract talks between Coyotes GM Don Maloney, Doan and Doan’s agent Terry Bross are ongoing.
Unfortunately for Phoenix fans, the sales-tax reversal could further delay the sale of the Coyotes, which could force Doan to move on to another NHL club.
Doan has been patient and sympathetic to the Coyotes ownership situation; however, if he can’t be assured that the team will stay in Arizona, he will likely sign elsewhere.
It would be a sad ending for Doan, who has proudly served the franchise since they drafted him seventh overall in the 1995 NHL entry draft.
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