12:47AM EST November 28. 2012 - GLENDALE, Ariz. - The Glendale City Council voted 4-2 Tuesday night to enter into a 20-year, $320 million arena management deal with Phoenix Coyotes suitor Greg Jamison.
Jamison still must purchase the Coyotes from the NHL, which has owned the franchise since former owner Jerry Moyes filed the team into bankruptcy in 2009.
"Our goal is to work with the NHL and close a deal as quickly as possible," said Jamison, former president and chief executive of the San Jose Sharks.
Mayor Elaine Scruggs and Councilwoman Norma Alvarez had opposed the deal, calling the payments to Jamison to manage the city-owned hockey arena, which average $15 million annually, a subsidy.
Interim City Manager Horatio Skeete has said that keeping the Coyotes might be in the long-term best interest of the city, but it requires too many cuts in the near term. it would require the city to lay off employees to cut $17 million within five years. Without the team, Skeete estimates the city would need fewer layoffs to cut about $10 million. He estimates the city would lose money either way.
Jamison on Tuesday afternoon said he hasn't considered the council rejecting the deal. "We have concentrated on working with the city for a positive outcome," he said.
This is the second time in five months that the council will vote on an agreement with Jamison.
In June, the council approved a $324 million deal, but later sought to renegotiate. The reworked deal, which was voted on Tuesday night, lightens arena management payments in the first five years, provides incentives for Jamison to bring more non-hockey events and penalties for NHL lockouts, which have so far erased this season.
Sonu Munshi writes for the Arizona Republic
Edited by Strombone1, 27 November 2012 - 11:37 PM.