Phoenix and Tempe city councils have both unanimously approved measures that clear a path for apartments to potentially be built on a 46-acre piece of land in Tempe once considered for an arena for the Arizona Coyotes hockey team.During a Dec. 4 meeting, Phoenix City Council approved an amendment to an intergovernmental agreement between the two cities regarding noise mitigations and flight procedures. Tempe City Council had already approved the measure at a Nov. 21 meeting.Going back to 2022, the two cities were at odds over the Coyotes’ proposed mixed-use development, which would have been anchored by a 16,000-seat arena to be used by the now-defunct NHL franchise. The proposed development also included 1,600 luxury apartments.expandA 2022 rendering of the proposed Arizona Coyotes hockey arena and entertainment district in Tempe.Arizona CoyotesPhoenix claimed that by allowing apartments to be built on the site, which was near the end of a runway at Phoenix-owned Phoenix Sky Harbor International Airport, Tempe was in violation of a 1994 agreement between the cities.Phoenix even filed a lawsuit in 2023 asking a judge to stop the development from going forward. The proposed Coyotes development, which Tempe Council initially approved, went to a public vote for residents and was defeated. Team owner Alex Meruelo then set his sights on a different parcel of land in north Phoenix for the new arena, but failed to get the deal done, resulting in the sale of the team to new owners in Utah.Tempe officials still had their eye on developing the city-owned land on the northeast corner of Priest Drive and Rio Salado Parkway, just south of the Salt River, so it worked with Phoenix to come to a compromise.“We have had different interpretations of the terms of this agreement,” Phoenix Mayor Kate Gallego said during the Dec. 4 Council meeting. “We were considering legal action, and I’m thrilled that we have avoided that.”Phoenix drops lawsuit against TempeThe agreement allows for new residential units to be built in the area close to Priest Road and near the river, but it can’t be single-family residences. The units can only be apartments that can be rented, according to city documents.“This compromise will end the lawsuits and provide new clarity for both cities,” Tempe Mayor Corey Woods said during his State of the City address on Dec. 4.Tempe agreed to require any residential uses to have noise insulation installed before being occupied. In return, Phoenix agreed to end its leg …
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