Phoenix and Tempe have settled a simmering dispute over whether to allow apartments on a 46-acre site for a once-planned arena for the Arizona Coyotes hockey team in Tempe.
Leaders in both cities approved an amendment to an intergovernmental agreement between Phoenix and Tempe regarding noise and flight procedures at the end of a runway at Phoenix Sky Harbor International Airport, the Phoenix Business Journal reported.
The decision could pave the way for 1,600 luxury apartments on Tempe-owned land next to the airport on the northeast corner of Priest Drive and Rio Salado Parkway.
The two cities had fought 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 included the upscale apartments.
Phoenix claimed that by allowing apartments to be built on the site, Tempe would have violated a 1994 agreement between the cities. Last year, Phoenix filed a lawsuit asking a judge to block the development.
The proposed Coyotes development, which Tempe initially approved, went to a public vote for residents and was defeated.
Team owner Alex Meruelo then set his sights on a different arena site in north Phoenix, but failed to clinch the deal, causing a sale of the team to buyers in Utah.
But Tempe officials still wanted an apartment development around 1001 North Rio Road, next to the Phoenix airport.
The new agreement allows for-rent apartments close to Priest Road and near the Salt River but not single-family homes.
Tempe agreed to require the homes have noise insulation installed before they’re occupied. In return, Phoenix agreed to end its legal action against Tempe.
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“We have had different interpretations of the terms of this agreement,” Phoenix Mayor Kate Gallego said during a City Council meeting this month. “We were considering legal action, and I’m thrilled that we have avoided that.”
“This compromise will end the lawsuits and provide new clarity for both cities,” added Tempe Mayor Corey Woods during his State of the City address.
— Dana Bartholomew