Gretzky Nearing Purchase of Coyotes

S C O T T S D A L E, Ariz., Feb. 6 -- Wayne Gretzky and Phoenix developerSteve Ellman plan to close on their purchase of the Phoenix Coyoteson Feb. 14, a consultant said Monday night.

That would be a day before the third deadline set by the NHL andteam owner Richard Burke. The original deadline to complete thepurchase was June 30, and the first extension expired on Dec. 31.

The New York Post reported Monday that Gretzky was discouragedwhen another financial snag prevented the deal from closing lastweek before the NHL All-Star Game. Councilman George Zraket saidsomeone suggested to him before the meeting that Gretzky would pullout of the partnership.

Consultant Assures Purchase Will Close on Time

But Tom Stanberry, the manager of U.S. Bancorp Piper Jaffray'spublic finance group, said he received assurances from Ellman Cos.officials before the Scottsdale City Council meeting.

"What I was told today is they plan to close on the 14th,"Stanberry said. "There are a few things left on a transaction ofthis size, but they don't size up to deal-killers."

Gretzky, in Canada for the All-Star game and to pick Canada'snational team, said yet again Friday that purchase of the PhoenixCoyotes would be completed by the Feb. 15 deadline.

He said he had hoped it would be completed in time for theAll-Star weekend, "but it is going to happen.

"All I can say is that it's close, and it's going to getdone," he added.

Money From Sales Tax a Key Issue

Earlier, Stanberry briefed the council on the Los Arcos Mallredevelopment, which is to include a new Coyotes arena. He askedfor guidance on six issues — including what to do with extra salestaxes, and whether to use tax-increment bonds, which would beredeemed through public funds, to help pay for the $125 millionarena.

Last year's state Legislature added 0.6 percent to the 5 percentstate sales tax that the Los Arcos Stadium District can recaptureat the site for 10 years. Stanberry said the money would be awindfall for the developer unless the still-pending redevelopmentagreement requires that it be paid back to the city.