Ellman to City: You've Seen Enough

PHOENIX-The developer of a major multi-use project in the southern part of the upscale suburb of Scottsdale has refused to open his books any further for city officials worried about his wherewithal to complete the deal.

Steve Ellman, principal of the Ellman Cos., handed over a ream of documents to Scottsdale just weeks ago, but has declined to give them his balance sheet or more sensitive data. Ellman Cos. is a privately owned company.

Ellman did give the city financial information showing that the NHL Phoenix Coyotes, which is anchor the new development, will make $7.5 million in its first year compared to a loss of that amount at where the team currently plays, American West Arena. Ellman, along with partner Wayne Gretzky, is in the final stages of purchasing the team for $87 million.

“We’ve demonstrated our financial commitment over the past three years, investing more than $30 million into this project,” says Bob Kaufman, senior vice president with Ellman. No additional confidential information should be needed, he adds.

Ellman also informed the city that he plans to retain all the annual revenue from the proposed 17,500-seat ice hockey arena.

Ellman plans to spend $125 million to build a new arena, but wants to use $390 million in public money to complete the rest of the project, which will include offices, retail space, theaters and perhaps an aquarium.

“We have not agreed to Ellman keeping all of the revenue streams,” says City Manager Jan Dolan. She adds that without more financial information from Ellman, the development can’t more forward.