Council to Reconsider Ellman's Project

PHOENIX-The City Council in the suburb of Scottsdale will meet tonight to reconsider plans to build a $557-million sports and entertainment facility, now that the developer has rejected the council’s request for additional financial information about his own company and the project itself.

The outcome of tonight’s discussions could either breathe new life into the controversial project or cut the legs out from under it. Since June, Scottsdale officials have been asking Phoenix-based Ellman Cos. to disclose additional financial information to prove that Ellman has the backing to complete the development and determine what kind of return the city would get from the $100-million subsidy it has promised.

Ellman has supplied some, but not all, of the requested information. Providing all the financial statements and related documents the city wants would mean breaking confidentiality agreements that the company has made with current investors and prospective ones, the firm says.

The Ellman Cos. is privately held, and Ellman himself is reticent to speak to the media about his dealings.

If a compromise can’t be reached, the city could erase its earlier commitment to put $100 million of taxpayer money into the stadium component of the facility by refusing to extend the life of a special taxing district. The so-called Stadium District comes up for renewal Dec. 31, which is also the deadline for Ellman to complete his purchase of a pro hockey team to play in the new arena.

Ellman says he plans to complete the purchase of the team, which currently plays in Phoenix, by the middle of this month. The ice hockey arena is the cornerstone of the $557 million redevelopment of the former Los Arcos Mall, a 72-acre site that sits at the southeast corner of McDowell and Scottsdale roads.

The proposed development would also include major retail tenants, specialty shops, restaurants, bars, high-rise office space, condominiums, apartments and movie theaters.