Ellman Pressured to Divulge Financials

PHOENIX-For the fourth time, Scottsdale officials have requested that embattled developer Steve Ellman to turn over sensitive financial records so they can be assured that he has the wherewithal to complete the $557-million mixed-use center.

During the past several months, Ellman, head of the Ellman Companies, a privately held firm, has turned over reams of documents to the city, but he has repeatedly refused to submit the most sensitive financial data.

The city wants to know just how much it can hope to recoup from its investment of $100 million of public funds into the development. The city also wants a list of investors in the project.

On Wednesday, the city manager contacted Ellman again demanding the information. If the city and Ellman can’t overcome this impasse, city officials could refuse to negotiate a binding financial plan for the massive complex or could allow a special taxing district to expire. This would eliminate Ellman’s access to $100 million in public money for the redevelopment.

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. Ellman, with partner Wayne Gretzky, reportedly has raised more than half of the $87 million needed to purchase the Phoenix Coyotes. He says he will complete the sale by Oct. 15.

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