Developer Steve Ellman says he met with Tempe Mayor Neil Giuliano and some of the city's economic development team to pitch them on the idea of having the facility along the shores of the Tempe Town Lake, a two-mile long lake near downtown Tempe and Arizona State University. Ellman says the new arena could also be used by the ASU basketball team and for other indoor sports.

"We're talking to a lot of people," Ellman says. "We're going to get the best deal for the Phoenix Coyotes and the taxpayers. We're still committed to Scottsdale, but the city council is making it tough." If located in Tempe, the arena-anchored complex would be built on land between Rural Road and Mill Avenue, on a parcel that is almost entirely owned by ASU.

"That is a great area down there," says Patrick Flynn, Tempe's chief financial officer. "They showed us a mock-up of what it would look like, with an arena, an entertainment center, retail and restaurants. We're keeping our options open."