After a year of effort to purchase the Phoenix Coyotes, local developer Steve Ellman, along with partner Wayne Gretzky, has finally closed the $88-million deal for the national hockey league franchise.

The sale came on the day the NHL board, which had given Ellman two extensions, had imposed a deadline for him to close the deal. Ellman had been delayed by financial complications involving a Japanese bank and had to solicit additional financing. Phoenix trucking magnate Jerry Moyes, who owns Swift Transportation, supplied the final financing when he became a partner late last month. Hall-of-famer Gretzky will become the director of hockey operations.

With the close of the sale, Ellman can now move forward with negotiations with the city of Scottsdale on redevelopment of the former Los Arcos Mall, which is at the southeast corner of Scottsdale and McDowell roads in south Scottsdale

Ellman hopes to build a 17,500-seat arena for the team, which will become the cornerstone of a massive $575-million office, retail and entertainment center. In addition to the ice hockey arena, the center will include a 331,000-sf neighborhood shopping center anchored by a home improvement store, 763,000 sf of retail and entertainment space with a multi-screen movie theater, a 100,000-sf aquarium, 186,000 sf of office space, 350 condominiums and nearly 10,000 parking spaces.

The delays in the purchase fueled a sometimes acrimonious relationship between Ellman and Scottsdale, which formed a special taxing district so that it could get the project. Scottsdale, which will contribute as much as $197 million in public funds to the project, wanted Ellman to disclose his sensitive financial information and also pushed to get a better return on their investment in the project. A development agreement has yet to be worked out.

Late last year when the relationship with Scottsdale reached its low point, Ellman talked about moving the team to another location in the Valley. He suggested somewhere in Tempe or perhaps on a nearby Indian reservation. Sources with the team say that Ellman has also had discussions with the West Valley coalition, which on Tuesday lost its bid to land the $335-million stadium for the Arizona Cardinals. The West Valley may be willing to offer Ellman an sweeter deal that could lure him away from Scottsdale.

If the sale goes through and redevelopment begins on Los Arcos, it will be a one-two economic punch for the area. Just about two miles to the southwest is Tempe and the future site of the $335-million football stadium for the Arizona Cardinals. On Tuesday the Tourism and Sports Authority chose the Tempe site over a West Valley site. Between the two sites, there would be more than $1 billion worth of investment over the next two or three years.

A new arena will mean millions more in revenue to the team, which currently plays in America West Arena in Downtown. About a quarter of the 19,000 seats in AWA are obscured.

But real estate sources say that the real value of the team to Ellman is to use it as the draw for his mixed-use project. As owner of the team, he can ensure retail and office tenants that they won't move, thereby ensuring local interest in the site, at least during the hockey season.