The Glendale City Council has agreed to lease Desert Diamond Arena to ASM Global, the longtime manager of the facility, in a deal that aims to bring in millions of dollars to the city and transfer more responsibility to ASM.
The move, Phelps said, will relieve the city from paying upkeep costs to the arena, which generally range from about $3.5 million to $4 million per year. The arena has about 20 years left for bond payments, so over that time the lease will save the city about $80 million. Both the city and ASM will contribute money toward planned renovations at the arena. ASM will provide $15 million over the course of two years and the city will provide $25 million, according to the agreement.
Ron Bension, president and CEO of ASM, said the company will spend this year finalizing the design and getting permits for renovations, which are geared at improving both the guest and artist experience at the venue.The renovations also will transition the arena from a venue that was primarily focused on hockey.
“I would be more concerned for the people in Tempe than in Glendale,” he said. “We are very confident in the quality of that arena and its location.” Phelps said the city had previously been in conversations with the owners of the Coyotes for a similar deal, but there was not the appetite for the deal.