Dreger: Ice Edge, Glendale continue to work on agreement

Darren Dreger

6/4/2010 4:54:09 PM

Sources tell TSN that Ice Edge Holdings and the city of Glendale continue to work on the major terms of an agreement involving the lease at Arena, the home of the Phoenix Coyotes.

A document has been posted on the city's website, informing local residents and taxpayers of the structure of the MOU, or memorandum of understanding. There is a vote at city council scheduled for Tuesday.

However, while the two sides have agreed on most of the issues contained in the MOU, it's believed Friday's council meeting was to address the remaining concerns the city has with the Ice Edge proposal.

If these concerns are too significant for city managers, the possibility exists that this deal may crumble.

If the proposal is approved on Tuesday, sources say the new lease agreement would guarantee Ice Edge $7.5 million per season in parking revenue and an additional $10 million per year in loss coverage.

The deal may also include a clause that would see Glendale pump more money into covering losses if new ownership isn't making money in the next five to seven years.

Sources say Glendale - in writing - granted Ice Edge Holdings exclusivity on Tuesday.

If council approves the agreement next week, Ice Edge will maintain its exclusivity for an additional 60 days, providing this group can establish proof of financing within 10 days of Glendale's approval.