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    Home » Legislation & Regulations » Glendale Thwarts Resort Referendum Push
    Legislation & Regulations

    Glendale Thwarts Resort Referendum Push

    BEX StaffBy BEX StaffAugust 25, 2023No Comments3 Mins Read
    Credit: City of Glendale
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    The Glendale City Council appears to have thwarted plans to put development incentives for the $1B VAI Resort and Mattel Adventure Park before voters.

    An opposition group called Worker Power Institute—the same group that forced the Arizona Coyotes’ Tempe Entertainment District to a vote that led to the project’s defeat—had submitted more than 5,500 signatures on a petition in July to force incentives under an amended development agreement between Glendale and the project owners onto a referendum ballot. WPI said it was notified earlier this month its petition met the signature requirement.

    The project is already under construction and is expected to deliver next year.

    This week, Council voted to repeal the updated agreement to keep the planned incentives away from the ballot. City staff had recommended the repeal so Glendale could continue the existing contract with project owners VAI Resort LLC.

    The project had previously been under development as Crystal Lagoons Island Resort, but the ownership and project name changed last year, along with a redesign of the project. Council approved an amended development agreement with the new owners in June.

    That amendment included the new name, a new expected completion date and other details. It also included a Government Property Lease Excise Tax incentive program that provides tax breaks once construction is 90% completed. Those GPLET incentives were at the heart of WPI’s campaign against the project.

    Council, staff and project supporters all expressed concerns that WPI had misrepresented the project and its public benefit. Similar complaints were made leading up to the Tempe Entertainment District vote.

    With the new agreement repealed, Glendale will refer to the original agreement with former developer ECL Glendale LLC for guidance. The City may have to take additional action to allow the project amphitheater to host live events, as that use was added in the amended agreement.

    Since the original agreement is more than three years old, it cannot be challenged in a referendum. However, because the GPLET agreements with the original developer were canceled, City staff will work with the City Attorney to figure out the implications and possibilities for moving the GPLETs forward.

    When the 2020 agreement was approved, the incentives package totaled approximately $30M over 25 years. In exchange, an economic analysis estimated the development would generate $240M in tax revenue over the same period. City leaders have said the difference is an obvious public benefit and they will continue to explore all potential options. (Source)

    Arizona Coyotes Crystal Lagoons Island Resort ECL Glendale LLC Glendale City Attorney Glendale City Council Government Property Lease Excise Tax GPLET Mattel Adventure Park referendum Tempe Entertainment District VAI Resort VAI Resort LLC Worker Power Institute WPI
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