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Tempe city officials say a development project that includes a new home for the Arizona Coyotes "will not move forward," after preliminary results show the ‘no’ votes are ahead in three propositions related to the Tempe Entertainment District.

The vote, which only registered voters in Tempe took part in, was held after the city of Phoenix and Sky Harbor International Airport expressed concerns about the residences that would be built as part of the project in the high-noise area under the airport’s flight path.

Loading Video… This browser does not support the Video element. 'No' votes ahead in new arena ballot measures The three ballot propositions are related to the Tempe Entertainment District, a development project that will include a home for the Arizona Coyotes. All three ballot measures needed to pass before the project, which has faced its share of controversies, could move forward. FOX 10's Marissa Sarbak reports.

According to figures released by Maricopa County officials at around 8:00 p.m., the "no" votes are ahead for Propositions 301, 302, and 303.

Votes counted so far show the "no" votes at 56% for both Propositions 301 and 302, and 57% for Proposition 303.

"The initial release shows that 29,153 (32.55%) of Tempe voters have returned a ballot," read a statement released by Maricopa County officials. "The results included in the 8 p.m. post are from the ballots that have been received, processed, and verified as of Monday."

All three ballot propositions needed to pass before the Tempe Entertainment District project could have moved forward.

Click here for election results

Officials issue statement

Arizona Coyotes

Loading Video… This browser does not support the Video element. Coyotes CEO responds to voters rejecting arena plans Arizona Coyotes CEO Xavier Gutierrez responded to the unofficial election results of May 16's special election where Tempe voters were able to decide if they wanted an entertainment district that would be the home for a new hockey arena. The unofficial results are showing a majority of 'no' votes for all three props. All three needed to pass for the plans to become a reality.

The President and CEO of the Arizona Coyotes issued a statement following the vote. The statement reads:

"We are very disappointed Tempe voters did not approve Propositions 301, 302, and 303.

As Tempe Mayor Corey Woods said, it was the best sports deal in Arizona history. The Coyotes wish to thank everyone who supported our efforts and voted yes. So many community leaders stepped up and became our advocates and for that we are truly grateful.

We also wish to thank the countless volunteers who worked so hard to try and make the Tempe Entertainment District a reality and the Tempe City Council for their support as well. While we wanted a different outcome, we remain grateful to all those who volunteered their time and talent.

What is next for the franchise will be evaluated by our owners and the National Hockey League over the coming weeks."

National Hockey League

Meanwhile, the NHL Commissioner, Gary Bettman, also issued a statement on the vote.

"The National Hockey League is terribly disappointed by the results of the public referenda regarding the Coyotes' arena project in Tempe," read the statement. "We are going to review with the Coyotes what the options might be going forward."

City of Tempe

"Tempe voters have spoken and we respect their voices. Our unanimous vote in November 2022 to move the Tempe Entertainment District forward, after months of due diligence and negotiations, showed our enthusiasm for this project and our belief that it was in the best interests of the community. Enough residents did not share our view and we accept this result.

The Arizona Coyotes have been good partners in this effort. We believe Alex Meruelo, Xavier Gutierrez and the whole organization have put forward their best for our community and for this proposal. We are grateful for the resounding community support from past Mayors and City Councils, from the Tempe Chamber of Commerce, Tempe Tourism, the Black Chamber of Arizona and so many more.

It’s time to move forward. Above all, we as Tempe residents are neighbors and friends who can determine where we will go next. This fall we will offer public input opportunities to begin creating a path forward for this important property."

Tempe Mayor Corey Woods

"Tonight I am grateful for all the community members who got engaged and expressed their views about the Tempe Entertainment District at the ballot box. This is why we as a City Council were determined to put these matters before voters so they could have their say. As Tempeans, we are united in our passion for this amazing city and I believe we will move forward together."

City of Phoenix

Officials with the Phoenix Aviation Department also issued a statement following the vote, which reads:

"The Phoenix Aviation Department has been consistent that it has no objection to a sports arena, restaurants, shops, and other compatible uses related to the Tempe Entertainment District. However, the residential units included in the project, along with other similar multi-family housing projects recently approved by Tempe, violate a 1994 agreement between our cities which protects residents from living in a high-noise area under Sky Harbor’s flight path.

The outcome of the election does not change Tempe’s obligations contained in the 1994 agreement. As neighboring cities that mutually benefit from Sky Harbor, Phoenix understood that Tempe was open to a reasonable compromise that would serve to protect the airport, the communities around the airport, and allow these developments to proceed. That compromise was, at Tempe’s request, reduced to a simple document that would have amended the IGA to allow current projects to proceed, while also restating Tempe’s commitment to prohibit future residential development within the high noise area.

We hope Tempe will now take the necessary actions to resolve this dispute. Phoenix remains open to a solution that honors the integrity of the 1994 agreement between our two cities and continues to protect the Airport and the residents who live near it."

Coyotes' history in Arizona

Had the Tempe Entertainment District project moved forward, the Coyotes would have moved into its fourth home since moving to Arizona.

The franchise shared a downtown Phoenix arena with the NBA’s Phoenix Suns after relocating from Winnipeg in 1996, and then moved to Glendale’s Gila River Arena in 2003.

The Coyotes, however, had a troubled tenure in the West Valley.

Then-owner Jerry Moyes took the Coyotes into bankruptcy in 2009 and Canadian billionaire Jim Balsillie put in a bid to purchase the team with the intention of moving it to Hamilton, Ontario.

The NHL, wanting to keep the team in Arizona, put in a counter bid and a Phoenix judge ruled the team could not be sold to Balsillie to circumvent the NHL’s relocation rules.

The NHL ran the Coyotes for four seasons and the financial constraints took a toll, leading in part to a seven-year playoff drought.

A new ownership group brought new hope in 2013, but turmoil surfaced again in 2015, when the city of Glendale backed out of a long-term, multimillion-dollar lease agreement. The Coyotes then leased Gila River Arena on an annual basis until Glendale announced it was terminating the deal after the 2021-22 season.

The franchise found a temporary solution, working out a deal to share Arizona State’s Mullett Arena for three seasons. The Mullett has a capacity of 5,000 and is by far the smallest home arena in the NHL.

The Coyotes submitted a bid to buy a tract of land in Tempe and the Tempe City Council voted to begin negotiating on a new entertainment district. The City Council later voted to send the project to a public vote.

The Coyotes thought they were in good standing with the city of Phoenix and Sky Harbor before a legal filing in March sought to rescind Tempe’s recent zoning and land-use changes. It also asked to prohibit future residential considerations in an area the FAA says is incompatible with residential development due to its positioning under Sky Harbor flight paths.

The Coyotes countered by filing a $2.3 billion notice of claim against the city of Phoenix for alleged breach of contract.

The Associated Press (AP) contributed to this report.