Tempe denies Stogies tobacco permit appeal, Crown Castle tower appeal in unanimous votes
TEMPE, ARIZONA — April 21, 2023

Tempe denies Stogies tobacco permit appeal, Crown Castle tower appeal in unanimous votes

Tempe City Council held lengthy public hearing with 28 speakers primarily opposing Coyotes Arena development and Crown Castle cell tower, while approving appeal to deny Stogies tobacco retailer permit and recognizing city's anti-trafficking designation.


Tempe Council Denies Stogies Permit and Crown Castle Tower in Contentious Evening; Entertainment District Heads to Voters

Tempe City Council held a nearly five-hour meeting on April 21, 2023, dominated by quasi-judicial appeals and sweeping community opposition to the city's proposed Tempe Entertainment District (Coyotes arena). The council unanimously denied an appeal to reinstate a tobacco retailer permit at Baseline and Hardy, citing misrepresentations to the development review commission; it also unanimously denied an appeal by Crown Castle for an 80-foot cell tower near Desert Palm Church on Guadalupe Road, despite the telecom company's arguments about network coverage and first responder services. Meanwhile, the controversial $2.3 billion Coyotes arena deal—approved by a 7–0 council vote in February—now advances to a May 9 voter referendum on three propositions (301, 302, 303), with 28 members of the public, many from South Tempe neighborhoods, voicing deep concerns about gentrification, traffic, public costs, and the credibility of developer Alex Morello.

Key Speeches

Stogies Tobacco Retailer Appeal

"The applicants don't appear to be connected to the store that they Associated themselves with in their testimony to our City's development review Commission…the applicant's presenter was Mr dehabra, but the owner's names listed on the Tempe permit application and the Arizona Secretary of State registration are Mr Meswellian and Mr Bustani." — Brendan McKiernan, appellant and Pepperwood resident

"They claimed that the register can't unlock without a valid ID. They said quote the new register only unlocks with a valid ID so without an ID ladies and gentlemen members of the commission you cannot buy a product from our store but on March 2nd two people a half hour apart entered the store requested a pack of cigarettes inserted their credit card into the standard point of sale terminal were handed the cigarettes and left no ID was requested and no ID was needed to make the transaction." — Brendan McKiernan

"The commission isn't required to approve a permit simply because the four criteria is met. They're directed to consider other factors…Public Health policies and public opposition because of its location the proposed store runs especially counter to Public Health policy and goals." — Brendan McKiernan

"We are here to sell to adult users we don't like to sell to the kids and we do have the system you have to scan the IDS make sure everybody is 21 and Over." — Antoine Meswellian, Stogies applicant

"These decisions ought to be made Fairly like cases ought to be treated in a like manner…I want all of Tempe to feel like one Community under one set of laws one set of rules where everybody can predict the outcome of those rules based on the Precedence." — Thomas Collins, 2017 Warner-McClintock tobacco permit appeal precedent witness

"The truth is once again being attacked tonight because our kids are being targeted by the tobacco industry…we don't know the name of this company because the application that they submitted to the city what was testified and what has showed up on evidence that was presented to you tonight doesn't jive." — Joe Yuhas, tobacco-free coalition

Crown Castle Cell Tower Appeal

"It is a replacement facility for the current Crown facility at the nearby Marcos de Niza High School where they have a facility hosting AT&T and T-Mobile on a ball field light fixture that is also 80 feet tall so it is a like for like replacement of an existing site." — Kim Allen, wireless policy group, Crown Castle counsel

"I cannot tell you how disappointing and disgusting it has been for me to watch you carrying water for a deadbeat billionaire who was kicked out of his prior arena in the city of Glendale who is promoting a massive development project that will primarily line his pockets and result in a net Financial loss to our city." — Roberta Neal Miller, 30-year Tempe resident and Brentwood Cavalier neighborhood chair, speaking about Coyotes deal

Timeline

Stogies Tobacco Retailer Appeal (Item 8a1)

Crown Castle Cell Tower Appeal (Item 8a2)

Tempe Entertainment District (Coyotes Arena) - Non-Voting Presentation

The meeting included extensive public testimony (approximately 20 speakers) on the proposed Coyotes arena and mixed-use development on 46 acres of city-owned property. The council did not vote on this item; it was sent to voters on three propositions (301, 302, 303) on May 9, 2023. Key themes in opposition testimony:

Opposition

Number of speakers against (Coyotes arena and related matters): Approximately 20 speakers during public comment; many also addressed Crown Castle and Stogies.

Main concerns:

  1. Traffic congestion and public safety: Existing congestion at Broadway and Mill; 270+ annual events at the arena; inadequate road, sewer, and police resources; Cardinal games and ASU events already stress the city's infrastructure.

  2. Phoenix Sky Harbor aircraft compatibility: Structure heights must be limited to allow safe takeoff and landing; potential visual interference with pilots; non-compatible land use per FAA assessment (April 1, 2022).

  3. Financial risk to city: $500 million tax subsidy over 30 years; $1 city return per $2.70 in development funding; net financial loss; comparison to other Arizona arena deals labeled unfavorable.

  4. Developer credibility: Alex Morello's eviction from Glendale for non-payment; Andrew Barroway's arrest for domestic violence (strangulation) in Colorado days after the legal cease-and-desist against opposition signs; prior legal actions and complaints in multiple states.

  5. Gentrification and displacement: Luxury apartments difficult to fill; workforce housing minimal; expected 200+ per month rent increases; renters (56% of Tempe) already facing affordability crisis; disabled and low-income residents will be priced out.

  6. Loss of community character: Tempe's "special flavor" and neighborhood feel being replaced by developer-driven development; comparison to Glendale's experience; residents' concerns dismissed with contempt.

  7. Process failures: Fewer public meetings than bike lane or playground changes; residents excluded from Coyotes press conference and threatened with arrest; council appears to prioritize developer interests over constituent concerns.

Most compelling arguments:

Organized opposition:

Support

No organized support testimony was recorded in the transcript for the Coyotes arena during the public comment period. The applicant (Alex Morello and the Coyotes organization) did not present directly to council during this meeting. Council members did not speak in favor of the propositions during the meeting; their 7–0 vote in February to send the item to voters was the prior action.

Crown Castle cell tower: No public speakers in support during the quasi-judicial hearing.

Stogies: No public speakers in support; the applicant (Antoine Meswellian) made a brief rebuttal.

Project Details

Stogies Tobacco Retailer

Crown Castle Cell Tower

Vote Breakdown

Stogies Appeal

Crown Castle Cell Tower Appeal

Outcome & Next Steps

Stogies Tobacco Retailer

Decision: Appeal approved; use permit denied. The development review commission's original approval of the use permit is overturned. Stogies will not be permitted to open at 925 West Baseline Road.

Conditions: N/A (use permit denied, no conditions attached).

Next steps: No appeal of the council decision is described in the transcript. Under Arizona zoning law, the applicant may file a challenge in Maricopa County Superior Court within 30 days, but no such action is mentioned.

Crown Castle Cell Tower

Decision: Appeal denied; use permit denied. The development review commission's original denial of the use permit is upheld. Crown Castle will not be permitted to construct the 80-foot mono elm tower at Desert Palm Church.

Conditions: N/A (use permit denied).

Next steps: Crown Castle may appeal to superior court. The high school lease expires December 2023, and without the church site approved, AT&T and T-Mobile will face a coverage gap in the area.

Tempe Entertainment District (Coyotes Arena)

Decision: No council vote taken on April 21. The council had approved sending three propositions (301, 302, 303) to voters on May 9, 2023, on a 7–0 vote in February (not detailed in this transcript).

Voter decision: Scheduled for May 9, 2023. Propositions 301, 302, and 303 will determine whether the city proceeds with the mixed-use development, public financing mechanisms, and land disposition for the Coyotes arena project.

Next steps: Voter approval of any of the three propositions would allow the city to move forward with the development agreement. Rejection of all three would terminate the project.

Controversies & Context

Stogies Tobacco Retailer

Historical precedent: In 2017, the development review commission denied a use permit for a tobacco retailer at Warren and McClintock in a similar residential/diverse neighborhood citing public opposition and proximity to schools. That decision was upheld. The Baseline-Hardy case is demographically and factually similar (proximity to schools, diverse neighborhood, strong public opposition, 100+ petition signatures, 18 public comments) but was initially approved by the DRC on February 14, 2023. The reversal on appeal raised equity concerns: the Warren-McClintock neighborhood (85284 zip code) has a median income of $91,299, is 68% white, and 65% owner-occupied; the Baseline-Hardy neighborhood (85283) has a median income of $64,080, is more diverse, and only 39% owner-occupied. Council member Leah McKiernan and others argued that "all Tempe neighborhoods are treated with Equity."

Applicant misrepresentation: The applicant's presentation to the DRC falsely claimed ownership/operation of an upscale Calabasas store (Tobacco Royale) and an ID verification system that physically blocks sales without ID. Evidence showed neither claim was accurate. Additionally, the applicant's legal history (Bustani's trademark/counterfeiting lawsuit) and ownership ambiguity (Meswellian, Bustani, Dehabra, Gokul Pujal with different business names) created doubts about the character and integrity representations made to the commission.

Public health policy alignment: The City of Tempe, Maricopa County, the Arizona Department of Health, Tempe Elementary School District, and Tempe Union High School District all invest in tobacco prevention programs targeting youth. The proposed store's location—at the corner of a main residential road, 1,800 feet from two elementary schools, near a school bus stop, at a public transit hub—directly contradicts these policies. Speakers noted that 21% of Arizona high school students reported current tobacco use, and tobacco retailers are significantly positively associated with property and violent crime.

Tobacco industry dynamics: Joe Yuhas noted that tobacco retailers are being "driven out of California" because flavor tobacco products are illegal there (per voter initiative, not just statute). The industry is relocating to more permissive jurisdictions like Arizona. The applicant's misrepresentations suggest an industry pattern of circumventing local scrutiny.

Crown Castle Cell Tower

Negotiation dispute: The applicant claimed Crown Castle negotiated in good faith with Marcos de Niza High School but could not reach agreement because the school would only offer a five-year lease (vs. the 20-year lease the carrier networks require) and imposed per-visit charges for maintenance access. However, Mark Bach, citing a letter from Dr. Mendeville (Tempe Union High School District superintendent), stated that the school district "never had an attempt to negotiate the lease or renew the existing lease" with Crown Castle. Bach also noted that Crown Castle renewed a different cell tower lease at the same high school for five years in November 2022, undercutting the argument that five-year terms are unworkable. Additionally, Arizona law limits school districts to five-year lease renewals; the school cannot offer 20-year terms regardless of commercial preference.

Existing tower concerns: The high school already hosts an 80-foot ball field light fixture with wireless antennas, demonstrating that the neighborhood is not new to tall structures. Residents' concerns about visual impact and property values are partly contradicted by the fact that a comparable structure has existed for 20 years without prior neighborhood campaign. However, residents argued that moving the tower from a school (public institution) to a church (private institution) shifts the burden and financial benefit.

Public benefit: The church stated it would use lease revenue to expand its mission. FirstNet (AT&T's first responder network) would be deployed, providing priority/preemption for emergency services during disasters. However, opposition speakers did not acknowledge these benefits, focusing instead on property value impacts and the loss of school funding.

Design and landscaping: The applicant proposed a "stealth" mono elm design with 33 new trees, arguing this is visually preferable to the existing ball field light with exposed antennas. However, the church's landscaping has degraded over time, raising concerns about the feasibility of ongoing maintenance. Council member Navarro emphasized that code enforcement could address non-compliance if landscaping is not maintained, but the burden falls on the city.

FCC preemption: The applicant argued that federal law (FCC) preempts local governments from denying cell towers based on health concerns. This is legally accurate; the FCC has determined that the environmental effects of RF emissions are within federal jurisdiction. However, the applicant did not address whether health was actually cited as a basis for the DRC's denial (it was mentioned by residents but not a stated DRC reason).

Tempe Entertainment District (Coyotes Arena)

Developer credibility crisis: Alex Morello, the owner of the Arizona Coyotes and primary developer of the proposed arena, has a documented history of business disputes and delinquency:

The timing of Barroway's arrest—just one week after the cease-and-desist threatening opposition signers—generated conspiracy theories about suppression of political speech and raised serious questions about the council's vetting of its development partner.

Cease-and-desist and freedom of speech: On March 15, 2023, the Coyotes' attorney (on behalf of Morello and Barroway) filed a cease-and-desist against the opposition campaign (Tempe Wins) for the sign "No Handout for Corrupt Billionaires," claiming it defamed the owners. City Attorney Nick Corey D Woods defended the legal action, stating the sign called the owners "criminals" (which it did not). Mario Martinez argued that Corey D Woods misrepresented the sign's language and that the cease-and-desist itself was an attempt to chill political speech protected by the First Amendment. The incident became emblematic of broader concerns that the council was using legal tools to silence opposition.

Fiscal analysis dispute: Michael Nuccio cited the Grand Canyon Institute study, which found that for every $2.70 the city invests in the development, the city receives only $1 in return. Mayor Corey D Woods had previously called this "the best arena deal in Arizona history." This discrepancy led multiple speakers to question whether council members reviewed independent fiscal analysis or relied solely on developer-provided projections.

Gentrification and displacement: Multiple renters (Tanya Palin, Caitlin Moriarty, Michael Nuccio) testified that the arena development will trigger rent increases and evictions in surrounding neighborhoods. Speakers noted that 56% of Tempe households rent; luxury apartments in recently developed areas (Tempe Marketplace, etc.) are difficult to fill despite being built; and workforce housing is typically a small percentage of total units. The city's affordable housing crisis is already acute, with median rents rising and low-income residents being priced out. The council is thus investing heavily in a project that will worsen the very crisis it claims to want to solve.

Traffic and public safety: Multiple speakers noted that the city lacks resources to manage existing congestion. The Cardinals (nearby NFL stadium) and ASU games already strain the area. 270+ annual events at an NHL arena will multiply these impacts. The city manager has not provided a traffic management plan that residents find credible.

Phoenix Sky Harbor airspace: The Airline Pilots Association formally objected, citing the FAA's April 1, 2022, letter, which identified airspace limitations, structure height restrictions, incompatible land use, and risks of visual/RF interference with aircraft operations. The applicant has provided no evidence that these safety concerns have been resolved.

Public trust erosion: Multiple council members are up for re-election in 2024 (four out of seven, per Tim Palmer). Residents who previously supported or donated to council campaigns (Roberta Neal Miller, Charles Anthony Seiler) expressed feeling betrayed by the council's dismissal of community input and prioritization of developer interests over constituent welfare. The process had fewer public meetings than changes to bike lanes, yet the decision is irreversible after 30 years.

Duration

Other Notable Items (Brief)

Tempe's CEASE Designation (Cities Empowered Against Sexual Exploitation): The city achieved the designation faster than any other Arizona city, training 75% of staff on human trafficking curriculum by early February 2023 (before the Super Bowl, an event associated with trafficking). John Mesa (Arizona Anti-Trafficking Network), Dr. Valicia Humes (Chief Diversity Officer), and Sergeant Lillian Duran were recognized. A plaque was presented.

Arbor Month and Tree Canopy Initiative: Over 100 low-water use trees planted across the city on April 1. Goal: 25% tree canopy by 2040. Partners include SRP, Silicon Valley Bank, State Farm, and ASU. Dr. Braden K, Tempe's first Director of Sustainability and Resilience, announced his departure to become California's first extreme heat program manager; the council acknowledged his legacy.

2023 Youth Best Courage Awards: 26-year partnership honoring exceptional youth from Tempe Elementary District 3, Tempe Union High School District, and Kyrene District. Eighteen awards presented across multiple schools and districts.

Public Safety Telecommunicator Week Proclamation: Recognition of 911 dispatchers and police communications personnel; noted 141,917 calls for service in 2022.