Arizona Republic from Phoenix, Arizona • Page 21

FROM THE COVER The Arizona Republic WEDNESDAY, APRIL 19, 2000 A21 Ellman likes place out of sun Shuns usual profile in industry known for its high-rollers 1 Jlrti'ltWitffliOfiitt 1 i. Vyj'L 1 few years later as the economy came back. The antiques store garnered Ellman the reputation as a marketing guru because he would go to Europe, buy choice pieces cheap, bring them to the Valley and sell out in a weekend. He also met many of his future international real estate backers on those antique-scouting trips. In the early 1980s, antiques shoppers would line up at the door of Ellman's Tempe shop to get in on Saturday mornings.

The Ellman Cos. bought Valley properties in the late 1980s from the Resolution Trust Corp. and from banks willing to sell for a fraction of their price to get them off their books. More recently it has amassed a huge real estate portfolio in Canada, particularly in Toronto. In metro Phoenix, Ellman developed much of the 80-acre parcel on the northeastern corner of Elliot Road and 56th Street in Tempe, including the Wal-Mart site.

It also bought several unfinished home sites in Tempe, selling to home builders for a hefty profit as the market came back in the mid-1990s. The development and investment company picked up its own corporate headquarters at 4040 E. Camelback Road. In the late 1980s, when the real estate market hit rock bottom, Ellman paid $3 million for it, selling a few years later for a couple of times that much. Ellman finished the power center at Superstition Springs in east Mesa in the mid-1990s, also later selling it for a profit.

Before purchasing the Los Ar-cos Mall in 1997 for almost $14 million, Ellman showed its savvy by buying the former Talley office project at 44th Street and East Thomas Road in Phoenix for $16.8 million. The high-rise was developed for more than $30 million. Ellman's only recent big Valley real estate deal has been Los Arcos and its redevelopment. Sources close to Ellman said the developer has made plenty of money on past deals to have much of the capital needed for purchasing the Coyotes. By Catherine 'Reagor The Arizona Republic Steve Ellman, the principle of the Phoenix-based Ellman Cos.

real estate development firm, prefers working behind the scenes in an industry known for its high-profile high-rollers. But as one of the founders of the Pennysaver free advertising guide, his name is well-known in Valley business circles. Ellman launched his multimillion-dollar real estate portfolio from the money made at the Pennysaver and a small shop in Tempe called Cheap Antiques. He got into real estate in the late 1980s. Flush with cash and the backing of international investors, the entrepreneur started buying properties at bargain-basement prices during the Valley's real estate depression.

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WEST Small Business Group 1-800-603-6000 www.uswest.comsmbusiness than $30 million in four seasons, due to limited-view seats and a lack of advertising revenues. And City Councilman-elect Tom Silverman said he's got plenty of questions about the Los Arcos project's finances. "Maybe now, they'll finally get serious about putting a financial plan on the table," said Silverman, who takes office in June. "I'm just glad the new council will have a say." Ellman has to craft a redevelopment agreement that will ensure profits while keeping critics from crying corporate welfare. City officials want the team to sign a 30-year lease.

Gary Roe, Scottsdale's redevelopment director, said the sale has put the project "back on track." "This simplifies everything," Roe said. 'We would like to have a complete, final, redevelopment agreement in 90 days. It could even be sooner than that." Reach the reporter at Chip.ScutariArizona Republic.com or (602) 444-7482. Scottsdale, which turns an annual profit of nearly $1 million, mostly because the rinks are public and hugely popular. But under terms of the purchase agreement, Ellman would get the Ice Den and all the team's Internet-related assets.

Ellman's team of lawyers and accountants spent several weeks scrutinizing Burke's financial books, including outstanding loans and other expenses. Bettman, who is credited with keeping the $87 million deal on track, said in a statement released Tuesday, "The future of the Coyotes in Arizona is a priority for the league." Bettman also praised Burke for "stepping aside and letting the project move forward." Despite the agreement, Ellman still has a hill of hurdles to climb. The Coyotes will have to play at least two more seasons at America West Arena while the Scottsdale venue is built. It's the same downtown Phoenix arena where Burke says he lost more From Page Al approved by NHL owners and French bank Societe Generale. Known as SocGen, Europe's fifth-largest bank is transferring a $60 million loan from Burke to Ellman.

Ellman and a group of investors must pay Burke $17 million by June 30. Ellman referred all calls about the sale to the NHL on Tuesday. Neither he nor Burke has identified the other investors. In February, Ellman gave the NHL a non-refundable, $1 million franchise fee. The remaining $10 million price for the team will be paid to Burke over time.

On May 17, Ellman must deposit $9 million into the NHL commissioner's office, sources said. Ellman has been trying to pry the hockey club from Burke since January. Sources said Tuesday that the four months of negotiations were delayed by two key things: Burke didn't want to let go of the Cellular One Ice Den, the team's practice facility in north life's better here' 2000 WEST. 0k Easter Dresses vxV from our collection a i ill wfydm im JiJ wj "4 ilsll III, If mj.il K- 1 1 if I I I a- I I anilAiilf.rl.1l,H1r, I 111 I Long linen dress Linen jacket dress Long georgette dress With sheer floral inset. In pink.

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