The Arizona Coyotes’ hopes for a revival in the Phoenix area took another hit Friday.

The Arizona State Land Department canceled an auction planned for Thursday for a 110-acre piece of state-owned land in north Phoenix that Coyotes owner Alex Meruelo sought to purchase for a new arena—the first step toward his quest to revive NHL hockey in the area. Meruelo sold everything but the team’s name to Utah Jazz owner Ryan Smith as part of a $1.2 billion deal in April.