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Joyce Clark Unfiltered

For "the rest of the story"

About a month ago I was contacted by Robin Respaut, a reporter for Reuter’s News Agency. We sat down and had a face-to-face interview as a result. I also had several phone conversations with her. I asked to be alerted when her article was published. It was published on October 30, 2014. Here is the link and the full text of the article.

http://www.reuters.com/article/2014/10/30/us-usa-superbowl-glendale-insight-idUSKBN0IJ1GL20141030

 Bad bets take a big toll on the Super Bowl’s host city

By Robin Respaut

GLENDALE Ariz. Thu Oct 30, 2014 11:49am EDT  Reuters Edition

 (Reuters) – Welcome to the sports-crazy home of February’s Super Bowl.

Over the last decade or so, this city of 230,000 on Phoenix’s northwest border, has reinvented itself from farm town to sports Mecca. It has built the dome stadium where the National Football League’s Arizona Cardinals play, the National Hockey League’s Arizona Coyotes arena, and the new baseball facility where the Los Angeles Dodgers and the Chicago White Sox appear every spring for their pre-season training.

But Glendale’s love of sports has come at a cost: red ink and jobs lost. All told, said Glendale Mayor Jerry Weiers, the town’s sports fetish has produced “a house of cards.”

And even the Super Bowl, the NFL’s annual championship extravaganza, will add to the pain. The game, and the partying that comes with it, will rake in hundreds of millions of dollars for Arizona. For Glendale? Another bill. This time because of the security costs.

A visitor to Glendale doesn’t have to look far to find evidence of its shattered dreams. At the edges of the sports district are vacant lots where there were supposed to be stores and other commercial developments that would generate taxes to pay off the debt taken on to build the sports facilities.

Glendale now spends over $40 million annually on sports-related expenses, including $15 million to manage the hockey arena, and about $25.5 million on debt service. The city’s general fund, the pool of tax money used to support city services like police and fire, has suffered big deficits.

It’s scorecard: Standard & Poor’s Ratings Services downgraded the city’s bonds three times since 2012. The Tax Foundation ranks the city’s sales tax, at 9 percent, as seventh highest in the nation, and Moody’s Investor Service says the direct debt burden is the largest among rated cities in Arizona.

Of course, Glendale’s problems aren’t uncommon. In 2010, professional sports facilities cost taxpayers roughly $10 billion more than what was typically reported – thanks, in part, to subsidies related to land and infrastructure, said Harvard professor Judith Grant Long.

But “Glendale is a particularly sad story,” said Holy Cross Professor Victor Matheson.

FOOL’S GOLD

In the 1950s, Glendale was citrus groves and cotton fields. Then came the housing boom. From 1990 to 2001, population soared 48 percent to nearly 215,000. The city had to beef up public services, but there wasn’t enough revenue-generating commercial development. “We had a mall and not much else,” said Elaine Scruggs, Glendale’s recently retired mayor of 20 years.

So when the Coyotes, in 2001, wanted to move from Phoenix proper and suggested Glendale, Scruggs pounced. The proposal included 1.6 million square feet of flashy new retail, dubbed Westgate City Center. To build the arena, the city agreed to float a $180 million bond with hopes the development would generate taxes to pay off the debt.

Before the ink was dry on that deal, Glendale was presented with another opportunity. In 2002, the Arizona Cardinals owner, Bill Bidwill, was also looking for a new home. The team targeted a site across the street from the future hockey arena. A stadium would lure more visitors to Westgate, which would mean more tax revenue — and, possibly, more development.

Mayor Scruggs couldn’t believe Glendale’s good fortune: “It was like a little kid who caught the fly ball,” she said.

By 2006, Glendale was hot stuff. The Cardinals stadium had just opened, and big name acts like the Rolling Stones were headlining.

And it was about to get better. The next year, Glendale announced its third venture: the Chicago White Sox and the Los Angeles Dodgers were looking for a new pre-season training facility.

This time, Glendale joined with Phoenix to construct a 10,000-seat ballpark and 14 practice fields. A 10-minute drive from Westgate, the facility was located just over the Glendale border in Phoenix. But Glendale agreed to issue a $200 million bond if Phoenix pledged 80 percent of the tax revenue. The anticipated economic impact to the region amounted to $19 million per year. And a new retail complex, of course, would generate revenue to pay off the debt.

Glendale’s finances were in good shape. The general fund had completed 2006 with $72.5 million in its coffers. And the city’s operating budget was $46 million in the black. So the town fathers agreed to pave a road through the desert and waited for new business to arrive.

WELCOME TO THE NIGHTMARE

After the real estate crash, Glendale’s property values dropped by half. Property tax collections slumped by 40 percent in two years. And unemployment in the city eventually spiked to 10.2 percent in 2009 from 3.1 percent in 2007.

That wasn’t all.

The Coyotes hockey team filed for Chapter 11 bankruptcy in 2009, triggering an NHL takeover. A year later, the land surrounding the new ballpark was foreclosed on without ever breaking ground. The Westgate developer also lost the property to foreclosure. Only a fraction of the proposed development had been built.

By 2012, the city was looking at $105 million in debt payments and not enough revenue to cover it: expenses of $289 million exceeded revenues by $59 million. “The city,” recalled city councillor Ian Hugh, “was sinking in its own debt.”

COYOTE UGLY

Town officials were also worried about losing the hockey team. After the NHL took over, the league asked the city to pay $25 million to manage the arena as it searched for an owner. Why cave in like that? Simple economics. If the Coyotes left, the city would be stuck with a largely empty arena. “This was the beginning of the city’s demise,” said former city councilor Joyce Clark.

In 2011, the city pulled $25 million fee from Glendale’s sanitation and landfill funds. When no owner was found by the second year, the NHL asked for another $25 million, which came from water, vehicles, technology replacement, and the general fund. “By the third year,” said Clark. “We were bleeding.” The general fund plummeted from a $66.4 million surplus in 2006 to a $26.7 million deficit in 2012.

To make up the difference, the city raised its sales tax by a third, cut 22 percent of its workforce, and, in a terrible irony, eliminated some youth sports like t-ball and flag football. Emergency Medical Service calls increased by 23 percent over a five-year period, but there were fewer workers to respond. And Glendale’s firefighters claimed 911 response times increased by two minutes.

Meanwhile, the NHL found a new owner, IceArizona, that would keep the team in Glendale. But there was a catch. The city had to pay $15 million a year in arena management fees, a cost equal to its entire parks, recreation, library and human services budget.

Glendale signed the deal, but the arena had already turned into a financial sinkhole. After dropping $50 million on NHL fees, Glendale still had an average $12.8 million in annual debt service related to building the arena. In return, the city earned back just $5.9 million during the first year in arena-tied revenues.

A WAY FORWARD?

Today, the city is preparing for the big game. The Super Bowl could bring in $500 million for Arizona, but Glendale budgeted a $2.1 million expense for security. State lawmakers have refused to help, some citing “an awesome display of fiscal mismanagement.”

Still, city officials say there’s hope. A new management team and the now-permanent sales tax increase has made Moody’s more optimistic. In September, the rating agency switched Glendale’s outlook to stable from negative.

The city is also trying to wean itself off sports. For example: A huge American Furniture Warehouse could generate $2.9 million for Glendale in its first year. In August, the city also blessed a $400 million casino resort.

Glendale won’t be on the hook for the casino’s costs and expects to receive an estimated $26 million over 20 years. Still, critics worry that the deal is another misstep. “Money going into the casino,” said Mayor Weiers, “isn’t going to the businesses that hung on by their fingernails to stay open.”

(Reporting by Robin Respaut; Editing by Hank Gilman)

 

Lately we’ve seen a rash of alleged campaign violations, from the use of a Hope for Hunger (a nonprofit agency) truck to a volunteer with the Glendale Fire Department going door-to-door handing out campaign literature. Complaints have been filed with the city of Glendale and other appropriate agencies.

In response to one of the alleged complaints Jim Brown, Glendale’s Director of Human Resources and Risk Management, on October 23, 2014 said, ““The City employee policy regarding political activities does not prevent an off-duty union member from participating in political activities on behalf of his/her union.”

Apparently he did not get (or did not read) the Memo from City Attorney Michael Bailey dated November 14, 2013. Mr. Bailey cites Glendale City Code, Section 2-75(b). Political activities and contributions from employees that says, “No employee, other than an elected official, shall engage in any political activity in a Glendale municipal election, except to sign a petition for nomination, to cast a vote, or express a private personal opinion.”

Some of the prohibited activities cited by Bailey are, distribution of campaign material or literature for a candidate or an issue involved in a city election and the posting or placing of campaign signs for a candidate or issue in a city election.  He says, “The ordinance (city) also reiterates the state statutory restriction on a city employee influencing other employees or seeking contributions of time or money for a political campaign.” He refers to the United States Supreme Court’s recognition that limitations on political activity serve the public interest of prevention of “a government work force from being employed to build a political machine.”

Nowhere in any of these specific prohibitions is there an exception carved out or an exemption for a local union’s participation in their municipality’s elections. Where is Mr. Brown’s authority to carve out an exemption for a local union member? Upon what legal authority did he base his opinion? We all would be interested in reading the legal opinion that he relies upon.

The Supreme Court, State of Arizona and City of Glendale prohibition from municipal employees participating in their municipal elections is the very reason Valley fire unions have developed a “work around” that has been used for years and years. That is why typically union employees from other cities will contribute money and volunteer to work an election in any city but their own. When the time comes, they, as pay back, will contribute to and work an election in a city from which they received previous help.

There is another and far more serious issue that is finally beginning to surface and that is the Glendale fire union’s political machine. For far too long members of Glendale’s senior management have been aware of the fire union’s political machine. For far too long they have turned a blind eye and a deaf ear to the Glendale fire union’s political activities and its inclination to skirt the edge of campaign law. Even Glendale’s Fire Chief Burdick does not have the muscle (or will) to control the demands and dictates of Glendale’s fire union.

Do not expect anything to change. After all, City Manager Brenda Fischer’s husband was (any may still be) a fire fighter in Henderson, Nevada. Other city employees have relatives who are Glendale fire fighters. It is any wonder that they would be sympathetic to the fire union and its objectives? If it takes political influence to achieve those objectives those who have the power to rein in fire’s political machine appear to have no will or desire to do so.

© Joyce Clark, 2014

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This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

 

 

On Tuesday, October 21, 2014 the Glendale city council held a workshop meeting. There were two agenda items: a review of the 4th quarter budget results (more about that later in another blog); and discussion of rescinding a March 2014 city council rejection of Becker billboards at Bell Road and the Loop 101.

You have to be a died-in-the-wool political junkie to appreciate the nuances of council discussion of the second item regarding Becker Billboards. When the issue was first rejected by city council it was on a vote of 5 to 2 with Sherwood and Alvarez being the only affirmative votes.  Keep in mind that Sherwood received over $1700 in political campaign donations from the Becker family and Alvarez received $2500 from Becker. Does that kind of money in a local, seemingly podunk, Glendale election buy not only access to these councilmembers but their advocacy?

When the request for rescinding of the original Becker billboard decision was made on Tuesday, October 7, 2014 Sherwood claimed to be making the request on behalf of Councilmember Chavira. Yet it was Sherwood who penned the letter on October 8, 2014 to the City Manager asking for council discussion and consideration. Apparently Sammy was doing his pal a favor by making the original request even though he was absent for the meeting and Sherwood read Sammy’s request. Everyone recognized that Sammy was trying to give Sherwood some cover. Didn’t work. Many acknowledge that it was Sherwood who rammed through the selection of Fischer as City Manager and that she owes him. No wonder it was on a workshop agenda two weeks later. Typically, staff does not move that fast and normally this would be a workshop agenda item a month or two after the request had been made.

Discussion of rescinding the original Becker billboard decision was extensive. Some councilmember comments stood out. Councilmember Martinez said, “some things will not go away” and the issue has “taken on a life of its own.” Councilmember Chavira tried to use the same rationale that Sherwood had used in the past when trying to explain his flip flop on his casino position.  Chavira claimed to not be fully informed when he originally voted to defeat the billboards and went on to say, “he likes to think he’s well informed about every decision he makes.” What a hoot – it seems pretty evident that Chavira takes his marching orders from Sherwood. Councilmember Alvarez chanted her usual mantra that north Glendale has all of the power in the city and gets all while south Glendale gets nothing. Same song, same verse. She was as much as saying that she was all too happy to stick it to north Glendale residents.

The argument that eventually prevailed was that of precedent. If council were to move forward and rescind their original denial of Becker billboards it would be the opening of Pandora’s box. It would put every council vote up to the possibility of rescission. It could even put past council votes on the arena management deal and the casino issue up for future reversal. It is that very thought that defeated Sherwood’s attempt to reverse council’s prior decision on billboards with Mayor Weiers, Vice Mayor Knaack and Councilmembers Martinez and Hugh indicating through consensus that they did not want to move forward and vote on a rescission. Sherwood failed but he was not finished.

City Attorney Bailey had opened another door during his disjointed remarks explaining procedure for such a rescission vote. He said that 3 councilmembers had the right to call for a special council meeting. Sherwood asked several specific questions about that procedure. Make no mistake – expect Sherwood, Chavira and Alvarez to request such a special meeting.

Why the desperation to get a revote on this issue? Sherwood faces two adverse actions that could impact his seat as a councilmember. One is the ongoing Attorney General’s investigation into allegations of open meeting law violations and the other is the current effort to recall him. Add to that Alvarez is standing for reelection on November 4, 2014 and she may, or may not, survive. With the outcomes of these two events in question it seems imperative that they make another run at the billboard issue before November 4th. It doesn’t leave them much time which makes their request for a special council meeting very attractive. The saga continues and will not conclude as long as Sherwood refuses to take a majority council ‘no’ as an answer.

© Joyce Clark, 2014

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

A frighteningly good time

Posted by Joyce Clark on October 21, 2014
Posted in City of Glendale  | Tagged With: , , , | 3 Comments

Image4I have known Bill and Gracie Tolmachoff for nearly 20 years. They are friends of mine.  They also happen to own and operate Tolmachoff Farms located on the west side of 75th Avenue, just south of Bethany Home Road (5726 N. 75th Avenue, Glendale, AZ 85303). Here’s the link:  www.tolmachoff-farms.com.

They embody the true spirit of entrepreneurship. They took a working farm barely making ends meet and while keeping it as a working farm added amenities that make it a major tourist attraction…not to mention theImage2 countless school field trips they host on a regular basis. This month, with Halloween soon upon us, they are also open on Friday and Saturday nights from 7 PM to 11 PM hosting their Field of Screams (www.azfieldofscreams.com ).

It’s a wonderful place for a family activity day. The kids can see and interact with farm animals, participate in farm related activities and go onImage3 farm related rides. You can go to their site for further information on times open, ticket pricing, events and discount coupons.

It’s also the very best place to get fresh produce in season. My family can attest to the corn, squash, canned jams/relishes and tomatoes consumed with gusto. There’s also fresh squash and about anything else you can eat that’s in season.

Tolmachoff Farms is a rare gem in the midst of an urban area. It’s well worth the trip for the whole family, especially the little ones. Halloween’s almost here. Why not plan to take the family to pick out that special pumpkin for carving the scariest face imaginable.

© Joyce Clark, 2014

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

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