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Joyce Clark Unfiltered

For "the rest of the story"

Disclaimer: The comments in this blog are my personal opinion and may or may not reflect an adopted position of the city of Glendale and its city council.

This is a blog I have been dying to write for the past year. I simply couldn’t wait to announce this project until tomorrow. So, I will write for a couple of hours and post it in the wee hours of tonight. In this first blog I will give you the big picture regarding the project and in my next blog I will go into detail for those of you who may be nerdy like me.

A year ago our City Manager shared with me that there was a possibility that a Crystal Lagoon project could be coming to Glendale and specifically to my district, the Yucca district at the southwest corner of Cardinals Way and 95th Avenue. I had no idea what the concept was so the first order of business for me was to do my research. What I learned made me anxiously hopeful that Glendale could land such a project. I was excited about the prospect and periodically asked our City Manager Kevin Phelps about the success of the negotiations always ending with, “Can I announce it yet?” For months the response was always, “Not yet.”

The concept was born with Fernando Fischmann, a trained biochemist and a real estate developer. His first project was in San Alfonso del Mar, Chile. The obstacles in the creation of a large lagoon as an amenity to his real estate development project were immense and frankly, solutions were non-existent.  At the time there was no cost effective technology available that could be utilized to maintain a large body of water.

He did what any other genius entrepreneur would do. He did the research himself by setting up his own laboratory to invent the technology needed for his project. He successfully patented his newly created technology allowing him to build major residential/lagoon projects worldwide. Today there are at least a 100 Crystal Lagoons throughout the world — in every South American country; southern European countries like Spain and Greece; the Middle East from Egypt to Jordan; Canada and dozens of lagoons in the United States. The list of projects is extensive.

But it was time to apply the concept to not just residential projects but to a commercial/retail/office/hotel concept.

One of the first such projects will be in Glendale. The developer is ECL Glendale, LLC.  The project site is 48+ acres and will host 9 complimentary components:

  • an 11 acre lagoon style water park planned to include scuba diving, windsurfing and water jet packs
  • 175,000 square feet of retail space
  • 130,000 square feet of office space
  • 3 hotels offering a total of 630 hotel rooms
  • amusement rides
  • family entertainment center
  • fly and 4D theaters
  • restaurants and bars
  • a performing arts and film venue space

There will also be the first ever “aero bar,” a 135 foot elevated bar in the middle of the lagoon with a 360-degree view. It also will include the world’s largest helium balloon. The balloon will be on a tether with a gondola that raises riders 400 feet in the air offering a bird’s eye view of the entire Valley. Some of the newest elements have yet to be announced and you will learn of them in the coming months.

ECL Glendale, LLC. plans to begin construction this year, probably late Fall with a target completion date of October of 2022. That gives them a few months of operation to work all the bugs out before the Super Bowl comes back to Glendale in 2023. It’s an ambitious schedule but as all elements will be constructed simultaneously, it is doable.

So, how much will this plethora of entertainment cost the visitor? I understand that an All Day Pass will be $20 per person. That seems to be a competitive price compared to other water venues in the Valley.

Why am I so excited about the project? It’s a one-of-a-kind attraction for not just the State of Arizona but for the entire Southwestern United States. But even more importantly, it forever ensures that Glendale is the premier sports and entertainment destination in all of Arizona. Now, all we need is basketball and soccer to capture the entire sports market. Maybe if the Coyotes Hockey team actually leaves Glendale as they have threatened to do for several years we could repurpose the arena for basketball? Or perhaps the property owners of the “Vision 4” properties on the west side of the Loop 101 might try to lure additional sports venues such as basketball and soccer to their site? Who knows?

This soon-to-be resort site compliments and adds to all of the existing and soon-to-be constructed development in the Westgate and Zanjero areas. It causes Glendale to become a year round tourist destination, similar to Disneyland or Disneyworld. It also increases Glendale’s viability as a host city for mega events such as the Final Four. Lastly, it will generate slightly less than $10 million a year in new revenue for the city and will create an estimated 1,800 jobs.

This was a difficult and complex project to bring to reality. It has a lot of moving parts and I will get into those moving parts in my next blog.

I don’t believe anyone else, other than our City Manager, Kevin Phelps, could have successfully concluded this project. He is a master at development and exactly what Glendale needs to become eminently successful in a highly competitive market as cities out bid and jostle one another to land mega projects. Mr. Phelps has also put together an outstanding team of senior management responsible for the success of this project. It includes Brian Friedman, Director of Economic Development; Lisa Collins, Planning Administrator; Vicki Rios and Jack Friedline, Assistant City Managers; and Craig Johnson, Director of Utilities. If I omitted anyone please accept my apology. Michael Bidwill, representing the Bidwill family, also contributed to the project’s success by working with ECL Glendale, LLC. to craft a parking agreement.

I don’t think I can express the momentous effect this project will have not just for Glendale and the Metro Valley but for the entire state. This project is in the forefront of a new type of retail. As was expressed today, people no longer just want to buy things. We are entering a new age where people want experiences…memories that are invaluable. That is the promise of this new concept for Crystal Lagoon and the new buzz words are ‘experiential retail.’

© Joyce Clark, 2020         

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘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 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 material. 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.

Disclaimer: The comments in this blog are my personal opinion and may or may not reflect an adopted position of the city of Glendale and its city council.

At the Tuesday, October 10, 2017 city council voting meeting the last agenda item was consideration of council authorization to enter into the Amended and Restated Mixed-Use Development and Settlement Agreement with the New Westgate.

A little history is in order. Steve Ellman was the original developer of Westgate in 2002. He promised to built out at 2 million square feet of office, retail and residential. That never occurred. He and the City were the original developers of the city-funded Gila River Arena, home today to the Arizona Coyotes. Ellman’s promises never came to pass and in 2009 he declared bankruptcy for Westgate. The bank sold Westgate to two investors groups, Credit Suisse and IStar. During Westgate’s 15 history the original development agreements were amended numerous times until what remained was spaghetti of at least 20 various agreements. Oft times these agreements were unclear, confusing and contradictory.

In the Spring of 2017 New Westgate and the City entered negotiation to resolve the requirements of these 20 various agreements. Major issues to be resolved included parking stipulations for the area. After months of negotiation a final agreement was produced and it was that agreement that came before council for authorization. The entire council approved the agreement after having been briefed in a series of executive sessions.

The most important result of this amended agreement is that all previous documents are now null and void. This action has opened the door to the mutual goal of allowing every inch of Westgate (except for the mutually designated parking areas) to be developed. Both entities envision a completed, robust and vibrant Westgate. This agreement opens the door for that vision. The City and New Westgate will work together as partners to ensure this outcome.

On another note I am sharing the city’s press release issued this week regarding the formation of a Business Subcommittee:

GLENDALE LOOKS TO LOCAL BUSINESSES FOR ADVICE ON CUTTING RED TAPE SURROUNDING REGULATORY PROCESSES AND CODES

Business Leaders Needed to Serve on Temporary Subcommittee GLENDALE, Ariz.

The Glendale City Council is in the process of recruiting community business representatives to serve on a temporary (one-year) subcommittee for the exclusive purpose of reviewing and making recommendations that would simplify and streamline city processes related to regulatory codes, business licensing, planning, and development. ‘The committee will be charged with making recommendations to the City Council regarding potential policy revisions and other improvements that Glendale can implement that will foster a more business-friendly environment that makes it easier for businesses to start and grow in our community,’ said Sam McAllen, Glendale Director of Development Services.

In addition to making Glendale even more business friendly, the goal of the new City Council’s business leader subcommittee is to enhance Glendale’s reputation for supporting job attraction, creation and retention. Subcommittee members will collaborate with City Councilmembers and other business leaders gathering information, sharing concerns, and making recommendations to improve the way Glendale works to support businesses.

In an effort to gather wide-ranging business viewpoints, the temporary Business Council Committee will be comprised of three City Councilmembers; one representative of a Glendale small business (1 to 24 employee); one representative of a Glendale medium sized business (25-99 employees); one representative of a large business (100+ employees); one member representing the viewpoint of design professionals such as an architect or engineer; one representative of commercial developers; one representative of residential developers. Additionally, at least one of the representatives from the business community must be from a women-owned business and one from a minority-owned business. The temporary Business Council Committee will act as an advisory body to the Mayor and City Council by making recommendations on ways to make Glendale even more business friendly. Interested persons can complete an on-line application at https://www.glendaleaz.com/boardsandcommissions/CityCouncilandBusinessLeaders.cfm .” I urge all Glendale business owners, large, medium and small to join city council in its effort to make Glendale even more business friendly.

© Joyce Clark, 2017                 

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘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 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 material. 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.

Paul Giblin wrote an article for the Arizona Republic on May 5, 2013 entitled True Jobing.com Arena operating costs are well below what Glendale as paid. In it he states, “The true cost to operate Jobing.com Arena ranges from $5.1 million to $5.5 million a year…” Really? It’s based on fuzzy math. Below are 2 pages from Coyotes Newco, LLC. Coyotes Newco, LLC. Is the entity created and owned by the NHL for purposes of managing Jobing.com Arena.

The documents below show the proposed annual budget for the Fiscal Year ending June 30, 2014. In it the total revenue figure is, to be precise (something others apparently failed to do), $6,931,477.00. Total expenses are $12,468,912.00. The net operating loss is projected to be $5,537,435.00.

Newco 2 pages_Page_1

Newco proposed
budget 2014

Newco 2 pages_Page_2

Newco proposed
budget 2014

Basic math says if you spend $12.4 million and you make $6.9 million, you are in debt $5.5 million per year.A net operating LOSS is not the same as the total cost to operate the arena annually. How can anyone can throw out a figure of $5 or $5.5 million and claim that is the cost to operate the arena? At best, it appears to be irresponsible and misleading to the general public. It provides erroneous fodder to the opponents of any fee paid whatsoever to operate the arena annually. Did I mention that this proposed budget includes very few non-hockey events? This budget is subject to change in an upward direction in terms of loss as more non-hockey events are added.

Has the NHL made money on operating the arena for two years at a total cost of $50 million? Yes, probably but since January, 2013 through the date of July 1, 2013 when a new manager is mandated to assume control of the arena the NHL has not been paid a single cent to operate the arena. So I think it’s fair to add another $6 million in expenses for these 6 months. While the city has paid the first $25 million the NHL has not, as of this date, called for payment of the second $25 million. It still, to this day, sits in a city escrow account, untouched.

Mr. Giblin also recites current rhetoric on the street that says that the LeBlanc/Pastor group are the frontrunners. They may be only in the sense that they are the FIRST group to have all of its ducks lined up for presentation to the NHL and the city. Are they first in the hearts and minds of the NHL? I doubt that. The NHL will accept the offer that is best suited to their needs. In an April 29, 2013 interview Mr. Daly said, “Yes. I mean, again, and I should clarify this. I mean, there’s no doubt that we’re dealing with Mr. Gosbee and Mr. LeBlanc and trying to work through and get to a deal with them but there are other interested people who continue, we’re working with at the same time as well. Nobody has exclusivity here (bold mine). Um, but obviously we’re getting close to having to make some decisions and sign some documentation and you know, we’ve got to work on it. I was on a conference call again last night. It’s something we’re working on”.

Despite the LeBlanc/Gosbee group’s effort to minimize others who are in the running to purchase the team, all others are still viable and not to be discounted no matter how much LeBlanc and Gosbee would like you to do so. Craig Morgan reported on May 5, 2013 that LeBlanc/Gosbee and the NHL would be in town on Tuesday, May 7, 2013 to meet with the city. Why Tuesday? Why not Monday or Wednesday? Tuesday is the scheduled City Council Workshop session. On its Executive agenda one of the items is a Coyotes discussion. This is typical Glendale. Who do you think the council will be talking to in Esession on Tuesday? You win! It will be the NHL, LeBlanc and Gosbee (or their representatives). At an upcoming Tuesday council Esession they could be meeting Pastor, Hulsizer, Reinsdorf, Kaites or Jamison. Take your pick.

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