Apr 13

15

Casino…promise made, promise broken, Part 2

Posted by Joyce Clark on April 15, 2013
Posted in Casino | Tagged With: casino, Gila River Indian Community, Proposition 202, Salt River Pima-Maricopa Indian Community, Tohono O'odham Indian Nation | 4 Comments

Having read my previous post on the casino you should have a pretty good idea as to where the proposed casino will be sited and what people and properties will be impacted. Let’s go back in history to see what was occurring regarding the whole issue of Tribal gaming in the early 2000’s.

Long before the casino was a gleam in the eyes of the Tohono O’odham, in the mid-1990’s the land (approximately 135 acres) was owned by Jerry Kowalsky. Mr. Kowalsky and his group purchased the land in order to establish Icon Movie Studio. In tandem with submitting his plan he also started the procedure to annex the land. His plan was not approved by council. The dream died. Land that had been annexed was later deannexed by the city. His plan for a movie studio, some say, was never welcomed by the mayor. It was rumored at the time that she did not like the gentleman and did not believe he has the financing in place. Well, we all know now what a good judge of character and financial ability she turned out to be – witness Ellman and Moyes, both of whom promised much and delivered little. I supported Mr. Kowalsky’s plan. I believed it would be a catalyst to bring jobs and to cause support businesses to locate there. Do you remember a movie, The Passion of Christ, produced by Icon Studios? It made a bazillion dollars. So much for Icon and its financial capabilities.

Ned Norris Jr.
Tohono O’odham
Nation Chairman

DianeEnos Pres Salt River Pima Maricopa Indian Community

Diane Enos
President
Salt River
Pima-
Maricopa
Indian Community

It is widely known that since the spring of 2001 at the very latest, the Tohono O’odham was looking at West Valley locations for a possible casino site. they originally looked in the Buckeye area but their consultants advised them it was too far out and needed to be closer and in fact, suggested Glendale.While they were land shopping the talk of the state was a tribal gaming compact scheduled to go before the voters of the state in the election of 2002 known as Proposition 202. In the years previous all of the tribes in the state had met and worked collectively to hammer out the parameters of the proposed compact before bringing it to the state and the voters. The Tohono O’odham were heavily engaged in the inter-tribal discussions to hammer out this framework. Lately in court, the Tohono O’odham has been saying that they were unaware of any discussion to keep casinos out of metropolitan areas. Yet governors and legal counsel representing the tribes have flatly stated that the TO’s involvement in the process was full and robust. In fact, Ned Norris, Jr. currently President of the TO Nation, actively and publicly stumped for passage of Prop 202 knowing full well its provisions and implications. The TO also contributed substantial funding for the publicity campaign used to persuade voters. All the while they were meeting secretly among one another to acquire land in the Phoenix metropolitan area. No wonder they wanted to retain their 4 casino allocation. They never planned to build the 4th casino in the Gila Bend area-they were too busy planning for the Phoenix area.

The following comes directly from the publicity pamphlet entitled, Yes on 202: The 17-Tribe Indian Self-Reliance Initiative, Answers to Common Questions, published and mailed to every registered voter in the state in the spring of 2001:

According to the Prop 202 voter education pamphlet issued by the Arizona Secretary of State: “Voting “yes” on Proposition 202 ensures that no new casinos will be built in the Phoenix metropolitan area and only one in the Tucson area for at least 23 years.”

Gregory Mendoza President of Gila River Indian Community

Gregory Mendoza
President
Gila River
Indian Community

In Congressional hearings on the issue held last year Gila River Indian Community Governor Gregory Mendoza stated, “No new casinos in the Phoenix metropolitan area was a requirement made clear to all 17 tribes involved in the compact negotiations. It was a key commitment and without it there would never have been acceptance or the passage of Prop 202.”

The voter-approved Proposition 202 was rooted in three key elements:

Indian casinos would be kept out of neighborhoods;
Each tribe agreed to a specific casino allocation; some even gave up rights to additional casinos in order to limit the number within the state; and
Then Governor Jane Dee Hull in the Prop 202 voter education pamphlet issued by the Arizona Secretary of State, echoed the same with, “Voting ‘’yes” on Proposition 202 ensures that no new casinos will be built in the Phoenix metropolitan area and only one in the Tucson area for at least 23 years.” This was a lynch-pin issue for the Governor. Without it she was not willing to advocate for or sign a compact.

In December 2002 the Tohono O’odham and the state executed the voter approved compact and in February 2003 the United States Secretary of the Interior approved the compact. All the while Rainer Resources, Inc., a Delaware company with a Seattle mailing address acting as a Tohono O’odham shell company, secretly sought land in the Phoenix Metropolitan area for a casino.

In August of 2003, the TO under the guise of its shell company bought the land, knowing that it was within Glendale’s boundaries. Back in the 70’s there were “land wars” and each city staked out territory for future annexation. Glendale’s recognized western boundaries were set at Northern Avenue as its north boundary and Camelback Road as its south boundary. Any unincorporated land between those two boundaries could only be annexed into Glendale. The TO knew that for it had been policy and formally recognized for at least 30 years.

All that I have related regarding the TO’s actions can be found in the most recent court filing of April 14, 2013 and can be accessed by using this link: http://www.azcentral.com/ic/community/pdf/glendale-casino-case-court-filingx.pdf

President
George W.
Bush

In 2003 there was absolute silence and the TO waited. Why? For a more favorable President and administration to assist them with their agena. They needed an administration to interpret the law favorably. George W. Bush, a Republican, was President at the time and his administration would not have supported the TO’s stealth move. So, they continued to wait until times and administrations became more favorable. In 2008, Barack Obama, a Democrat, was elected as the nation’s President. Good times for the TO had arrived. The tribe had waited 6 years. It was now 2008 and their time had come and they would not be denied. Van Jones, President Obama’s former Green Jobs Czar, said this about Native Americans, “No more broken treaties. No more broken treaties. Give them the wealth. Give them the wealth. Give them dignity. Give them the respect they deserve. No justice on stolen land. We owe them a debt.”

President
Barack
Obama

Almost immediately upon Obama’s inauguration, in late January of 2009, the TO literally descended upon Glendale’s City Hall and announced that they were coming…take it or leave it, like it or lump it. On January 28, 2009, the Tribe met with city staff and informed them that they had transferred the land into its own name and had filed an application asking the Secretary of the Interior take the proposed casino site into trust so that it could be used for gaming. On the following day, the TO issued a press release with their intention to build a “Las Vegas-style” casino on the site. Two months later, city staff, having requested more specific information from the TO for their next meeting, met with the Tribe. The Tribe declined to provide any information until they had successfully secured reservation status. They knew they were now in the “cat-bird’s” seat and cooperation was not necessary to secure their objective.

So far, I have not broached the subject of the casino and its siting. Next up will be the casino and its implications for an urbanized area.

Apr 13

12

Coyotes financial history

Posted by Joyce Clark on April 12, 2013
Posted in City of Glendale | Tagged With: finances, Gary Bettman, Jerry Moyes, jobing.com arena, Phoenix Coyotes, Steve Ellman | 3 Comments

Steve Ellman

Through a Request for Information processed by the City of Glendale, I obtained information about arena management company finances over the years. I do not have a complete picture but I do have information that relates to 2006 to 2007, during the time when Jerry Moyes was the majority owner of the team and arena manager, and 2010 to 2013, the time that the NHL has been owner of the team and arena manager. From the time the arena opened in 2003 to 2006, Steve Ellman was majority owner of the team and the arena manager. Records for his period of management are as elusive as the man himself. When the national economy went south the two men responsible for bringing the team to Glendale left it, holding the bag. Is it karma that Steve Ellman declared bankruptcy regarding Westgate and Jerry Moyes declared bankruptcy regarding the team?

Jerry Moyes

In 2006 to 2008 the arena was managed by the Arena Management Group, LLC (AMG), a Delaware Limited Liability Company. The managing member and 100% owner of AMG was Coyotes Holdings, LLC (CH) and Jerry Moyes was the majority owner of record. Moyes was originally a minority partner in Steve Ellman’s ownership group, which bought the Coyotes from Richard Burke in 2001. On September 26, 2006, Ellman sold controlling interest in the Coyotes, Arizona Sting, and the lease to Jobing.com Arena to Moyes. Independent Auditor’s Reports by BDO Seidman, LLP., an accountancy and consultancy firm, were produced that covered the period of 2006 and 2007, just prior to Moyes’ bankruptcy filing.

The auditor’s report shows the following :

2006 2007

Revenues $7,142,000 $6,499,000

Expenses:

Event $5,616,000 $4,413,000

General and Administrative $ 7,303,000 $ 9,052,000

Total expenses $12,919,000 $13,465,000

Net Loss ($5,777,000) ($6,966,000)

Balance as of June 30, 2005 Member’s Deficit ($9,641,000)

Net Loss ($5,777,000)

Balance as of June 30, 2006 Member’s Deficit ($15,418,000)

Net Loss ($6,966,000)

Balance as of June 30, 2007 Member’s Deficit ($22,384,000)

The managing member(s) had plowed over $22M to cover the losses incurred in 2006 and 2007. The general and administrative expenses appear to be disproportionately high during this period.

Gary Bettman

In 2008, Moyes told Gary Bettman that he would stop funding the club and so, the figures for 2008 were not included in this request. The NHL was willing to provide funding on an emergency basis if Moyes would turn over his voting control. Their divisiveness became public in May 2009 when the League nearly sold the Coyotes to Jerry Reinsdorf. Moyes would have received very little, if anything, from the sale. Moyes immediately put the Coyotes into bankruptcy protection and announced a plan to sell the club to Jim Basillie. Moyes also filed a lawsuit against the NHL, alleging the league was an “illegal cartel.” Bettman, in return, argued that the league had been blindsided and that Moyes did not have the authority to put the club into bankruptcy protection. Financial records for 2009, during this period of turmoil were not provided from the city.

In the 3 years in which the Arena Newco, LLC., (NHL) has been managing the arena, and according to the documents that they submitted to the city, the costs and revenues have been pretty consistent. Revenues average in the $6M to $7M range and expenses average about $12.5M. The Net Operating Loss average is about $5.5M.

If you look the Moyes figures and the NHL figures they are pretty close to one another. I think it is safe to assume that the costs of operating the arena with the team as an anchor tenant will be in the $12M to $13M range. Revenues have consistently been in the $6M to$7M range with an annual operating loss of about $5M to $6M. Keep in mind these figures do not create any Return on Investment for any of the 4 groups and their investors vying to acquire the team. If the city council rejects all of these potential buyers it is safe to assume that they will be looking an annual expenditures of about $8M to cover the construction debt payment and another $12M to operate the arena. Undoubtedly that $20M annual expenditure will be offset by sales taxes collected on revenue but they should not expect revenue to be comparable to the current $6M to $7M range.

There is another issue to be considered and that is , Capital Repairs. There is a Capital Replacement and Renewal Account from which to pay these items. How hefty is it? None of the documents are clear. But it is known that apparently the roof is leaking and may require as much as $2M to fix.

Revenues have been low for a variety of reasons. In 2003, the team was sited in a new geographical location and it took time for fans to adjust their mindset to make the drive to Glendale. Moyes and the NHL have not had a particularly strong track record in booking other events into the arena. In fact, this year saw the least number of non-hockey events booked than in any previous year. Of course, the first lockout and the most recent lockout did not help. Add to this the fact that the team has not had an owner since 2009 and we have had a referendum attempt to get rid of the team and an election to void the sales tax increase. Throw into all of this mix, a national economy that took a nose dive. This team and this location have never had a fighting chance to realize its full potential.

My hat is off to all of the potential buying groups for believing that they have solutions to all of these issues and can turn the profitability picture around. No matter who succeeds they will have a lot of work to do to rebuild revenues as well as the fan base and confidence in this team. Can it be done? I believe… and I believe the answer is “yes.”

Apr 13

11

Casino…to be or not to be, Part 1

Posted by Joyce Clark on April 11, 2013
Posted in Casino | Tagged With: casino, City of Glendale, Tohono O'odham | 4 Comments

On April 9, 2013 there was a court hearing in Phoenix on the issue of the proposed Tohono O’odham casino. From the reporting that has occurred Judge Campbell’s mind appears to be made up and it does not bode well for the State, the Gila River tribe or Glendale. Today I begin a series on the proposed Tohono O’odham casino. It’s proposed location is in a County island within the borders of Glendale, Arizona. We’ll look at geography and where the proposed casino sits in relation to other sites within Glendale. I created this map. It is not to scale but it does demonstrate the relative position of other, established development to the proposed casino site. Unfortunately, this site does not allow for a larger image. If you would like to see a larger version, email clarkjv@aol.com and I will send it to you as a jpg. file.

Perhaps the most important piece of geographical information is that the proposed casino will be approximately less than a 1/2 mile north of the Westgate site and Jobing.com arena. Another piece of the puzzle is the number of homes nearby:

There are 4 high density residential sites. Two of them are near Cabelas, directly south of and adjacent to the proposed casino site, for a total of approximately 800 units. The two other high density sites are in Westgate and are another approximately 800 units.

Now, add to those 1600 apartment units, these nearby residential communities: Provenance (across 91st Avenue and within 1/4 mile) with 120 homes; Rovey Farm Estates (across 91st Avenue and witin 1/4 mile) with 800+ homes; Broadway (within a mile) with 60+ homes; Pendergast Estates (within a mile) with 60+ homes; and Desert Mirage/La Buena Vida (within a mile) with 1200+ homes. That’s a total of 3,840 residential units in close proximity to the proposed casino. The recognized multiplier of residents per home is 2.5. Multiply those units by 2.5 persons per unit and that equates to 9,600 or almost 10,000 people living in very close proximity to the proposed casino.

Centrada Norte

In addition to existent development in the area there are many future developments that have already been approved by Glendale City Council. These developments would add more hotels, more commercial and some additional residential units to the area. Some of these approved projects are: Centrada Norte, Bella Villagio, Sportsman’s Park East/Sportsman’s Park West, and Zanjero – all within a quarter of a mile to a mile away). By no means is this a complete list.

Kellis HS

There is also a Peoria district high school. Raymond Kellis, directly east and across 91st Avenue from the proposed casino. The Peoria district also owns land to the east of the high school that has been planned for a number of years to beome an elementary school.

To recap, the proposed casino would impact nearly 10,000 people, a high school, Westgate and all future development of the area.

Next up…how did the Tohono O’odham get the land?

Apr 13

10

Is a Star dimming?

Posted by Joyce Clark on April 10, 2013
Posted in City of Glendale | Tagged With: April Fools, Glendale Star | 2 Comments

I come from an era of journalism which required reporters to investigate, interview and confirm their facts by the use of two or three corroborating sources before a story ever saw the light of day. Today’s reporting is a far cry from old school journalism. Bias does not just have a foot in the door. Often it is its entire body.

Bias is insidious. It creeps in with an editor’s conscious choice of what will be reported. A local TV station is notorious for this tactic. Rather than openly stating its position it reports almost exclusively on stories that are sympathetic to their point of view or advance their preference on an issue. Bias also shines forth in the choice of words, especially adjectives and adverbs, used to narrate a story. An example might be, “the subject hesitantly entered the room” or “the subject boldly entered the room.” Same statement of fact, isn’t it? But the choice of descriptors paints two entirely different pictures in your mind.

The only place within media where bias is legitimately used is in its Editorial. That is the only instance when a TV station or a newspaper has the freedom to take a position on an issue and openly announce that it is their position. The Glendale Star’s editorial of April 4, 2013 entitled “Glendale taxpayers can hope and dream” had me in a state alternating between utter disbelief and uncontrollable hysteria.

In its Editorial there are expressions of thought such as this, “So, how will the city manage to come out of its terrible deficit with a balance sheet that is less than depressing? That question can only be answered by those with knowledge of the public finance system. The keepers of the city’s books, who will be working with an independent auditor in the next few weeks, should be able to show where the money went, and possibly how it can be retrieved or replaced,” or this, “Why there could be hundreds of thousands of dollars lying around in one account or another. Perhaps all of this gloom and doom talk about the city’s financial condition is just a bad joke, and the auditors will find a pot of gold stashed away in a corner of City Hall.”

Maybe this Editorial was merely an April Fool’s joke. Either that or it was written by someone foolish enough to buy into Councilmember Alvarez’ paranoia that someone in City Hall hatched a nefarious plot to abscond with oodles of city money. Perhaps they think it was former City Manager Beasley who set up a secret stash in the Bahamas. I suggest that they check the undersides of the former City Manager’s desk drawers. Perhaps they’ll find the secret bank account access code.

There are two bills before the state legislature, HB2533 and HB2483 that would seriously weaken newspapers, especially small, local papers like the Glendale Star. I have always supported the notion that a variety of newspaper companies is to the benefit of the average citizen. But local papers do a disservice to themselves and the citizen support they must have, when I read an Editorial such as the one I’ve described.

Apr 13

9

Ze pond

Posted by Joyce Clark on April 9, 2013
Posted in fish pond • Koi pond | Tagged With: fish pond, koi, koi pond, pond plants | 4 Comments

It’s the beginning of April, 2013, and spring has definitely arrived. All of the plants surrounding the pond are starting to bloom and in a few days there will be more riotous color than there is now.

The pond seems to be in “balance” right now and one can see the pond shelf that borders the perimeter of the pond underwater. An abundance of fish is there for our viewing pleasure as well. My husband counts 18 fish. I, not being as diligent, can count maybe 14 fish. No matter, at this time, they are all healthy, voracious eaters and have just started spawning. This morning we observed a pod of them chasing a white Koi that my husband had named “Big Al.” I suppose the more appropriate name, given the activity we saw, would be “Big Alice.” I doubt that we will suddenly be overrun with baby fish. The eggs will be eaten almost as soon as they are spotted as we are not set up to breed baby fish.

Other creatures are in mating mode as well – the birds, the butterflies and the dragon flies. We are not happy about the return of our dragon flies. For you see, they lay their eggs which hatch into nymphs. These nymphs are voracious little suckers and last year, they happily attached themselves to the smallest of our fish and killed them. These nymphs are about an inch long and dark in color. We find some, but not all, in the filter net of our pond.

We have not had to worry about predators like raccoons but our greatest foe is a resident heron. The folks in our area all live on one acre, horse properties. A heron has nested on a property several houses away from ours. He often comes over to visit by sitting on our roof which is a wonderful perch for him as he can see everything in the pond. We’ve installed a heron decoy and move it from time to time as instructed. Does it work? We don’t know yet. If we see fish carcasses lining the pond perimeter we’ll know that the decoy didn’t work.

With our cool, 60 degree nights and mornings in the 70’s, there is nothing better than sitting on our back patio, listening to the sounds of our waterfalls, viewing all of the vibrant color and watching our fish madly darting after one another. This is undoubtedly the best time of year not just for humans but for the fish as well.

Apr 13

8

April 7, 2013 NHL Commissioner Bettman interview transcribed

Posted by Joyce Clark on April 8, 2013
Posted in City of Glendale | Tagged With: NHL Commissioner Gary Bettman, Phoenix Coyotes, relocation, Seattle, suitors | 1 Comment

On Sunday, April 7, 2013, NHL Commissioner Gary Bettman gave the following interview. I have taken the liberty of transcribing it and then commenting on his answers to the questions posed to him. Here’s the link if you wish to listen and follow the transcription:

http://www.king5.com/sports/NHL-Commissioner-comments-on-Seattle-franchise-201875051.html

Bettman Interview from King5.com by Chris Daniels, April 7, 2013 (3 minutes, 40 seconds)

NHL Commissioner Gary Bettman

Reporter (R) Question 1: Unintelligible

Bettman (B) Answer: “We’re not planning on changing the realignment and we’re not planning on moving Phoenix, as we stand here today.” (Italics and bold mine)

Please note that I have italicized and boldened Mr. Bettman’s last phrase. He could have ended his comment after he said we’re not planning on moving Phoenix but he threw in that last phrase, “as we stand here today.” That does not seem to omit future consideration of moving the team.

R Q 2: Is any decision on Phoenix imminent?

B A: “No, when it becomes imminent we’ll tell you. We apparently aren’t operating on the same time frame that a lot of your colleagues are.”

R Q 3: Well, what time frame are you operating on?

B A 3: “On one that works on getting the project completed in a successful light.”

R Q 4: Do you have multiple…Can you give us an update on Phoenix?

B A 4: “As Bill Daly said, quoting him who was quoting me, this is a work in progress and it remains such and Frank hates that when I use that over and over again. But we’re continuing to work on it and there are a lot of things that are in play.”

In Commissioner Bettman’s answers to Q 2, 3 and 4, I would bet you he said the same things in 2010, 2011 and 2012.

R Q 5: In terms of keeping the team in Glendale or…?

B A 5: “Well, we haven’t been exploring the alternatives.”

What is unsaid is just as relevant as what was said in this response and that is we haven’t been exploring alternatives right now.

R Q 6: You haven’t explored relocation?

B A 6: “We are exploring everything we can to work this out and there seems to be considerable interest. You know, if you go through the history of this, there have been lots of reasons this has taken lots of time. There seems to be now, calm at the moment, a lot more interest than we’ve ever seen.”

It is interesting that this question went unanswered and was meant to direct attention away from relocation. Apparently it was successful because the reporter’s follow-up question is related to the time it has taken.

R Q 7: Why do you think that is…going for a long time?

B A 7: “Because there are a lot of things that happened. Some were with our control, some were beyond our control. Whether or not it was third party intervention, whether or not it was the work stoppage, whether or not it was the deal that went bad for a variety of reasons, the fact of the matter is, there seems to be more interest at this particular point in time than we’ve seen throughout the process.”

R Q 8: Is the city any more cooperative?

B A 8: “Well, I’ve been in regular touch with the mayor and we agreed that when we get a framework lined up then we would come see the city. We don’t want the city to have to expend resources and time getting involved until there’s something concrete to present to them.”

The Commissioner’s response corroborates what has been widely suspected and that is the NHL will select a buyer and bring the deal to Glendale to take it or leave it. The NHL certainly wasn’t this solicitous of the time and resources the city used on a parade of previous suitors.

R Q 9: Could there be some kind of combination of previous suitors?

B A 9: “That would require a lot of speculation and information that might not be constructive to the process.”

R Q 10: I’m coming to you so that I don’t have to speculate…

B A 10: “And I would prefer that we not talk about it because what’s more important is that we get through this process and I think we’ll have a better indication from these meetings this week as to whether we’re getting closer to resolving it.”

The Commissioner is reluctant, as obviously anyone would be at this point, to reveal any of the suitors or their deal points.

R Q 11: Is insurance the main issue this week?

B A 11: “There are lots of issues. I know in your business it’s more interesting for the people that follow you to have specific things to focus on. This doesn’t get done until all of the essential elements get done and so it doesn’t take a focus on any one of the issues.”

R Q 13: Can you tell us when the meetings are and who is meeting?

B A 13: “I think the meetings are either Wednesday or Thursday. NHLPA, IOC and double IHI.

R Q 14: How close are you following the NBA Board of Governors and the potential of the Seattle arena going in?

B A 14: “Just from afar.”

Do we really think so?

R Q 15: Does it affect Phoenix?

B A 15: “Not really. Phoenix is Phoenix. They’re gonna, I assume the NBA Board of Governors will make whatever decision they think is in the best interest of the league and the franchise involved.”

I wouldn’t be commenting on Seattle as a relocation possibility for Phoenix either.

R A 16: Seattle in general. Do you have any thoughts on that as a potential hockey market?

B A 16: “The research I’ve seen tells me that it would be a very strong hockey market. I haven’t looked at it in detail but it’s all anecdotal and third hand and obviously, if there were a team in Seattle it might foster a pretty decent rivalry with a northern neighbor, namely Vancouver.”

Look for a team in Seattle in the future. Whether it turns out to be the Coyotes or another team, only the Commissioner knows and he’s not telling.

——————————— END ————————————

Apr 13

7

Just for fun…

Posted by Joyce Clark on April 7, 2013
Posted in City of Glendale | Tagged With: City of Glendale, Gary Bettman, Phoenix Coyotes | No Comments yet, please leave one

Rumors abound about the Coyotes’ ownership saga. Sightings of potential owners now occur regularly at every home game. Thank goodness, according to the research done by one of our Coyotes’ “thug gang,” Greg Dunaway, average attendance is up by at least 7%. When you go to a game, it looks like a full house to me. That surely warms the heart of any potential owner of the team.

At the last game I had my trusty binoculars in tow (usually I forget to bring them or am too lazy to carry them). I spotted John Kaites in Mike Nealy’s suite and George Gosbee chatting in the lower level. I didn’t see LeBlanc, Hulsizer or Jamison. That doesn’t mean they weren’t there. I simply did not spot them. I also saw Councilmember Sherwood in his new Coyotes jersey with his name and number 13 on the back. He visited Nealy’s suite for a generous helping of snacks and goodies and then swiftly disappeared.

Just for fun I have once again added what is fast becoming the Coyotes’ Wheel of Fortune. If you could spin it wherever the pointer landed would be as good a guess as any as to who the new owner will be. There was an old radio show when I was a kid called “The shadow knows.” In this case, it’s not the shadow, it’s Commissioner Bettman who knows the winner of this contest.

Once the new owner is announced and brought to Glendale for the final act, you can then use this trusty Ouija board to find the answer to the question of: Will a majority of the Glendale City Council award the lease management contract? Right now, a Ouija board will give you a comparable answer to any of the speculators. Have fun!

Apr 13

5

Glendale…will they or won’t they?

Posted by Joyce Clark on April 5, 2013
Posted in Jobing.com arena | Tagged With: Anthony LeBlanc, Beacon Sports, City of Glendale, Darrin Pastor, George Gosbee, Greg Jamison, jobing.com arena, Matthew Hulsizer, Mayor Weiers, Phoenix Coyotes, Vice Mayor Knaack | 3 Comments

Late on Friday, April 4, 2013, Craig Morgan, who covers sports for Fox Sports Arizona among a growing list of other media, did an outstanding job of summarizing the recent Coyotes saga. To read his entire article, please go to http://www.foxsportsarizona.com/nhl/phoenix-coyotes/story/Coyotes-ownership-saga-hits-stretch-run?blockID=889001&feedID=3702.

George Gosbee

Anthony LeBlanc

I have chosen some of the most salient snippets for further commentary. He said, “The group led by George Gosbee and Anthony LeBlanc has already submitted its purchase bid to the NHL, and Darin Pastor’s group submitted the paperwork for its proposal to the league on Friday. Greg Jamison’s group is still working on a proposal, but it is expected that they will submit it by the middle of next week, likely under pressure of an imposed NHL deadline.”

Darrin Pastor

Greg Jamison

The latest rumors say the LeBlanc/Gosbee deal is for 15 years, with no opt-out clause and an option to buy the arena. There is no word on the kind of deal submitted by the Pastor group. That’s odd after his flurry of recent publicity. I am especially gratified to see that Greg Jamison is still a player. I must admit that I hope he prevails. I have met him and talked to him in depth and it is still my belief that this man is a perfect fit for the Coyotes. Morgan offers that Matt Hulsizer may still be in the hunt as well. Maybe…maybe not. Mr. Hulsizer, a successful businessman, married into a family of wealth. They were willing to support him on his first attempt to buy the Coyotes…and why not? A hundred million dollars would have come from the City of Glendale. Yes, the family investment was still healthy but not as much was on the line as the city’s investment under Hulsizer. My guess is that there is no will to continue on the part of the family. I could be wrong for I have proven so in the past but somehow or another, I am willing to write him off.

Mr. Morgan then goes on to say, “What is likely to happen soon is that the NHL will choose an exclusive buyer, then approach Glendale to negotiate the lease agreement. The Glendale City Council hired Beacon Sports Capital in late March to solicit bids from management companies to run the arena, as well as to handle negotiations with any prospective owners.”

Gary Bettman

This confirms my assessment in previous blogs that the League is in the driver’s seat this time. They will choose the buyer and Glendale will either come to terms with that buyer or not. The option of relocation of the team is certainly not dead yet. This council may have thrown good money after bad in hiring Beacon Sports Capital. It appears that Beacon will have no role in the process when the NHL selects the owner. There will be no one to vet. If, however, Glendale cannot or will not come to terms with the newly selected owner, Beacon will then have a role as council will most likely Mayor Weiers’ Plan B with the use of 4 managers for the arena.

In additon, Morgan states, “What that lease agreement will look like is anyone’s guess. Glendale City Councilwoman Yvonne Knaack said recently that the annual fee to the city could “be anywhere from $6 (million) to $10 million on operating, and then maybe another $9 million on debt.”

Councilmember Sherwood publicly recognized a figure of at least $10M to $12M annually for a lease management agreement. Vice Mayor Knaack acknowledged a similar figure as well. She is also correct about the arena construction debt of approximately $9M a year. This is where it gets dicey. Will this council accept a deal that requires a substantial annual payment along with the annual construction debt? Combining the two, the figure will be somewhere in the $20M range annually. But that requires this council to cut expenses elsewhere to absorb the costs of the deal and to continue to build a contingency reserve fund. To date there has been absolutely no will to cut by the new council. In fact, they are considering adding 15 firefighter positions and a new $650K truck and 31 police positions to this budget. They simply cannot do both – manage the annual costs associated with the arena while creating new budgetary expenditures.

Norma Alvarez

We have heard enough from Councilmember Alvarez to know that she wants to pay nothing for the arena and I suspect she thinks there is some group out there that will pay the city for the privilege of managing the arena. Not even her beloved Phoenix Monarch Group was willing to fall for that. If you remember, their base fee was $7M for a limited number of events…read tractor pulls. Nevertheless, she stubbornly holds to that position and has even managed to elicit support from Councilmembers Hugh and Chavira. Councilmembers Martinez and Sherwood recognize the importance of keeping an anchor tenant at the arena for the future of a vibrant Westgate that attracts new development in and around it.

Yvonne Knaack

Jerry Weiers

That leaves two question marks, Vice Mayor Knaack and Mayor Weiers. Vice Mayor Knaack is on the horns of a dilemma. I suspect in her “heart of hearts” she knows that keeping the team as an anchor tenant would be the right choice. But her strongest backers, the fire union, will put tremendous pressure on her if they see their 15 additional firefighter positions and new truck evaporate in this year’s budget. Mayor Weiers, on the other hand, derided the deal the previous council had with Greg Jamison. He should be reminded that Anthony LeBlanc has said publicly that any deal with the city must be similar to the previous deal on the table with Jamison. Weiers is also looking for a deal on the cheap. It will be time for these two people to decide what is more important. Is it more important to send the team packing and leave the legacy of an uncertain future for the arena and Westgate because it’s what their supporters in their previous election now expect of them? Or is it more important to accept that for the sake of Glendale, of Westgate and of West Glendale’s future development potential that sometimes one has to make the difficult and unpopular decision? We will see…soon enough. We all hope that they realize the importance of keeping an anchor tenant at the arena.

I am pleased that this long, painful Coyotes ownership saga is coming to an end. I wish all the potential owners well although I continue to root for Greg Jamison. The Coyotes team has been beleaguered and beaten for too long. They, more than anyone or anything else, have earned certainty about their futures.

Apr 13

4

Don’t threaten me or my family

Posted by Joyce Clark on April 4, 2013
Posted in Blogs • City of Glendale | Tagged With: family, intimidation, opinions, threats | 5 Comments

Fourteen years ago, in 1999, I wrote opinion pieces on Glendale issues for the Arizona Republic for the princely sum of $50 an article. I had a great time doing it. I was no longer on Council and was taking time off to care for my Mother who had Alzheimer’s. In October, 1999, I wrote a piece about the upcoming City bond election and the $24M slated to build a public safety training facility. I questioned the need with facts at my disposal. After the article appeared I received veiled threats from just one group…firefighters. They were obviously not happy that I suggested that this facility was not needed back then. Seven years later, they won the war and $6M in funding dollars for the soon-to-be constructed West Branch Library were diverted to help defray the cost of construction of the public safety facility (estimated to come in at over $40M).

Several days ago I posted “Gimme more” on this blog site. Today I received the following email response:

Author : FirefighterXXX (IP: 68.2.248.248 , ip68-2-248-248.ph.ph.cox.net)
E-mail : Ilvjerry@hotmail.com
URL :
Whois : http://whois.arin.net/rest/ip/68.2.248.248
Comment:
Great Idea Joyce about cutting fire staffing. I sent you link to Mayor XXX in XXX were my family lives. I think this will be a great idea for XXX as well. Maybe I will send you link to the Fire Chief too.

I have a son who is a firefighter in a Valley city. The email sender used my son’s name and the city in which he is employed. For obvious reasons I have x-ed out that information. The reference is to the fact that in this time of financial upheaval for the city I do not support adding more personnel to any department when the city should, in fact, be cutting its expenses to meet its revenues. In my article I did not suggest that any public safety personnel should be cut. I did ask that we hold the line with what we have right now until revenues improve and the city can legitimately afford to hire more public safety personnel. The sender is suggesting in retaliation, that my son, working in another Valley community should be fired.

I am fightin’ mad and am calling this lily livered coward out on his/her veiled threat. I am older and wiser than I was in 1999 when similar threats were made to me and my family. There is nothing like sunlight to disinfect garbage. I will bet that the sender is a union firefighter or a family member of one living in the Avondale area but perhaps working in Glendale. The email address is bogus because he/she doesn’t have the guts to use his/her real name or email address. Is that because he/she could be in legal trouble if he/she did so? Finding the exact address would require litigation and a demand for the logs from Cox. It would be difficult but not impossible.

There are thugs and cowards in every demographic and segment of our society. We all know that and some of us have experienced their intimidation and threats. Bloggers, journalists, elected officials and high profile people have. I am tired of the fire union using their thugs and cowards to do their dirty work. If you want to come after me because you don’t like my opinions by all means, feel free to do so. Anyone is invited to do so in a respectful dialogue between us. I can certainly take care of myself. But the SOB who goes after any of my family members had better watch out. Is that a threat? You bet it is…but not the same kind as you made.

Apr 13

3

Darrin Pastor…too good to be true?

Posted by Joyce Clark on April 3, 2013
Posted in Glendale elected officials • Jobing.com arena | Tagged With: Beacon Sports, City of Glendale. Phoenix Coyotes, Darrin Pastor, Jerry Weiers | 3 Comments

Darrin Pastor

I, just as many did, listened to the Darrin Pastor interview on Roc and Manuch, NBC Sports Radio, 1060AM on April 4, 2013. I wish him well but as a tried and true skeptic, the jury is still out. Let’s take a closer look at some take-aways from that interview.

Six months of due diligence

Pastor claimed that he has done six months of due diligence. That due diligence should have included finding out what the City of Glendale’s expectations are. This is the start of April and going back six months puts him in October, 2012. I was a councilmember until January 15, 2013, and I never heard of him until his press release of several days ago. He certainly wasn’t talking to anyone in the city. That place is like a sieve. If he had talked to anyone, it would have become common knowledge around City Hall.

Why does any deal take so long?

This must be naiveté on Pastor’s part although he is a very intelligent businessman. It comes as a bit of a surprise to hear that statement from him. Surely he’s done hundreds of deals using legal counsel and should know that lawyers tend to make everything take twice as long. He also claimed that he is using lawyers with municipal experience. So it certainly shouldn’t be a surprise to realize that working with a municipality is slow and cumbersome. It isn’t as if any one prospective deal took the entire four years that the Coyotes have been ownerless. Over those four years there has been a succession of bridesmaids but never the bride. We are all painfully familiar with the list . None of them took longer than 12-18 months before biting the dust.

Glendale is where the team is going to stay

Jobing.com Arena

We have heard that from every prospective buyer of the team. The question should be, not is the team going to stay in Glendale?… but how long will you keep the team in Glendale? There should be a ten year or better commitment before an opt-out clause is executed. That indicates a commitment to build the team and build a solid fan base. If the opt-out clause is five years or less, whoever buys the team will take the money and run…somewhere else. Better yet, would be to get an assessment from each of these would-be buyers of his estimate of how much time he feels is necessary to turn the team around and become profitable. Realistically, no prospective owner wants to commit “sports suicide” and pour money down a rat hole. Each one of them (you would think) has developed a strategy to turn the team around and become profitable.

Return on investment

Mr. Pastor uses “banker-ese” terms. He labels the team as an “undervalued asset.” This gentleman (and his family) didn’t become successful because of pixie dust. He is a very astute businessman. If he is successful in purchasing the team using capital from family investments, there will most definitely be an expectation of profitability down the road. Again, the question becomes how long is that road?

Where is Beacon Sports?

Mr. Pastor said directly, “Beacon Sports is not involved.” His statement should be of concern and can be interpreted several different ways. Is Beacon not involved because Pastor has no interest in managing the arena and simply wants to pay rent as a tenant? Why isn’t Beacon involved as the city hired the company to vet and to negotiate with any prospective arena manager?

Got his homework today

Mr. Pastor said that he received paperwork from the NHL today and would begin working on it immediately. Good for him. If that is the case, don’t expect any quick resolution. Plan to wait a month or two. He also said he had met with and talked to Mike Nealy but that he was talking to and dealing directly with Bill Daly. I expect Mr. Daly is talking to a lot of prospective owners these days.

Mr. Pastor looks good on paper and is saying the things we all want to hear these days. Shades of Matt Hulsizer. Hulsizer went very public and was obviously an avid hockey fan but his deal went south when the Goldwater Institute questioned the city’s sale of $100M worth of bonds whose proceeds would be paid to Hulsizer. The devil is in the details…of the deal.

Mr. Pastor meets Mr. Weires

Mr. Pastor in his meeting with Mayor Weiers today characterized at least twice, the mayor as “refreshing.” Glad they enjoyed meeting with one another. If Pastor really was politically savvy or had received advice from his municipally-wise lawyers, he would have introduced himself to all of the councilmembers, remembering that Mr. Weiers is just one vote of seven.

I wish all of the prospective buyers well and would like nothing more than for someone to succeed with a long term commitment. Call me jaded. I have been “around the block” quite a few times on this issue and have seen prospective owners come and go. To date there’s been a lot of public posturing, first by LeBlanc/Gosbee, now Pastor. It’s all sound and fury signifying nothing.

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