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Joyce Clark Unfiltered

For "the rest of the story"

Glendale Mayor Jerry Weiers delivered his State of the City remarks to a packed audience at the annual Glendale Chamber of Commerce dinner at the Renaissance Hotel on Thursday, February 27, 2014. Although his news about Glendale’s finances was dire it was also a fair assessment. He is to be commended for his forthright speech. Here is a link to a recap: http://www.azcentral.com/community/glendale/articles/20140228glendale-arizona-state-of-the-city-mayor-financial-problems-real.html . Here is also a link to a Mayor Weiers You Tube video that visually explains Glendale’s debt and revenues: http://www.youtube.com/watch?v=s2nBWBojUh0&feature=em-share_video_user .

He didn’t remark on how Glendale got to where it is today financially but I will because I was one of the council that got us there. Although I approved the arena I did not approve of Ellman’s plans for his development of Westgate. His “vibrant” building colors look like WalMart on steroids and his billboards are monstrosities. He also would not dedicate an additional land to place another eastbound lane on Glendale Avenue. I was more reluctant about Camelback Ranch but the deal called for future reimbursement by the Arizona Sports and Tourism Authority (AZSTA). I agreed because there were development plans in place for the surrounding land and an AZSTA reimbursement on the horizon.

Council knew we would never be a Scottsdale, the west’s most western town; or a Tempe, a college town; or a Chandler and Gilbert, with their high tech manufacturing. We believed that these facilities would create a niche, a branding of Glendale and that they would help to grow Glendale.  After approval of Camelback Ranch the city began negotiation to place a USAA basketball training facility in the area. It looked as if we were about to add another major sporting facility. Glendale’s future looked bright.

There are two major contributors to Glendale’s current debt burden: Jobing.com Arena and Camelback Ranch Spring Training Facility. At the time of these facilities’ approval it was clear that Glendale could sustain the debt. Deals were in place to develop commercial and retail around both. They would generate new sales tax revenues to cover the expected construction debt. The arena did not have an annual management fee. Glendale’s economy was surging as was the national economy.

There was no hint of the Great Recession that would lay waste to so many of Glendale’s plans. Glendale’s sales tax and property tax revenues sunk like a stone as did its state shared revenue.  Developers and their plans dropped like flies as one after another went into bankruptcy.

Suddenly the city’s debt had become unsustainable.

What was council’s plan back in the day? It was three fold. Pass a temporary 5 year sales tax increase to provide much needed revenue while other strategies took hold; restructure our debt; and embark on a 5 year plan of targeted cuts to expenses while rebuilding the city’s contingency fund. It was even suggested, at the time, by Interim City Manager Skeete that the city sell the arena. I was shocked by the thought at the time but over time, it has become an idea that has a great deal of appeal.

It is no coincidence that Glendale’s future debt burden is about $30 million. That is very close to the city’s annual arena debt: $12-13 million in an annual construction debt payment; $500,000 to $1 million annual payment to a capital repair account; and $15 million in an annual management fee. The solution of selling the arena at fair market value is now very appealing. While the city loses money already invested in the facility the bleeding stops. Suddenly there would be no more construction debt; no more annual management fee and no capital repair account to maintain. It’s an idea whose time has come.

© 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.

The Glendale City Council meeting of February 25, 2014 was contentious. Everything was truckin’ along until Item 19, the billboard issue. Whoa…not so fast! The council vote was tabled. It was widely assumed that Councilmember Sherwood had the votes to ram it through. It turns out that was not the case. Somewhere along the way he, Rose Law (applicant’s representative) and Becker (applicant) realized the votes were not there. Their fall back plan was to table, hopefully providing them more time to bring reluctant councilmembers into the fold. The vote to table and bring to a council workshop on March 18 and council meeting on March 25 was 5 to 2. Vice Mayor Knaack voted “No” and observed that this issue was “being pushed out until the answer changes.” Councilmember Martinez also voted “No” and said the move smacked of “desperate measures.” Weiers, Sherwood, Alvarez, Hugh and Chavira voted “Yes.”

There were at least a dozen or more citizens there to voice their opposition to the billboards. Sherwood, in the past, characterized the billboard opposition as “a minority.” Not so. It’s usually the case that every citizen that takes the time to get actively involved in an issue represents a large segment of silent citizens. 

Most of the public stayed until the end of the council meeting to express their dismay with council’s non-action. Michele Tennyson from the Cholla district expressed their collective sentiment quite well. Ms. Tennyson had served on a city council in Mill Creek, Washington and after locating to Glendale, served on various Glendale boards and commissions. She obviously knows how political games are played. She said she was “ashamed” by council’s conduct and decision to table the issue. She related the timeline and history of actions taken. She made it quite clear that there was no reason to delay an up or down vote. Ann Berman, a Sahuaro district resident, said “Sherwood seems to have made a decision” and alluded to the fact that it is not in the public’s favor. Others pointed out that the next scheduled council vote would occur during Spring Break when many people take the opportunity to go out-of-town. Clearly the residents of the Sahuaro and Cholla districts, directly affected by the erection of these billboards, do not want them.

During the council comment period at the end of the meeting those who spoke offered hints regarding their positions on the issue. Councilmember Sherwood attempted to explain why it was necessary to table the billboard issue. Councilmember Alvarez told the citizens that they need “to make the council accountable.”  Councilmember Martinez characterized council’s actions as “blatant” and “a slap in the face” to the decisions already made by the citizen Planning Commission and staff. Vice Mayor Knaack described it as “unforgiveable” to disregard the Planning Commission’s decision.

Others were silent about that issue but offered a wide range of comments on other topics. Sherwood, Chavira and Knaack voiced their opposition to SB 1062 (although Knaack cited the wrong bill number). Several thanked Executive Directors of Communication/Marketing and Transportation, Jerry McCoy and Jamsheed Mehta, for their service as they move to take positions with other cities. Mayor Weiers characterized it as a “brain drain.” That is exactly what it is. We continue to lose the best and brightest and their historical memory of previous city action. Jamsheed Mehta should have been appointed as an Assistant City Manager.  Councilmember Chavira, always reluctant to take a position on anything unless cleared by his handlers, thanked everyone for everything. During the Public Comment period Arthur Thruston spoke of Ken Jones’ contribution to Glendale via his activism on issues and asked for special council recognition for him.  Some of the councilmembers publicly thanked Ken Jones for his participation in Glendale’s civic life. Will he get a plaque for his activism? No. It would set a precedent and create untold controversy as to which citizens would merit such recognition.  I have never agreed with Mr. Jones’ positions on any Glendale issue but he has earned my respect and thanks for his avid activism. There should be more Ken Jones in Glendale, not necessarily sharing his point of view but willing to speak and stand for those things in which they believe. Thank you, Mr. Jones.

© 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.