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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.

Please remember that this is a campaign season and things get ugly during such a season, but this is the worst I have ever seen or of which I have been a part.

The reference to Twelve Angry Men is an American courtroom drama written by Reginald Rose in 1954 concerning the jury of a homicide trial in which one man convinces the rest of the jury of reasonable doubt concluding with a not guilty verdict. It’s a really good movie.

Although Councilmember Lauren Tolmachoff has not come out and publicly endorsed any candidates as of this date, at Chamber events her actions would lead people to believe that she supports Paul Boyer for Mayor and Lupe Encinas for my Yucca district council seat. This is the context upon which this blog is written.

It is no secret that if you watch City Council meetings lately, you will witness a lot of sniping directed toward the Mayor and City Manager by Councilmembers Tolmachoff, Turner and Aldama. They appear to be quite unhappy with both gentlemen as well as decisions made by the majority of city council. They seem to be using public city council forums to convince you that the majority of city council is acting inappropriately. What you are witnessing these days is pure political theater.

I refer you to this video of the latest city council workshop of October 24, 2023: https://glendaleaz.new.swagit.com/videos/277456  starting at the 37:23 minute mark. On May 9, 2023, Mayor Weiers requested a Council Item of Special Interest to explore state legislation that ensures reoccurring cancers cannot be the sole reason for denying cancer claims and to ensure that reoccurring cancers that result in disability or death are presumed to be an occupational disease as outlined in the Arizona Revised Statutes.

The scope of the October 24, 2023, city council discussion and subsequent deliverables would be focused on the introduction of legislation in the 2024 Arizona Legislative Session that would add the additional protections to firefighters.

City Council has already adopted a policy to recognize reoccurring cancers for Glendale’s firefighters despite the state legislature’s failure to do so. The focus of this CIOSI workshop discussion was not looking for further changes in this policy but rather to take Glendale’s adopted policy and to work with the state legislature to encourage all fire departments to make Glendale’s policy statewide. A fix was no longer needed in Glendale and staff were asking for council consensus to bring Glendale’s approach before the state legislature.

Previous to the Mayor’s May, 2023, request for a Council Item of Special Interest (CIOSI) related strictly to making Glendale’s policy a statewide one, Councilmember Tolmachoff had asked for a similar CIOSI that included among other things, recognition of pre-cancerous conditions. A majority of council did not support her request at the time.

Dismayed by the rebuff of her past CIOSI, Councilmember Tolmachoff said the following during workshop, “…but I think it is shameful to make a campaign issue out of the health and safety of our firefighters and I believe that’s what this is.” She went on to say, “Because of four people, I believe, had been told to snuff this out (her previous CIOSI).” As well as, “I think it’s shameful the way it transpired.” And “So, just like I said, I see this for what I believe it is and I think it’s a campaign move.” During the fifteen-minute discussion of the issue she interrupted the City Manager and the Mayor repeatedly and spoke out several times without being recognized by the Chair (Mayor).

Firefighters are not speaking up in her defense. They are pleased that Glendale adopted a policy recognizing reoccurring cancers and will work with the city to lobby the state legislature to make it a statewide policy. In this upcoming election, the general expectation is that both police and fire will endorse Mayor Weiers, Councilmembers Hugh and Malnar and Diana Guzman, candidate for my Yucca council seat.

Councilmember Bart Turner agreed with Councilmember Tolmachoff and went on to say, “There is something going on and it does feel to me like it’s campaign related and that there’s collusion going on.”

Councilmember Aldama, an announced candidate for Mayor, agreed with Councilmember Tolmachoff and accused the Mayor of unprofessionalism and divisiness.

I support free speech as well as all Glendale Councilmembers’ exercise of such. Rather the concern is when does speech border on slander? Accusing the majority council of collusion or taking direction from some mysterious person at a public council workshop may be considered as slander.

Feeling something or believing something does not make it true. There were no facts presented back up the accusations made. Rather what we heard was “I believe” and “I feel” as if they were matters of fact.

Just remember, this is a nasty political season and if anyone is pushing a political agenda it may very well be the 3 angry councilmembers.

© Joyce Clark, 2023     

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.

In Part III of this three-part blog, I offer the specifics of the Glendale GPLET and Worker Power’s public statements regarding their opposition to the GPLET.

In the Fall of 2020, Applied Economics submitted an analysis requested by and paid for by the city. Its purpose was to present future tax revenues should the city decide to incentivize the development of what, at that time, was called Crystal Lagoon (now known as VAI Resort). The report also presented two other development alternatives for the same site. Keep in mind that the information I cite from this report is based upon old numbers. Since that report Crystal Lagoon is now VAI Resort and the hotel portion of the site has doubled. In recognition of these facts, the city has commissioned an updated report from Applied Economics. It is not yet available.

The 2020 report concluded that, “The proposed incentive structure outlined here would include permit and plan fee waivers of up to $1 million and a 25-year Government Property Lease Excise Tax agreement (GPLET) on the entertainment, recreation and concessions portions of the development. The total value of the incentive is estimated at $29.7 million, in return for $700.8 million in new sales, property and bed tax revenues to the city, county and state over the next 25 years. These incentives are performance based and the amounts will be less if the project is not built in its entirety.” (Page 2, Applied Economics, August 31, 2020).

The report goes on to state, “In terms of precedent for including the lagoon, Tempe has included sections of the Tempe Town Lake in the parcels for several different GPLETs that also include various types of development along the shoreline.” (Page 6, Applied Economics, August 31, 2020).

Further, “In order to demonstrate that the proposed GPLET meets the economic and fiscal benefit requirement in A.R.S. 42-6206, it is necessary to isolate the portion of the development that would be part of the GPLET. This analysis considers the property tax impacts the GPLET relative to the amount of benefit to the property owner or prime lessee. During the 25 year term, the prime lessee would normally pay lease excise tax instead of real property tax, although the recreation, entertainment and related retail and restaurant concessions of the development are assumed to b exempt from lease excise taxes…The estimated public benefit, or value of the other tax revenues generated by the projects exceeds the property tax savings to the prime lessee from the GPLET by $176.2 million over the 25 year term.” (Pages 6-7, Applied Economics, August 31, 2020).

Lastly, “The Crystal Lagoon Island Resort could result in an annual increase in property tax revenues to schools of $2.8 million, and $3.7 million to all jurisdictions in total after accounting for the GPLET exemptions.” (Page 12, Applied Economics, August 31, 2020).

What the report said is that this property, incentivized with a GPLET earns more money per year over the 25-year period for the city, the schools, the county and the state than if it were allowed to develop sometime in the future as apartments, retail and office buildings with no incentive.

Why does Worker Power object? In an Arizona Republic story dated 7/28/2023, entitled Community group that fought Tempe’s entertainment district aims for Glendale’s VAI Resort, Jordan Greenslade, a Worker Power senior field director, claimed that this tax break was unnecessary, stating, “Greenslade explained that the tax exemption was likely an initiative that began as a means to bring growth and prosperity to an area that could benefit from the jobs and development. Though, as Greenslade noted, Glendale is not that. In fact, Glendale is booming with development.

With additions like the Cardinals’ stadium and Westgate Entertainment District, Greenslade does not see why a 25-year tax break was necessary to draw a luxury resort like VAI to a booming tourist destination.”

Let’s unpack Greenslade’s assumption. He obviously hasn’t done his homework and has no knowledge of the history of this site. Historically, it has been farmed. About ten years ago Michael Bidwill bought the site, called it Organic 101 and had planned to build a gazillion apartments and some office buildings on the site. Apparently, that was not to be, and Bidwill let the property go into bankruptcy.  About six years ago, IKEA had the property in escrow but never completed the sale, so it remained farmland.

It was obvious, despite the success of Westgate, no entity was willing to purchase this site and make a major investment in its development until ECL (now VAI) approached the city with its vision for development and asking the city to consider offering an incentive for such a massive project. The city commissioned the Applied Economics study in 2020 and based upon the facts presented in the study, entered into a development agreement.

The massive size of this development coupled with an investment of a billion dollars along with the revenue return of this project justified an offer to incentivize this project ensuring that this coveted project would come to Glendale and be a perfect fit for Westgate, the city’s sports and entertainment district. Glendale has never had a resort within its jurisdiction and its placement at Westgate on an underutilized piece of farmland made good, economic sense.

The Phoenix Business Journal on 7/28/2023, ran this story entitled, Labor group that opposed Coyotes’ arena wants Glendale resort incentives placed on ballot. The article states, “Brendan Walsh, executive director of Worker Power Institute, said in a statement that GPLETs should ‘not be used to subsidize luxury development that brings little or no benefits to working families already living in the area’.”

Mr. Walsh is offering the same brand of Kool-Aid as Mr. Greenslade. This massive development project will employ at least 1800 Glendale residents. Every possible kind of job from restaurant waitresses and bar tenders to hotel workers to retail managers to skilled tradesmen to maintain this massive property. Another 1800 jobs is nothing to sneeze at and certainly is a major benefit to “working families already living in the area.”

Worker Power on its website offer the following as its Economic Policy:

“A primary focus of Worker Power’s advocacy efforts has been to challenge the misuse of GPLETs (Government Property Lease Excise Tax) by local municipalities. GPLET is a tax abatement program used to spur development in Arizona cities. While these developments purport to bring new jobs and additional tax revenues to aid the economy, GPLETs can add up to hundreds of millions of dollars not spent on local schools and other community needs over time. In addition, GPLETs can contribute to gentrification, exacerbate the deepening housing affordability crisis in our cities, and push low-wage earners out of town.”

Where is the “misuse” of the GPLET in this case? There is none. The Applied Economics study of 2020 stated that all entities – the city, the schools, the county and the state, earn more revenue over 25 years with this GPLET than without.

In addition, Glendale is leading the forefront of Valley cities in creatively financing affordable housing within the community. In fact, Glendale’s homeless population has decreased year over year. There is no demonstration of fact by Worker’s power that Glendale is “pushing low-wage earners out of town.”

Worker Power is spouting phrases designed to gin up general citizen support with absolutely no fact to back up their baseless accusations. It’s as if just because they said it and they are a PAC, it must be true. They are looking for a cause where none exists.

The deadline for turning in their petitions was last Thursday at 5 PM. The signatures collected are in the process of being verified. They claim to have collected over 5,000 signatures but how many of them are good and can be verified?

Worker Power has no legitimate cause to follow in Glendale. Really…don’t be buyin’ their brand of nonsense.

© Joyce Clark, 2023     

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.Yesterday in Part I, I shared the concept of Worker Power and their current referendum effort to oppose the City of Glendale’s use of a GPLET within portions of the VAI Resort. I alerted those who had signed their referendum petition that an email with their personal contact information was generated and sent to the Glendale city council.

What in heaven’s name is a GPLET? Its full title is Government Property Lease Excise Tax. It is an incentive created by the Arizona Legislature that permits cities and towns to encourage development within their communities. A GPLET permits a temporary lower property tax payment for up to a maximum of 25 years. This means instead of a developer paying property tax, the developer must pay an excise tax in its place. The excise tax amount is determined by a formula created by the Arizona Legislature. Please note that tax is still paid on the property but at a lower rate called an excise tax instead of property tax.

A project eligible for a GPLET would typically not otherwise be built at the desired scale or design or timing because of the expense of the land, the cost of building massive projects, and the high rates of commercial property tax.

A city is providing the GPLET to land that it does not expect to develop soon. It is by no means counting on the property paying taxes in the near term. A GPLET can cause a project to be built sooner rather than later.

Historically, Arizona cities and towns have used GPLETs often. It is not some kind of exotic incentive rarely used. In the past twenty years at least 8 Valley cities have used GPLETs.

  • Avondale currently has 4 GPLETs including one for its Phoenix International Speedway
  • Chandler currently has 4 GPLETs including one for its Overstreet Cinema
  • Glendale currently has 21 GPLETs, a majority of which are airport related but there is one for Cabela’s and one for the Renaissance Hotel
  • Goodyear has 1 GPLET for its Western Regional Medical Center
  • Mesa has 51 GPLETs including its Mesa Convention Center and Visitor’s Bureau
  • Phoenix’s financial report is not so opaque but I was able to identify at least 58 GPLETs, including restaurants and hotels
  • Scottsdale has 19 GPLETs including the Tournament Players Club of Scottsdale (part of the PGA Tour)
  • Tempe has 40 GPLETS including the Tempe Town Lake and the Hilton Hotel

Why is Worker Power doing a referendum on the VAI Resort development now? Remember, I said in my last blog post that they are opportunists? If they were genuinely opposed to the use of GPLETs, they would have opposed the original GPLET for this project passed by the city council two years ago. Where were they then? Crickets. Oh wait, weren’t they in Georgia working on Rafael Warnock’s senatorial campaign? That action would bring them far more notoriety than opposing a no-nothing GPLET in Glendale. How come the only other GPLET they’ve opposed is the one involving the Coyotes project in Tempe?

It looks like there will be a Part III to this GPLET blog tomorrow. In the next part we’ll look at the benefits of this GPLET as well as Worker Power’s publicly offered reasons for their opposition.

© Joyce Clark, 2023     

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.

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