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Joyce Clark Unfiltered

For "the rest of the story"

Bettman

NHL Commissioner
Gary Bettman

Daly

NHL Deputy Commissioner
Bill Daly

On May 24 media sources announced that the NHL has chosen a bride-to-be owner of the Phoenix Coyotes – Renaissance Sports and Entertainment led by George Gosbee and Anthony LeBlanc. It was also widely reported that Commissioner Bettman and Deputy Commissioner Daly along with Gosbee/LeBlanc will do a “walk around” with the Mayor and City Council on Tuesday morning, May 28th. The term “walk around” is a slang expression. It means that meeting all seven of the council at one time would violate the Open Meeting Law unless they were making a presentation at a public council workshop or meeting. To avoid violation of the Open Meeting Law these gentlemen will meet in groups of no more than 3 councilmembers (4 councilmembers would trigger a violation).

Craig Morgan is accurate in his May 24th article for Fox Sports Arizona entitled Sources: Gosbee/LeBlanc group has agreement to purchase Coyotes when he says, “ Bettman, Daly and RSE will meet with Glendale Mayor Jerry Weiers and then will hold two separate meetings, each to be attended by three councilmembers.” Here is the link: http://www.foxsportsarizona.com/nhl/phoenix-coyotes/story/Sources-GosbeeLeBlanc-group-has-agreemen?blockID=905273&feedID=3702 .

Paul Giblin’s piece for the Arizona Republic of May 24th entitled NHL may lay out Coyotes ownership deal Tuesday, mayor says reports the same saying, “Bettman, Daly and RSE will meet with Glendale Mayor Jerry Weiers and then will hold two separate meetings, each to be attended by three councilmembers.” Here is the link: http://www.azcentral.com/community/glendale/articles/20130524nhl-expected-lay-out-coyotes-ownership-deal-tuesday-mayor-says.html .

So far, so good. They both report the very same fact. From here on in, read carefully, very carefully. Morgan, in his article says, “If RSE is not able to reach an agreement with Glendale, sources (my bold) have said that John Kaites’ group is still a possibility to purchase the team, as would be Greg Jamison’s group if it could gather the necessary investors. But multiple sources (my bold) have said that the NHL is no longer interested in dealing with Darin Pastor, whose bid was recently rejected by the league.” These sources with no attribution are dealing in speculation. Could be fact. Could be fiction.  Giblin, in his article, says, “Sherwood said he believes (my bold) any potential owners will want to be paid substantially more than $6 million a year, which is the figure that’s been earmarked in numerous proposed city budgets for the arena management fee.” One person’s belief, especially in this instance, is not fact when there are 6 other councilmembers who may, or may not share that belief.

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George Gosbee

Leblanc

Anthony LeBlanc

What have we learned that we did not already know?  Bettman, Daly, Gosbee and LeBlanc will meet the Glendale city council on Tuesday, May 28th. It appears that RSE will become the NHL’s choice as owner. That is an assumption until the NHL makes a formal announcement. Public release of the facts of the deal are essential. Questions need answers, such as:  Is there an opt-out or relocation clause? What is the time period for either? What is the ratio of equity to debt? Councilmember Sherwood stated publicly that we will hear the deal parameters at the council workshop on Tuesday, June 4, 2013.

There is another fact that is being ignored and perhaps it will be ignored permanently as the city has the discretion to ignore all or part of the Beacon RFP– and that is the Beacon Sports/City of Glendale RFP requirements on page 5:

Minimum Requirements/Qualifications for Managers.

In order to have its response evaluated, a Manager (or if an affiliate, its parent company) must demonstrate at least one of the following requirements:

i. Is a nationally or regionally recognized facility management company which manages publicly or privately-owned public assembly and/or sports and entertainment facilities;

ii. During the past three years, has successfully managed at least one NHL or National Basketball Association (“NBA”)/all-purpose arenas with a seating capacity of at least 10,000 persons; or;

iii. The Manager must have current experience in operating such a facility on behalf of a public entity, such as the City of Glendale;

The Renaissance Sports and Entertainment group was organized only recently for the express purpose of attempting to purchase the Coyotes. They have no demonstrable experience as a fledgling group in managing any sports or entertainment facilities, much less an NHL or NBA all-purpose arena.

Coalition 1 photo

Glendale City Council
CM Alvarez absent

I applaud Bettman and Daly having finally made a decision in terms of ownership but what were they thinking? The NHL must be ready to use its muscle with a “take it or leave it” strategy. Do they seriously think a MAJORITY of this council will accept as an arena manager a newly formed group with no track record in managing an arena? And do they think a MAJORITY of this council will expend more than the $6M budgeted in the soon-to-be-approved city’s Fiscal Year 2013-14 Budget? Councilmember Sherwood says he has a plan but will it turn out to be an acceptable one? Not unless this council is suddenly willing to listen to the likes of Ken Jones, Arthur Thruston and Andrew/Darcy Marwick berating them for subsidizing a sports team during the Public Comment period at every council meeting –forever.

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Dominguez 2

Commander Greg Dominguez
Glendale Police Department

Recently former Glendale Assistant Police Chief Greg Dominguez has been in and on the media…a lot. The internal Glendale police department’s investigation of his situation is sealed so the media does not know exactly and specifically what happened and can only report on it in a general sense. They do not have anything other than a non-specific Peoria complaint. We do know it was a situation in which no charges were filed.

What happened? We know a broad and general outline. Allegedly Assistant Police Chief Greg Dominguez on two separate occasions threatened a clerk at a Peoria smoke shop and told him to stop selling spice to his then drug impaired son. Dominguez claims he does not remember what he said to the clerk but the clerk, in his Peoria police report, alleges that Dominguez threatened to burn the place down and to kill the clerk. True? Not true? We can’t know because we are not privy to the results of the internal investigation.

As a result of that investigation Dominguez has been demoted from Assistant Chief to Commander and suspended for a week. The Arizona Republic, never willing to let what facts it reports stand in the way of stirring up more controversy, ran an article questioning the appropriateness of the punishment meted out to Dominguez.

Everyone will have an opinion. Was the punishment too severe? Just right? Too lenient? The union supports Dominguez’ belief that the punishment was too severe. I assume they have retained an attorney on his behalf to appeal the decision.

Before I go any further let me say that I, personally, like Greg Dominguez and his wife. They are not only both fine officers but good people and parents. Commander Dominguez was always very responsive to my questions, concerns and requests made as a councilmember on behalf of my constituents. He did his job and did it well.

But he was the Assistant Chief of the Glendale Police Department and as such is held to a higher standard than you or I. Is that fair? Probably not but life is not always fair. Throughout history police officers have always been held to a higher standard because they symbolize adherence to law for all of us. When they ignore or bend the law it is an action that betrays and erodes that supreme trust. There is also the issue of perception. If, as an Assistant Chief, he did not receive this level of sanction, you can be sure the rank and file as well as ordinary citizens would be saying he received lenient treatment because of his position. Quite frankly, newly promoted Chief Black was damned if she did, and doubly damned if she didn’t.

If anything, I was very surprised to learn of Commander Dominguez’ actions. If he were angry enough to threaten someone in that situation could he become angry enough to use similar threats in other situations? I suspect upon reflection, Commander Dominguez not only realizes that he made a dumb mistake but now realizes that there were other ways he could have handled the situation. As a civilian, I can think of a couple of things that could have been done. I can remember times when my kids were teenagers and they were in situations that had me nervous, down-right crazy or scared. I never once considered the threat of bodily harm as an option.

Black

Chief Debra Black
Glendale Police Department

Was the punishment appropriate? Yes. Chief Black had a very difficult decision to make and as a former Glendale councilmember I support her decision. She needed to send a message not just to every officer but to every Glendale resident that the actions taken by the second highest officer in the department would not be tolerated and that there is a strong ethic of responsibility for one’s actions.

 

 

 

 

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deadline 1True to form, a deadline in not really a deadline when it comes to the Coyotes saga. Every Coyotes fan, hanger-on or anyone associated  with the Coyotes is waiting anxiously for May 31,2013 as if it is magical. The deadline that everyone is awaiting is the May 31st deadline to respond to the Beacon Sports/City of Glendale RFP. It is arbitrary and irrelevant because it presupposes any and all bidders for the team will submit by that date. That will probably not happen as there may be one or two bidders (or re-bidders) that will not submit to the NHL until May 31st.

The city in an attempt to cover any possible contingency made sure it has an out-clause on page 7 of the RFP, “City reserves the right to amend, cancel or reissue the RFP at its sole discretion. This includes the right to change the Response Due Date and Contract Award Date.”

A scenario could develop whereby a bidder for the team submits after May 31st. If a bid submitted to the NHL after May 31st turns out to be the best bid it will not be influenced by the Beacon RFP deadline and the NHL will be bringing them in tow to meet with whomever in Glendale when they are ready to do so. The NHL certainly hasn’t set an arbitrary deadline of May 31st. Why should it?

Of course, there is the issue of the General Manager’s and Coach’s contracts but unfortunately, they will not be determinants.

approveNo one knows what the bidders’ deals look like except the NHL and no one knows what will be acceptable to it. Maybe the “Shadow knows” (those of you who remember radio shows before TV came along, will recognize the phrase). Without knowledge of the NHL criteria no one knows if there is even a would-be bride out there.

I would think any deal heavily debt-laden with very little equity would make the NHL very, very nervous. No one, least of all the NHL, wants to repeat this ordeal (for that is what it has become) for a very long time. A deal with a lot of debt opens the door for the possibility of a repeat performance.

So we wait. It will happen – or not – when it happens but don’t hang your hat on an arbitrary deadline. It’s like “where’s the pea?” The deadline can be under any of the shells and none of them may be labeled May 31st.

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Norma Alvarez

Norma Alvarez

At the May 7, 2013 City Council workshop during Council Comments and Suggestions, Councilmember Alvarez stepped up to the political plate once again. Her first suggestion was regarding the recruitment of a new City Attorney. She feels council should not recruit for a City Attorney but rather promote from within. She doesn’t want to spend the money. She remarked that Acting City Attorney Nick DiPiazza was doing “a good job” and that the City “should use him.” Now it appears that the city’s Human Resources department will take the lead on this search. Not a good idea. Agendas are rife within the city and will seep into the search parameters. I’ve seen it before. It’s also a bit like asking the fox to guard the hen house. This city needs a set of fresh eyes just as is needed for the City Manager’s position. Her initial thought seemed to spend all of her energy and she drifted off briefly – but wait! She wasn’t quite finished.

PMG 1In one final burst she opened the barn door for the Phoenix Monarch Group (PMG) horse. She has promoted PMG as willingly as her promotion of the Tohono O’odham. If you recall, she brokered a meeting in June, 2012 between this group and former Mayor Scruggs and former Councilmember Lieberman. At that meeting PMG made a pitch to manage Jobing.com for $7M a year while promising to bring 25 events (tractor pulls??). This time she wants council to look at outsourcing special events, marketing and the Civic Center. Obviously the criteria used in selection of a marketing and special events company will determine the Phoenix Monarch Group’s fate. It has been no secret that Alvarez thinks the money spent by the Marketing and Communications Department is wasteful and unnecessary. If there would be one department slated for oblivion it would be this one. After struggling to release her thoughts she mercifully slumped back into somnolence.

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Speculation and a nickel won’t buy a cup of coffee

Posted by Joyce Clark on May 13, 2013
Posted in City of Glendale  | Tagged With: , , , , , | 6 Comments

Coyotes logoI have been following all of the public speculation since the Renaissance group (LeBlanc/Gosbee) and the Pastor group have submitted bids to the NHL. There are some opining right this minute on which bid is better. How can anyone possibly know? There is only one entity, the NHL, that has the complete package of information and they’re not telling. It is interesting, when you think about it, that neither bid has been blessed by the NHL to date. If either bid was that spectacular trumpets would be blaring. I suspect there are a few more bidders out there. Why declare a winner when all of the contestants haven’t signed in yet? Information is leaking slowly like a punctured tire but only the positive stuff that the groups believe will advance their bid before the public eye. That’s not the eye with which they should concern themselves. The Pastor group’s blitz with the media and fans may have earned them a few new friends but not the ones that count.

ouijaUntil such time as we can see whom the NHL blesses and the kind of deal it is I, like everyone else, will just have to wait it out. Some of you will relate to this analogy.  It’s like being pregnant. Your due date is June 1. You’re in the home stretch. You’re tired of being miserable and you just wish this baby would get on with it, quit fooling around and be born. I know the fans are stretched thin and are just wishing this baby would be born. Until then speculation is about as good as using a Ouija board.

Post Script: Just learned NHL rejected Pastor bid. This makes the case that speculation is useless. NHL has their own agenda and will accept a bidder that most closely meets that agenda. Do you know what the NHL’s agenda is? If so, would you please share it with all of us?

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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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convention 2On Friday, April 26, 2013 the Glendale City Council had another special budget workshop. This time their agenda was to revisit the issues of police and fire requests for additional personnel and healthcare premium increases for employees and retirees.

Ms. Sherry Schurhammer once again presented the proposed budget and the cuts recommended for 2015 and 2018. Staff’s recommendation was to deny the police and fire requests for additional personnel and to accept the increased healthcare premiums. Her major take-away is that the city has a structural deficit and acceptance of this budget as proposed was the first step toward eliminating it.

Fire Chief Burdick came back with a revised request for an additional 8 positions and two  fire truck leases. Police Chief Black upped the police ante to 31 positions plus 6 non-sworn positions. Together these two departments requested a new ongoing expense for the General Fund of $5.5 million and a new one time expense of $1.2 million for the General Fund.

For most of the session there was a united front of 4 councilmembers willing to grant the police and fire departments their requests. They were Councilmembers Alvarez, Chavira, Sherwood and Vice Mayor Knaack. Later one of them will break from this pack and change the council consensus and direction to staff-but that’s for later in this blog. Let’s begin with the four’s reasoning for granting the police and fire wish list.

Norma Alvarez

Norma Alvarez

At least Councilmember Alvarez is consistent. She began with remarks like, “a business should be paying for their own” and “ they’ve (businesses) taken a lot.” Make no mistake. She was alluding to the city owned arena. She also suggested that we “forget festivals” and pointed out that Glendale Glitters will cost the city $759,000 to produce this coming year. She even suggested that the funding for Public Safety be taken out of the Enterprise Funds (water, sewer and sanitation). She made sure that everyone knew that “the past is what brought us here” and she’s “not gonna forget the past.” She became confused when talking about crime being up in Glendale. It depends on what kind of crime. Glendale’s overall crime rate is down but certain categories such as theft have gone up.  Apparently the bottom line was that she had received a complaint from a citizen (certainly not vast hoards of people) that a “suspicious activity” call was not answered for an hour. Obviously calls are prioritized. If there is imminent danger to life or a crime is in progress it receives the highest priority, a Number 1 and is answered within 4 or 5 minutes. A call such as she described would receive a priority of 3 or 4 and would be answered eventually when an officer was available. Apparently that is not good enough for her.  It was vintage Alvarez. She blamed others, protected her agenda in the guise of protecting the taxpayer and exhibited her usual amount of confusion.

Chavira photo

Sammy Chavira

We finally saw the true Councilmember Chavira as he stood in support of Alvarez’ desire for more police and fire personnel. He worried about “call degradation.” Bet he couldn’t define it for you. He literally blessed fire and police personnel. Solicitudes were oozing from every pore. He was clearly upset that the police department had asked for more personnel and funding than had the fire department.  Then he spoke the magic word, “parity.” Just to remind you, he is a Phoenix firefighter and is going to push his brother Glendale firefighters’ agenda. He and his brother firefighters positively bristled at the mere possibility that police could end up with “more” than they would. So he suggested that the police personnel request be reduced to 20 personnel thereby reducing the ongoing request to $4 million. Make no mistake. His agenda is to further the desires of the Glendale Fire Department. They own him. Not just because he’s a brother firefighter but because the fire union poured upwards of $50,000 into his campaign. That’s a lot of chump change that Sammy will be paying back for a very long time. What Chavira did was not helpful. He widened minor disagreements between fire and police into the size of the Grand Canyon. It has now surfaced like an unwanted boil on your backside.

Martinez photo

Manny Martinez

Councilmember Sherwood offered some well thought out questions and clearly supported the police and fire requests. He, at the end of the session, still felt that if the city paid less back on a loan it has with the Enterprise Funds, the city could pay the additional costs of these requests. Councilmember Martinez stuck to his guns and simply made the point that it was not appropriate to grant these requests and that they “were not in a popularity contest.” He also said it was not productive to continually go back to the past and to point fingers. Councilmember Hugh was silent until the end of the session.

Knaack

Yvonne Knaack

Vice Mayor Knaack made it clear she was in public safety’s corner when she said the defeat of Proposition 457 (would have allowed the removal of sales tax increase) was due to Public Safety’s efforts.  She said that voters defeated it because public’s perception was that its defeat would preserve Public Safety. I know that is the message that police and fire were using in their campaign to defeat Prop 457. All that I can say is that at the very least, Councilmember Martinez and I made it very clear, often and quite publicly, that its defeat would prevent the city from making draconian cuts to this year’s budget and buy the city time to make more temperate cuts over the next five years. We both repeatedly referred to the city’s structural deficit. We did not say it would save fire and police jobs. We said it would save the city from having to make major personnel cuts to any department but that cuts would still be needed.

The issue of the proportionality of public safety sales tax was initiated by Vice Mayor Knaack. The voter approved tax calls for proportionally 1/3 to fire and 2/3 to police.  This will surface again but I think council will find that changing the proportionality of the tax is far more complicated than they know. She also publicly acknowledged that the arena management fee could very well be higher than the $6M in this budget.

Perhaps the surprise of the session was comments made by the Fire Chief. He said $1.2M to $1.3M was needed to insure “constant staffing” within the department. One would think that would be his first priority within his department budget. He also indicated that he would have “no problem shutting down a truck” to cover his department’s overtime. He virtually threatened council with his observation that they will have to make policy decisions regarding fire next year. He followed that by saying he would close a fire station if fire was not adequately funded. The nut is the definition of “adequately.”

Weiers

Jerry Weiers

Mayor Weiers also offered some rather interesting remarks. He noted “the angst between the fire and police departments.” He also said that the previous council should have stayed with the 1.2% sales tax increase across the board rather than the 7/10s in place now.  He then called for council to express their final positions so that consensus could be achieved and direction given to staff. It broke Alvarez-Chavira-Sherwood-Knaack in favor of increased revenues to police and fire. Weiers-Hugh-Martinez were opposed and wanted to accept the staff recommendation. It appeared that fire and police had won the day but wait…

Bowers

Dick Bowers

Interim City Manager Dick Bowers responded with “there is no money to find” and the proposed budget as presented is a “sound and reasonable approach.” He indicated that if council gave direction to accede to police and fire requests, cuts to all other departments would be “surgical.” It was then requested that council identify which departments they would like to see eliminated to meet the police and fire financial requests. Council then spent 5 or 10 minutes reading the material related to departments other than fire, police or enterprise departments. It was embarrassing painful to watch but  reality set in when they realized how much would have to be cut. Vice Mayor Knaack finally broke and changed her direction in support of the staff recommendation. Chavira made one stab to try to get her back into the fold and she responded with, “I have the right to change my mind.” It was a tough decision to make but she did the right thing.

Two important lessons surfaced from this workshop. A majority of this council has not accepted that there is a structural budget deficit and expenses are outstripping revenues; and fire has bared its teeth with dire promises to delivery service if their demands are not met in the next year’s budget. Mayor Weiers, Councilmembers Martinez and Hugh are to be commended for holding the line and accepting that budgetary expenses must be pared and pared now.

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Daly

NHL Deputy
Commissioner
Bill Daly

Here is the verbatim transcript of an April 29, 2013 interview with Deputy NHL Commissioner Bill Daly regarding Coyotes’ ownership from Sportsnet.com. I do not know the names of the two gentlemen that anchored the show on Hockey Central. I will refer to one as Anchor 1 (A1) and the other as Anchor 2 (A2). I refer to Bill Daly as BD. The link for the video is http://www.sportsnet.ca/hockey/nhl/bill-daly-on-hc-noon/ . It starts at about the 8 minute mark and the Phoenix Coyotes discussion lasts for about 3 minutes. My commentary follows the remarks made.

A1: “Couple of things we have to get to…Phoenix. Are you any closer?”

BD: “Yep. Look, it’s still a work in progress. There’s still a lot of work to be done. Um, but it’s still something that we’re diligent about trying to complete.”

A1: “Is it safe to say it’s not going to be a deal that’s ideal for you but it will be the best case scenario to keep the team in Phoenix?”

BD: “If we can get it done.”

A1: “It’s something…”

BD: “Again, we’re still trying to get it done and there’s a big, a big question mark still out there. We still have to deal with the City of Glendale.

This is an understatement. In the city council’s budget workshop of April 26, 2013 the figure that will be used in the approved Fiscal Year 2013-14 budget is $6M annually. There is still considerable doubt that this figure will be acceptable to any prospective buyer of the team.

A2: “This big notion that the team is essentially almost given to these people and they’re allowed to give it back in three years time. Is there any truth?”

BD: “Well, they’ll buy it.”

A2: “Yeah, they’ll buy it for peanuts.”

BD: “No. They don’t have the ability to give it back.”

The idea that the team would be given back has never surfaced. The question unasked is what is the NHL’s position on relocation of the team?

A2: “So, is this team going to be in excess of $150M, sold for?”

BD: “Yes.”

A2: “It will be sold for?”

BD: “Yes.”

A1: “Is there a guarantee that they play in Phoenix next year?”

BD: “Uh, no. There’s no guarantees.”

A2: “If this deal is done would they be in Phoenix?”

BD: “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. 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”.

The rumor that LeBlanc/Gosbee has a deal sewn up is just that, a rumor perpetuated by Mr. LeBlanc. Mr. Daly indicates that the NHL is talking to various groups and there is no exclusivity for anyone.

A1: “Are you ahead of where you were a few years ago when it looked like Phoenix was going to Winnipeg? I mean that was all but done. Are you ahead of that pace or about the same?”

BD: “I’m not sure how I answer that question. I mean, the, uh, I think, uh, we were very close to selling this team a couple of times and some unforeseen circumstances, uh, kept it from happening. Uh, that’s why I’m the first person who can’t give any guarantees on any result here. Um, you know and at some point in time, you beat your head against the wall enough times you have to try a different hole. You know I used to be a running back. I used to beat my head against the line a couple of time and then I had to try a different hole.”

That “different hole” that Mr. Daly is referring to appears to be consummating a sale with the NHL and then presenting it to Glendale, to accept or reject.

A1: “What happens first? The Olympics or Phoenix? Resolved?”

BD: “Um, well, the final resolution? Uh, I think we’ll in a position to make a recommendation to our Board before, on the Olympics, you know, before we have a closed transaction in Phoenix. That’s not to say there could be some announcements saying this is what we’re trying to get done in Phoenix before then.”

 It appears that the NHL still has a long way to go before any announcement of sale is made.

A2: “How much money has the League invested in Phoenix to this point? Like what would you have to sell that team for to break even? On what you’ve lost on this transaction?”

BD: “It’s a complicated question. I can probably take you through it and get to an answer.

A1: “The $25M a year from Glendale has helped.”

BD: “But I don’t intent to (referring to how much has been lost). Of course (in response to the $25M from Glendale).”

Glendale’s infusion of $25M annually for 2 years has virtually guaranteed that the NHL did not lose money in attempting to secure an owner.

Interview then moved on the Stanley Cup….

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A bittersweet season

Posted by Joyce Clark on April 28, 2013
Posted in City of Glendale  | Tagged With: , , , | 3 Comments

Coyotes logoLast night I watched the last Coyotes game of this season on television. The team ended on a high note by beating the Anaheim Ducks. I am an unabashed “newbie” to Coyotes hockey. Although they had been playing in Glendale since 2003 I was consumed with my duties as a Councilmember. I barely knew they existed despite season after season of games played in our city-owned arena.

Then disaster struck in 2009 with the Moyes’ bankruptcy. Suddenly I was reading countless Memoranda of Understanding, meeting potential owners, and rereading old as well as newly drafted arena management agreements. Council meetings lasted long into the night as each potential owner was brought forward and Coyotes fans and opposition contingents spoke before packed Council Chambers. All failed. Still, even with my sudden immersion, I was not a fan—until April and May of 2012—playoff season. As a councilmember I had the opportunity to attend those games and to meet the players, the coaches and the support staff.

All of a sudden I became a fan. One could not help but become one. I met young men filled with passion and pride for their sport. I’ve met football players, basketball players and baseball players and none meet the standard of grace and dignity that I saw in these men – these hockey players. (I will add one disclaimer. Larry Fitzgerald also epitomizes that same grace and dignity. Someday I will do a blog on pro athletes and their lack of respect for the very fans responsible for their status.) This Coyotes team showed me that they respect their sport and that their fans are an important part of the game. From Shane Doan taking time after a game to visit with fans, especially the youngest of them to Paul Bissonnette sponsoring a group of underprivileged kids to a game. I talked to Don Maloney and Dave Tippett, both highly skilled professionals and outstanding ambassadors of their sport. I talked to members of the support staff who come to work because they love their jobs and assisting these men in their quest for excellence. I got to know Mike Nealy and Jim Voss, who despite ownership uncertainty have incredibly increased the fan base and game attendance. I respect what they have been able to achieve.

Now it became important to me to insure that the Coyotes stayed where I believed they belonged. They are an asset to this community and can contribute to making a difference in the lives of many. I felt sure we were about to welcome Greg Jamison as the new team owner. The man impressed me not just with his business acumen but with his passion for the sport. Trust me; I have learned that it is an unusual combination. It was not to be and I left my office this past January with ownership still in turmoil feeling frustrated and angry that there was no resolution.

I do not know who the NHL will choose as the new owner but it discomfits me that the decision will be based on what I believe will be exclusively dollars and cents. There should be extra points awarded for intangible qualities that rise above the “bottom line.” Instead I see some potential owners-not all-who consider buying the team wholly as an investment opportunity.  They and their investors expect a substantial return on their investment. I have not seen their passion for the sport.

It is akin to a great chef or artist. They don’t become great because of their skill in the use of fundamentals. Thousands of people learn the fundamentals and never rise to greatness. Those that do become great do so because their passion for what they do causes them to transfer that passion to us in a tangible fashion that we can understand and appreciate. That is what a new team owner must also do – transfer that passion to us in a tangible fashion causing us to be as excited about the team and its future as we, once upon a time, had been. The promise is there, just below the surface, awaiting an owner who believes as we have always believed. It is awaiting an owner who can successfully transfer his passion and belief in the team’s greatness to us. Perhaps I am being Don Quixote-ish. Perhaps I am hoping for a miracle but miracles do happen.

We end this bittersweet season in limbo, not knowing if that was indeed the last game here for the Coyotes. I read the unspoken and unanswered question in recent expressions of fan appreciation for a season, too short, just passed. I read their bravado expressed in the belief that the Coyotes will return next season but underneath it all was a current of wistful uncertainty. I saw and heard it in the faces of and in the voices of Tyson Nash, Todd Walsh and Matthew McConnell, at the end of the last televised game. Not daring to talk about ownership. Not daring to wonder if the team would be playing here in October and acting as if this would be just the end of a regular season and not the end of our Coyotes.

Believe ringIt is as if everyone with a commitment to this team has suffered death by a thousand paper cuts and yet, all have remained resilient and survived. It has survived because of the indomitable spirit of the players, coaches and staff who daily rose above the uncertainty. It has survived because WE BELIEVE… that the Coyotes will stay here…in the desert.

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Since the Tohono O’odham announced its 2009 plan to put a casino within Glendale on a county island I have done a great deal of research on the effects of a casino. In 2010 I found a series of columns from April and May, 2010 written by Jim Marino, Guest Columnist for the Santa Ynez Valley Journal, California. His findings are stark and troubling and so eerily similar to the findings of others that I wanted to share quotes from his series. My comments, relating to Glendale, follow the quote in red.

casino 1“These casinos were thrust into communities under the claim the federal Indian Gambling Act [I.G.R.A.] and the state compacts made them a “done deal” and the local communities had nothing to say about it.”

I.G.R.A. when all is said and done may be the nail in Glendale’s coffin.

“But if they didn’t oppose them, these local communities might get some of the gambling dollars in lieu of the many taxes local and state government could not collect. If the local government did not cooperate, on the other hand, they would get no money and often would be accused of being anti-Indian racists and insensitive to the plight of “Indians” in America. After wielding this political stick, these gambling investors and tribes would then wave the carrot, telling local government they would create “jobs” and thus be a great benefit to the community.”

I have been accused of being an anti-Indian racist insensitive to the treatment of Native Americans at the hands of the White Man because I have voiced my opposition to a casino within Glendale’s borders. Does any of this sound familiar? When all else fails to persuade use the promise of jobs.

“The tremendous costs of providing public services like police, fire, schools, jails, hospitals, public works, social services, etc., used regularly by Indian casinos and related businesses, and the demands placed on infrastructure like roads, bridges, public buildings, and other facilities, are all paid for by the non-Indian taxpayers because these tribal businesses are exempt from property taxes, bed taxes, sales taxes, personal property taxes, corporate taxes and state income taxes among others.”

Fact. City staff reported long ago that Glendale taxpayers would pick up the cost of another water treatment plant specifically needed to handle the increased demand that would occur because of the casino.

roads 2“The amount of money that trickles down into the local economy from the salaries of employees and the costs of goods and services is nowhere near enough to make up for lost tax revenues or to pay the tribe’s fair share of the costs to the community for increased demands on public services and infrastructure. Neither are the occasional gifts tribes like the Chumash make usually to the police or fire agencies which gifts are often less than the $2 million the tribe still receives in federal welfare and grant monies every year. “

8% of specified gaming revenues are required by law to be granted by the Tribes to non-profit organizations. Even if every dollar of that 8% could go to Glendale it would not meet the costs Glendale taxpayers will have to bear to support this casino.

“Another economic myth is that by calling the casino a “resort” it will somehow become a destination location for tourists. This myth is debunked by several studies showing the vast majority of gamblers come from a one- to two-hour drive or fewer than 50 miles and come to gamble only.”

This fact is borne out by many other studies. It also explains why the Tohono O’odham, upon their consultant’s advice, rejected the possibility of a casino in Buckeye.

gambling 1“Therefore, an Indian casino essentially siphons dollars from the immediate surroundings. Those are dollars and local monies not spent in other non-Indian businesses and entertainment venues where such discretionary income would otherwise be spent. Non-Indian businesses nearby often cannot compete with an Indian business that pays no taxes, is exempt from state and local laws, rules and regulations workers compensation and public liability insurance and cannot be sued for any of its misdeeds, no matter how outrageous they may be.”

Many have said that the casino will take business away from the hotels and restaurants in Westgate. Right now there is a television ad running for Fort McDowell Casino that offers a $7.99 prime rib dinner on Tuesday nights. There is no way a Yard House, Margaritaville or Gordon Biersch could compete with gambling subsidized meals offered at a casino.

construction“One of the common methods that gambling promoters and investors, using an “Indian tribe” as a front to introduce gambling casinos into a community, is the promise of “jobs.” Often they target communities that are economically depressed because they know local government, unions, Chambers of Commerce, businesses and others often jump at the chance for anything that creates ‘jobs’.”

The TO has done exactly that-with the promise of jobs in Glendale as a means of mitigating its current financial difficulties. It is a siren song the TO hope will not be ignored and uses consistently to gain support among the general public for its proposal.

RoveyFarmEstates“There are casinos that have ruined entire residential neighborhoods like the San Manuel Casino rising above single-family homes in a housing tract, which homes then lost most of their value because of the nearby gambling operations. Neighbors complained about noise, traffic, drunkenness, open drug trafficking and even having to pick up beer cans and used hypodermic needles from their front lawns.”

There are nearly 10,000 people living in the immediate vicinity of the proposed casino with over 600 apartment units immediately south and over 900 homes immediately east. Their property values are in jeopardy.

contract“ People who dealt with or entered into contracts with these casino tribes and businesses found out that if the tribe stiffed them for the bill, they could not sue, again based on the court-created doctrine of legal immunity for Indian tribes and their businesses discussed in last week’s article.”

Based upon the manner in which the TO purchased the land secretly and then held it for 6 years, I would be reluctant to trust any relationship with them. Add to that the fact that the TO’s sister tribes feel betrayed by the TO’s denial of a seven casino limit in the Phoenix Metro area as promised with the voter approved Gaming Compact.

“This use of the tribal legal immunity doctrine to evade legal responsibility is one of the most flagrant and outrageous impacts of Indian gambling and business expansion. This doctrine is exacerbated by the fact that these tribes, their casinos and businesses, can also operate outside of all state and local laws (except alcohol-control law). Laws that were enacted over many years to protect customers, workers, the environment and quality of life.”

In Arizona the only control over Tribal casinos is the state’s Gambling agency.

crime 1“Virtually every casino community has now experienced increases in crime ranging from shoot-outs, murder, theft, robbery, embezzlement, gang activity, substance abuse and drug trafficking, drunk driving, auto accidents and fatalities, gambling addictions, credit problems and bankruptcies, family neglect, even suicides, and the list goes on. Recently, Highway 154 ominously being called “the Chumash Highway” has experienced several auto accident fatalities, not to mention the officially unexplained suicide jumpers from the Cold Springs Canyon bridge. Only a few weeks ago, a gang shoot-out erupted amongst the slot machines at the Jackson Rancheria casino located in Amador County.”

While these experiences occurred in California, there is the common thread of increased crime resulting from casinos.

“Not long ago, Sheriffs deputies were involved in a running gun battle outside the Soboba Casino where at least two suspects, who were tribal members, were shot and killed and the Sheriff refused to respond to calls there anymore. One deputy Sheriff working a special overtime detail at the Chumash Casino in Santa Ynez arrested 36 drug violators in only six weeks time, most of them felonies involving methamphetamines being used, possessed and sold around the casino.”

Since the land in question is a County Island and if the TO are successful in establishing a reservation neither the County Sheriff’s Office or the Glendale Police Department would have authority to respond to any criminal activity on the reservation unless specifically requested by the TO. I suspect the TO will not do so as it would provide an opportunity for negative publicity.

thief“In another case, an elderly couple were walking in the parking lot of another Southern California Indian casino near San Bernardino and a thief whizzed by on a motorcycle and snatched the woman’s purse in the parking lot. The motorcycle grazed their car during the theft. They reported the incident to casino security guards, expecting that the crime would be reported to the Sheriff’s Department. They found out later, when they made an insurance claim for the damage to their car, this incident was never reported to the police. This is but another of the many negative impacts of Indian casinos, the fact that the primary duty of Indian casino security staff is to conceal any negative incidents that occur or insinuate the false claim that some kind of “sovereign status” permits them to deal with criminal acts when it does not.”

When you enter the reservation you do so at your own risk.

tv“Another problem is the failure and refusal of many local media outlets to report the crime, corruption and negative incidents occurring regularly at Indian casinos because those casinos are the biggest television, radio and newspaper advertisers they have. So the so-called “free press” has in effect, been co-opted by the fear of offending these gambling casinos who are their best advertising customers.”

This is a genuine concern. The Tribes advertise their casinos on television incessantly. One of our television stations, Channel 12, is connected to the Arizona Republic. Neither of these two giants of media are going to jeopardize their revenue streams by going negative. When was the last time you remember any media reporting on the use of the Tribal land, just north of Arizona’s southern border, as an open conduit for drug smuggling or illegal border crossings?

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