Sep 22

9

Another commentary on the Coyotes saga

Posted by Joyce Clark on September 9, 2022
Posted in Arizona Coyotes • City Council Actions • City of Glendale • Gila River Arena • Glendale elected officials | Tagged With: Arizona Coyotes, City of Glendale, City of Phoenix, City of Tempe, District 26, proposed Coyotes arena, Representative Athena Salman | No Comments yet, please leave one

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.

Today a friend sent me a link to an Arizona Republic Opinion column published on September 9^th and written by State Representative Athena Salman. Representative Salman represents State Legislative District 26 which encompasses north Tempe and includes the area of the proposed Coyotes’ arena. Here is the link: https://www.azcentral.com/story/opinion/op-ed/2022/09/09/arizona-coyotes-entertainment-district-raw-deal-tempe/8017122001/ . The title of the opinion column is, Arizona Coyotes gave Glendale a raw deal. And Tempe wants to repeat it?

In her column Representative Salman reiterates much of what I have already said about the proposed Coyotes deal. Here are some excerpts from her opinion piece:

“What they don’t share so openly is that they’re also requesting either a 30-year and an 8-year government property lease excise tax (GPLET), to the tune of more than $649 million in tax abatements, or a 65-year and an 8-year GPLET that would total over $1.1 billion in tax abatements.”

What this means to the Tempe taxpayers is that the Coyotes are seeking a handout valued at $649M to $1.1B in tax forgiveness. In other words, this represents a loss of money earned for Tempe taxpayers that could be used for all kinds of projects and programs for citizens. This belies their repeated mantra that they are financing the project totally.

Representative Salman goes on to say,

“And then there’s the Coyotes’ dishonorable fiscal track record under current owner Alex Meruelo, who took over the franchise in July 2019.”
“Is this really the kind of corporate behavior the city of Tempe wants to be rewarding for the next 30 to 65 years?”

This is a fair question.

Another issue Representative Salman did not mention is the intensity and height of construction, especially the apartment buildings and their effect on Sky Harbor’s operations. There is a 1994 agreement between Tempe and Phoenix designed to ensure both cities mutually protect the integrity of Sky Harbor. Phoenix has publicly stated that the Coyotes’ proposed project is in violation of the 1994 agreement which could result in court action.

I agree with Representative Salman’s take on the proposed Coyotes deal. She is merely saying what many others have said. There’s the adage, those that do not study history are doomed to repeat it. I suspect the Coyotes deal appears to be irresistible to some on Tempe’s city council. Are there enough councilmembers to approve the deal? I have no idea, but I hope they take the time to learn valuable lessons from Glendale’s experience.

There are a few avid fans who regularly feel compelled to berate me because I dare to write about the Coyotes. I guess it’s easy for them to forget that I was involved with the Coyotes in Glendale from the very beginning. I was at one time, heavily invested in the team and fought hard to keep them in Glendale through some very trying and turbulent years. After some time, it gets old when there are musical chairs regarding ownership, each successive owner with his own agenda that often did not coincide with that of Glendale. Why shouldn’t I blog about them?

I ‘ve earned the right to do so.

^{© Joyce Clark, 2022}

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Jun 22

4

Coyotes’ fans…don’t count those chickens just yet

Posted by Joyce Clark on June 4, 2022
Posted in Arizona Coyotes • City Council Actions • City of Glendale • Gila River Arena | Tagged With: Alex Meruelo, City of Glendale, City of Tempe, Community Facilities District, Coyotes, NHL, Sky Harbor Airport | No Comments yet, please leave one

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.

I would remind Coyotes fans that in 2010 and 2011 the City of Glendale paid the NHL $25 million a year to keep the Coyotes in Arizona. I guess no one remembers that if Glendale had not paid the NHL the team would have been sold and probably relocated at that time.

During that time fans heaped praise on Glendale and there was no lamenting of traffic difficulties in getting to a game in Glendale. My, how times have changed. The most often heard refrain today has been that it is too difficult to get to Glendale. That seems to be the owners and fans rationale for moving out of Glendale.

The fans have traded $25 dollar tickets and traffic inconvenience for $500 tickets and equally vexing traffic inconvenience. They will trade traffic at the Loop 101 for traffic at the Loop 202.

There are three major issues that it is believed will have to be satisfied if the Coyotes hope to locate in Tempe.

The first is the Coyotes’ proposal that Tempe pay $200 million to clean up the site. They propose a Tempe Community Facilities District. In essence, Tempe bonds for the $200 million which would be repaid by using the sales tax generated on the site for approximately 20 years or until the bonds are paid. In essence, Tempe taxpayers see no new revenue from this development until the bonds are paid and are not benefitting from the sales tax generated by the proposed project.

I would also historically point out that Steve Ellman when seeking City of Glendale financing to build the Gila River Arena represented development of over 1.2 million square feet that would generate enough sales tax to satisfy the annual debt payment. After 5 years there was only about 1/5^th of the proposed economic development and that did not generate enough sales tax to pay the annual debt payment. The same scenario could be repeated forcing Tempe to use General Fund dollars to cover the short fall in the annual debt payment.

There has been talk that if the Tempe Council approves the development there will be citizen referendum petitions. If that occurs and enough signatures are acquired, it will put the project on the ballot and the voters of Tempe would decide whether the project moves forward. If this were to occur, add another year of uncertainty.

A second issue is the Coyotes’ proposal to construct 1,600 residential apartment units on the site. These residential units would be directly under Sky Harbor’s flight path. Recently four former Phoenix mayors offered an OpEd on this issue. Here is the link: https://www.azcentral.com/story/opinion/op-ed/2022/06/01/tempe-plan-arizona-coyotes-spells-trouble-sky-harbor-airport/9996700002/ . A little background is in order. In 1994, Phoenix and Tempe entered into an Intergovernmental Agreement (IGA). The purpose of the IGA was to stop residential development under Sky Harbor’s flight path. The concern was and is, that these new residents would complain about the noise generated by takeoffs and landings (at roughly one every minute). Residential complaints would most certainly have an impact on Sky Harbor’s continued and future development.

The four former mayors said, “For more than 25 years, Sky Harbor’s growth, expansion and development plans have been made with the IGA and adherence to its prescribed eastbound departure path in mind.

Tempe even appointed its own aviation commission to ensure that the terms of the agreement remain viable and enforced. All of this to protect Tempe neighborhoods from the life-altering experience of having a flight path directly over their homes.” They go on to say, “These residential units are proposed to be built directly under the very flight paths that were created by the intergovernmental agreement to protect Tempe residents.

As previously communicated by the Federal Aviation Administration, the Air Line Pilots Association, the airlines themselves and by the professional management of Sky Harbor, no residential development can be permitted in this area – less than 10,000 feet from the end of the two south runways – without compromising those flight paths and significantly threatening the airport’s continued operation and future growth.

As community leaders who embrace cooperation and compatible growth, it is essential, if the entertainment district proposal moves forward, that all residential development be removed from consideration.”

When you think about it, it won’t just be the 1,600 residences that will be impacted by the noise but really, everything on the site will experience the noise…people working in offices on the site and the fans while attending a game. Without the residential units, projected to earn income, is it still a viable investment?

The last and perhaps the most important issue to be considered is money. At the Tempe City Council’s June 2, 2022, meeting when approval was granted 5 to 2 to continue to negotiate with the Coyotes, one of the Tempe councilmembers publicly offered a slide depicting Dun & Bradstreet’s financial rating of the Coyotes, Alex Meruelo and associated affiliates. Here is that slide:

It’s not pretty. Tempe staffers circulated a Memo to the Tempe city council revealing staff’s rating of the proposed project. Here is the link: https://www.azcentral.com/story/news/local/tempe/2022/06/01/tempe-memo-gives-coyotes-proposal-low-marks-financial-strength/9973803002/ . In the Arizona Republic’s article about the memo it states, “On the financial front, a city memo released ahead of the June 2 City Council vote gave the team’s plan a 40% score for “financial strength/ability,” the lowest mark on the six-category evaluation completed by city staffers.”

To be successful and move forward the Coyotes will have to give up its ‘ask’ of $200 million from Tempe and its taxpayers, remove the 1,600 residential units to ensure continued viability of Sky Harbor Airport and ensure that a team that has lost millions of dollars year over year has the necessary guaranteed financial stability to successfully undertake a nearly $2 billion development. As Tempe has stated it will be months before the final decision is made and satisfactory answers to these three issues should be the basis for their decision.

^{© Joyce Clark, 2022}

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May 22

11

Crystal Lagoons morphs into VAI Resort

Posted by Joyce Clark on May 11, 2022
Posted in City issue and actions • City of Glendale • Gila River Arena • Glendale Economic Development • State Farm Stadium • Westgate • Yucca district | Tagged With: Crystal Lagoon, The City of Glendale, VAI Resort, Westgate | 3 Comments

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.

I’ve wanted to write this blog for several weeks but as city council work becomes more complex and time consuming, it leaves very little time for writing.

There were a flurry of press releases issued several weeks ago as well as discussion about the development at Tuesday’s, April 26^th City Council workshop meeting. In case you missed it, here is what is happening to Crystal Lagoon.

The location of the development is at the southwest corner of 95^th Avenue and Cardinals Way. It is just south of the State Farm Stadium. When the project was first announced and approved by council in June of 2020, as Crystal Lagoons Island Resort a 600-room hotel was envisioned with a lake area with white sand beaches, office, and retail space, a 100’ tall Aero Bar and a 400’ tethered balloon and a Mattel Amusement Park.

Two of the principles, Glen Bilbo, and Tommy Fisher, were involved in the project from the beginning. Tommy Fisher, a long-time resident in the Valley, has now taken over the entire project. Mr. Fisher is well respected in the development community.

Mr. Fisher and his son, Grant, reevaluated the project concept and in fact, have reimagined and upgraded it. The project is now called VAI and the VAI hotel has grown from the original concept of 600 rooms to 1200 rooms, making it the largest resort hotel in the state. I asked Mr. Fisher if their intent is to develop a 5-star hotel and he affirmed it that it is.

In essence, the office space and a substantial portion of the retail has been removed to make way for the larger hotel. There will be the main hotel and in essence, two annexes. All will look the same and offer the same level of service. There will be about 13 upscale restaurants on site as well as a “knock your socks off” wedding chapel. There will also be meeting and convention space.

The major emphasis will be on presenting live, musical events with plans for more than 100 events each year with well-known performing artists. Those who book rooms will be able to see the live concerts from the hotel where they will be performed on an island that faces the hotel. The live musical theater on the island will be able to rotate 360 degrees.

VAI Resort Hotel

One interesting feature will be a tunnel system able to accommodate service carts that will be used by employees to get from one structure to another. There will be some parking on site in the form of a parking garage for hotel visitors and overflow parking will be available on the city’s black lot on the east side of 95^th Avenue.

The Aero Bar and tethered balloon concepts remain as does the Mattel Amusement Park under the management of Glen Bilbo. The Amusement Park, however, has nearly doubled in size.

All of the changes have affected the timeline for the project. The goal was to have the hotel open in time for the Super Bowl but with its expansion, the more realistic timeline has the hotel opening sometime between March and May of next year.

In summary the VAI Resort will include:

A 7-acre water way with sandy white beaches.
A 52,000-square foot man-made island.
A 360-degree, rotating concert stage.
More than 1,200 hotel rooms.
170 stage-facing hotel rooms.
A 20,000-square foot spa and wellness center.
A wedding chapel.
A massive helium balloon that will take visitors nearly 400 feet into the air for an aerial view of the Phoenix area.
Aerophile’s Aerobar, a space that will offer food and drinks at 130 feet in the air, giving customers a high-up view of the Valley.
A 4D theater and a “fly theater,” similar to the “Soarin’ Around the World” ride in Disney’s California Adventure theme park.
Luxury retail shops.

In essence, many of the original deck chair concepts are still there. They have just been rearranged. The original principals involved in the project are still there as well. Their areas of responsibility have been rearranged too.

Make no mistake. This is an ungraded development that will still market itself to families to attend the Mattel Amusement Park but now it has branded itself beyond that concept. The live musical entertainment 100 days a year at a 5-star resort offering unique restaurant and retail concepts has taken the development to a whole new level.

This development enhances the Westgate area as it offers yet another recreational opportunity for Glendale’s premier experiential retail site. Music, sports and entertainment…the Westgate area has it all. There is no other area in the state quite like the Westgate area.

I continue to say that this is the most impactful project not just for Glendale, the state or the southwest but internationally. International visitors will be eager to enjoy a new destination/entertainment experience that offers something for everyone. As the development’s greatest cheerleader, I am eagerly awaiting its opening as well as everyone’s reaction to this blockbuster project.

^{© Joyce Clark, 2022}

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Mar 22

30

Crystal Lagoon Island Resort taking shape

Posted by Joyce Clark on March 30, 2022
Posted in City issue and actions • City of Glendale • Gila River Arena • Glendale Economic Development • State Farm Stadium • Westgate • Yucca district • Zanjero | Tagged With: City of Glendale, Crystal Lagoon Island Resort, dining, Grant Fisher, hotels, John Keenan, live entertainment, Mattel Amusement area, shopping, stay-cation, Tommy Fisher, water feature, Yucca district | No Comments yet, please leave one

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.

On March 29, 2022, I had the distinct pleasure of a site tour hosted by the gentleman responsible for the entire project, Tommy Fisher. He is responsible for all construction as well as securing the funding. On a previous visit I had the pleasure of meeting his son, Grant Fisher, and John Keenan. Grant is responsible for everything else having to do with the project and John is Chief Marketing Director. I also met the gentleman in charge of all the electrical work and the gentleman responsible for furnishing the entire complex including each hotel suite. All of these people are an amazing team.

When you use the live, remote camera for the site: https://app.truelook.cloud/dashboard/553/923/live?code=15hm7ev0xey9jmgpfyf2jd9e0&fbclid=IwAR2VhkoN56nBnnmqMouCzAWFM9BHxtvSmNlj83REtd_D2fuA3g9vdeZ-SAY one gets a rather static view because the camera is pointed in one direction and does not move.

Hotel construction

On this visit I was able to view the entire site and took some photos. The main hotel and its two satellite hotels comprising nearly 1,000 rooms, will all have the same feel and the same features and furnishings. So if a guest is in the main hotel or one of the two satellites, the experience and ambiance will be identical. From the seventh floor you can look in any direction and see incredible views of mountains in the distance. Looking east, you can see the downtown Phoenix skyline and Camelback Mountain.

Looking south

The hotels are well underway, and the southeast wing of the main hotel is in the lead and has had the most work done with electrical and plumbing now being constructed in each suite.

I learned about the red cabling added to a floor before the concrete pour and learned that this is

Flexible strengtheners under concrete flooring

a flexible strengthening element for each floor. I also learned that the main hotel is actually 3 separate buildings although that will not be discernable when construction is complete. The reasoning is that if there ever should be a failure of some sort in one of the three, it will not affect the other two.

Concrete batch plant

Did you know that the project has its own concrete batch making facility? Because of the extensive use of concrete, it became more cost effective to provide their own concrete on the site and cuts the time delay of waiting for multiple deliveries per day.

The last feature that will be constructed is the water feature. That’s understandable when you realize that every element of the site is being used by construction vehicles or for storage of construction materials.

Right now, there are about 1,000 construction workers on the site. If you view the on-site camera, it doesn’t seem so but most of them are working within the interiors of the buildings. When fully built out, this complex will employ about 2,000 people. These statistics should give you some idea of the size of this project. It is complex and vast in scope. Just imagine building a small village in a year.

Ramp to one of the underground parking areas

I also learned that the entire project will have a tunnel system beneath it for employees and service workers to get from one place to another, large enough to accommodate service vehicles. There is also underground parking on site for hotel visitors. Single daytime or nighttime visitors will be able to park in the city’s “black parking lot” directly east across 95^th Avenue.

They are also working on a possible gondola system, cooperatively run by this project and the major stakeholders in Westgate and Zanjero…perhaps with a connection to the Desert Diamond Casino. This concept has not been solidified yet and all parties are in the talking stage. Imagine being able to be transported by a skyway gondola from Crystal Lagoon to Tanger Outlets to the Gila River Arena, the State Farm Stadium or over to the casino. Amazing if it becomes a reality and somehow or another, I bet that it does.

Just imagine a ‘stay-cation’ for several days or a week. You can use the water by day, shop and dine at exclusive retailers and restaurants or take your children to the Mattel Amusement area and that night from your suite view a headline musical performance at the theater island facing the hotel. You might attend an NFL game or play the slots at the Desert Diamond Casino. There will certainly be a variety of ways to spend several days recreating, dining, or enjoying a variety of entertainment venues.

I do have breaking news. On April 12^th, Tommy Fisher and his team will be making a major announcement about this project. I know about it but if I told you now, they would shoot me. It will be exciting news and I will share the good news as soon as I am able to do so.

As I have said repeatedly, this will be the most impactful experiential retail and entertainment destination not just for Glendale and the State of Arizona but for the entire southwest region of the country. I expect we will see visitors not just from other parts of this country but visitors from all over the world. This project solidifies Glendale as a premier vacation destination as it is unique in so many ways.

I am excited to be the Councilmember representing this area, the Yucca District, and to welcome Crystal Lagoon Island Resort and I think you will as well once you see and experience the site when completed. I know this sounds trite…but it’s gonna knock your socks off!

Stay tuned for Mr. Fisher’s announcement in about 2 weeks sharing his exciting news about this truly unique project. I promise that you will not be disappointed.

^{© Joyce Clark, 2022}

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Mar 22

23

More Good News in Glendale

Posted by Joyce Clark on March 23, 2022
Posted in Barrell District • Cactus District • Camelback Ranch Spring Training Facility • Cholla District • City Council Actions • City issue and actions • City of Glendale • Gila River Arena • Glendale and the NFL Super Bowl • Glendale Economic Development • Glendale elected officials • Glendale finances • Glendale zoning issues • Luke Air Force Base • Ocotillo District • Sahuaro District • State Farm Stadium • Westgate • Yucca district • Zanjero | Tagged With: "New Froniter", Bell Road corridor, City of Glendale, Oasis Water Treatment Plant, public safety mobile command center, Pyramid Peak Water Treatment Plant, Senator Mark Kelly, Westgate Zanjero | No Comments yet, please leave one

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.

The good news for Glendale just keeps coming and I wanted to share the news with you. On Friday, March 18^th, the Mayor, I and city councilmembers welcomed Senator Mark Kelly to our Oasis Water Treatment Plant to recognize and thank him for his successes in acquiring federal funding for Glendale-specific projects. He lobbied and secured $2 million in federal funding for the city’s water interconnect project which will provide water from Peoria and Phoenix should there be an emergency and we have to shut down the Pyramid Peak Water Treatment Plant.

Senator Kelly was also successful in securing $710,000 in federal funding to replace Glendale’s 20+ years old, public safety mobile command center. Thank you, Senator Kelly. Each of these is a critical project for Glendale and we are pleased that each of these projects can now be realized.

Two more blockbuster developments are coming to Glendale’s “New Frontier” in the area of the Loop 303. On March 9^th, Nestle announced that it would invest $675 million to build a manufacturing facility expected to open in 2024. It will create over 350 jobs, primarily for Glendale residents, with salaries that begin at $60,000 using professional staff, production and manufacturing leaders, technical staff, engineers and more.

Today, March 23^rd, Williams-Sonoma, the world’s largest digital-first, design-led and sustainable home furnishings retailer announced it has leased 1.25 million SF facility to be developed as manufacturing at The Cubes in Glendale. This facility is also in the “New Frontier.” It is expected to open in the fall of 2022 and will create over 2,400 jobs by 2027 at an average salary of $50,000.

All of this once again, signals Glendale’s tremendous growth and showcases our ideal location for national and international businesses. Think about some of the facilities that are already in Glendale with Red Bull, White Claw and Rausch in the “New Frontier.” Add the soon-to-be-open Crystal Lagoon Island Resort, Pop Stroke and Chicken ‘n’ Pickle joining the Gila River Arena, State Farm Stadium and Camelback Ranch in the Westgate/Zanjero area. Next year Glendale will host the Super Bowl followed by the NCAA Final Four. Then add national companies, such as Humana and Bechtel to our lineup. The recent locates of several luxury car dealerships, such as BMW and the Tesla Service Center are part of Glendale’s line up. Last, but certainly not the least, Glendale is the proud home of Luke Air Force base, a training center for the F-35 fighter jet.

Nearly 4,000 residential units, both single family and multifamily, will be completed this year or next adding over 13,000 new residents in the Yucca district alone. All of Glendale’s districts – Cholla, Sahuaro, Barrell, Cactus and Ocotillo – are welcoming new developments as well.

If you are not impressed, you should be. Glendale has come of age with the impressive Bell Road Corridor of retail as well as the equally impressive Westgate/Zanjero entertainment and retail district and the explosion of manufacturing and distribution development in the “New Frontier” at the Loop 303. Cities, to remain healthy, must grow or they die. Glendale has no intention of dying.

^{© Joyce Clark, 2022}

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Feb 22

13

Tempe and Coyotes Saga drags on and on and on

Posted by Joyce Clark on February 13, 2022
Posted in Arizona Coyotes • City of Glendale • Gila River Arena • Phoenix Metro issues | Tagged With: City of Tempe, Coyotes, Tempe city council candidates, Tempe Primary Election, Tempe RFP | No Comments yet, please leave one

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.

The City of Tempe has still not announced a decision on the Coyotes’ response to their RFP. First they announced they would do so at the end of December, 2021. Then it moved to the end of January, 2022. Now, it’s crickets. To refresh your memory, in July, 2021, the city issued an RFP for “a mixed-use project incorporating a professional sports franchise and entertainment district for two parcels of city-owned land totaling 46 acres at the northeast corner of Priest Drive and Rio Salado Parkway.” The Coyotes, as Bluebird Development, were the only entity to submit a bid on September 3, 2021.

The Coyotes want to build a $1.7 billion development with a 16,000-seat arena, hotels, apartments and shops on 46 acres near Priest Drive and Rio Salado Parkway that the team said would be financed by private investors. The team wants to use a portion of city sales tax revenues generated on the site to help pay for $20 million in infrastructure and other costs to get the site shovel ready.

One obstacle to the proposal has been Sky Harbor Airport. It is concerned, as it should be, that this development will be 460 feet away from the end of one of the runways. It is also concerned about the height of the proposed apartment complexes and the arena itself as well as the intrusive lighting that has the potential to disrupt pilots.

Tempe is having an election to select 3 councilmembers who would be sworn in July of 2022. The city’s Primary Election is March 8, 2022. Usually, but not always, the Primary Election produces the winners as 50% plus 1 vote is all that is needed to have won the Primary. If the winners are not selected in the Primary, there will be a General Election on May 17, 2022.

At a January, 2022, Tempe candidate forum all candidates were asked to respond to the Coyotes’ RFP. They were asked whether they supported the plan and what it would take to get their support for the deal. This is the link to that forum: https://www.msn.com/en-us/news/us/tempe-election-council-candidates-sound-off-on-coyotes-arena-deal-2020-election-at-republic-forum/ar-AASLpx2 . Apparently all are very good tap dancers for they certainly danced around this issue. It really is pretty simple. Either they support giving $20 million taxpayer dollars to a sports owner or they do not. That is acknowledged as part of the deal. Not much in-depth research is required on this deal point. Here are their responses:

John Skelton: A former Arizona Cardinals quarterback who operates an in-home senior care center in the East Valley, Skelton said the NHL team’s proposal appeared to be a “good deal” for Tempe, especially as that land isn’t currently generating revenue for the city. A development of that size could cause traffic issues and he said if elected he would want to look at what the city can do to alleviate congestion around the project.

Casey Clowes: An attorney and community advocate whose work focuses on environmental and social equity causes, Clowes said she grew up playing hockey and attending Coyotes games. If elected, she would look at the benefits and drawbacks of developing an arena as opposed to another type of development on that land. One deal point she would drill down on would be any financial incentives like property tax subsidies offered to the team, which she doesn’t support. She would also encourage the team to prioritize hiring Tempe residents, hiring companies that offer fair wages and hiring companies that use apprenticeship programs during construction.

Gina Kash: The project could help draw money for local businesses and she would support the arena, said Kash, a former top-level Republican caucus staffer at the Arizona House of Representatives where she started in 1998. She wants to see local businesses prioritized in the project and would want to have discussions with residents on whether tax dollars should be used in the deal.

Harper Lines: A member of the Tempe Arts and Culture Commission who oversees community engagement at the University of Phoenix, Lines said the city needs to weigh potential job opportunities and economic development benefits of an arena against transportation issues it could cause. The city also needs to consider the team’s rocky relationship with Glendale and reports of late rent and other payments to Glendale so that the city isn’t saddled with debt if it enters into a deal with the Coyotes.

Jennifer Adams: The only sitting council member candidate running who was first elected in 2018 said she is currently involved in negotiations and couldn’t comment on the question but that she “evaluates everything very carefully” to see if a deal is a right fit for Tempe.

Arlene Chin: Appointed by the council to fill a vacancy on the dais from May 2019 to July 2020, Chin, who works for the ASU Foundation and is active in city commissions and nonprofit boards, said overall she is supportive of bringing more investment to Tempe and of projects that could bring jobs and business development but it has to pencil out financially for the city. She raised concerns about the infrastructure needs to support such a large project, potential burdens it could put on city systems and the cost of moving a city operations yard that is on the site that would have to be moved before construction.

Berdetta Hodge: Hodge, who has long been involved in the local community, said she would support the project if it’s the right fit for Tempe. She is optimistic that a project of this magnitude could bring more jobs and commerce to the city but would want to make sure that traffic issues and neighborhood impacts are addressed. She wants the team to prioritize working with union contractors that provide prevailing wages, create partnerships with community groups and schools to provide opportunities for residents and support parks and neighborhoods. She wouldn’t support city funding for the project and said Tempe residents shouldn’t be taxed for it.

Current speculation is that there are 2 councilmembers who support the deal; 2 councilmembers who oppose the deal; and the rest are undecided.

Here’s my take. I have no insider knowledge and what I offer is pure speculation. While everyone waits for the RFP outcome, political leaders have realized that making a decision prior to the Primary Election on March 8^th is not in their best interests. If those who are elected appear to support the deal, they will be comfortable in announcing the RFP’s acceptance. Obviously, the reverse is true as well. Depending on the results of the Primary Election, don’t expect Tempe to do anything until the candidate winners are announced.

You can be sure the Coyotes are putting substantial sums into the campaigns of those who support their RFP. I checked all candidates’ campaign filings of January 31^st and there is nothing outstanding with regard to their campaign contributions. That is to be expected. Their next campaign filings will reveal who received money from whom.

However, money can only do so much. There are well organized groups of citizens who oppose this deal as well as the Council’s possible decision to give $20 million in taxpayer dollars to support a sports franchise. This has garnered the attention of the Coyotes who have called upon fans to start an email campaign and petitions in support of the Coyotes. The battle lines have been drawn. Let’s see who becomes the victor.

On a totally separate note and kind of related is the Coyotes/ASU deal that allows the Coyotes to play in a college facility for at least the next 3 years. I suspect all the owners within the NHL are spittin’ mad. The Coyotes’ owner is already financially subsidized in a league revenue sharing scheme. With even less revenue generated in this small facility, the other owners will take it on the chin by having to share even more revenue with the Coyotes. They cannot be happy at this prospect.

Bettman is also allowing the Coyotes to play in a 5,000-seat facility. The actual attendance will be even less than that as seats will be consumed for press and production uses. Yet when others sought temporary, smaller facility usage, historically they have been denied by Bettman. Why the discrimination in this case? I suspect Bettman will do anything to save face when he made his absolute declaration that hockey would stay in Arizona as well as his commitment to the southwest media market.

I wonder if Bettman and Daley have make the trek to Tempe to chat up councilmembers in an effort to shore up support for a positive decision on the Coyotes’ proposal?

My final observation is that I am pleased the City of Glendale made the decision to sever ties with the Coyotes. Their history of ownership has been filled with unpleasant drama and financial issues. Hey, Tempe Councilmembers, those who do not study history are doomed to repeat it. Consider your RFP just the first chapter in your possible, drama-filled relationship with the team. It won’t be your last.

^{© Joyce Clark, 2022}

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Jan 22

21

Glendale’s future…my view

Posted by Joyce Clark on January 21, 2022
Posted in Camelback Ranch Spring Training Facility • Cholla District • City issue and actions • City of Glendale • Downtown Glendale • Gila River Arena • Glendale Economic Development • Glendale finances • Glendale Municipal Airport • Heroes Park • Westgate • Yucca district • Zanjero | Tagged With: airport, Arrowhead Mall, Ballpark, Bell Road corridor, City of Glendale, culture and art, downtown Glendale, economic nodes, founders, Loop 303, my vision, Westgate Zanjero | 6 Comments

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.

Glendale’s future looks very bright but there is one storm cloud on its short-term horizon and that is the near-term threat of another national recession. I would hope that the city is not forced to repeat what it did the last time and that was to defer maintenance of the city’s infrastructure.

However, my vision is not one of doom and gloom but rather building upon successes already achieved. I will “crystal ball” various components within the city from my lens as a sitting councilmember in Glendale for over 20 years. In that time, I’ve participated in the good, the bad and the ugly. I would remind you that this is my vision and just because I am visioning, it does not mean that any of my vision will become reality. I welcome readers’ comments including your vision for a Glendale of the future.

Economic Development. It should be acknowledged that most of, perhaps more than 85% of all the recent economic development successes have occurred in the Yucca district. I anticipate that trend to continue. While there are very few meaningful vacant parcels in Glendale’s other districts, there remains plenty of vacant land left for job development, especially in the western portion of the Yucca district.

All cities must continually seek the Holy Grail of economic development, or they will stagnate and eventually die. Since Arizona is a low property tax state, cities rely upon other forms of taxation and most critically, sales tax. That is why economic development is so important to any city.

There are 6 major economic nodes in Glendale – 1. Arrowhead Mall and Bell Road Corridor, 2. Downtown Glendale and 3. Westgate/Zanjero area; and I would argue 4. the Airport area, 5. the Loop 303 area, commonly referred to as the “New Frontier,” and 6. the Ballpark area. Let’s look at my expectations for each area.

Arrowhead. I expect the Arrowhead Mall and the Bell Road corridor to continue to thrive. Despite rapidly growing use of the Internet for consumer purchasing, people still like to touch, see, and feel the products they buy. The owners of Arrowhead Mall have done an excellent job of keeping the Mall up-to-date and to refreshing its look and product offering continually. My vision is Arrowhead and the surrounding area will thrive for years to come.

Downtown. My vision is to see the Downtown area adopt some major changes or die. The city can only do so much to prop up this area and has made a major commitment with its intent to refresh the City Hall Complex which includes its Amphitheater. This area needs two components to survive and flourish. One is an entertainment destination. The current buzzword is ‘experiential retail’. People expect not just to shop but expect an opportunity to be entertained in some form or fashion. An entertainment destination for the Downtown should be a movie theater, performing arts theater, museum, or art gallery—a facility that draws people downtown, every day, 365 days a year. Look at Phoenix. It was not by whim that it located a science museum and a history museum in its downtown.

Our Downtown also needs a mass of new residents. This will happen. All it takes is one apartment complex developer to locate Downtown and others will follow. A vibrant downtown needs people to live, work and play within it.

The other missing component essential to a vibrant downtown is the creation of a Downtown Merchants Association that becomes the only legitimate voice and a catalyst for Downtown Glendale. Downtown Glendale is split between two opposing groups – those who will not embrace any change to Downtown and those who embrace the need for change. Until those two factions unite into one, viable Downtown Merchants Association that requires ‘skin in the game’ in the form of annual dues as well as a commitment by its members to be open on a regular basis, stagnation will continue. How long can stagnation exist before the common body dies? I suspect for a few more years. Time is running out for Downtown Glendale. While the city adds Café Lighting and refreshes its Amphitheater, it does not and cannot solve its deep-seated problems and only prolongs the agony.

Westgate/Zanjero area. This area continues to exceed all expectations. As I say repeatedly, the Crystal Lagoon Island Resort, once opened, will change the character of the area forever. It is a powerhouse development project that will draw visitors from all over the world. My vision for the area is to see development continued on all parking lot space and parking to be contained to several large parking garages. The space is simply too valuable to continue to be used for parking and that includes the city owned ‘Black Parking Lot’. My vision also includes the city’s sale of the Gila River Arena to an experienced entity committed to creating profitability by booking events nearly every day of the year. If, someday, the arena is sold, my vision would be to use the proceeds to finance construction of Heroes Park Recreation and Aquatic Center and to finance the construction of a museum in Downtown Glendale. My vision would be to create a partnership with the Smithsonian. The Smithsonian has rotating exhibits that are placed throughout the country. One of my fondest experiences while attending college in Baltimore was to go to D.C. and spend a day at the Smithsonian. It has so many wonderful exhibits and it would take someone a month or better to visit everyone on a daily basis.

Loop 303 area. Development of this area as a job corridor is booming. I expect its growth to continue for a few more years until nearly all developable land is consumed. To meet the employment demand that this area generates it is my vision that the city focus on retraining and reeducation of our work force by partnering with our educational institutions to create nodes of work force training in key locations throughout the city. My vision also includes partnerships with education to create more STEM centers throughout the city.

Airport area. This area to-date has been underutilized and underappreciated. My vision is to see the land on the east side of the airport developed as a major airpark in the next few years. The runways should be elongated to their maximum extent possible to attract more corporate jet traffic. My vision also includes developing a connection over the Agua Fria River so that there is connectivity between the Westgate area and the Airport.

Ballpark area. This area is on the cusp of an explosion of new development. Since Ballpark Boulevard was constructed the connection between the Westgate/Zanjero area and this area has been enhanced. There are several hundred acres of prime, vacant land to be developed. My vision is to see a limited amount of residential apartment development to create some mass in the area but also to see more retail/commercial development in the area. And yes, another hotel would be a welcome addition to the area. My vision is to see strong interconnectivity between the Westgate/Zanjero area, the Airport area and the Ballpark area. When that occurs Glendale will ensure its economic prosperity and vitality for years to come.

There are some parts of my vision that don’t fit neatly into the above cited economic boxes but should be part of not just my vision but that of the city vision. One of these is to address low socio-economic, minority neighborhoods. A city is only as great as its marginalized neighborhoods. If we continue to ignore them, they will spread and destabilize other parts of our great city. Right now, there is a continual circle in these neighborhoods. Because they are already marginalized, we continue to allow non-profit organizations, in the name of doing good and serving their client populations, to plant more services in these neighborhoods. As more non-profits locate in an area, the more likely even more poor and minority populations locate there. It’s time to break this vicious cycle. Non-profits and low-income housing must be dispersed throughout the city. There are all kinds of good, sound reasons to do so that I will not elaborate upon at this time.

Another vision that doesn’t fit neatly into a box is that of art and culture within our city. These elements reflect who we are and what we value at any given point in time. Glendale has historically lacked the commitment to value art. My vision is to emphasize visual art throughout the city. It isn’t just a mural on the side of a building in Downtown or an historically themed statue placed in front of a city building. It’s a commitment by the city to encourage the use of art not just at a newly constructed building but the encouragement, even if it means financially, of older buildings to adopt art as an element of their public face. My vision is to see the use of art liberally throughout the city on both public and private property.

My vision also includes greater appreciation of the various ethnicities and cultures that historically birthed Glendale – Russians, Asians, Hispanic and yes, Caucasians. I would like to see an annual festival that celebrates the history, the food, the music of all these groups who came together to envision our community.

I am sure I left something out and I expect you, the reader, will tell me. The bottom line is that we all want the same things – a clean Glendale everywhere within it, a safe Glendale everywhere within it, a Glendale with employment opportunities within it for you, a Glendale that offers superior services to all its residents, a Glendale that offers a wide variety of recreational opportunities, a beautiful Glendale and a Glendale that values and recognizes its past. We may have differing visions on how to get there.

We’re not there yet but maybe that’s a good thing. It offers us an opportunity to dream, to act and to strive to make Glendale even better.

^{© Joyce Clark, 2022}

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Jan 22

15

Tidbits in a New Year

Posted by Joyce Clark on January 15, 2022
Posted in Arizona Coyotes • Blogs • City Council Actions • City issue and actions • City of Glendale • Downtown Glendale • Gila River Arena • Glendale and the NFL Super Bowl • Glendale Economic Development • Glendale finances • Heroes Park • Ocotillo District • Westgate • Yucca district | Tagged With: Capital Improvement Program, City Hall Complex, City of Glendale, Coyotes, Crystal Island Lagoon Resort, Gila River Arena, Heroes Park lake, inflation, Loop 303 area, Ocotillo District, redistricting boundaries, sanitation rate increase, Westgate, Yucca district | No Comments yet, please leave one

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.

I haven’t written for awhile simply because being a Glendale City councilmember is more complicated and busier than ever. It takes a minimum of 3 hours and often days to write, edit and publish one blog. I miss writing and I need to make a concerted effort to carve out the time to do so. Be that as it may, there are many events of which to make note. Most are not enough for a full blog on their own but should be recognized.

Arguably, the most important recent event is the Grand Opening of Heroes Regional Park Lake. While the celebration was occurring, people were already catching fish. About 100 residents came to the ceremony and many expressed their gratitude to see this wonderful addition to the park. Next up will be to get some sports fields constructed followed by the biggest, most expensive ticket item, the Recreation & Aquatics Center.

Inflation is killing all of us, including cities. Yesterday I filled up my car to the tune of $56. Before Biden that same tank of gas cost me about $25 or $30. My weekly grocery bill has increased by about 40%. Then there are supply chain issues. My local Safeway has had bare shelves, especially in the pasta and chicken sections. They haven’t had any chicken for the past 10 days.

This situation is rough on people on a fixed income, like me and obviously on the poor. From what we all hear it will continue throughout 2022 and we can expect prices to go even higher. The same holds true for cities. For instance, Glendale uses a lot of chemicals to treat its water supply. Those same chemical prices have risen about 30%. This same scenario goes for everything from copy paper, cleaning supplies to vehicle parts and maintenance. While Glendale is earning more revenue than ever before it is paying higher prices than ever before.

Development in the Loop 303 area continues to boom. Several new projects have been announced and there continues to be more in the pipeline. The industry has recognized that Glendale’s “New Frontier” is an established job corridor in the Valley.

Westgate continues to thrive with new development as well. After some internal delays on the part of the developer, Tiger Woods’ Pop Stoke will begin construction any day and is slated to be completed this fall. To the east of the AMC theater, a pickle ball complex complete with a restaurant and bar and rental facilities, ala Top Golf, is slated to start construction in the near future and is expected to be open prior to the Super Bowl. The Thirsty Lion, a 2-story restaurant and bar, situated between the arena and the Renaissance Hotel, is about to start construction as well. A new concept restaurant, exclusively serving some of the most decadent desserts you can possibly imagine, will take the place of the Saddle Ranch Chop House.

Let’s not forget the Crystal Lagoon Island Resort development. I continue to believe it is the most significant development ever to occur within Glendale. It is a mini-Disneyland without the $100+ a day charge per person to enter. Expect about 12 million visitors a year. It will contribute nearly $10M a year in sales tax revenue to Glendale. I expect it to draw visitors not just from the state or the southwest but nationally and even internationally. It’s a Saturday and I just checked their live camera. Earth moving equipment is busy today and the large crane was in use. If you would like to check it out, use this site: https://app.truelook.cloud/dashboard/553/923/live?code=15hm7ev0xey9jmgpfyf2jd9e0&fbclid=IwAR2VhkoN56nBnnmqMouCzAWFM9BHxtvSmNlj83REtd_D2fuA3g9vdeZ-SAY

One of the city services most loved by residents is sanitation. Recently our City Manager related that 44% of the sanitation drivers were out with Covid. Sanitation division managers and employees from other departments stepped up to fill the void resulting in no disruption in your service. Your trash was collected as usual and I bet you had no idea that Covid was crippling the department’s ability to service you. Yet I recently read that the same kind of situation occurred in Tempe resulting in a disruption of pick-up service for about a week. Two cities, two different ways to handle the problem.

At our next council voting meeting I will vote to approve a rate increase in sanitation. Sanitation is run by Michelle Woytenko, Director of Field Operations. Ms. Woytenko is one of the best Directors in the city of Glendale. She is no nonsense and provides excellent information and service to every resident. Our office has contacted her to report a citizen’s trash pick-up being missed and Ms. Woytenko will have someone picking it up the same day. Her explanation for a rate increase was logical and persuasive.

Speaking of money, in February the city council begins its annual budget oversight and preparation for the next fiscal year. We will begin with the Capital Improvement Program. This is the portion of the budget that lays out what infrastructure the city will build, rehabilitate, improve, or maintain for the next 5 years. It is one of the most important segments of the city budgetary process.

The city has completed its redistricting process and submitted its plan to the state and the feds for final approval. As of now, unless something dramatic occurs, the new city council boundaries are set not only for the next election in November of 2022 but for the next ten years until the next census.

There has been minimal accommodation for the tremendous growth occurring in the Yucca district. Instead of creating all districts with a population of about 41,000 the Yucca district will start with a population of 39,000. However, I contended that the accommodation is insufficient. I anticipate an additional 14,000 moving into the Yucca district in the next few years. I anticipate a population in the Yucca district of about 55,000. The Yucca district is the ‘gorilla’ of Glendale’s districts. It is the largest geographically; it accounts for about 80% of all recent and current economic development within the city; and will soon have the greatest population of all the districts. Much of the new population can be attributed to Stonehaven, a residential development between Camelback and Bethany, 83^rd to 91^st Avenues. At build-out it will contain 1,365 new homes. Another factor is the multitude of apartment complexes in the Westgate area. Westgate needs a mass of people living there to support all its retail and restaurants.

The eastern boundary between the Yucca and Ocotillo districts has changed. From Northern Avenue to Orangewood Avenue the boundary is 75^th Avenue. The east side of 75^th is in the Ocotillo District and the west side is in the Yucca district. At Orangewood Ave to Glendale Avenue the boundary is 71^st Avenue. From Glendale Avenue to Bethany Home Road the boundary is 75^th Avenue. Note that Independence Heights subdivision is now in the Ocotillo district. From Bethany Home Road to Camelback Road the boundary is 67^th Avenue. Here is a map that shows the dividing lines between the Yucca district and the Ocotillo district:

Council is moving forward on remodeling the City Hall complex. It demonstrates our commitment to downtown Glendale. The exterior look of the buildings will be updated. The parking garage, long in need of major repairs, will be rehabilitated. The concept of offering free, live entertainment year round at the city amphitheater will continue in a newly reconfigured and updated area. Murphy Park will receive an update as well.

You may have noticed that I am the only councilmember to consistently vote ‘no’ on the city’s awarding of 5-year contracts to vendors of services and supplies. I do so for several reasons. A 5-year contract is longer than a city council term of office which is 4 years. That results in no continuity of oversight by the council. If a new councilmember comes in there is no knowledge of the existing contract or its terms or pricing. In addition, the contracts are often for ordinary goods or services and 5-year contracts for those items do not create a competitive atmosphere. Some say a 5-year contract is good because it locks in prices for 5 years even during inflationary periods such as now. Not so, quite a few contracts have come before us lately as amended seeking our approval for an increase. In all cases, the vendors are asking for increases to cover inflationary costs. So a 5-year contract does not lock in prices during the term of the contract. In addition, the same vendor who asked for a price increase, if prices decline, never, ever, comes back to offer the city an adjusted lower cost to reflect that decline. It’s all one way and always higher. I believe contracts should be no longer than 3 years and then put out for bid again.

Lastly, a few thoughts about the city owned Gila River Arena and the Coyotes. The city was not bluffing or positioning itself for a better lease deal with the Coyotes when it terminated the lease agreement. The city council has approved a contract with HKO to rehabilitate the arena. Deliberately moving from a sports venue to an entertainment venue requires a venue that is comfortable and welcoming to its attendees. After years of flaky ownership – Ellman, Moyes, LeBlanc, Barroway, etc., a consistently losing team and financial difficulties, it’s fair to say enough is enough. We wish the Coyotes well and harbor no ill will. It’s up to the Tempe city council to decide if they can do better. I would simply ask them to consider these questions: Does each member of the council believe there is a bond of trust between themselves and the current ownership group? Has Tempe’s staff done its due diligence, and can it demonstrate that the ownership group has the finances to invest into such a project? Will the ownership want financial contributions from the city of Tempe and does the city have the bond capacity for such a project? In an election year how will Tempe residents react to any deal that requires the city to spend taxpayer dollars for another sports arena in the Valley?

This new year will be interesting to say the least. Glendale is in the strongest financial position it has had for years. We will weather this inflationary period and come out on the other side, stronger and more resilient. We have the funds to expend on one-time projects that will benefit our citizens and create a better, more vibrant Glendale.

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Dec 21

19

Glendale has 40% of all Valley economic growth

Posted by Joyce Clark on December 19, 2021
Posted in City Council Actions • City issue and actions • City of Glendale • Gila River Arena • Glendale and the NFL Super Bowl • Glendale Economic Development • Glendale elected officials • Glendale finances • Phoenix Metro issues • Westgate • Zanjero | Tagged With: City of Glendale, Crystal Lagoon Glendale, economic development, Gila River Arena, Westgate, Zanjero | No Comments yet, please leave one

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.

Glendale has become a growth leader in the metro area over the past 5 to 7 years. The most startling fact to share is this – “ According to Colliers, there are 19.2 million square feet of space currently under construction throughout the region, with almost 40 percent of that in Glendale.” No other city in the Valley has experienced this kind of growth. This is remarkable. I credit our City Manager, Kevin Phelps, and our city’s Economic Development Department.

For those of you who are not ‘fact nerds,’ this blog may be boring but Glendale’s remarkable transformation since 2014 is worth noting.

In 2014, the city’s bond rating dropped to BBB. In 2020, the city’s bond rating is now AA. This rating is extremely important because this rating results in lower interest rates when the city borrows money. The amount of bond debt per person in Glendale has dropped from a high of $771 to $384 today.

City Council created a policy deliberately concentrating on employment growth in the Loop 303 Corridor dubbed the “New Frontier.” Even though residential growth was not a prime objective, since the last census, Glendale’s population has grown by 21,000 new residents with more than half of that growth occurring since 2015 and its total population is now over 250,000 people. Between 2016 and 2021, 4,880 new housing units both multi-family and single family, have been constructed. There has been a concerted effort to concentrate multi-family in the Westgate/Zanjero area to sustain and support this major economic center.

Glendale is one of the 5 top Valley cities having a jobs per capita ratio today of 0.40 and it is expected to continue to increase. Over 118,000 residents are employed with 21% of its residents working in Glendale. Most of our residents, about 57% work in Phoenix. On the other hand, about 30% of Glendale’s workforce lives in Glendale with about 25% of Glendale’s workforce living in Phoenix and about 15% living in Peoria.

All this new economic growth has increased General Fund revenues from $174M in Fiscal Year 2010 to $241M in Fiscal Year 2020. In Fiscal Year 2021, the city council approved Glendale’s first billion dollar total budget. The General Fund is used to finance the day-to-day operations of the city and includes all employee compensation. Planning and Permitting revenues saw a dramatic jump from $4.5M in Fiscal Year 2018 to $37M in Fiscal Year 2021. This is primarily due to all the new Loop 303 development. This revenue is one-time money that can and has been used for catching up on improving Glendale’s amenities.

Let’s not forget the Crystal Lagoon Island Resort, Glendale, development. I’m not sure it is appreciated just exactly how much impact this single project will have on Glendale, the Valley and the State. Click on this link if you would like to see the live feed of ongoing construction at the site: https://app.truelook.cloud/dashboard/553/923/live?code=15hm7ev0xey9jmgpfyf2jd9e0&fbclid=IwAR2VhkoN56nBnnmqMouCzAWFM9BHxtvSmNlj83REtd_D2fuA3g9vdeZ-SAY

With the 3 hotels, the public water feature, 5 nodes of retail/restaurant and the Mattel family amusement center, this project is a game changer for Glendale. Expect about 5,000 visitors a day with an annual attendance of about 12 million. It is expected to generate about $10M a year in sales tax revenue for Glendale. It is the owners’ intent to be open prior to the Glendale hosted Super Bowl in 2023. With the exposure surrounding the Super Bowl, expect visitors not just from the Valley or State but nationwide, even internationally. It will become one of THE places at which to have a family vacation.

With the remodeling of the city owned Gila River Arena focusing on the customer experience at a major concert venue, set to occur next year (2022), again, in time for the Super Bowl, expect attendance spill over from the Crystal Lagoon Island Resort. Just imagine a family vacation for several days with all that the Lagoon offers plus attending a concert at Gila River Arena and all the offerings at Westgate/Zanjero. It makes for a great family vacation package.

What do all the numbers and facts and figures mean? It means Glendale is not just financially healthy but is about to become the gorilla of the Valley. Hear Glendale roar!

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Dec 21

10

The Arizona Coyotes are a hot mess…still

Posted by Joyce Clark on December 10, 2021
Posted in Arizona Coyotes • City issue and actions • City of Glendale • Gila River Arena • Glendale Economic Development • Glendale elected officials • Phoenix Metro issues | Tagged With: Arizona Coyotes, Arizona Department of Revenue, Arizona Veteran;s Memorial Coliseum, Athletic, City of Glendale, City of Tempe, Craig Morgan, Katie Strang | No Comments yet, please leave one

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.

On December 3, 2021, the State of Arizona’s Department of Revenue (DOR) filed a tax lien against the Arizona Coyotes in the amount of $1.3 million with approximately $250,000 being owed to the City of Glendale for unpaid taxes. The tax lien states the team owes taxes as far back as June 2020 (that’s a year and a half). In the City of Glendale letter sent to Xavier Gutierrez, President and CEO of the Arizona Coyotes, advising the organization if payment on back taxes as well as monies owed to ASM Global, manager of the Gila River Arena, were not paid in full by close of business on December 20, 2021, not only would the organization be locked out of the building, but their Glendale business license would be terminated. See the correspondence below:

This latest development should come as no surprise if you had read Katie Strang’s Athletic story, Dysfunction in the desert: Finger-pointing, fear and financial woes roil the Coyotes organization published in February 16, 2021. Here is the link: https://theathletic.com/2390146/2021/02/16/arizona-coyotes-investigation-toxic/ . Be forewarned, you must subscribe to the Athletic to read the full article. It is well researched, in-depth and a fascinating read. Ms. Strang also provides strong coverage of the organizations’ structural disfunction. Excerpts from her story referring to the organization’s past financial issues include the following:

“Meruelo’s acquisition of the Coyotes was supposed to portend a new era for the team. Instead, people within the organization and across the NHL are now wondering if the league erred in approving his purchase.”
“In April, the team announced it was furloughing half of its staff due to pandemic-related financial issues. In May, the Arizona Republic reported that promises to pay the arena’s part-time and hourly staff members had not been met. The team and arena management company, in response to the report, said they would ‘finalize our support plan that will be executed within the next 30 days’.”
“In September, The Athletic reported that a handful of players did not receive their signing bonuses on time.”
“The Athletic identified and spoke with eight vendors with whom the Coyotes had outstanding or past due balances or negotiated their debt to a lower amount.”
The Seyfarth Shaw law firm has been retained to investigate various allegations associated with the organization. “Among them, Seyfarth Shaw representatives have asked about:

The accuracy of financial documents provided to third parties, such as banks and private lenders, required to meet specific loan obligations. The accuracy of financial reports the organization sent to the league, which reflect team revenues and can potentially impact player salaries and the salary cap.”

It was Ms. Strang who broke the December 8, 2021, Athletic story regarding the Coyotes’ unpaid taxes. Here is the link: https://theathletic.com/news/coyotes-could-be-locked-out-of-home-arena-by-city-of-glendale-for-unpaid-arena-charges-delinquent-tax-bills/ArAVPFTj0LId/ . I imagine Garry Bettman’s (President of the National Hockey League) call to Mr. Meruelo, after the story broke about unpaid taxes was short and sweet…Pay those @#$%&* taxes now!

On December 9, 2021, the Coyotes organization issued the following statement saying they have launched an investigation to determine “how this could have happened.” In their press release they state, “Initial indications are that it appears to be the result of an unfortunate human error. Regardless, we deeply regret the inconvenience this has caused. We will make sure that by tomorrow morning, the Arizona Coyotes are current on all of our bills and owe no state or local taxes whatsoever. And we will take immediate steps to ensure that nothing like this can ever possibly happen again.”

If this sounds familiar, it should. According to Katie Strang’s February 16, 2021, article, when asked about paying players, “Gutierrez described both of these snafus as ‘process’ failures.”

Once again, Gutierrez seems to be pointing the finger at “process failures” implying it wasn’t deliberate but rather a glitch in the system. Maybe if it had happened once and in isolation with no background of financial questions it would be accepted as a plausible answer but there seems to be an ongoing pattern of “process failures.”

It is also no small matter to possibly lose the organization’s business license. It’s not just a matter of possibly being locked out but without a business license even if an alternate venue were found, it couldn’t be used without having a license to do business.

Today, December 9, 2021, the media is reporting that a short while ago, the Coyotes wired the entire amount to the State DOR. We do not know if they have also paid their arrears with ASM Global. I would advise Glendale to double check and to make sure all unpaid amounts are now current. One would expect no less considering the avalanche of negative publicity they generated yesterday and today.

I suspect there is more to the Arizona Coyotes’ story that will have to unfold shortly. Right now, the most pressing issue is meeting the NHL’s schedule deadline to submit the team’s play dates and their location to the League by a January, 2022 date. This early date is because the League has to juggle all teams’ schedules and craft a League schedule that satisfies all.

Forget the possibility of a new arena in Tempe. The immediate and most critical question is where will the Coyotes play while waiting 3 to 5 years for a new arena? That is, IF Tempe accepts their RFP. The only word coming out of Tempe is that they are doing extensive due diligence.

I have found over the years that a deal is best crafted when both parties can trust each other. That may be the most seminal question that Tempe will have to decide. Can they trust the Coyotes to be good, reliable financial partners?

Let me make clear, the City of Glendale is done with the Coyotes. Their absolute refusal to negotiate a long-term, 20 year lease simply made the City’s decision clear. They will not be playing in Glendale for their 2022-23 season or in any future season. That door is closed.

While Glendale has no interest in where they play in the future, I think it’s fun to speculate and the rest of this blog is pure speculation. It is not based in fact or any insider knowledge.

The only viable location is the Arizona Veteran’s Memorial Coliseum. Keep in mind pursing this location as a temporary venue is dependent upon Tempe’s awarding the RFP to the Coyotes. Then it would make some sense to pursue a lease of the Coliseum. My guess it’s a 50/50 proposition as to whether Tempe accepts the Coyotes’ RFP. What if Tempe declines to award the Coyotes an RFP? For many that is an unthinkable outcome, but it is possible. If that were to happen, there would be no need of a temporary location and I would imagine a sale of the team would be imminent. This is the only play the Coyotes have. Forget all other locations. Each has a solid reason to be unworkable.

Here are the problems with the Coliseum. It’s now December, 2021. The work and the expense involved in renovating the building are extensive and even if work on the building started tomorrow, it is doubtful the building would be ready in a mere 10 months in time for the new season in October of 2022.

According to a recent Craig Morgan story of December 8, 2021, entitled Back to the future: Coliseum makes most sense as Coyotes’ interim arena solution, he, too, thinks the only temporary solution for the Coyotes is the Coliseum. Craig Morgan has always been very friendly and supportive of the Coyotes’ ownership over the years. One can speculate that he has sources within the organization and he is reflective of their thinking process.

The Coliseum has major structural problems. The building needs a need roof, new flooring and an additional ice plant for starters. Even with a new roof it can not accommodate a centrally hung scoreboard. There are no suites and maximum attendance would be in the 13,000 to 14,000 range. If the Coyotes do use the building they will continue to bleed financially.

I had heard that it would cost $40 to $50 million to get the building in shape for hockey but Morgan, in his article, cites a construction expert who said a more realistic number is in the $100 million range.

If Tempe awards the RFP to the Coyotes everything becomes a political calculation from that point forward. We can speculate that the Coyotes will go to Governor Doug Ducey and ask to rent the building (maybe for $1 a year?) and having a great deal of Chutzpah, demand that the state pay the cost of renovating the building for them…and, oh, by the way, you have 10 months to do so. Here’s where it really gets political. Ducey is a lame duck Governor, termed out. There are rumors that he intends to run for the U.S. Senate. He will have to make a political calculation as to how such action would play with his voter base. While he might win the support of 17,000 to 20,000 Coyotes fans there are far more voters that would not take kindly to any kind of financial give away to yet another sports franchise using taxpayer dollars. It could become the albatross that makes him unelectable.

The next few months will be very interesting as we watch this play out. My personal take is that the Coyotes will be sold. Alex Meruelo has become a liability to the NHL and especially to Gary Bettman.

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