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Joyce Clark Unfiltered

For "the rest of the story"

Disclaimer: The comments in the blog are my personal opinion and may or may not reflect an adopted position of the city of Glendale and its city council.

In the February 11, 2017 edition of the Glendale Republic a Letter to the Editor from Larry Johns of Peoria proposed an interesting concept:                                                              “As an 11-year ticket holder, I certainly have experienced highs and lows.     

“The recent plan to build a new home for the Arizona Coyotes with ASU in Tempe is dead. However, CEO Anthony LeBlanc still wants to ‘secure the future of hockey in Arizona.’ He also said that the team is ‘ready to invest more than $170 million in a new arena.’ Glendale still owns nearly $150 million on the Gila River Arena.

“My suggestion: LeBlanc and the Coyotes should offer to buy the GRA for $150 million and put another $20 million into repairs and upgrades. Glendale would be free of the remaining GRA debt payments; it would still have sales tax revenue coming from the use of the arena and could focus on paying down their other sports stadium obligations or improving Glendale’s infrastructure.

“The Coyotes would be free from their acrimonious relationship with Glendale, would have control of the arena and, most importantly, would remain in Arizona. Just a thought.”

Yes, it is just a thought but an intriguing one. As long as the Coyotes remain in their self-imposed limbo weekly rumors will continue to abound. This week’s crop related to a media report on Tuesday that the team had sent representatives to check out locations in both Portland and Seattle. Geoff Baker, a reporter for the Seattle times, tweeted, “Attendees at developer/owner #KeyArena tour by city 2 weeks ago shows no #arizonacoyotes reps among non-city staff/media. Coyotes deny going.” He backed up his assertion by posting the attendees sign in sheets for the tours.

Anthony LeBlanc, Coyotes CEO, was quick to deny the current relocation rumor with this Coyotes Press Release, “Recent reports by the Glendale Star that the Coyotes ownership group has explored arena options outside the Arizona market are completely false. The Star referenced an anonymous arena source and an anonymous Coyotes source, and these are a fabrication.” He went on to say, “Maybe a little less seriously because of the publication, but because it has gone national — which is disappointing — we take this seriously, as does the league.” The magic words in his denial are as does the league.”

NHL Commissioner Gary Bettman has already demonstrated his commitment to keeping the team in Arizona by having the NHL manage the team for several years after Jerry Moyes declared bankruptcy of the team in 2009. The Phoenix Metropolitan media market is a highly lucrative one for the league. It’s a market the league does not want to abandon. Bettman’s other goal is to create a new franchise in the west.  I suspect after a conversation with Bettman, LeBlanc couldn’t get to the media fast enough to deny rumors of relocation.

Denying rumors of relocation by LeBlanc is needed to quiet the fan base as well. Since the purchase of the team by IceArizona, average attendance figures have dropped like the proverbial stone and the team has earned the distinction of being the second lowest in the league with an average of 12,841 for the 2016-17 season. Only the Carolina Hurricanes have a lower attendance figure of 12,204. It should also be noted that their marketing efforts this season have been minimal. How many TV ads do you remember seeing this season?

LeBlanc points to these attendance figures as the reason why the team must move

Coyotes play off game White Out

to the East Valley. I would remind everyone that when the team made the play-offs attendance figures were robust. History shows no one complained about coming to Glendale to watch a winning team performing in the play offs. It certainly has a lot to do with the product on the ice. When the product is good, people will come. It’s the same for any sports franchise. When the team is hot and fan expectations are high, people come out of the woodwork to attend and suddenly tickets become very pricey.

All of this circles back to Mr. Johns of Peoria and his thought. If the Coyotes really do have money to play with…why not buy the Gila River Arena and become masters of their own fate? They characterize Glendale as inhospitable. Why? Because the city council didn’t want to continue subsidizing the team’s operations while losing money every year? The council simply wanted to stop bleeding each and every year and work toward insuring Glendale’s financial stability. It wasn’t, as portrayed, because they disliked the Coyotes and wanted to get rid of them.  Keep in mind the city had its own problems in dealing with the ownership group which was often obstructionist, especially in sharing financial information.

If the ownership group really has $170 million dollars why wouldn’t it take the opportunity to buy the arena? Many suspect that the Coyotes really don’t have that kind of money without attracting a new crop of investors. Rumor has it that may be exactly what they are doing…seeking a new investor(s).

Can they strike a deal with Sarver? Doubtful. Can they strike a deal with the Salt River-Pima-Maricopa Indian Community? Doubtful. The painful lesson LeBlanc, et.al., are learning is that no one is willing to pay them to play…anywhere.

© Joyce Clark, 2017        

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go tohttp://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

An alert for residents living along 83rd Avenue and 91st Avenue from Camelback Road to Bethany Home Road regarding the Planned Area Development application called Stonehaven. The applicant has submitted a revised Stonehaven development plan and has scheduled a formal Neighborhood meeting:

Wednesday, January 11, 2017 at 6:00 PM

Sunset Ridge Elementary School Cafeteria

8490 West Missouri Avenue, Glendale, Arizona 85305

The Glendale City Planner handling this case is the Glendale Planning Director, Jon Froke. He can be reached at 623-930-2585 or by email at jfroke@glendaleaz.com. Mr. Froke can answer your questions regarding the city review and hearing processes as well as the staff position once their report is complete. Below is a depiction of the Planned Area Development Land Use Master Plan. It is disappointing as the applicant is asking for more density while refusing to plan for large lots south of the Grand Canal and adjacent to Missouri Ranch (comprised of 10,000 SF lots). The largest lot size being proposed by the applicant is 7,000 SF. The applicant appears reluctant to listen to resident’s concerns about small lot sizes devaluing the property values of those who live near the proposed development.

 

 

 

 

 

 

 

 

 

I urge you to attend this meeting especially if you live in Missouri Ranch; 8300 to 8600 W. Cavalier Drive; Pendergast Estates; Camelback Park, and all areas on the east side of 83rd Avenue including Orange Drive and Montebello Avenue.

Casino Issue not settled as U.S. District Judge David Campbell denied the Tohono O’odham’s (TO) request that he rule in the tribe’s favor without going to trial. Judge Campbell said he needed more information about allegations of fraud on the part of the Tohono O’odham. The trial will be scheduled sometime between April and August of 2017 making it a full year since June of 2016 when the Tohono O’odham filed suit against the state for its refusal to grant the tribe a Class III gaming license.

In the meantime Governor Ducey attempted to settle the case out of court by proposing to grant the TO a Class III gaming license in return for its promise to build no new casinos in the Phoenix Metro area. That overture was rebuffed by the TO and seems to signal that the TO may have plans for another casino in the Phoenix area. Could they have once again purchased land secretly betting that they can get their Class III gaming license without promising to build elsewhere in the Valley? I would think any Valley city with county islands should be very, very nervous. Here is the link to a December 19, 2016 story in the Arizona Republic: http://www.azcentral.com/story/news/local/glendale/2016/12/19/dispute-over-desert-diamond-west-valley-casino-heading-to-trial/95634944/ .

Tax increment financing for the Coyotes new arena is by no means guaranteed passage in the Arizona Legislature. Rather than granting tax increment financing and incentives for the Coyotes the legislature would be well served to assist the Arizona Sports and Tourism Authority (AZSTA) in crafting new revenue streams for the sagging revenues it currently receives. The Authority has only paid out $49.2 million dollars in reimbursements toward a total of $220.7 million dollars owed to various Valley cities for their ballparks facility construction/renovation.  AZSTA has commitments to reimburse Surprise, Tempe and Scottsdale by 2007 and now estimates those repayments will not be completed until 2021. Mesa, Peoria, Phoenix, Glendale and Goodyear are not expected to receive their reimbursements until 2031 and beyond. Better the legislature develop a fix that enables AZSTA to meet its commitments for those facilities already constructed by a vast array of Valley cities struggling to find the money to pay off their debts for construction. Here is a link to the state’s latest audit of AZSTA: http://az-sta.com/downloads/files/financial/2015-special-audit-by-the-office-of-the-auditor-general-full-report.pdf . Below is a chart (page 23) from that AZSTA audit:

 

 

 

 

 

 

 

 

 

 

Anthony LeBlanc, CEO of the Coyotes, acknowledged that the legislature is “essential” for their plan. You can be sure they are already lobbying members of the state legislature. However, in past years Valley cities have also lobbied for Tax Increment Financing (TIF) only to be denied repeatedly. One of the plans floated last year by the Coyotes involved capturing portions of sales and/or tourism tax revenue in a tax district created in the area of their proposed arena. The Coyotes will have a difficult time pushing to the head of a line that relies on tourism sales tax revenues. The legislature would be well advised to create a financial fix for those facilities already in existence rather than diverting scarce resources to yet another new sports facility. The subsidization of sports teams and their venues is not a popular public topic when people are still hurting financially and have not derived economic benefits from the national recovery. Here is a link to a Mike Sunnicks article in the Phoenix Business Journal about the Coyotes plan to have the taxpayers and tourists subsidize their proposed arena: http://www.bizjournals.com/phoenix/news/2016/12/02/arizona-coyotes-arena-real-estate-group-eases.html

 © Joyce Clark, 2016        

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

PLEASE CHECK OUT THE CHAVIRA VIDEOS TO THE LEFT OF THIS COLUMN. EACH IS ABOUT A MINUTE AND A HALF IN LENGTH.

It has been 18 years and 190 days since the city’s pledge to build the West Branch Library.

June 24, 2016, marks another milestone of 350,000 reads of my blog since I began in February of 2013. That averages about 100,000 reads a year. I am pleased and very grateful to all those who have become faithful readers. Thank you. In addition, in 3 months, over 1,000 people have viewed my 3 Chavira videos. Again, thank you for taking the time to view them.

In Sammy Chavira’s latest weekly e-newsletter of June 24, 2016, he said, “After serving 17 years as a Phoenix firefighter and Glendale City Council Member, Chavira helped bring a Super Bowl to Cardinals Stadium.” Gosh, in addition to all his other misdeeds now we can add embellishment and exaggeration.

While Sammy may have served 17 years as a Phoenix firefighter, he certainly, thankfully, hasn’t served as a Glendale councilmember for 17 years. He has only served one term of 4 years. As for “Chavira helped bring a Super Bowl to Cardinals Stadium.” Really? And how might he have helped? The bid for a Super Bowl and the choice of the stadium for the last Super Bowl was made long before Sammy became a councilmember.

We have just another example of Sammy’s misdirection of the facts and an attempt to give himself recognition for something he did not do.  Add to his practice of embellishment, his lavish trips at taxpayer expense, his failure to attend council meetings and to hold district meetings and his failure to appear in court with a subsequent suspension of his driver’s license while he claimed it was “a minor glitch.”

While we’re at it, let’s take a look at some of the promises made by Sammy in the campaign mailings he sent to voters in his first run for office in 2012. In one campaign mailing Sammy said, “On the City Council, he’ll fight to protect funding for local schools and excellent, academically-enriched after school programs.” Or how about this from another campaign mailing, “Sam understands that good jobs and good schools go hand in hand. He will fight to fully fund Head Start, support education tax credits for our local schools, and make after school programs more curriculum based.” These statements represent one of two positions – take your pick. Fact: The Glendale city council has no authority over federal or local education policies, curriculum or funding. That is the responsibility of your district school board whether it is the Pendergast Elementary School District or the Glendale Elementary School District. Sammy either didn’t know the facts — which makes him ignorant or he knew the facts and he chose to be deceptive.

Here’s another promise from Sammy.2012. “Too many sweetheart arena deals for out-of-state corporations have left us deeply in debt. Sam will prioritize public safety, education and public libraries and isn’t afraid to say no to special interests.” Or how about, “No more sweetheart deals. The city needs to be a tough negotiator, making smart planning decisions that preserve Glendale’s future.” It would appear that Sammy never met a “sweetheart” deal that he didn’t like. He apparently traded votes with former Councilmember Sherwood, flip-flopping on his promise to protect taxpayers from exorbitant, $15 million dollars a year arena management fees with…you guessed it…an out-of-state corporation.

He seems to favor those who contributed large sums of money to his campaign such as Mark Becker of the Becker Billboard issue that surfaced in Glendale last year.

How has he “prioritized public libraries” by supporting a 7,500 square foot modular building as west Glendale’s branch library? It’s insulting that he thinks so little of his constituency that he throws them this kind of bone.

How has Sammy made “smart planning decisions?” By allowing a residential project like Stonehaven in the Yucca district? A residential project in which 43% of the homes will be on 5,500 square foot lots (smaller than that which is required by the city’s standard R1-6 zoning that requires a minimum of 6,000 square foot lots). That kind of “smart planning decision” devalues all of the homes that surround this project.

There’s more, so much more of Sammy’s deceptions…for another blog, I think. Sammy promised a lot and delivered…nothing. Sammy earns a fire fighter’s pay check as well as a councilmember’s pay check of $35,000 a year. Yet he has failed to do his job as a Glendale councilmember. He’s often absent from council meetings and can’t seem to find the time to reach out to, much less listen to, his Yucca district constituents or their concerns.  It’s time to let Sammy go back to being a fire fighter and not a double dipper. It seems as if he can handle only one job at a time.

© Joyce Clark, 2016

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 18 years and 116 days since the city’s pledge to build the West Branch Library.

I, as I suspect many other fans, was surprised and quite frankly shocked to learn of the firing of Coyotes General Manager, Don Maloney. Now, I am no more than a casual Coyotes fan, similar to many fans in the Valley. This season I watched games on TV and attended a few.

I have never been thrilled with LeBlanc and the current ownership group but what is, is. They are large and in charge – one adapts.

I first met Don Maloney when the NHL took over the team after Moyes’ declaration of bankruptcy. He impressed me then and he continues to do so. The NHL was never a hands-on manager and quite frankly, that allowed not only Maloney but Tippett as well, to fly…and they did. Sarah McLellan, sports reporter for the Arizona Republic, in an April 11, 2016 story, describes Maloney’s performance. Here is the link:

http://www.azcentral.com/story/sports/nhl/coyotes/2016/04/11/arizona-coyotes-seeking-new-leadership-gm-after-firing-don-maloney/82920744/ .

With him at the helm, the Coyotes went 326-291-87 and made three playoff appearances. The highlight came in 2012 as the team captured its first division title and advanced to the Western Conference finals for the first time in franchise history.

“After the 2009-10 season, Maloney was honored with the inaugural General Manager of the Year Award for assembling a team that achieved the organization’s most successful season to date. The Coyotes went 50-25-7 for 107 points and qualified for the playoffs for the first time since 2002.

“Actually, much of Maloney’s best work came after the team was dropped into bankruptcy in 2009 and managed by the NHL for the ensuing four seasons before the current ownership group purchased the club in 2013.

“Despite a hamstrung budget and limited resources, the Coyotes rattled off three consecutive seasons of at least 40 wins from 2009 to 2012.”

There is no doubt that Maloney is one of the best general managers in the business. From the outside, looking in, could it have been that Maloney had conveyed that he disagreed with the current direction and before he resigned, the owners fired him? Often these situations are handled more gracefully with a joint statement of a mutual parting of the ways.

Maloney got his direction and goals in running the organization from the franchise owners. Apparently when left to his own devices under the ownership of the NHL he succeeded. What direction did the new IceArizona owners give to him from 2013 onward that resulted in such a dismal performance?

LeBlanc, at a press conference announcing the firing said, “He absolutely has done a great job of laying the groundwork for the future. However, we believe a change in leadership is needed in order to move our franchise to the next level.” LeBlanc went on to say, “Ownership is completely committed to winning and winning long-term here in Arizona. Today was the first step in moving us to the next phase as an organization.” The question many fans are probably asking is what exactly is this next phase?

Maloney reacted to his firing with the following, “Ownership have (sic) the absolute right to hire the person they are most comfortable with to run their hockey organization. They felt a change was needed at this time. I have no hard feelings or regrets whatsoever.” There is no doubt that Don Maloney is a class act and a consummate gentleman. He is articulate and intelligent and worked miracles during the most turbulent times of the Coyotes’ history. From the outside looking in, the manner in which Maloney’s leaving was handled, was not a class act.

© Joyce Clark, 2016

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 18 years and 110 days since the city’s pledge to build the West Branch Library.

The Glendale city council workshop of April 5, 2016 had 3 major issues up for discussion and direction by city council: the temporary West Branch Library; the pavement management program; and an introduction to the proposed new city owned arena manager.

Since I brought up parking for Heroes Park in my blog of April 5, 2016 entitled Glendale…fix the parking problem you created, it was definitely a topic of discussion. Erik Strunk, Director of Parks and Libraries, stated that they are working on temporary parking. He did not address the issue of Park Rangers sending people to park in adjacent neighborhoods or the safety issue of people crossing Bethany Home Road or 83rd Avenue to get to the park.

The final direction of the city council was to move forward with a temporary, 7500 square foot modular building. This action, of course, removes all impetus to ever build a permanent library structure. So, we in west Glendale, once again, get less — a 7500 SF modular structure half the size of Velma Teague Library in downtown Glendale.

The second item for discussion and direction was the city’s pavement management program. Currently the city spends $10 million annually to repair and maintain the city’s streets. Staff requested an additional $5 million a year. Ms. Vicki Rios, Interim Finance Director, presented a series of slides during the discussion. I bring two of those slides to your attention. This first one shows the city’s current debt service. The red, dotted line is the city’s secondary property tax revenue that is used to pay this form of debt. Please note that as of this year’s (FY 16-17) budget there is new debt capacity available…perhaps to build the west branch library? The new debt capacity is the difference between the red, dotted line and the sold green block depicting debt payments.

Current General Obligation debt

Current General
Obligation debt

Not so fast. Look at this second slide. It depicts current debt plus new, proposed debt.

Current debt plus new debt

Current debt
plus new debt

Note the Series 2016 debt depicted by the brownish square in the legend. That Series 16 debt is the $32 million the city is issuing next week to pay for the land and to construct parking on it to satisfy the city’s obligation to provide adequate parking for Cardinals’ football games. The orange, olive and blue areas above the brownish parking debt represent $5 million dollars a year in new debt for the pavement management plan. Note the red, dotted line which are funds used to pay the debt. Now there is no debt capacity available until Fiscal Year 21-22. With council’s approval of two items: the issuance of $32 million in debt for Cardinals’ parking and the $5million a year ($15 million total) for the pavement management plan there is no debt capacity to do anything else including building a permanent west branch library. The significance of these decisions is that there will be no debt capacity to build a west branch library for SIX more years until Fiscal Year 21-22. We will have waited for the west branch library for 25 years. There is no word to describe this situation other than disgraceful.

The last item was a public introduction of AEG as the proposed new manager of the city owned Gila River Arena. There was no mention of the Coyotes who continue to declare that they will move to some magical, undefined new facility somewhere else in the Valley. The reality is that AEG, as arena manager, the Coyotes and the city will have to come to terms in the meantime. I continue to believe if the Coyotes and AEG can come to agreement for a few years, why not long-term?

Under council requests for future workshops only one councilmember spoke, Sammy Chavira. He requested that the city present its travel policy and compare it to other Valley cities. What was more interesting is that Sammy, largely invisible these days, was cornered by an Arizona Republic reporter and questioned about his trips. Sammy’s only response was, “I want to stick to the policy to find out from now on – so next time, if you look at your policy, if you see anything, that you know that’s what we’re adhering to. What I want to do is I want to put something in concrete.” Say what? What did he say? Here is the link to the full story in the Arizona Republic: http://www.azcentral.com/story/news/local/glendale/2016/04/06/glendale-councilman-sammy-chavira-requests-review-travel-policy-after-council-trip/82631826/ .

I can see it now. Sammy’s defense is that he followed city policy. OK, so now it’s the city’s fault? Where is Sammy’s ethical and moral compass? In essence he is admitting that he took advantage of a policy. It’s the same as if there were a policy that said, thou shall not steal. Since the policy is so vague an argument could be there is no definition of the word “steal.” Sammy is playing word games but they won’t work this time. He is accountable for his actions. He should voluntarily reimburse the city for the nearly $25,000 he spent for trips to see the Pope, his buddy sworn into Congress, his excessive baggage claims and rebooked flights, and his two highly suspicious trips to California. Don’t hold your breath on this one.

© Joyce Clark, 2016

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 18 years and 75 days since the city’s pledge to build the West Branch Library.

On February 26, 2016 Arizona Sports ran a story on Anthony LeBlanc’s reaction to Mayor Jerry Weiers’ remarks at his State of the City address. Here is the link:  http://arizonasports.com/story/566510/arizona-coyotes-ceo-glendale-may-want-us-to-stay-but-not-being-realistic/ .

In his prepared remarks with reference to the Coyotes the Mayor said, “I need to be clear about this. I want the Coyotes to stay in Glendale. The city wants the Coyotes to remain in Glendale. We have, since day-one, invited them to remain engaged in this process.”  In his recent remarks Mr. LeBlanc said this about the Coyotes’ refusal to engage in the bid process to manage Glendale’s arena, “…the team did not submit a bid to manage the arena because it refused to participate in a ‘flawed process’.” LeBlanc did not elaborate on his characterization of a “flawed process.”

Mr. LeBlanc went on to say, “I think they do want us to stay, but I don’t think they’re looking through a realistic lens of what that means.” Translate this statement to read that in his view “a realistic lens of what that means” is the Coyotes would only stay if Glendale continues to subsidize a portion of their annual loss. LeBlanc, et. al., may have retired their Fortress loan by adding additional owners but don’t forget they still owe a boat load of money to the NHL for another loan that covered buying the team.

What governmental entity is not only going to build a new hockey arena but also subsidize the Coyotes’ annual loss? It’s Glendale all over again. Tempe? Scottsdale? Probably not. Phoenix? Perhaps it can bury its subsidization of the Coyotes within possible plans to build a new facility for joint use by the Suns and the Coyotes.

The Coyotes want to manage their own facility. Then they collect all of the revenue generated by non-hockey events and they can claim a management fee that not only covers their cost to manage but off-sets their annual loss.

LeBlanc praised a recently approved deal between Broward County, Florida and the NHL Florida Panthers. The deal allows the Panthers to get nearly all of the arena revenue and reduces any profit-sharing between the Panthers and the county. Since the Panthers first season in 1993-94 the Broward county’s public subsidy of the team has been $342 million (an estimated $14 million a year). It should be noted that the Panthers lost $36 million last year and another $27 million the previous year. Of course LeBlanc would think that’s a wonderful deal. Reality is that the majority of NHL teams can’t survive without public financial support. That has been the model for years but many governmental entities are under financial pressure and can no longer afford this type of model. It is a model destined to die in the future as the public clamors for sports franchises to pay their own way.

LeBlanc said three options are still being discussed. They are a shared arena with the Phoenix Suns in downtown, a partnership with Arizona State University or an arena in Scottsdale’s Loop 101 corridor. Hey, if the City of Phoenix wants to pony up and pay the Coyotes to play downtown, congratulations to all. Previously the Suns and the Coyotes shared an arena downtown and it was the fans who suffered with terrible sight lines while watching the games.

Is the Arizona State Legislature delusional? It has budget problems. Will it allow a portion of its allocation of state public money to be used to pay for a new hockey arena instead of educational purposes? It seems doubtful that Scottsdale will wish to pay the Coyotes to play in their town. It would be déjà vu as they refused to do so in 2001.

LeBlanc said if a new arena is built it will take at least three years. He went on to say they would “rather not move twice in five years.” Here is where the situation becomes problematical. Glendale and IceArizona currently have a two year agreement that allows IceArizona to manage the arena for $6 million per year. The first year of that agreement is nearly up leaving only one more year of IceArizona’s management. After that it is assumed AEG, the presumed new arena manager, and IceArizona will have to negotiate short-term tenancy for two more years. Will they be able to craft a mutually satisfactory tenancy arrangement? Then the question becomes if IceArizona can live with the deal for two years, why can’t it live with the deal permanently? Can LeBlanc and company afford to rebuild its fan base in another part of the Valley while it continues to rebuild the team?

No matter what the outcome I continue to have greatest respect and admiration for the players. They have endured a great deal since Jerry Moyes put the team into bankruptcy in 2009. They are a great group of men who certainly deserve more stability than they have had. They deserve better. Let’s see if cooler heads can prevail and a deal that benefits all entities can be achieved permanently. Isn’t it time?

© Joyce Clark, 2016

 FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 18 years and 68 days since the city’s pledge to build the West Branch Library.

City council held its first budget workshop on February 16, 2016. Here is the schedule of future budget workshops:

  • March 15, 2016             9 AM
  • April 5, 2016                 9 AM
  • April 19, 2016               9 AM
  • April 21, 2016               9 AM

This first budget workshop was a review of all budget components as of December 31, 2015 or the first two quarters of Fiscal Year 2016. The only item which required council consensus for direction was the issue of raising the Secondary Property Tax rate to the maximum of 2% as allowed by state law. Council consensus was…nothing. They gave no direction to staff. Look for the vote on acceptance of a property tax rate in June when council must publicly vote on the issue.

Senior staff’s presentation on the budget’s performance was pure “government speak.” Here’s a good example, “(General Fund) Revenues are $11.2 million or 11% higher than revenues at the same time last year.” Boy, that sounds really, really good. Wait a minute. Staff then said, “Out of the $11.2 million increase in revenues, $8.3 million is due to consolidation of the general fund sub-funds into the General Fund.”

In plain English what that statement means is this. General fund sub-funds are the Arena, Camelback Ranch, Zanjero, Civic Center and Stadium events. This is not a complete list but you get the idea. Prior to this Fiscal Year, 2015-16, the sub-funds stood separately. Staff had to report on the revenues received and expenditures of all sub-funds. This Fiscal year they were rolled into the General Fund for “accounting purposes.” No longer is there a separate accounting of the sub-funds’ performance. Hmmm.

Staff went on to say, “General Fund City Sales Tax collections are $48 million which is an increase of $7.3 million or 18% over the same time last year. Approximately $6.0 million of the increase is attributable to the consolidation the sub-funds into the general fund. Without including the sub-fund revenues, city sales tax increased by $1.3 million or 3%.” This 3% figure is in line with the federal GDP.

In terms of General Fund expenditures staff reported, “The actual (General Fund) expenditures increased by $15.4 million over the same time last year. This increase is primarily due to the consolidation of the general fund sub-funds into the General Fund ($9.7 million) and reclassification of Technology and Technology Projects ($5.0 million)…” Once again most of the expenditures are attributable to rolling the sub-funds into the General Fund.

The bottom line is this. Half way through Fiscal Year 2015-16 the General Fund has an excess of $8.3 million. It can be assumed that this excess is due in great measure to the $9.0 million reduction (from the previous figure of $15 million) in the arena management fee paid to IceArizona.

Tonight, February 23, 2016 city council will host its regular voting meeting. Guess who will be AWOL? Yep, Councilmember Sammy Chavira…once again. Be reassured. He will participate telephonically.

Three agenda items are worth following: Item 20 is Resolution 5071. It is an acceptance of a $49,000 grant from the Arizona Sports and Tourism Authority to be used to help develop an archery range at Heroes Park; Item 21 is acceptance of Ordinance 2975 reflecting rezoning request ZON15-10. This action will allow for development of the Westgate Healthcare Campus PAD at the northwest corner of 99th Avenue and Glendale Avenue. This is a very welcome project and provides a fantastic compliment to Dignity’s Westgate Hospital Campus just north of this proposed project; and lastly Item 22. Council will vote on the adoption of the Loop 101 Scenic Corridor in north Glendale. This is another very welcome development that warrants expansion of this designation all along the Loop 101 within Glendale with the only exception being a narrowly tailored Westgate area.

Stay tuned for more reports on Glendale’s budget as council meets in March and April of 2016.

Don’t forget…it’s budget season in Glendale.

© Joyce Clark, 2016

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It has been 18 years and 49 days since the city’s pledge to build the West Branch Library.

The City of Glendale received 3 bids to manage its arena. The bids were from AEG Facilities, Comcast Spectacor and SMG. All are extremely reputable, large national companies, experienced in operating venues throughout the country. After senior management reviewed all 3 bids it recommended AEG to the city council. All of the discussion with council was done in executive session and the public is not privy to those discussions. On January 2, 2016 in its executive session council approved AEG and directed staff to negotiate a final contract over the next 60 days.

It is a very positive development. AEG can add another premier venue to its portfolio that is sure to benefit Glendale when AEG negotiates packages of venues with performers. It had previous experience operating the Gila River Arena from 2006 – 2009 and during that period it acquired some major performers: one that comes to mind is Bruce Springstein. It manages over 120 facilities worldwide and the majority is located in the United States.

What does that mean for the Coyotes? I, and many others, remain hopeful that AEG and IceArizona can negotiate a deal that benefits both. That still is the best option for all parties: the city, IceArizona and AEG. Anthony LeBlanc, an owner of IceArizona and its spokesperson, continues to play poker when discussing the situation with such recent comments as, “The good news is that all of the discussions we have had have been pretty open as have other organizations — be it the city of Phoenix or Tempe or Arizona State. Everybody has been pretty open that we have had discussions with and they have all been positive (www.arizonasports.com, Rodney Haas).” If this is his attempt to raise the ante with Glendale or AEG it doesn’t seem to be working. One has only to look back upon his previous history of blustery statements that were found to be less than forthcoming.

If the Coyotes are serious about moving there are still major hurdles to overcome. A new facility would not be available for at least 3 years. No matter whether is it Phoenix, Tempe or Timbuktu, pesky voters will have to be swayed to support the construction of yet another sports venue. Voters are becoming more discerning and will question the value of diverting precious tax revenue away from community needs and to another subsidized sports facility. In today’s day and age, it is not an easy sell as it once was.

Then there is the issue of location…location…location. Larry Feiner, a Coyotes fan, recently tweeted the results of an informal poll he did about the difficulty of the commute. His responses were split right down the middle, 50/50. Those fans who live in the east valley consider the commute to Glendale a hassle. Those fans who live in the west valley consider the commute to the east valley a hassle. The question for the Coyotes is will the ticket holders they pick up from the east valley offset the losses of west valley fans? All of the good will created among west valley fans could be lost. That is a question only the Coyotes will be able to answer. For the past 10 years the Coyotes have had a home in the west valley and it has served them and their fans well. It is a wonderful facility build exclusively for hockey. It is not to be dismissed lightly in a pique of anger because the city is no longer subsidizing losses to the tune of $15 million dollars a year.

I remain positive and believe that a successful accommodation can be achieved between all parties. Can the Coyotes?

©Joyce Clark,2016  

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It has been 18 years and 23 days since the city’s pledge to build the West Branch Library.

Over the holidays there wasn’t much news about the Coyotes. Now that we are in a new year on January 7, Paul Giblin had a story in the Arizona Republic citing the results of a recent poll on the subject of a Coyotes relocation. Here is the link: http://www.azcentral.com/story/news/local/glendale/2016/01/07/poll-arizona-coyotes-should-stay-gila-river-arena-glendale/78314406/ . He reported, “Approximately 54 percent of frequent voters in Maricopa County surveyed believe the Coyotes should remain at Gila River Arena in Glendale, according to the poll that was conducted Dec. 29 for Phoenix-based public-relations firms MBQF Consulting and Marson Media.”

The problem for any other governmental agency attempting to locate the Coyotes will be to garner enough public support to pay for yet another very expensive sports facility. Thirteen years ago, in 2002, the cost to build the Gila River Arena was about $180 million dollars. The cost today to build the same type of facility has exploded. It is expected that the cost would be in the $400 million dollar range. The sixty four dollar question is can enough public support be generated in some other Valley community to use precious and scarce taxpayer dollars?

Public support would probably be found if the economy was booming and world affairs were stable. That is not the case. The economy staggers along as the middle class continues its death spiral. The general public fears more ISIS inspired events on our soil as the Middle East explodes into further turmoil while China’s stock market takes a dive and North Korea’s bomb tests reminds us that we, as a nation, are vulnerable. This is not an environment that is conducive for public sentiment to use taxpayer dollars on yet another sports facility.

Anthony LeBlanc, one of the Coyotes’ owners and apparent Public Information Officer, has had to walk back some of his previous assertions about the Coyotes.  He has hired a sports consultancy firm to assist him in his quest for a new location. It seems likely that a location in any other Valley municipality will be very difficult, if not impossible, to achieve. His only hope may be can he cut a deal for another new facility funded and built by the Gila River Pima Maricopa Indian Community? His refusal to bid for management of the Gila River Arena may come back to haunt him.

Which leads to another bit of recent news. The City of Glendale received 3 bids to manage its Gila River Arena submitted by AEG Facilities, Spectra by Comcast Spectacor and SMG. All three are “big guns” in the sports management business. All have the experience and knowledge required to successfully manage Glendale’s arena. Currently the bids are TOP SECRET. In the next few weeks Glendale’s senior management staff and city council will each receive separate briefings regarding the specifics of each proposed bid. This management deal is more complicated because the Coyotes will play in the arena for another season and it is expected the chosen management company contract would begin this July 1, 2016. That means that the preferred management company and the Coyotes would have to negotiate revenue streams for one year of Coyotes occupancy. There is always the remote possibility that a deal could be crafted comfortable enough for the Coyotes to create an incentive for them to stay at the Gila River Arena beyond their final year.

The city council may be ready to vote on an arena manager as early as February 9, 2016. If a vote is not taken around that date expect that one of the bids is in further negotiation before final acceptance. The public, as is the case with mushrooms, will be left in the dark and fed horse manure. There is no opportunity for public input in this process. While everyone understands the theory of representative government they also understand the theory of transparency. It seems that once again “father knows best” trumps the public’s right to know.

© Joyce Clark, 2016

FAIR USE NOTICE

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It has been 17 years and 336 days since the city’s pledge to build the West Branch Library.

It seems that Thanksgiving got in the way of much blog writing recently. I hope your Thanksgiving Day with family and friends was enjoyable. I hope you ate too much, laughed too much and watched too much football.

It was announced that the Coyotes hired Mitchell Ziets, CEO of Tipping Point Sports, LLC, to assist in an exploration of options for the team including a move to another venue from the Gila River Arena in Glendale. Let’s explore the reality of this option.

In a November 2, 2015 story by Craig Morgan several possible venues are offered for consideration by the Coyotes. Here is the link: http://arizonasports.com/story/436156/coyotes-in-discussions-with-at-least-three-separate-groups-for-new-valley-arena/ .

In his story Morgan offers this comment from Anthony LeBlanc, “At some point you have to make a decision that you can’t continue to talk to a wall, Coyotes co-owner, president and CEO Anthony LeBlanc said. You have to accept reality and look at what your alternatives are. That’s where we are right now.” From the time LeBlanc’s group, IceArizona, commenced its deal with Glendale for the use of its arena the Coyotes simply refused to talk to and to share information with Glendale. They were decidedly off the reservation. It has only been since the new, two-year deal was inked that IceArizona has decided to play nice with Glendale.

IceArizona may very well leave Gila River Arena in two years but options to play elsewhere in the Valley are more limited than current speculation would lead one to believe. LeBlanc admits to “conversations” with Phoenix about the possibility of a shared arena with the Phoenix Suns. Out of curiosity I checked the 2015-2016 playing schedules for both teams. Here are some comparisons:

                                                            Phoenix Suns                 Arizona Coyotes

Season                                                10/28/2015-4/13/2016     10/9/2015-4/13/2016

Number of total games                                     82                                        82

Number of home games                                   40                                        41

Out of the 40+ plus home games each team plays at its current venue, if they currently played at the same shared venue, 12 playing dates would conflict. That is ¼ or 25% of their home games. To be fair, we know that can be remedied by the leagues with a gnashing of teeth and the pulling of hair. It has worked before when the Coyotes and Suns shared a venue. One would think the Coyotes fans have warm memories of their experiences in sharing a venue with the Suns and are eagerly looking forward to do so again.

In a recent December 2, 2015 Paul Giblin story in the Arizona Republic, he cites issues that Phoenix would have to consider. Here is the link: http://www.azcentral.com/story/news/local/glendale/2015/12/02/arizona-coyotes-arizona-cardinals-wont-bid-manage-glendale-gila-river-arena/76564718/ .

  •  How much would a new arena cost? The Milwaukee Bucks’ planned new arena is pegged at $500 million.
  • How much would be privately funded? How much publicly funded? Would the public-funding source be municipal, state or some combination?
  • Can voters be sold on the idea of picking up any portion of the bill?
  • Where specifically would an arena be built?
  • When would it open?
  • Can the Suns and Coyotes work out an agreement to split revenues?

Let’s look at other possible venues. Tempe and/or Scottsdale are possible candidates. Would the voters of Tempe and/or Scottsdale approve the construction of a $180 million dollar building (cost of Gila River Arena construction in 2005) and agree to subsidize, year after year, a team that is not profitable? Remember those who do not read history are doomed to repeat it. I would think many voters would be very aware of Glendale’s history and that could certainly cause them to think twice about such a proposal.

Arizona State University has been mentioned as well. ASU receives substantial funding from the Arizona State Legislature. It is conceivable that a majority of legislators may balk at the idea of state taxpayer money being used to subsidize a for-profit company.  If ASU can fund and subsidize such a project with new, private dollars and not divert private dollars already committed for existent programs then it is possible. But wait, didn’t ASU Hockey just commit to playing its games at Gila River Arena? If that is the case, wouldn’t ASU have to build a new venue?

The last location on the menu of possibles is Talking Stick. That is certainly do-able. An Indian reservation is not subject to federal, state, county or local laws. The tribe is free to build what it wants to build on reservation land.  One has to wonder if this tribe would be willing to invest in the construction of another major venue as well as subsidizing the team in perpetuity.

There was an interesting article published on October 20,2015 by the Flordia’s Sun Sentinel regarding the NHL Florida Panthers and a Broward County proposed deal. Here is the link: http://www.sun-sentinel.com/local/broward/fl-panthers-subsidy-debate-20151020-story.html .

In some ways their deal is like comparing apples and oranges for Broward County has a population of 1.87 million people and includes 24 cities. That in itself is much different from Glendale’s population of approximately 240,000 and the fact that it is one city having to deal with a hockey arena. Some elements of their proposed deal are eerily similar to the Glendale/Coyotes deal. As of this date their deal has yet to be approved but here are some of the deal points which would expire in 2028:

  • The Panthers would continue making $5.3 million annual debt payments toward the county’s $15.3 million obligation.
  • Receive $86 million from the county, or $6.6 million a year on average, but in a schedule of front-loaded payments that starts at $12 million a year. Of the total, $39 million must be used for capital expenses at the arena, $45.5 million for operating expenses like paying the electric bill or property insurance, and $1.5 million to lure a “high impact event.”
  • Provide an irrevocable letter of credit to protect the county’s financial investment if the team defaults, files bankruptcy or relocates.
  • Grant the county development rights on land surrounding the arena, where a mixed-use entertainment complex could be considered.
  • Share proceeds with the county if the NHL expands between 2015 and 2021 and gives teams expansion proceeds. After the Panthers’ losses are covered, the county would get the remainder of the one-time expansion payment.
  • Give the county 10 percent of profits if the team, made more valuable by this new deal, were sold.
  • Give the county authority to approve where the money for capital projects is spent, and authority to replace the Panthers’ Arena Operating Company with another arena manager if needed.
  • Allow the Panthers to get out of the contract in eight years if it’s not working out. They’d have to give a year’s notice, show losses of $100 million over seven years, and pay a termination amount. For example, if the Panthers leave in year 8, they’d pay back the full $72 million the county would have given them by then.

No matter where the Coyotes end up in the Valley, whether they remain in Glendale or move to another location, their quest to be subsidized by a governmental entity is surely a public policy question deserving of much public discussion. The people of any city have a right to weigh in on the question of their tax dollars being used to subsidize a private, for-profit company.

© Joyce Clark, 2015

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This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.