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Joyce Clark Unfiltered

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Sep 24

20

Worker Power Initiative Part 5…A disaster for Glendale

Posted by Joyce Clark on September 20, 2024
Posted in 2024 General Election • City issue and actions • City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale election 2024 • Glendale finances • Phoenix Metro issues • Worker Power Super PAC  | Tagged With: , , , | 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.

In preceding blogs you’ve learned about the Worker Power Super PAC, what facilities would be affected, the proposed minimum wage and the requirement to create a new Glendale governmental department.

The consequences for the City of Glendale and affected workers are quite consequential. Kamryn Brunner authored the following September 2024 report for the Common Sense Institute Arizona. It is entitled, The fiscal implications of Glendale’s Hotel and Event Center Minimum Wage Protection Act. Here is the link to the entire study: CSI_AZ_REPORT_GLENDALE_MIN_WAGE_SEPT_9_2024_FINAL (1)

Their conclusion is, “Common Sense Institute estimates the Wage Act would reduce Glendale’s economy by between $120 million and $1.9 billion. Associated job losses would be between 1,700 and 32,000; up to 47% of this is a dynamic effect on businesses indirectly supported by the city’s tourism sector.”

I have cited some excerpts from their study:

  • “An analysis of data from hotels.com and Expedia, the Federal Emergency Management Agency, VisitGlendale.com, and other public information sources, CSI estimates that 19% of Maricopa County’s events and accommodation industry can be found in Glendale alone.” 
  • “While Glendale has only 3.4% of the state’s population and 3.3% of state personal income, but approximately 15% of the state’s entire sports and tourism sector is found in Glendale.”
  • “CSI estimates that there are up to 4,954 employees in the City of Glendale who may be directly impacted by this proposal.”
  • “This initiative specifically targets the niche industry into which Glendale has heavily invested and is today heavily concentrated. Because of the significant costs the initiative could impose on targeted businesses, and the relative ease with which affected activity could move to other nearby jurisdictions while staying close to sports and event hubs, the potential negative impacts for Glendale are likely to be more significant than if this were either a more isolated community or a statewide initiative.”
  • “For Arizona to pass a $20 minimum wage for hotel and event center workers in Glendale, it could cost employers up to $10,756 per affected worker -through a combination of either direct increased wage costs or efficiency losses as employers mitigate the impacts by reducing staff, cutting hours, or moving business activity. Much of this cost will likely be passed onto consumers in the form of higher prices and increased fees (as has been the case in California). This may further incentivize both customers and operators to seek alternatives outside the city.”
  • “Ultimately, if enacted, the Act would have dramatic implications for the city of Glendale and its economy. Those implications would likely play out over a period of time, rather than immediately.”                                                                                             “There will be some combination of:
  • Employment losses and reductions in work hours among hotel and event staff.
  • Hotel and event cost increases in Glendale, including price increases.
  • The movement of hotel and event activity outside of Glendale and to nearby cities, particularly over time as part of normal business maintenance and expansion cycle.
  • An increase in the rate of unionization among Glendale accommodation and event staff.”

“Under all outcomes, the nominal wage increase implied by the Act for existing workers never occurs.”

© Joyce Clark, 2024    

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.

Sep 24

18

Worker Power Initiative, Part 4

Posted by Joyce Clark on September 18, 2024
Posted in 2024 General Election • City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale election 2024 • Phoenix Metro issues • Worker Power Super PAC  | Tagged With: , , , | 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.

In previous blogs I presented who and what the Worker Power Super PAC is, what facilities this proposed ordinance would impact, and the minimum wage provisions. In this blog I will share what new regulations are imposed on Glendale.

The Worker Power initiative mandates that the City of Glendale, effective June 1, 2025, will create a Department of Labor Standards as well as an online and a paper method for individuals to file complaints. It further mandates that there be a Director of Labor Standards and investigators. This new department will publish all labor regulations and is empowered to make labor rules that comply with this proposed ordinance.

The proposed ordinance also requires this Labor Department’s access to all records, and it can impose a civil penalty of up to one hundred dollars ($100) per day to be paid to the hotel or event center worker. The maximum violation per employer can be up to one thousand dollars ($1,000) per day. Statutory damages can be awarded. The party that loses a court case must pay the opponent’s attorney’s fees and any court costs. There is a 3-year statute of limitations during which any harmed individual can sue.

At our last city council workshop, I asked what the estimated cost of creating this new department would be. The estimated cost is one million dollars. That’s just for a bare bones, new department. I ask you this. Have you ever seen a governmental department go away or shrink? Never happens. One million dollars is just the starting point.

Where will the money come from? That’s for the city council to decide but every other department is fair game to lose money. It could be parks and libraries, transportation, public safety. That will be decided next year, if this initiative passes.

In my next blog I will share how this initiative will impact Glendale and you.

© Joyce Clark, 2024    

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.

Sep 24

17

Worker Power Initiative, Part 3

Posted by Joyce Clark on September 17, 2024
Posted in 2024 General Election • City issue and actions • City of Glendale • Glendale Economic Development • Glendale election 2024 • Glendale finances • Phoenix Metro issues • Worker Power Super PAC  | Tagged With: , , , | 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.

In previous blogs the Worker Power Super PAC was explained and the types of venues that could be covered by this proposed initiative. Some aspects of this proposed initiative are vague and leave room for expensive interpretation, probably by a judge at some point, if it passes.

What is the minimum wage proposed? The initiative says, “Beginning thirty days (30) after the effective date of this ordinance, a hotel employer or an event center employer shall pay its hotel workers or event center workers, as applicable, a wage of no less than $20 per hour, not including tips, gratuities, service charge distributions, and bonuses.” There is more, “Beginning January 1, 2025, and annually thereafter, the minimum wage will increase annually to reflect increases in the cost of living. The cost-of-living increase shall be the greater of (1) three percent (3%) or (2) the percentage increase as of September 30, 2024, and as of September 30 in any subsequent year for further annual adjustments, over the level as of September 30 of the preceding year.”

In English, that sets the minimum wage for hospitality workers at $20 per hour with a cost of living increase every year. That $20 an hour does not include tips, gratuities, service charge distributions or bonuses. Currently, Arizona’s statewide minimum wage is $14.35 per hour. In January 2025, it will become $14.70 per hour. This initiative requires $5.30 per hour more than the minimum wage of any other Arizona city.

Wait, there’s more. If a hotel has less than 60 rooms, the room attendant who cleans more than 4,000 square feet in an 8-hour day gets a double pay rate of $40 an hour for the entire 8 plus hours. For example, the worker who cleans 3,999 square feet in an 8-hour day gets $160 ($20/hour). But if the worker cleans 4,100 square feet in 9 hours, that worker gets $360 for a 9-hour day ($40/hour). If a hotel is larger than 60 rooms (and nearly everyone is) anything over 3,500 square feet in an 8-hour day gets double pay.

All service charges are split between the event center and the hospitality worker but there is no specific proportion as to who gets what.

This proposed ordinance applies only to hospitality workers, not managerial, supervisory staff, bartenders, bellhops, valets, custodians, etc. It doesn’t apply to maintenance staff. You know, the people that keep the lights on, the A/C working and the plumbing from backing up…just hospitality workers. Is that fair? I think not.

In the next blog we will learn what requirements are imposed on Glendale if this initiative passes.

© Joyce Clark, 2024    

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.

Sep 24

16

Worker Power Initiative, Part 2

Posted by Joyce Clark on September 16, 2024
Posted in 2024 General Election • City issue and actions • City of Glendale • Glendale Economic Development • Glendale election 2024 • Phoenix Metro issues • Worker Power Super PAC  | Tagged With: , , | 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.

In my last blog I laid out some background on who and what the group running this initiative, the Worker Power Super PAC is. This blog starts to explain what their proposed initiative includes. I have offered a link so that you can refer to the entire initiative as submitted.  Initiative

The initiative applies to all event centers within the City of Glendale and is defined in the initiative as, “An event center means a publicly or privately owned structure in the city of more than 20,000 square feet that is used for public performances, sporting events, business meetings, or similar events. An event center includes, but is not limited to concert halls, stadiums, sports arenas, racetracks, coliseums, and convention centers.”

Please note that “similar events” is pretty broad and covers just about anything. Hotels are not referred to in this section but are in section 21-187 and is as follows, “A hotel means an establishment in the city that provides temporary lodging for payment in the form of overnight accommodation in guest rooms to transient patrons for periods of thirty (30) consecutive calendar days or less. This definition includes hotels, motor lodges, motels apartment hotels, transient residential structures, private residential clubs, tourist courts, hostels and private guest rooms that may be reserved, meeting the hotel definition.”

Let’s break this down. First, it applies to all public and private facilities. Here are some examples: Midwestern University, Glendale Community College, all high schools and elementary schools (public or charter) that have a football field and/or basketball court or any other large meeting area. It includes government facilities like the Civic Center, the arena, the main library and the Glendale Public Training Facility. It includes private facilities that rent space for meetings or weddings or your favorite performing arts theater or movie theater. It would also include places like the pickleball venue in Westgate and the under construction Mario Andretti cart racing venue. Of course, the football stadium and the arena, both in Westgate, are included.

In other words, any location, public or private where people gather in large groups. Many mistakenly believe that this proposed initiative only applies to hotel workers but as you can see, that is not the case.  That is why they have purposefully referred to “hospitality workers.” It’s smoke and mirrors to make you think one thing when it is actually more broadly written.

Keep in mind that this proposed initiative only applies to the City of Glendale. IT WOULD NOT APPLY TO ANY OTHER CITY IN THE STATE OF ARIZONA! Mind you, should Worker Power be successful in getting this initiative passed on November 5th, at the General Election you can be sure they will take it to other cities in Arizona. The only voters that can deny or pass this proposed initiative are Glendale voters since it currently applies only to Glendale.

Coming in my next blog, how much is the proposed hourly wage and are there any other wage provisions?

© Joyce Clark, 2024    

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.

Sep 24

12

Worker Power Initiative, Part 1

Posted by Joyce Clark on September 12, 2024
Posted in 2024 General Election • City issue and actions • City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale finances • Phoenix Metro issues • VAI Resort • Worker Power Super PAC  | Tagged With: , , | 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 am starting a series of blogs on a very complicated issue. Worker Power PAC (political action committee) successfully obtained enough Glendale voters’ signatures to, they hope, get a minimum wage of $20 an hour for hospitality workers on Glendale’s November 5th General Election ballot.

Glendale appealed to the Arizona Court of Appeals stating that the initiative language encompasses more than one subject. In 2022, Arizona required that all ballot measures must have one subject. The Court of Appeals upheld Worker Power’s position. Glendale has now appealed to the Supreme Court of Arizona, and we await their decision. Hopefully by next week.

Before there is an explanation of the Worker Power initiative, let’s find out more about this Super PAC. According to media reports, “The Worker Power PAC is a Democratic Party-aligned Super PAC founded in 2020 as the Working Arizona PAC that expanded to conduct activity in other competitive states in 2022 after changing its name. The PAC is closely aligned with organized labor and has received money from labor unions and other left-of-center advocacy groups including Unite HERE Local 11, the American Federation of State, County, and Municipal Employees (AFSCME), the American Federation of Teachers, and the Arizona AFL-CIO.”

Worker Power in 2022 supported these Arizona candidates: Arizona Governor Katie Hobbs (D), Senator Mark Kelly (D-AZ), Arizona Secretary of State Adrian Fontes (D), and Arizona Attorney General Kris Mayes (D). It also claims through its efforts, it was responsible for radical Democrat Raphael Warnock’s win against Herschel Walker for a Georgia Congressional Senate seat.

As of July 20, 2024, Worker Power had reported total contributions of $4,106,415 and total expenditures of $3,737,230. It may be assumed that “Dark Money” from such groups as George Soros has secretly made its way into Worker Power coffers.

Locally, Worker Power endorsed radical activist Democrat Lupe Conchas in his successful bid to become the next Cactus district councilmember in Glendale. You can be sure that Conchas has greater ambitions than that of a councilmember in Glendale. After all, failed Glendale mayoral candidate Jamie Aldama on his Facebook page congratulated Conchas on his win and referred to him as the next US Senator Ruben Gallego.

Getting back to Worker Power. Their target has always been VIA resort which will be the largest resort hotel in Arizona with over 1200 rooms. That is a target just too juicy for them to pass up.

Their first round of attacks failed as they attempted to kill the use of a GPLET between the city and the VIA Resort. When the city declared that there was no GPLET nor would one be used, they had to come up with another plan of attack.

Why Glendale? They assumed that Glendale would be too unsophisticated to fight back and would be easy picking. They also wanted a win with the largest hotel in Arizona. With unlimited money at their disposal, this would be their signature fight. Then they could use the same tactic with other cities picking them off, one by one.

If history repeats itself, Glendale voters will reject this initiative just as in Phoenix when its voters rejected Worker Power’s candidate, Carlos Garcia, a former immigrants’ rights activist. Instead, Kesha Hodge Washington, his opponent won despite their $300,000 investment in Garcia’s candidacy.

In part 2, I will start to unpack their initiative, concept by concept.

© Joyce Clark, 2024    

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.

Nov 23

28

VAI Resort and Mattel Adventure Park most impactful projects ever

Posted by Joyce Clark on November 28, 2023
Posted in City Council Actions • City issue and actions • City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale finances • Mattel Adventure Park • Mattel Amusement Park • VAI Resort • Yucca district  | Tagged With: , , , , | 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 November 21, 2023, at city council workshop, the long-awaited revised Economic Impact Study for VAI Resort and Mattel Adventure Park was released. The numbers are just astounding and are shared here.

The project has grown considerably since it was first envisioned and presented to the city. The Applied Economics Study presented this project description:

“The development includes 10 mixed-use buildings. Buildings 5 and 8 will open at the end of 2024 and the remainder of the development will open in summer 2025.

  • VAI Resort Hotel

    Building 1 will include a 299-room luxury hotel with 17,000 square feet of restaurants, 18,000 square feet of retail shops and 130 underground parking spaces.

  • Building 2 will include 29,500 square feet of retail and restaurants, a 9,000 square foot spa, a 155-room hotel and 230 underground parking spaces.
  • Building 3 is a parking structure with 3,900 spaces.
  • Building 4 will include 47,000 square feet of restaurants and themed retail, an aerophile balloon, a 3,000-seat theater, an 8,000 square foot Barbie theater and a 19,000 square foot Barbie Dream House attraction.
  • Building 5 will include a 9-acre Mattel Adventure Park with 250,000 square feet of indoor and outdoor rides and amusements and 8,000 square feet of themed restaurants.
  • Building 6 will include a 311-roon hotel, 28,000 square feet of retail and restaurants, an 8,500 square foot kid’s club and 150 underground parking spaces.
  • Building 7 will include 70,000 square feet of meeting and convention space, a 20,000 square foot night club, a 10,000 square foot fitness center and a 10,000 square foot swim up bar.
  • Building 8 will include 318 hotel rooms, including the Amphitheater Tower with 27,000 square feet of sky boxes overlooking the 90,000 square foot concert venue. This area also includes 37,000 square feet of restaurant space, a 4,500 square foot retail/café area and 390 underground parking spaces.
  • Building 9 represents Konos Island in the middle of the swimming area with 40,000 square feet of island beach amenities, 10,000 square feet of restaurant space, and the elevated Aerobar attraction.
  • Building 10 includes 55,000 square feet of corporate office space occupied by the developer/owner.
  • Other Amenities include the beach and pool decks, service areas, and 1,060 surface parking spaces.”

In summary and please note that my numbers are estimated based on available information, there will be on the site including both VAI and Mattel Adventure Park:

  • 1,013 hotel rooms available in a 5-building complex
  • 5,860 parking spaces on site including 900 underground; 3,900 in a parking garage; and 1,060 surface parking spaces.
  • 100,500 square feet of restaurants
  • 108,500 square feet of retail space
  • 387,500 square feet of attractions

It should be noted that that estimates of development costs and revenues earned are conservative as can be shown by a conservative estimate of 4 of the hotels’ occupancy rate of 42% to 46% and one hotel at an occupancy rate of 66%. Please note in the Westgate area, hotels are averaging a 70% occupancy rate.

In total, there will be 2,346,523 square feet of development at a cost of over $900,000,000 (nearly $1 billion dollars). The magnitude and complexity of this development should not be underestimated. It is not like building a one-themed development such as a single, large manufacturing facility or a hotel or a retail center. Rather, it is building all these combined and more at once.

The project site is forecast to earn $2.2 billion dollars in new sales, property and bed tax revenues to the city, schools, county and state over the next 25 years. How is Glendale incentivizing this $1 billion dollar project? It will waive permit and plan fee waivers of up to $1 million dollars and enter a Government Property Lease Excise Tax (GPLET) agreement on the entertainment, recreation, and concession portions of the development. In total, all fee waivers and the GPLET is $107.4 million dollars over 25 years in return for a 25 year income of $2.2 billion dollars.

How does the 25-year revenue break down? Starting in the year 2025 Glendale is estimated to receive annual tax revenue of $29,318,615 and to receive $40, 289,165 by year 2049. That means each year Glendale will receive $29 plus million dollars escalating to $40 million dollars a year by 2049. That is more revenue than that earned by the city from the Arrowhead/Bell Road corridor per year. These revenues go a long way in making up for the state-imposed loss of approximately an annual $14 million in rental tax that cities can no longer collect.

With the GPLET the County and Schools will receive $7,833,554 in year 2025 annually escalating to $18,972,199 by 2025. The State is estimated to receive $45,768,687 in year 2025 annually escalating to $50,980,151. The current and potential revenues to school and county districts are:

  • Pendergast Elementary School District currently receives $55,452 in tax revenue. Even with a GPLET it will receive $2,906,600 annually.
  • Tolleson Union School District currently receives $51,883 in tax revenue and with the GPLET will receive $2,719,506 annually.
  • WESTMEC currently receives $1,765 in tax revenue and with the GPLET will receive $92,498 annually.
  • Community Colleges currently receive $11,121 in tax revenue and with the GPLET will receive $582,938 annually.
  • All other taxing districts (county) currently receive $32,997 in tax revenue and with the GPLET will receive $1,734,838 annually.

These statistics should give you a sense of the magnitude of this development. This development will solidify Glendale as THE Entertainment and Sports destination not only in the state but nationally.

I am so pleased and excited about this development that I have arranged to do a half hour “Beyond the Headlines” on each component, VAI Resort and Mattel Adventure Park. Taping of the videos will occur in January 2024. Expect them to be on air toward the end of February 2024.

© Joyce Clark, 2023     

FAIR USE NOTICE

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

Nov 23

9

Heroes Park sports fields coming

Posted by Joyce Clark on November 9, 2023
Posted in Cactus District • City Council Actions • City issue and actions • City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale finances • Heroes Lake • Heroes Park • Ocotillo District • West Branch Library • Yucca district  | Tagged With: , , , , , , , , , , | 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 am so pleased and excited to give you an update on the Heroes Park sports fields. I expect construction to begin early next year (2024) and to be completed by December 2024. However, an additional hurdle will be to gain council approval for additional funding for the project. Due to continued inflation price increases for all components, it will require council approval for the additional cost increase. Council approval will be sought later this month (November).

I have included the final conceptual, but it may be hard to read so I will offer some of the more prominent elements for you. The sports fields complex’s location is to the northeast of the existent library and directly north of the existing ramadas. The main components are 3 soccer fields. There are 8 pickle ball courts with shade sails and 3 adjoining ramadas. A centralized, large ramada and restroom is just south of the soccer fields.

In between the 2 large open lawns is a children’s play area. South of the pickle ball courts is a shaded picnic area. South of the picnic area is a food truck court designed specifically to encourage food trucks to come to the park. Southeast of the picnic area and food court area is a 1.6-acre dog park.

North of the sports fields is a pollinator garden and a fitness loop with fitness nodes. There is a generous amount of landscape buffering between the sports fields and the homes to the north and east of the park. A generous and shaded pathway is provided between the library and the sports fields area as well as a raised intersection and crosswalk from the existing ramadas to the sports fields. Included are 390 parking spaces located to the east and west of the sports fields.

You know, this park was approved by the city in 1998, 25 years ago. During my years in office, I have consistently advocated for its completion. I have been successful in getting a library that can expand, a fishing lake and now the sports fields complex.

This area of Glendale warrants the park’s completion, including finally, the design and construction of the long-awaited Recreation/Aquatic Center. With all the new residential construction of single-family homes as well as 15 apartment complexes, the population of the Yucca district has exploded from 41,000 to an estimated 55,000 people. The tremendous population growth that has occurred is now seeking recreational opportunities.

It isn’t just the people of the Yucca district that will benefit from a Recreation/Aquatic Center at Heroes Park, but the residents of the Ocotillo and Cactus districts will benefit as well. Did you know that nearly 70% percent of all the city’s recreational programming occurs at Foothills Recreation/Aquatic Center? For all who live in south Glendale it’s a 10-mile trip, one way, to Foothills. That’s a long haul for many families. A Recreation/Aquatic Center at Heroes Park will redress this imbalance and provide programming for many families and children in south Glendale. It’s time…

I want to thank the councilmembers who have remained steadfast in the city’s pledge to finish this park. It simply would not have occurred without their support.

It would be wonderful if you would take the time to thank them as well and ask for their support in completing Heroes Park by approving the funding for the design and construction of the last element – the Recreation/Aquatic Center by emailing them at:

© Joyce Clark, 2023     

FAIR USE NOTICE

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

Jul 23

31

Don’t be buyin’ what they’re slingin’, Part III

Posted by Joyce Clark on July 31, 2023
Posted in City issue and actions • City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale finances • Glendale zoning issues • VAI Resort • Yucca district  | Tagged With: , , , , | 1 Comment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

© Joyce Clark, 2023     

FAIR USE NOTICE

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

Jul 23

29

Don’t be buyin’ what they’re slingin’, Part II

Posted by Joyce Clark on July 29, 2023
Posted in City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale finances • Glendale zoning issues • Mattel Amusement Park • VAI Resort • Yucca district  | Tagged With: , , , , | 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.Yesterday in Part I, I shared the concept of Worker Power and their current referendum effort to oppose the City of Glendale’s use of a GPLET within portions of the VAI Resort. I alerted those who had signed their referendum petition that an email with their personal contact information was generated and sent to the Glendale city council.

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

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

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

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

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

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

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

© Joyce Clark, 2023     

FAIR USE NOTICE

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

Jul 23

28

Don’t be buyin’ what they’re slingin’, Part I

Posted by Joyce Clark on July 28, 2023
Posted in City issue and actions • City of Glendale • Glendale Economic Development • Glendale elected officials • Glendale finances • Mattel Amusement Park • VAI Resort • Westgate  | Tagged With: , , , | 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.

This past week I and the other Glendale city councilmembers have received identical, word for word emails from all who signed a petition circulated by the Worker Power Political Action Committee (PAC). I have not seen the petition but somewhere within it there had to be the petition signer’s permission to allow Worker Power to send emails on the signer’s behalf as well as revealing to the recipient (the city council) the email address of the signer. I bet that everyone who signed the petition didn’t know that. Below is Worker Power’s application for a Referendum petition:

Here is just one of the emails I received. They are all the same with the exact same verbiage. All of the emails come from everyactioncustom.com with the personal information of the petition signer provided at the bottom of the email. What is everyactioncustom.com?

This domain is used to send emails on behalf of the supporters (petition signers) of organizations that use the EveryAction advocacy tools. Each one of those emails represents a form submission by a real person (the petition signer) wanting to contact (did they want to contact or did they even know that their signature granted permission to contact using their personal information?) a custom advocacy target (in this case, the members of the Glendale city council) configured in the EveryAction system. In other words, Worker Power hired Bonterra, the company that runs EveryAction, to set up a system where every signer will automatically have an email sent on his or her behalf. Here is a sample of the form email we are receiving. I have personally redacted the name, address and email address of this sender:

“Dear Vice Mayor Joyce Clark,

I am aware that City Council has approved a 25-year property tax break to VAI Resorts known as a GPLET and I would like to express my concern with that decision. This is tax money that could be going to improve our infrastructure, schools, our parks, public safety, and more. There have been major transparency issues with this project. Despite announced changes to the size and scope of the resort, change in ownership, and changes to the GPLET, it took over a year to update the Development Agreement. For such a massive project that has been delayed for so long, there was very little opportunity for the public to comment given that it was added to the agenda the day before it was set to be heard. We also heard the Mayor express a need to consider the effect of new lighting, more noise, and additional traffic caused by changes to the project from the original approval, but we have yet to see these findings . Finally, the next vote involves a sale of public land to the developer to expand the project. At the last neighborhood meeting, multiple nearby residents expressed concerns about amending the zoning to turn this public land into a parking lot and a six-story office building that could overlook private backyards.

Sincerely,
Daniel ———–
—— W Blackhawk Dr  Glendale, AZ 85308-9638
————–@gmail.com”

What is Worker Power? It’s a super political action committee (Super PAC):

“The Worker Power PAC is a Democratic Party-aligned Super PAC founded in 2020 as the Working Arizona PAC that expanded to conduct activity in other competitive states in 2022 after changing its name. The PAC is closely aligned with organized labor and has received money from labor unions and other left-of-center advocacy groups including Unite HERE Local 11, the American Federation of State, County, and Municipal Employees (AFSCME), the American Federation of Teachers, and the Arizona AFL-CIO.

The PAC has conducted campaign activities in support of Democratic candidates in Arizona and Georgia as well on behalf of the presidential campaign of Joe Biden during the 2020 election. The group also created a separate PAC to funnel funds to support congressional and U.S. Senate Candidates in Georgia in 2020 and 2022 called the Worker Power PAC for Georgia. 

The Worker Power Pac was founded in 2020 as the Working Arizona PAC. The PAC is organized as an unaffiliated ‘super PAC’ that is allowed to spend unlimited amounts of funds in support of candidates via independent expenditures. The PAC describes itself as ‘dedicated to delivering wins for progressive political candidates.’  In 2020, the PAC focused its spending on Arizona-specific state and federal elections. In 2022, the PAC ‘conducted a massive independent expenditure field canvass that provided the margin of victory for numerous progressive candidates and delivered a decisive blow to a slate of extreme right-wing candidates at every ballot level.’

Candidates that the organization deployed paid canvassers to support in 2022 included those of Arizona Governor Katie Hobbs (D), Senator Raphael Warnock (D-GA), Senator Mark Kelly (D-AZ), Arizona Secretary of State Adrian Fontes (D), and Arizona Attorney General Kris Mayes (D).” (Google search)

What should be interesting to note is that the city council approved the original agreement with ECL (ownership has changed to VAI)  nearly two years ago and that agreement included the original GPLET (Government Property Least Excise Tax). Where was Worker Power then? They didn’t care almost two years ago and now they do. They are opportunists.

What are they really up to? Part II of this blog to be published tomorrow, Saturday, should explain a great deal.

© Joyce Clark, 2023     

FAIR USE NOTICE

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

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