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Joyce Clark Unfiltered

For "the rest of the story"

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

I recently read an article in the Epoch Times, dated October 27, 2020 regarding recreational marijuana use in Pueblo Colorado.  Here is the link: https://www.theepochtimes.com/the-true-cost-of-marijuana-a-colorado-town-that-went-all-in_3546091.html?utm_source=newsnoe&utm_medium=email&utm_campaign=breaking-2020-10-27-4 . I urge you to read the entire article.

Pueblo, like the rest of Colorado, allows recreational use of marijuana. It’s a town smaller than Glendale with a population of about 160,000. There is no doubt that marijuana is earning a ton of money for the town—about $100,000 in sales tax monthly. That’s over a million dollars in sales tax a year for the city. The industry employs about 2,000 people at a rate of $12 to $15 an hour. Sounds good, doesn’t it?

However, the article shares the experiences of several Pueblo emergency physicians and now the picture is not quite so rosy. They say the harmful effects far outweigh any monetary benefits. Many people end up in the ER with something called cannabinoid hyperemesis. The cause is chronic cannabis use of high-potency products and stops when the use of cannabis stops. The main ingredient in marijuana is THC (tetrahydrocannabinol). Twenty, thirty years ago a marijuana joint contained about 4% THC. Now the potency is pegged at more than 80%. Then there are the issues of psychosis and schizophrenia typically affecting 17, 18 and 19 year olds.

Pueblo and all of Colorado has seen an increase in all drug use and not just marijuana. Marijuana is a gateway drug that often leads to the use of opiates. Methamphetamine use is up 143 percent, opiates are up by 10 percent, and cannabis is up by 57 percent, according to data from the ER drug screens over the past seven years.

Then there are the not so obvious results. It is much more difficult for employers to find sober workers. There is the effect of more school drop outs and those not dropping out have more difficulty in learning resulting in a larger, unsatisfactorily educated work force. And while town coffers may be bulging, health care costs have increased dramatically. Public safety spends more and more time answering overdose calls taking them away from more serious medical emergencies and crimes.

Arizona already allows the use of medical marijuana and the system is often abused but that action should not be used to allow the use of recreational marijuana. What are we doing to our people ? And most especially to our kids? Aren’t we obligated to protect them?

It’s on the Nov. 3rd ballot. The choice is yours.

© Joyce Clark, 2020         

FAIR USE NOTICE

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

 

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

No project as large in scope as this one is simple or easy to create. This project is wide-ranging and complex reflected by the fact that it has taken over a year to put all of the pieces in place. There are 5 different agreements:

  • Development Agreement with ECL Glendale, LLC. (approved by city council on Sept. 8)
  • Government Property Improvement Leases with ECL Glendale, LLC. (approved by city council on Sept. 8)
  • Purchase and Sale Agreement with ERD Glendale, LLC. to purchase approximately .2942 acres of city-owned land (scheduled to come before city council on Sept. 22)
  • Option Agreement to purchase real estate with ERD Glendale, LLC to purchase approximately 4.154 acres of city-owned land (scheduled to come before city council on Sept. 22)
  • Parking Agreement(s) (scheduled to come before city council on Sept. 22)

The Development Agreement acknowledges that this project qualified as a business expansion economic development project. The term of this agreement is 25 years. The agreement spells out the terms of a 25 year “partial” Government Property Lease Excise Tax (GPLET). Under Arizona Revised Statutes (A.R.S. 42-6208) a GPLET may be applied only to amusements and their related retail and restaurant concessions. It allows for a 25 year partial exemption of lease excise tax for recreation and entertainment uses. Once the project has completed all construction (October, 2022) the company sells the project to the city for a token amount. The city becomes the lessor (owner and landlord) exempting ECL from paying property tax.  ECL becomes the prime lessee (renter) paying the city a token annual rental payment and pays annual lease excise tax instead of property tax. After 25 years the GPLET terminates and cannot be renewed. At that time the project reverts back to ECL, becomes private property and pays property tax rather than a lease tax.

The Government Property Improvement Lease further refines the terms of the 25 year partial GPLET. The terms remain as represented above but they are spelled out in excruciating legal detail. It’s a 50 page document (yes, I read it all) that only an attorney would love. It even covers what happens if there is “an act of God” that destroys the project.  It’s a very detailed, boring, yet important document.

The company is obligated to operate and maintain the project for at least 25 years continuously. The company agrees to completion of construction of the entire project on or before October 31, 2022. The city recognizes the right of the company to develop, construct and use the property under its current Planned Area Development (PAD) zoning. The city will provide expedited plan review. The city will provide a Fee Waiver in the amount of $1M in permit, plan review and inspection fees but this waiver does not include Development Impact Fees (DIF) which is estimated to be a one time payment of $4.4M.

Purchase Sale Agreement for 0.29 acres allows ECL to purchase for $10 a square foot, totaling $126,000. This small sliver of city-owned land is situated on the southwest corner of Montebello Avenue and 95th Avenue. It enhances access to the project site.

Option for Purchase Sale Agreement for 4.15 acres allows ECL to purchase for $10 a square foot, totaling $1.8 M. This land would be used for water retention, employee parking and maintenance operations for the project.

Parking Agreement(s) provide for the project’s overflow parking needs at the city-owned Black lot on all days but football game days and mega events at the stadium (attendance must be 40,000 minimum). ECL will maintain the black lot and pay for all associated utilities. This agreement will also be approved by the Arizona Sports and Tourism Authority (AZSTA) and the Cardinals. Additional agreements between the Bidwill family and ECL may provide alternate parking should the city decide to develop the Black Parking lot. Obviously, with this project and others within Westgate and Zanjero, at some point the Black Lot parking land becomes so valuable for development that its use as a parking lot no longer makes financial sense.

The Return on Our Investment (ROI) is substantial. Keep in mind the city always uses conservative figures and I think it is fair to assume the numbers provided could be higher. Over 25 years the county earns $60.4M or $2.4M a year; the schools earn $90.6M or $3.6M a year; and the state receives $309.3M or $12.3M a year. What does the city earn? Over 25 years $240.5M or $9.6M a year. During construction of the project the city earns construction sales tax of $5.9M; $1.8M for the sale of remnant land parcels; and DIF fees of $4.4M. I personally think the annual revenues will be higher, especially during and after the Super Bowl in 2023. This resort project is sure to be heavily promoted during the Super Bowl generating a ton of viewer interest and a spike in tourist visits to Glendale.

All of these revenues are generated because the city, in order to attract this project, was willing to forego $1M in fee waivers, agree to accept excise lease tax rather than property tax and already had an abundance of available overflow parking constructed. In return for which, the city will generate almost $10M a year in new revenue. The city did not have to pay a dime to entice the project. The city does not write a check as an incentive to the developer for anything. I think that it is a win-win for Glendale and ECL. That’s why it won my immediate and enthusiastic support from the time I first learned of the project.

There are cities across this country that will never have this kind of opportunity but Glendale has spent the past several years positioning itself to attract just such a project.  As I said in my last blog there are intangible benefits as well. This experiential retail, entertainment concept is a brand new concept and will be the very first anywhere in the world. It will claim the attention of both the retail and entertainment industries and provides a blueprint for marrying the two concepts together. Glendale was on the map as a host city for the Super Bowl and the Final Four but this project moves Glendale to a new level of prominence.

I thank ECL for choosing Glendale as its partner and for hanging in there for over a year to execute tedious, legal, governmental documents that can be frustrating at times. It’s a challenge for all concerned to bring a project such as this to reality. Kudos to Glendale and ECL for making it happen. I am very proud to welcome them as the newest member of our Glendale family and the Yucca district.

© Joyce Clark, 2020         

FAIR USE NOTICE

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

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

This is a blog I have been dying to write for the past year. I simply couldn’t wait to announce this project until tomorrow. So, I will write for a couple of hours and post it in the wee hours of tonight. In this first blog I will give you the big picture regarding the project and in my next blog I will go into detail for those of you who may be nerdy like me.

A year ago our City Manager shared with me that there was a possibility that a Crystal Lagoon project could be coming to Glendale and specifically to my district, the Yucca district at the southwest corner of Cardinals Way and 95th Avenue. I had no idea what the concept was so the first order of business for me was to do my research. What I learned made me anxiously hopeful that Glendale could land such a project. I was excited about the prospect and periodically asked our City Manager Kevin Phelps about the success of the negotiations always ending with, “Can I announce it yet?” For months the response was always, “Not yet.”

The concept was born with Fernando Fischmann, a trained biochemist and a real estate developer. His first project was in San Alfonso del Mar, Chile. The obstacles in the creation of a large lagoon as an amenity to his real estate development project were immense and frankly, solutions were non-existent.  At the time there was no cost effective technology available that could be utilized to maintain a large body of water.

He did what any other genius entrepreneur would do. He did the research himself by setting up his own laboratory to invent the technology needed for his project. He successfully patented his newly created technology allowing him to build major residential/lagoon projects worldwide. Today there are at least a 100 Crystal Lagoons throughout the world — in every South American country; southern European countries like Spain and Greece; the Middle East from Egypt to Jordan; Canada and dozens of lagoons in the United States. The list of projects is extensive.

But it was time to apply the concept to not just residential projects but to a commercial/retail/office/hotel concept.

One of the first such projects will be in Glendale. The developer is ECL Glendale, LLC.  The project site is 48+ acres and will host 9 complimentary components:

  • an 11 acre lagoon style water park planned to include scuba diving, windsurfing and water jet packs
  • 175,000 square feet of retail space
  • 130,000 square feet of office space
  • 3 hotels offering a total of 630 hotel rooms
  • amusement rides
  • family entertainment center
  • fly and 4D theaters
  • restaurants and bars
  • a performing arts and film venue space

There will also be the first ever “aero bar,” a 135 foot elevated bar in the middle of the lagoon with a 360-degree view. It also will include the world’s largest helium balloon. The balloon will be on a tether with a gondola that raises riders 400 feet in the air offering a bird’s eye view of the entire Valley. Some of the newest elements have yet to be announced and you will learn of them in the coming months.

ECL Glendale, LLC. plans to begin construction this year, probably late Fall with a target completion date of October of 2022. That gives them a few months of operation to work all the bugs out before the Super Bowl comes back to Glendale in 2023. It’s an ambitious schedule but as all elements will be constructed simultaneously, it is doable.

So, how much will this plethora of entertainment cost the visitor? I understand that an All Day Pass will be $20 per person. That seems to be a competitive price compared to other water venues in the Valley.

Why am I so excited about the project? It’s a one-of-a-kind attraction for not just the State of Arizona but for the entire Southwestern United States. But even more importantly, it forever ensures that Glendale is the premier sports and entertainment destination in all of Arizona. Now, all we need is basketball and soccer to capture the entire sports market. Maybe if the Coyotes Hockey team actually leaves Glendale as they have threatened to do for several years we could repurpose the arena for basketball? Or perhaps the property owners of the “Vision 4” properties on the west side of the Loop 101 might try to lure additional sports venues such as basketball and soccer to their site? Who knows?

This soon-to-be resort site compliments and adds to all of the existing and soon-to-be constructed development in the Westgate and Zanjero areas. It causes Glendale to become a year round tourist destination, similar to Disneyland or Disneyworld. It also increases Glendale’s viability as a host city for mega events such as the Final Four. Lastly, it will generate slightly less than $10 million a year in new revenue for the city and will create an estimated 1,800 jobs.

This was a difficult and complex project to bring to reality. It has a lot of moving parts and I will get into those moving parts in my next blog.

I don’t believe anyone else, other than our City Manager, Kevin Phelps, could have successfully concluded this project. He is a master at development and exactly what Glendale needs to become eminently successful in a highly competitive market as cities out bid and jostle one another to land mega projects. Mr. Phelps has also put together an outstanding team of senior management responsible for the success of this project. It includes Brian Friedman, Director of Economic Development; Lisa Collins, Planning Administrator; Vicki Rios and Jack Friedline, Assistant City Managers; and Craig Johnson, Director of Utilities. If I omitted anyone please accept my apology. Michael Bidwill, representing the Bidwill family, also contributed to the project’s success by working with ECL Glendale, LLC. to craft a parking agreement.

I don’t think I can express the momentous effect this project will have not just for Glendale and the Metro Valley but for the entire state. This project is in the forefront of a new type of retail. As was expressed today, people no longer just want to buy things. We are entering a new age where people want experiences…memories that are invaluable. That is the promise of this new concept for Crystal Lagoon and the new buzz words are ‘experiential retail.’

© Joyce Clark, 2020         

FAIR USE NOTICE

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

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

At about 6 PM today Governor Ducey announced closures in Maricopa, Pinal, Coconino, Navajo and Graham counties, all of which have confirmed cases of CoronaVirus. The Executive Order requires restaurants to provide dine-out services only and they can deliver your favorite alcoholic beverage along with your meal. He also closed movie theaters, gyms and bars.

The Order preserves Personal Protective Equipment (PPE) for those providers and facilities that are dealing with the virus; delays expiration dates on driver licenses and stops all elective surgeries. He is activating the National Guard to help grocery stores and food banks, all of which are dealing with a surge in demand.

All of this takes effect tomorrow, Friday, March 20th at the close of business. Congratulations to the Governor. I publicly thank him for taking this action to protect the health and safety of all Arizona residents. I stand behind him 100%. I applaud his action and will do whatever is required to assist him as Arizona works its way through this national emergency. Well done! Thank you!

Arizona now has 44 confirmed cases. The number remains low as there are not a lot of testing kits available. As they become more plentiful we will see that number rise dramatically. I found a neat site to which I direct your attention. It is www.ncov2019.live  . It was developed by a teenager and has quickly become a “go to” site for up-to-date numbers on CoronaVirus, worldwide by country and state by state in the United States. I try to check it once in the morning and once at night.

All grocery stores are providing senior hours to shop. This morning I took my 90 year old brother-in-law to a local Safeway to pick up some basics. I was shocked. There was no bread. There was no margarine. The only meats available were the high priced, very lean hamburger at $4.99 a pound and the most expensive cuts of beef such as steak. No staples like rice or beans unless you wanted to pay $5 for some exotic box of rice you’ve never heard of. They did have 5# bags of potatoes (one to a customer) but no Kraft Mac n Cheese. There wasn’t even a single can of Chef Boyardee spaghetti.  In fact, there were no pasta products to be had. Forget sanitizing products.  I could go on but you get the picture.   

Has everyone’s family suddenly ballooned to 20 members? The hoarding has become unsustainable and mind boggling. Maybe it’s time to limit the quantity of ordinary items such as these, to two per customer. I wish everyone would get a grip and start to think of others and their needs as well. Needless to say my brother-in-law filled about half a dozen items on his list. Looks like another trip will be necessary…maybe in about a week. Hopefully, the panic buying will have subsided.

© Joyce Clark, 2020         

FAIR USE NOTICE

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

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

Tonight, just a few minutes ago, Mayor Jerry Weiers declared a State of Emergency due to the CoronaVirus Pandemic. I stand behind him 100%. I applaud his action and will do whatever is required to assist him as Glendale works its way through this national emergency. Well done, Mayor! Thank you! I am proud to say that I have called for this action in previous blogs. I have included the Mayor’s proclamation and statement regarding the action he has taken:

 

I also applaud the Desert Diamond Casino in Arizona for closing down as of midnight tonight. As a sovereign nation they are not bound by federal actions or regulations. Their voluntary closure to protect all state residents is recognized and appreciated.

So far, Governor Ducey has not shown the same kind of leadership or fortitude despite the fact that the number of cases is increasing by the hour within the State of Arizona.  Just within the last few hours two cases have been confirmed positive for CoVid 19 at Luke Air Force Base.

Many major stakeholders are asking all Valley councilmembers to reach out to Ducey’s office to ask him to do the same and exhibit some leadership. I, as a Glendale Councilmember, publicly call upon Governor Ducey to lead the people of Arizona by mandating social distancing strategies in an effort to minimize the medical strain soon to be experienced by all medical facilities and providers in the State of Arizona. Here are some examples:

 

 

 

 

 

 

 

 

© Joyce Clark, 2020         

FAIR USE NOTICE

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

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

As we hear more news about the CoronaVirus it is obvious that there are heroes within our society that deserve recognition:

  • Those who serve on the front lines of this pandemic are our nurses, doctors and all medical personnel. They are scared yet they are tending to the most ill among us knowing that it is possible to turn from a care giver to a care receiver. Not only that but they realize they are putting their immediate families at risk. Include the vast army of medical researchers who are methodically yet desperately trying to find a cure and a vaccine. They know time is their enemy.
  • Another group of heroes are all first responders, fire and police. As we face supply shortages of protective gear they will continue to tend to those in need of medical assistance. Police officers will be on the front line of keeping civil order. They deal with citizens with no medical shield and they know it.
  • Include the vast army of city employees who provide essential services that we so often take for granted. The sanitation driver who picks up our garbage, the water employee insuring the delivery of clean, disinfected water that we can rely upon and those employees who make sure our traffic signals keep working.
  • Add to list truckers and those who are keeping our supply chains intact so that we can still obtain food, gas and the essentials of life. This includes employees of banks, gas stations, pharmacies and grocery stores.
  • Those citizens who are already self -isolating themselves. Many of us are. It’s not an easy choice but think of the consequences if we don’t. We can read those books we’ve been meaning to read. We can catch up on watching those movies that intrigued us but we never had time to view. We can clean house or reorganize our living spaces. We still can go outside, plant a garden or exercise in place of going to a gym. We can visit with others through Facebook or Skype. We can be creative.
  • Those political leaders who have accepted the gravity of the situation and have imposed States of Emergency and called for the closing of all public gatherings including the closure of schools, bars and restaurants. They have accepted the need for social distancing to protect us all. I especially want to recognize Mayor Kate Gallardo of Phoenix who has done exactly that realizing her first mandate is to protect the health and safety of all of her residents.

State governors and the Presidential Task Force have said that we must social distance to try to prevent inordinate strain on our medical delivery system. They have warned us that the numbers of identified CoVid 19 cases will increase as more and more testing is done. The increase in numbers will require more and more medical intervention. That will put a strain on our entire medical delivery system. Did you know that in Italy they are no longer trying to save people over the age of 70 with CoronaVirus? Their entire medical system is on the verge of collapse. We must not let this happen in the United States.

Who are the zeroes?

  • Hoarders make the very top of the list. They are obviously a very selfish group. If hoarding doesn’t happen there are enough supplies, including that of toilet paper, to go around. Now we see them hoarding basic supplies like beans, rice, etc. I hope there is a special place for them when they die. They have exacerbated an already difficult situation.
  • Millennials who refuse to social distance. Can you believe this is Spring Break and these kids are at beaches everywhere partying their brains out? On a stupidity level they definitely come in at zero.
  • Then there are those who say other viruses have been worse and what’s the big deal about CoronaVirus? They are the deniers in our society that will continue to socially congregate. They will continue to deny until they or someone in their family comes down with the virus. Then they will be the first to complain about the level of medical service available.
  • Political leaders who have not or are reluctant to make the declaration of a State of Emergency and mandate a closure of non-essential gathering places like bars and restaurants. That includes Governor Doug Ducey and our Mayor. (FYI: In Glendale only the Mayor has this authority).We need to reduce the possible spread of this virus throughout this state and in every city. If it is done now, we can prevent deaths and the inevitable strain upon the state’s medical delivery system. What are they waiting for? Until things get worse? How much worse?

I implore everyone. Don’t be a Zero…try to be a Hero.

© Joyce Clark, 2020         

FAIR USE NOTICE

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

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

This morning the city council had a budget workshop meeting. It began with an update on the CoronaVirus situation. Let me say this. I want Glendale to declare a state of emergency and close bars, restaurants, etc. NOW. The Mayor, the City Manager and a majority of council are reluctant to do so. I believe it is necessary.

Mayor Kate Gallego did so today and I commend her and applaud her. It was not an easy decision to make. Glendale should be doing the same. The City of Flagstaff has already done so. I am convinced other cities will follow Phoenix and Flagstaff and every day that Glendale and other cities delay, is a day wasted in the enforcement of social distancing.

At the beginning at the budget portion of our workshop I asked council to consider freezing the Capital Improvement Program. We can allot a line item within the budget to preserve our capability to resume the CIP when financial conditions warrant it. We should also be freezing spending on all but essential items. Again, no support. I went through the national recession and I fear a repeat. At the very least I do not expect to see a rebound in the national economy until the fall. Those that do not study history are doomed to repeat it.

© Joyce Clark, 2020         

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.

One more swipe at the state legislature

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 a previous blog I shared how the state legislature mandates fiscal policies that often harm cities. This issue is more nuanced. It is the issue of short-term rentals. In fact, the Arizona Republic has a front page story today about this very subject.

Two years ago, Debbie Lesko, now a congressional representative for Glendale and the surrounding area, sponsored a bill which became known as the “AirBnB Bill.  Governor Doug Ducey signed it into law. The original intent was give property owners the ability to rent out a bedroom as a way of making extra money.

Sometimes we have to be careful what we wish for as there are often unintended consequences. This bill has delivered more consequences than anticipated. What has occurred is far different from the bill’s original intent. In places like Sedona investors are buying homes or building new ones and turning them into mini-hotels. This action is unsustainable and destabilizing. One consequence has been to reduce the amount of available long-term rentals for those who work in a community. It has also reduced school age populations as long-term renters with families are frozen out of the market in favor of short-term, far more lucrative rentals.

This turn of events has hit Arizona’s major tourist destinations the hardest but it has also set up every city in the metropolitan area to become a victim during major sporting events such as the Super Bowl, Final Four and major NASCAR races. Homeowners from all over the state are now complaining about issues such as increased traffic and noise in their once quiet neighborhoods.

A bill sponsored by Representative John Kavanaugh passed through the legislature this year. It was designed to deal with these very issues but a funny thing happened on its way to passage by the state legislature…it was emasculated. The very restrictions on investor-owned rentals and limiting the number of guests per rental that would have alleviated the situation were stripped from the bill.

No doubt this is a difficult question. At what point do rental properties diminish existent homeowners’ quality of life? How are we to balance a property owner’s right to do what he or she wishes to do with the property against quality of life issues for nearby residents leading to a loss of their property value? Who prevails and how? Perhaps the state legislature’s passage of the original Air BnB Bill mandating how cities can regulate short-term rentals within their communities was ill advised. After all, Arizona is the only state in the Union to have imposed this mandate on cities. We should wonder why no other state has messed with this issue. Sometimes local control is the best control.

© Joyce Clark, 2019         

FAIR USE NOTICE

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

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

The state legislature seems to have a love/hate relationship with every city in the state. Here are some of the more egregious examples. One is the state’s diminishment of the cities’ ability to collect Impact Fees; another is the state usurpation of every city’s ability to collect sales tax; and lastly the state’s reduction in the distribution amount of Highway User Revenue Funds (HURF) it is required to share with every city in the state.

In 2011, the Arizona legislature passed Senate Bill 1525. This bill restricts cities’ ability to collect Impact Fees from the development community. This diminishes the amount of money needed for libraries, community parks, streets and infrastructure, open space and trails.

So what, what do you care? Well, you should care because the restrictions on the collection of Impact Fees don’t mean that these things are not built. They still are…only now; you the taxpayer are paying for new growth in your town or city.

How does it impact you? It used to be in this state the mandate was “growth should pay for growth.” That no longer applies. Here’s a hypothetical. A developer wants to build a subdivision of 250 new homes on the periphery of your city. That developer would have to pay a set Impact Fee per house to help cover the cost of infrastructure to support and provide services to the new subdivision. Perhaps the arterial street abutting the subdivision would now require widening to accommodate the new traffic from the subdivision. Or perhaps the nearest fire station or library was pretty far away requiring a new fire station or library.  The Impact Fee charged by the city would help to defray the cost of widening the street or putting in a new fire station or library. The Development Impact Fee cost to the developer is added onto the price of each new home. The developer might raise the price of the new home by a $1,000 or $2,000. That money would go into the city’s accounts to help pay for the new infrastructure causing new growth to help pay for itself.

What happens when the Impact Fees have been reduced or eliminated by the state legislature? The city still needs to widen that street or to build that fire station or library. Where will the money come from? Why, the taxes you pay, of course. Now you are paying for that new growth.

There is one case when the loss of Impact Fees is not as detrimental to a city or town and that is with Infill Development. With Infill Development a developer takes a piece of land within an established area of a city and builds maybe 30 or 50 new homes on it. That land has been vacant for years but already has an adequate arterial street and a nearby fire station or library. There is no need to build new infrastructure. In that case the Development Impact Fees are used for any needed expansion of nearby infrastructure.

Yet in its heavy-handed way, the state legislature makes no distinction on the imposition of Impact Fees between an Infill Development in an established area of a city and new development that is sited where there is no city infrastructure. Why has this happened? Because the pro-development lobby is the 900 lb. gorilla with deep pockets that contributes to every state legislator’s election campaign (if the legislator is on the ‘right’ side of the issue). Taxpayers have no such lobby and therefore in a battle between the pro-development lobby and the taxpayer, guess who wins?

Another example of the heavy handedness of the state legislature is the mandate passed in 2016 requiring all cities and counties sales taxes to be collected by the state by January of 2017. To add further insult to this injury, cities must pay the state to collect sales tax…they must now pay the state to do what they did for a hundred years. Glendale paid over $650,000 this fiscal year to the state to pay for what it had collected on its own previously.

To make matters worse, in an audit of the state Department of Revenue released in June of this year it was revealed that the state does a lousy job of collecting sales tax. The department simply missed identifying businesses and erased a bunch of active businesses that were paying their taxes. After the department took over collection from the cities at one point just stopped checking to see whether all businesses were even licensed.

Cities are now forced to retain their employees that check payment of business sales tax. In other words cities have to double check the work of the state department to insure that not only the tax is being paid but that it is a correct amount. So much for a better state ‘mouse trap’.

Why would the state take over sales tax collection? The state says it’s in the name of efficiency and simplicity for businesses paying sales tax. If a business does business in more than one city, it has to file a sales tax return in each city monthly. Now the business, no matter where or in how many jurisdictions it does business sends all sales tax collected to the state who then distributes it to the appropriate jurisdiction.

But there could be another reason. When cities collected the sales tax they would send the state’s portion to the state in a day or two or perhaps even in a week. While the cities hold the sales tax funds the cities are collecting interest on that money. Obviously the amount of sales tax collected monthly is enormous. With the state collecting the sales tax, it puts the proceeds in an interest bearing account and now the state is receiving the interest until it remits the proper amount to each jurisdiction.  Now the state earns the interest on the funds it collects until it disburses it to the jurisdictions.

Some of the money every taxpayer pays to the state is known as state shared revenue. One is the Highway User Revenue Fund (the tax you pay on each gallon of gasoline and is known by the acronym HURF). There is a formula that dictates a portion of HURF must be distributed to cities based upon their population. When the Great Recession occurred the state unilaterally slashed the amount of HURF state shared revenue it distributed to each and every city to help cover the state’s shortfall in its budget. While that was a great move to keep the state budget whole, it hurt every city that relied upon HURF dollars for part of the revenue for their budgets during that same recession. The state is only now beginning to share all of the state shared revenue amounts with cities that it is mandated to do.

It often appears to city leaders that the state will favor the interests of their business or pro-development friends over those of cities. Often that means that you, the individual, pays for the state’s decisions that favor interests other than yours.  The state continues to demonstrate over the years that it is not always fiscally friendly to the city in which you reside.

© Joyce Clark, 2019         

FAIR USE NOTICE

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

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

City Council vacates all activities during the July of each year. Whether you love my blogs or hate them, this break time provides me the opportunity to write a series of them. This one deals with an age old problem, that of new development versus older neighborhoods.

I happened to run across this story in the local Glendale Republic. Here’s the link: https://www.azcentral.com/story/news/local/surprise/2019/06/22/surprise-grows-quickly-residents-question-if-its-growing-right-way/1491785001/ .

It’s about a couple who bought a large lot home on at least an acre in the desert area of Surprise only to discover in the coming years they will be swallowed up and surrounded by a possible total of 4,130 residential units with an average of about four homes per acre. Add to those homes new businesses along 163rd Avenue creating a new urban center and their dream and their investment evaporates.

I would hope the City of Surprise would be sensitive to their life style as it allows new development to surround them. It can be done with what planners call “transitional” development. Under that scheme the development surrounding them would be large lots of 1 acre or better and as development moves farther away from them it becomes denser. It’s not ideal as far as this couple is concerned but it employs a certain amount of sensitivity. After all, they and their neighbors were there first.

It also brings up another issue for which cities should be mindful. All of those new homes and new residents are great. After all, it will increase the amount of state shared revenue that flows into their coffers. However, a stunning fact to remember and I am using Glendale as an example, is that it cost the City of Glendale $973 to provide services to each and every resident. That figure includes public safety which comprises the lion’s share of any city’s budget. For a family of two in a home that comes to $1946. Yet each home (not citizen) generates approximately $400 in property tax and sales tax to offset the city’s costs of services. The imbalance is readily apparent. A city is ahead when it allows development of commercial, industrial and manufacturing.  That type of development does not typically use city services to the extent of a home and they are job generators.

Another type of development that requires sensitivity is that of new infill development. Infill development should not only compliment but should raise the value of older neighborhoods. Sticking a bunch of apartments whether they are the traditional multi-story or single story “Built for Rent” units in the middle of existent residential areas is a recipe for disaster. Multifamily dwellers, as nice as they may be, are not usually invested in the community in which they reside. On average they move every three years. That dynamic does not offer stability to the residential neighborhoods adjacent to such a complex or to the fabric of community as a whole in terms of public participation.

When multifamily units are new they hold their value as the developer/investor seeks to recoup the original investment and turn a profit. But there are no guarantees in life and there is certainly no guarantee as to how long the original owner will hold that investment. At some point there will be sale and now begins the inevitable slide into decline. The new owner may not be as assiduous about keeping the property up while profiting. Little things are not attended to and then the bigger things are not taken care of.  Over time it becomes an underperforming property that diminishes adjacent property values even further.

There are places in a city for multi-family and that is where density and mass will complement existing retail and commercial development. A good example where density is positive is in and around Westgate. With Westgate’s nearly two dozen restaurants, Tanger Outlets for shopping and sports entertainment choices of hockey and football, density is important in terms of providing a consumer base. Another scenario can be in an area of all new mixed use development that establishes new single family and multifamily neighborhoods served by new retail and commercial. A purchaser of a home in that kind of area is already aware that multifamily will be part of the mix.

Cities have a responsibility to their current residents to be sensitive in the placement of new or infill development. Diminishing the property values of one part of the community to accommodate the bright, shiny new development that may not be appropriate for the existent area does a disservice to the very fabric of the community they seek to create.

As the couple in Surprise said about their home in the middle of nowhere, “We thought we had really found something.”  Let’s be careful as a home owner who had moved into a neighborhood years ago and thought they had really found something special becomes threatened by adjacent, incompatible development.

 

© Joyce Clark, 2019         

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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