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Joyce Clark Unfiltered

For "the rest of the story"

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

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

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

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Rube Goldberg

Wiping face with napkin machine

Since I last wrote about our Koi pond my husband and I have become Rube Goldberg Revisited. For those of you 40 or younger you have probably never even heard of him. A Rube Goldberg machine is a deliberately over-engineered or overdone machine that performs a very simple task in a very complex fashion, The expression is named after American cartoonist and inventor Rube Goldberg (1883–1970). Over the years, the expression has come to mean anything confusing or complicated. Our system may be confusing to you but it works.

I have come to conclusion that our pond water will never be absolutely clear. That is because we have fish that poop and other critters, like doves and hummingbirds that visit the stream part of the pond on a daily basis. The ever present algae like to live in our pond. My goal was to at least get the water clear enough to see the fish, especially when we feed them in the late afternoon. We have done that. The pond water is still orangey-green but the rocks in the pond are tan, orange, beige, etc. So as the water clears it picks up the rock tones of color. Last year at this time the water was so pea green and murky you couldn’t even see the rocks on the pond shelf.

I have been doing my usual surfing of pond sites on the Internet and ran across a couple of ideas that we wanted to try to see if they would help to clear the water. The first of our Rube Goldberg contraptions is a pond vacuum. I had looked at many pond vacs for sale and the biggest problem is their inability to keep the gravel at the bottom of the pond from being sucked up. We thought we would try this idea because we could rig it to suit ourselves and prevent the gravel from being sucked up.

Pond vac 1

Pond vacuum

A friend of ours had an old, heavy duty shop vac and gave it to us. We modified it by drilling a large hole at the bottom to accommodate a hose that would discharge the water.  In the beginning we used a butterfly valve to regulate the outlet but we found that it allowed the water to drain slowly…very, very slowly. So we changed it to a valve that can be opened or closed manually. We also used a piece of pantyhose at the intake attachment to prevent the gravel from entering the shop vac tank. The outlet hose drains into an old, large plastic tote (we drilled large holes – about 8 – only at the bottom and only on one side) and filled the tote with poly-fill batting. The water is vacuumed into the shop vac, goes out through the hose/valve and into the tote filled with batting. The water that leaves the tote is clear as the batting catches the “green stuff.” In all, it cost us less than $20 to add our modifications. We use this contraption periodically to literally muck the bottom of the pond. The pond’s bottom collects everything – decaying leaves, fish matter, etc. It turns into a black, smelly muck. That is the material that we vacuum out.

Pond vac 7

Plastic Tote filled with poly-fill batting
Shop vac water drains into tote
Water percolates through batting
Drains into pond

Pond vac 6

Water drains through hose
Into Tote filled with batting

 

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Hose outlet from
Pond Vac
drains water into
tote with batting

 

 

 

 

 

If, after reading this and looking at the photos you are still totally confused, please send me an email at clarkjv@aol.com and I will try to unconfuse you.

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Mother’s Day seems most appropriate as the day to honor these three women all of whom have had a profound effect on me.

My Mom was born in 1913 and died in 2005 at the age of 92 of Alzheimer’s, a cruel disease indeed. My Mom was one of 5 siblings born to Polish immigrant parents. Education and assimilation were goals all were to achieve. My Mom graduated from Pratt Institute as a dietician. Not only was it unheard of in 1933 for girls to go beyond high school but Mom also graduated from Pratt by the time she was 20. She had lots of chutzpah and literally talked her way into a job as the Head Dietician at a hospital. She worked most of her life helping those who were ill and she especially loved the little ones. She was old-school and catered to my Dad’s needs. She raised three children, all of whom turned out reasonably well and none of whom went to jail. She cared about others all of her life. When my Aunt was dying of cancer, Mom was there. When we had our babies and needed a babysitter, Mom was there.

mothers day 1She was at the same time ordinary and extraordinary. She was my Mom and I loved her.

Laura, my sister-in-law, was born in 1930 and was one of 7 siblings. She grew up in the panhandle of Texas, dirt poor. She was the only daughter who escaped that hard life and she, too, graduated from college. She was beautiful and smart but most of all she had a gentlewomanly elegance about her. I never heard her raise her voice to anyone. She, too, was compassionate and caring, especially with strangers. When you met her, she could coax your life story from you and commiserate with you over all of your misfortunes. You left her presence feeling unburdened. Laura’s compassion and caring extended to all creatures, great and small, and to the inanimate plant life surrounding her. She could take a plant cutting and make it root and grow into something beautiful and exotic. Laura died on April 28, 2013 at the hand of that robber of so many good people – cancer. She was my sister-in-law and I loved her.

Dawn is my best friend of many years. She, younger than I, yet age has no bearing on our deep friendship. She, too, like the others of importance in my life is smart and well educated. We are the ying and yang of friendships. She being tall, willowy and blond while I am short and round. Politically we have been miles apart although as I grow older I find myself gravitating toward her point of view more and more often. She, too, is caring and compassionate beyond measure. I often find myself marveling at the extraordinary kindnesses she has shown to others. Ruefully she extends herself in ways I would not have thought of doing. Unknowingly she has taught me valuable life lessons. She, like my Mom and Laura, loves all growing things, from babies to animals to plants. She draws others to her easily and her heart is big for those lucky enough to enter it. She is my best friend and I love her.

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Numbers don’t lie…

Posted by Joyce Clark on May 10, 2013
Posted in Jobing.com arena  | Tagged With: , , , , | 2 Comments

There has been a great deal of furor since Paul Giblin of the Arizona Republic came out on May 5, 2013 with a number that Glendale would have to pay to run the arena of $5.1 to $5.5M per year. See this link: http://www.azcentral.com/community/glendale/articles/20130502phoenix-coyotes-jobing-arena-costs.html .

jobing.com arena

Jobing.com arena

On August 8, 2012 (9 months ago), Lisa Halverstadt, a former reporter with the Arizona Republic stated, “If the team stays, the city estimates it will cost about $12.2 million a year, or $54 per resident, when costs and revenue are factored. That’s in addition to the roughly $13 million a year to retire the debt on the arena in about 20 years. But the city says it would face even steeper financial challenges without the Coyotes. If the team leaves, Glendale will still be on the hook for the arena debt. But the city also projects it will then need to come up with millions of dollars a year to pay an arena manager and other expenses if there is no anchor tenant for the arena. The city estimates that would cost $15.8 million, or $70 per resident. With that in mind, Glendale projects it would save about $3.5 million annually by keeping the team.” Here is the link: http://www.azcentral.com/community/glendale/articles/20120801glendale-few-options-jobing-arena.html .

Even the vaunted Arizona Republic is not consistent in the numbers it offers to its readers. Nine months ago $12M a year to operate the arena was a good number. Now, apparently $5M is the number you should believe.

Below are the numbers from 2006 and 2007 when Jerry Moyes owned the team. Annual revenues were $6.4M to $7.1M. Total expenses were $13.4M to $12.9M. Net loss was $6.9M to $5.7M.

The auditor’s report shows the following :

…………………………………………………………..2006                                   2007

Revenues……………………………………………. $7,142,000                    $6,499,000

Expenses:

Event…………………………………………………. $5,616,000                    $4,413,000

General and Administrative……………………. $ 7,303,000                    $ 9,052,000

Total expenses……………………………………… $12,919,000                  $13,465,000

Net Loss……………………………………………..  ($5,777,000)                ($6,966,000)

These numbers from 6 years ago track with the current NHL numbers of revenues of approximately $6M; expenses of approximately $12M; and loss of approximately $6M.

numberFor months  I have consistently used these very same numbers obtained under a Freedom of Information request from the city. Moyes’ numbers come from an auditor’s report and the NHL numbers were submitted monthly to the city. There is no doubt in my mind that it takes approximately $12M to operate Jobing.com arena annually with revenues of approximately $6M and debt of $6M. The numbers don’t lie.

 

 

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Warfare erupting

Posted by Joyce Clark on May 9, 2013
Posted in Jobing.com arena  | Tagged With: , , , , , | No Comments yet, please leave one

fightingMy goodness! It’s really getting nasty out there as the deadline swiftly approaches for responses to Glendale’s Beacon Sports RFP or someone is announced as the buyer-of-choice by the NHL.

twitter warThere are those who discount Twitter. Do so at your own peril. It has become one of social media’s behemoths. Lately the newly renamed Ice Edge, now known as Renaissance Sports, has been taking potshots via Twitter at Pastor’s group and vice versa. There is also the tried and true tactic of not saying something directly but retweeting someone else’s tweet. One of my recent favorites is this from KCD Public Relations, in support of the Pastor group. KCD recently retweeted the following, “@HedgeyeDJ Ice Edge fails for 3 seasons to buy #Coyotes, then rebrands to RSE so they can annoy serious buyers?” A while back Daryl Jones, @HedgeyeDJ, tweeted “Silence is a source of great strength,” quoting Lao Tzu. Too bad neither side is heeding that sage advice.

Two_Mad_Teenager_Boys_Now warfare seems to be erupting between the City of Glendale and the NHL. There is Twitter talk that the NHL could have as long as ten years to vacate the arena as well as the current gossip that the City has not just been paying operating expenses for the arena but team losses as well. This shot across the ship of state (er…city) could be because Twitterdom has shared that the City of Glendale is blaming the NHL for not being better stewards of Jobing.com Arena and allowing the roof to go into disrepair and leak-big time.

All in an effort to win the hearts and minds of the public’s perception…included in that mix are hockey fans taking sides with one group or another right and left.

What is even more amazing are the plans of various groups to meet with the Mayor and Council despite the Beacon RFP admonition that speaking to officials of Glendale could disqualify an applicant at their (or someone’s) discretion. Pure politics. If you are the current favorite, it’s no big deal but heaven help you if you are not. This admonition will be played like a violin to get rid of unwanted players.

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judge 1On May 8, 2013 the media ran two stories related to the proposed Tohono O’odham casino in Glendale. Here is the link to one of the stories:  http://www.eastvalleytribune.com/arizona/politics/article_bc3be462-b766-11e2-90d4-0019bb2963f4.html. Judge Campbell issued a ruling that found in part for the defendant, the Tohono O’odham but he asked for further argument to be submitted by May 22, 2013. It relates to the plaintiffs’ claim that the TO encouraged voters of the state to believe there would be no new casinos in the Phoenix Metro area while secretly planning to build a casino in the Phoenix Metro area. Campbell will then decide if there are enough grounds to support a lawsuit to halt the casino.

The other story was about a letter requested by Councilmember Hugh from the Acting City Manager Dick Bowers regarding the casino. Here is the link to that story:  http://www.glendalestar.com/news/article_7172ccd6-b755-11e2-b30f-001a4bcf887a.html.

Bowers Glendale Star

Dick Bowers
Courtesy Glendale Star

Bowers states that his opinion is an administrative one and not from a legal perspective but then he proceeds to legally opine on the 9th Circuit Court and the consideration of an appeal before the Supreme Court. Here’s a heads up. If the casino is referred to as a “resort” then you can be sure that person speaking supports the casino. Bowers refers to the casino as a “resort.” Until a majority of the city council gives direction that it no longer wishes to fight the casino that is city policy on the issue. Is it appropriate for the Acting City Manager to insert his clearly personal opinion into the issue of city policy? You decide but I think not. He is charged with supporting city policy as it exists. City council is the policy maker and city staff is charged with supporting it.

This issue is NOT decided yet. There is still the 9th Circuit Court which has ruled on only one of two issues before it. There is still Representative Trent Franks’ legislation to be passed or denied by Congress and the President. There are still appeals left for both sides.

fat lady singsI have posted in six previous blogs, using facts and figures the social and fiscal effects on Glendale if the casino is allowed to be sited here. Until all avenues are exhausted and the fat lady sings I will continue to speak out against a proposed TO casino – not “resort”- in Glendale.

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On May 6, 2013 Dan Bickley posted a column on Arizona Central. Here is the link http://www.azcentral.com/insiders/danbickley/2013/05/06/coyotes-new-money-new-ownership-bid-new-problems/. It is entitled Coyotes: New money, new ownership bid, new problems. I typically do not read Mr. Bickley. He apparently is just as often wrong as he is correct in his reportage and now, as the Coyotes ownership saga comes to a head rumors are multiplying like rabbits and flying faster than a 747 jet.

Bettman

NHL Commissioner
Gary Bettman

What I did find interesting was this, “But the league wasn’t at all happy with Monday’s front-page story in the Arizona Republic, which listed the true cost of running Jobing.com Arena at less than $6 million.” Well, no one should be happy. Yesterday I posted facts and figures in three separate blogs, Fuzzy Math, A Magical, Mystical Number and There’s an Elephant in the Room. The true cost of operating Jobing.com Arena annually is about $12M.

Everyone is touting LeBlanc/Gosbee as the front-runners for ownership. Let me remind you that they are only the first participants in the parade of would-be owners. That does not make them sure-fire, guaranteed owners. Other parade participants are standing in line, Pastor, Jamison, Hulsizer, Reinsdorf and Kaites. Whoever was scheduled to meet with the current council first would have received the tag, “ front-runner.” That is exactly what it appears LeBlanc wants to happen. He would like to be declared the de facto winner of the contest and chase his other competitors away forever.

Leblanc

Anthony LeBlanc

Bickley goes on to say, LeBlanc’s group – Renaissance Sports and Entertainment “…is committed to absorbing $40 million in losses over the first four years, with an out clause if the economics don’t improve.” If Bickley’s reportage is accurate, this is a cause for concern. In the last go-round when LeBlanc was part of Ice Edge they wanted to play 4 or 5 games in Canada. I assume it was to dip their toes in the waters of the Canadian market to see if it was to their liking. A 5 year out clause, if LeBlanc is successful, may portend the Coyotes’ future. If we see another bid to play some regular season games in Canada that action will tell us more than mere words.

All of this conjecture becomes moot if there is no majority on council to support an annual lease management fee in the range of $10M to $12M. To date, it appears that this council is fixated on a $6M number. It’s a bogus number as I stated in my blog, A Magical, Mystical Number. It was created out of thin air and because it has been publicly stated ad nauseam, it is treated as if it’s a real number based on fact. What continues to amuse if it weren’t so sad, is that the current council really believes they can find an arena manger willing to take $6M a year, cover all operating costs (which means they begin by losing somewhere in the neighborhood of $6M annually) and float the city a loan to cover necessary capital repairs and replacements. Amazing! Stay tuned…Glendale’s version of the Amazing Race is not over!

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One issue not so far discussed is the issue of Capital Repairs needed for the arena. Keep in mind, my best guesstimate is that there is maybe $200,000 or $300,000 in the Capital Repairs Account. Below I’ve included Newco, LLC’s “wish list” of Additions and Capital Repairs for the Fiscal Year Ending June 30, 2014.

Newco capital repairs

Newco LLC proposed
capital repairs 2014

As you can see, the major issue is “Arena roof work” for $2M. The entire “wish list” comes to $5.6M. The roof is leaking. It needs work. Will it cost $2M? Maybe not. I heard that the city has called in an independent consultant to study the roof and report back (at what cost and this should be considered part of the tab to fix the roof). It may be a choice between a band-aid costing much less and major surgery costing far more.

billsThe point is that in addition to the $6 M a year, a figure to which this current council is wedded, they will have to find additional dollars to repair the arena roof. In addition  to asking the new arena manager to accept a figure of $6M a year blithely mandating that entity to be willing to lose $6M a year, they also want the new arena manager to participate in the cost of capital repairs based on the Beacon RFP.

This is from the Beacon RFP, “Investment. State the amount of a proposed investment in the Arena that the Respondent Manager is willing to provide (Please review the proposed Additions and Capital Repairs Schedule for Fiscal Year ending  June 30, 2014 for further details) [the very same document you see above]. Describe any restrictions/repayment requirements [read loan to be paid back by city] on any such investment. Also describe any additional fees, restrictions or incentives that may apply to any investment.”

How many prospective owners are out there willing to accept an annual $6M management fee knowing that the costs of operating the arena are double that amount? Then ask how many prospective owners will be willing to make a loan to the city to cover all or a partial list of capital repairs?

The time has come for this current council to understand the situation factually. They also need to understand that whether the Coyotes stay or go there is a substantial bill to be paid. Having the Coyotes as an anchor tenant helps the situation not hurt it. It guarantees 40+ nights of activity at Westgate and its attendant sales tax revenues. Surely they realize the significance of that and how much it helps their bottom line. Losing the Coyotes and going it alone on managing the arena, no matter how convinced they are that it will work is a recipe for further financial disaster.

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Bag of Money ClipartEveryone is using a $6 million annual figure to operate Jobing.com arena. Where did this magical, mystical number come from? Paul Giblin in his article of May 5, 2013 states,”Scruggs said she changed her position after former City Attorney Craig Tindall sent a memo to council members last spring that advised them that the city had provided documents to the Goldwater Institute that showed the actual cost was about $6 million a year.” I saved all documents Coyotes related from my time on council. I even have the original agreements executed between the city and Steve Ellman. I searched through them all for former City Attorney Craig Tindall’s memo and do not have it. That does not mean that it doesn’t exist. I don’t remember it and apparently did not save it.

I can’t fathom where or how Tindall could have arrived at a $6M figure. In going back through the financial documents that I have – even the figures for Jerry Moyes (removing what he said his partners were owed) comes in very close to the Newco, LLC. numbers and that is $12+M annually to operate the arena; total revenues of $6M and total losses of $6M. Giblin in his article is willing to concede that, “…the arena-consulting firm International Facilities Group, of Chicago, told the city that a reasonable estimate to operate the arena without an anchor sports tenant would be in the range of $13.8 million to $14.7 million a year.” I have that study and can confirm what it says. There was also a TLHocking & Associates study done in January, 2012 entitled Comparison of Operating Costs for Similar Arenas, that compared 3 arenas with NHL teams with average operating costs of $15 million to $17 million.

During 2012 council participated in endless and continual public discussions (read polite arguments) about the cost of operating the arena. At some point, then Mayor Scruggs whipped out a figure of $6M. She said at the time, that she had done no research, had no basis for such a number and that she pulled it out of thin air. Somehow or another, probably because she used it incessantly publicly, it became the “real” number, so much so, that now Assistant City Manager Horatio Skeete used it as a “place holder” in the city’s current proposed budget. There is no basis in fact for a $6M annual operating figure for Jobing.com arena. If there is, I challenge anyone with that factual information to bring it forward for all to see. Show us all the money!

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Paul Giblin wrote an article for the Arizona Republic on May 5, 2013 entitled True Jobing.com Arena operating costs are well below what Glendale as paid. In it he states, “The true cost to operate Jobing.com Arena ranges from $5.1 million to $5.5 million a year…” Really? It’s based on fuzzy math. Below are 2 pages from Coyotes Newco, LLC. Coyotes Newco, LLC. Is the entity created and owned by the NHL for purposes of managing Jobing.com Arena.

The documents below show the proposed annual budget for the Fiscal Year ending June 30, 2014. In it the total revenue figure is, to be precise (something others apparently failed to do), $6,931,477.00. Total expenses are $12,468,912.00. The net operating loss is projected to be $5,537,435.00.

Newco 2 pages_Page_1

Newco proposed
budget 2014

Newco 2 pages_Page_2

Newco proposed
budget 2014

Basic math says if you spend $12.4 million and you make $6.9 million, you are in debt $5.5 million per year.A net operating LOSS is not the same as the total cost to operate the arena annually. How can anyone can throw out a figure of $5 or $5.5 million and claim that is the cost to operate the arena? At best, it appears to be irresponsible and misleading to the general public. It provides erroneous fodder to the opponents of any fee paid whatsoever to operate the arena annually. Did I mention that this proposed budget includes very few non-hockey events? This budget is subject to change in an upward direction in terms of loss as more non-hockey events are added.

Has the NHL made money on operating the arena for two years at a total cost of $50 million? Yes, probably but since January, 2013 through the date of July 1, 2013 when a new manager is mandated to assume control of the arena the NHL has not been paid a single cent to operate the arena. So I think it’s fair to add another $6 million in expenses for these 6 months. While the city has paid the first $25 million the NHL has not, as of this date, called for payment of the second $25 million. It still, to this day, sits in a city escrow account, untouched.

Mr. Giblin also recites current rhetoric on the street that says that the LeBlanc/Pastor group are the frontrunners. They may be only in the sense that they are the FIRST group to have all of its ducks lined up for presentation to the NHL and the city. Are they first in the hearts and minds of the NHL? I doubt that. The NHL will accept the offer that is best suited to their needs. In an April 29, 2013 interview Mr. Daly said, “Yes. I mean, again, and I should clarify this. I mean, there’s no doubt that we’re dealing with Mr. Gosbee and Mr. LeBlanc and trying to work through and get to a deal with them but there are other interested people who continue, we’re working with at the same time as well. Nobody has exclusivity here (bold mine). Um, but obviously we’re getting close to having to make some decisions and sign some documentation and you know, we’ve got to work on it. I was on a conference call again last night. It’s something we’re working on”.

Despite the LeBlanc/Gosbee group’s effort to minimize others who are in the running to purchase the team, all others are still viable and not to be discounted no matter how much LeBlanc and Gosbee would like you to do so. Craig Morgan reported on May 5, 2013 that LeBlanc/Gosbee and the NHL would be in town on Tuesday, May 7, 2013 to meet with the city. Why Tuesday? Why not Monday or Wednesday? Tuesday is the scheduled City Council Workshop session. On its Executive agenda one of the items is a Coyotes discussion. This is typical Glendale. Who do you think the council will be talking to in Esession on Tuesday? You win! It will be the NHL, LeBlanc and Gosbee (or their representatives). At an upcoming Tuesday council Esession they could be meeting Pastor, Hulsizer, Reinsdorf, Kaites or Jamison. Take your pick.

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