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Joyce Clark Unfiltered

For "the rest of the story"

sup ct 2I preface this recitation of the legal timeline of litigation regarding the casino by saying, that IT DOES NOT MATTER how any of these suits was decided- for or against either side – because in every case the decision was appealed to a higher court. In some remaining cases further appeals of lower court decisions will occur. Any outstanding legal decisions, mark my words, will also be appealed. I believe that the final decision will rest with the United States Supreme Court. I do not know which of the issues will make its way there but one of them will. It will be several years before this issue is decided in its finality. Quite frankly, it does not matter if you and I are for or against the casino. It does not matter if the Tohono O’odham promises a million jobs. None of that matters. What will matter is some highly technical legal issue that will be the determinant of a final decision.

  • 2001  The land in question is annexed by Glendale; later that year annexation repealed and abandoned by Glendale
  • prop 2022002  Voters of state approve Proposition 202, the gaming compact; members of the Tohono O’odham actively and publicly advocated for its passage
  • 2003  The Tribe, under a shell company, Rainer Resources, Inc. buys the 134 acre parcel within Glendale’s borders
  • 2009  The Tribe announces plans to build casino with a major, state-wide Press Release and on the same day visits Glendale City Hall to announce they are coming;  In July the Tribe sues Glendale over its claim of annexation of land
  • 2010  In March the Tribe sues Bureau of Indian Affairs to compel it to take land into trust for reservation; In July the Bureau of Indian Affairs approves taking 54 of 134 acres into trust provisionally for a reservation pending outcome of other litigation and gaming approval; In September Glendale sues stating the TO needs state officers’ approval and the Gila River Tribe sues because the Department of the Interior acted improperly in deciding land could be annexed by the TO
  • judge 12011  In May Judge Campbell rules that the TO can not build a casino until all legal actions exhausted; In July a state law allowing Glendale to block TO land through annexation is struck down upon appeal; In August The National Indian Gaming Commission rejects a casino ordinance for the Tohono O’odham Nation; In September  U.S. Rep. Trent Franks offers a bill to stop what he called an “illegal” Indian casino proposed near Glendale
  • 2012  In April the 9th Circuit Court to decide two legal issues initiated by the Gila River Tribe and the State of Arizona; In June US House of Representative  passes Rep. Franks’ bill; however, the bill does not make it through the Senate and the 9th Circuit upholds one suit in favor of the TO land into trust decision; other suit still pending their decision
  • bill2013  The Gila River Tribe files suit contending the TO violated the voter approved state gambling compact; In April oral arguments heard; The decision is pending; U. S. Representative Trent introduces another bill to stop new casinos from being established after 2013

 

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Professor
John Kindt
Biscayne Times

Professor of Business Administration since 1978, John Warren Kindt from the University of Illinois, is perhaps one of our country’s foremost experts on the effects of gambling and casinos in the United States. He has a distinguished and creditable background. He received an A.B. in Business from William and Mary; an M.B.A. from the University of Georgia; a J.D. from the University of Georgia; an LL.M., International Law from the University of Virginia; and an S.J.D., International Law from the University of Virginia. Kindt has written numerous papers on antitrust, tax, commercial, environmental, and international law. However, his main expertise is the economics of gambling — from Internet poker games to lavish casinos.

The Biscayne Times of Florida quoted him extensively in a February, 2012 article entitled The Casino Effect written By Erik Bojnansky on the issue of off-shore corporate interests building a mega resort/tourist destination with casinos in Miami, Florida. You can connect to the article here: http://www.biscaynetimes.com/index.php?option=com_content&view=article&id=1073:the-casi .

I have taken the liberty of quoting some of his remarks:

“Generally there is a bump lasting about two to three years,” says Kindt, who has studied casinos for two decades. ‘There are new construction jobs and a lot of activity as money is coming in’.”

“But Kindt warns that the bump won’t last: ‘Once the project is completed, and slot machines come in, [the casino] takes everything. After that Miami will lose jobs as businesses within a 35-mile radius of casinos… see their profits shrink…’. ”

slot machine“Kindt also says that casino games such as poker, blackjack, and roulette are merely ‘window dressing’ designed to draw in players. Slot machines, which include video poker and other electronic gambling machines, are at the heart of all casinos. ‘Every slot machine brings in a minimum of $100,000 a year,’ he asserts. ‘Slot machines don’t create jobs — you just dust them off. And that’s 90 percent of the money.’ According to Kindt, most of that slot-machine money comes from middle-class and poor individuals living near casinos.”

“Each slot machine costs the surrounding community one job per year, Kindt says. In a 2003 article for the Ohio Law Review, he reported that within a newly established casino’s ‘feeder market,’ business and personal bankruptcies increase between 18 and 42 percent, while ‘impulse’ business transactions in the area decline by 65 percent.”

“ ‘When billions of dollars are going into slot machines, where are those billions of dollars coming from’?” Kindt asks. ‘They are no longer buying cars, refrigerators, or even food and clothing’.”

Here are more quotes from scholarly publications and testimony before state and national fact-finding committees: The link is:  http://www.casinowatch.org/john_kindt/kindt_index.html

“Every video [slot] gambling machine takes $60,000 out of the consumer economy.”

“$60,000 spent in a consumer economy multiplies by respending into $180,000.”

jobs gone“For every slot machine you add, you lose one job per year from the consumer economy. Therefore 5,000 new video gambling machines costs the economy 5,000 lost jobs each year.”

 

gambling 2“Legalized gambling cost taxpayers $3 for every $1 in state revenue to government”

“Any legislator who says he doesn’t see the downside hasn’t done his homework”

“My bottom line is this is no time to be gambling with our economy”

“Gamblers spend 10 percent less on food; 25 percent less on clothing and 35 percent less on savings”
gambling 1
“Thirty-seven percent of gamblers dip into their savings to fulfill their habit”

“In 1993, 40 percent of Minnesota restaurateurs reported declines attributed to casinos”

bankruptcy“Bankruptcies and addictions increase in areas with casinos”

“An Osage tribal study found that between $41 million to $50 million left a 50-mile radius around their own casino”

“The gambling interests like to point to the construction jobs, but those jobs go away”

“Gambling interests hire lots of economists to do impact studies, but what you need is cost-benefit analysis, and you’ll never see the industry finance those”

“No reputable economist anywhere believes it’s [gambling] an economic tool”

“For every dollar of revenue generated by gambling, taxpayers must pay at least $3 in increased criminal justice costs, social welfare expenses, high regulatory costs, and increased infrastructure expenditures”

Courtesy Christopher B.

Courtesy Christopher B.

“Generally, traditional businesses were slow to recognize the way in which legalized gambling captured dollars from across the entire spectrum of the various consumer markets, but now they know”

“People will spend a tremendous amount of money in casinos, money they normally would spend on refrigerators or a new car. Local businesses will suffer because they’ll lose consumer dollars to casinos.”Quoting Donald Trump

“And as far as jobs go, for every one job that the casino creates, one is lost in the 35-mile feeder market”

“A study in Illinois in the mid-1990s found that 65 percent of businesses were hurt by the proximity of gambling”

From the travel math website , http://www.travelmath.com/cities-near/Glendale,+AZ,  one can find that the following cities and towns are within 26 miles of Glendale.

Cities, towns, and suburbs near Glendale, Arizona. The center of each city listed is within 26 miles of Glendale, AZ:

 

 

down the drainIf nothing else, this bit of information should give these cities pause when they learn that the economic impacts of a casino can affect anywhere from a 35 to 50 mile radius. I wonder if Mayor Barrett of Peoria would be so enthusiastically supportive of this proposed casino if he were to realize that the giant, economic sucking sound affecting Peoria was due to this casino?

As Professor Kindt suggests, it’s time for a cost-benefit analysis – not a fiscal impact study (having been fooled by previous fiscal impact studies I know they can be made to prove or disprove anything) – but an extensive and thorough cost-benefit study that proves or disproves once and for all, the impact of a casino in Glendale.  A local economist such as Elliot Pollack could perform such a study but who would pay for it? The Tohono O’odham? Not on your life. The State? Nope, again. Glendale? It’s tapped out. How about a consortium of the cities in the above list? After all, they would be affected… wouldn’t they?

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Since the Tohono O’odham announced its 2009 plan to put a casino within Glendale on a county island I have done a great deal of research on the effects of a casino. In 2010 I found a series of columns from April and May, 2010 written by Jim Marino, Guest Columnist for the Santa Ynez Valley Journal, California. His findings are stark and troubling and so eerily similar to the findings of others that I wanted to share quotes from his series. My comments, relating to Glendale, follow the quote in red.

casino 1“These casinos were thrust into communities under the claim the federal Indian Gambling Act [I.G.R.A.] and the state compacts made them a “done deal” and the local communities had nothing to say about it.”

I.G.R.A. when all is said and done may be the nail in Glendale’s coffin.

“But if they didn’t oppose them, these local communities might get some of the gambling dollars in lieu of the many taxes local and state government could not collect. If the local government did not cooperate, on the other hand, they would get no money and often would be accused of being anti-Indian racists and insensitive to the plight of “Indians” in America. After wielding this political stick, these gambling investors and tribes would then wave the carrot, telling local government they would create “jobs” and thus be a great benefit to the community.”

I have been accused of being an anti-Indian racist insensitive to the treatment of Native Americans at the hands of the White Man because I have voiced my opposition to a casino within Glendale’s borders. Does any of this sound familiar? When all else fails to persuade use the promise of jobs.

“The tremendous costs of providing public services like police, fire, schools, jails, hospitals, public works, social services, etc., used regularly by Indian casinos and related businesses, and the demands placed on infrastructure like roads, bridges, public buildings, and other facilities, are all paid for by the non-Indian taxpayers because these tribal businesses are exempt from property taxes, bed taxes, sales taxes, personal property taxes, corporate taxes and state income taxes among others.”

Fact. City staff reported long ago that Glendale taxpayers would pick up the cost of another water treatment plant specifically needed to handle the increased demand that would occur because of the casino.

roads 2“The amount of money that trickles down into the local economy from the salaries of employees and the costs of goods and services is nowhere near enough to make up for lost tax revenues or to pay the tribe’s fair share of the costs to the community for increased demands on public services and infrastructure. Neither are the occasional gifts tribes like the Chumash make usually to the police or fire agencies which gifts are often less than the $2 million the tribe still receives in federal welfare and grant monies every year. “

8% of specified gaming revenues are required by law to be granted by the Tribes to non-profit organizations. Even if every dollar of that 8% could go to Glendale it would not meet the costs Glendale taxpayers will have to bear to support this casino.

“Another economic myth is that by calling the casino a “resort” it will somehow become a destination location for tourists. This myth is debunked by several studies showing the vast majority of gamblers come from a one- to two-hour drive or fewer than 50 miles and come to gamble only.”

This fact is borne out by many other studies. It also explains why the Tohono O’odham, upon their consultant’s advice, rejected the possibility of a casino in Buckeye.

gambling 1“Therefore, an Indian casino essentially siphons dollars from the immediate surroundings. Those are dollars and local monies not spent in other non-Indian businesses and entertainment venues where such discretionary income would otherwise be spent. Non-Indian businesses nearby often cannot compete with an Indian business that pays no taxes, is exempt from state and local laws, rules and regulations workers compensation and public liability insurance and cannot be sued for any of its misdeeds, no matter how outrageous they may be.”

Many have said that the casino will take business away from the hotels and restaurants in Westgate. Right now there is a television ad running for Fort McDowell Casino that offers a $7.99 prime rib dinner on Tuesday nights. There is no way a Yard House, Margaritaville or Gordon Biersch could compete with gambling subsidized meals offered at a casino.

construction“One of the common methods that gambling promoters and investors, using an “Indian tribe” as a front to introduce gambling casinos into a community, is the promise of “jobs.” Often they target communities that are economically depressed because they know local government, unions, Chambers of Commerce, businesses and others often jump at the chance for anything that creates ‘jobs’.”

The TO has done exactly that-with the promise of jobs in Glendale as a means of mitigating its current financial difficulties. It is a siren song the TO hope will not be ignored and uses consistently to gain support among the general public for its proposal.

RoveyFarmEstates“There are casinos that have ruined entire residential neighborhoods like the San Manuel Casino rising above single-family homes in a housing tract, which homes then lost most of their value because of the nearby gambling operations. Neighbors complained about noise, traffic, drunkenness, open drug trafficking and even having to pick up beer cans and used hypodermic needles from their front lawns.”

There are nearly 10,000 people living in the immediate vicinity of the proposed casino with over 600 apartment units immediately south and over 900 homes immediately east. Their property values are in jeopardy.

contract“ People who dealt with or entered into contracts with these casino tribes and businesses found out that if the tribe stiffed them for the bill, they could not sue, again based on the court-created doctrine of legal immunity for Indian tribes and their businesses discussed in last week’s article.”

Based upon the manner in which the TO purchased the land secretly and then held it for 6 years, I would be reluctant to trust any relationship with them. Add to that the fact that the TO’s sister tribes feel betrayed by the TO’s denial of a seven casino limit in the Phoenix Metro area as promised with the voter approved Gaming Compact.

“This use of the tribal legal immunity doctrine to evade legal responsibility is one of the most flagrant and outrageous impacts of Indian gambling and business expansion. This doctrine is exacerbated by the fact that these tribes, their casinos and businesses, can also operate outside of all state and local laws (except alcohol-control law). Laws that were enacted over many years to protect customers, workers, the environment and quality of life.”

In Arizona the only control over Tribal casinos is the state’s Gambling agency.

crime 1“Virtually every casino community has now experienced increases in crime ranging from shoot-outs, murder, theft, robbery, embezzlement, gang activity, substance abuse and drug trafficking, drunk driving, auto accidents and fatalities, gambling addictions, credit problems and bankruptcies, family neglect, even suicides, and the list goes on. Recently, Highway 154 ominously being called “the Chumash Highway” has experienced several auto accident fatalities, not to mention the officially unexplained suicide jumpers from the Cold Springs Canyon bridge. Only a few weeks ago, a gang shoot-out erupted amongst the slot machines at the Jackson Rancheria casino located in Amador County.”

While these experiences occurred in California, there is the common thread of increased crime resulting from casinos.

“Not long ago, Sheriffs deputies were involved in a running gun battle outside the Soboba Casino where at least two suspects, who were tribal members, were shot and killed and the Sheriff refused to respond to calls there anymore. One deputy Sheriff working a special overtime detail at the Chumash Casino in Santa Ynez arrested 36 drug violators in only six weeks time, most of them felonies involving methamphetamines being used, possessed and sold around the casino.”

Since the land in question is a County Island and if the TO are successful in establishing a reservation neither the County Sheriff’s Office or the Glendale Police Department would have authority to respond to any criminal activity on the reservation unless specifically requested by the TO. I suspect the TO will not do so as it would provide an opportunity for negative publicity.

thief“In another case, an elderly couple were walking in the parking lot of another Southern California Indian casino near San Bernardino and a thief whizzed by on a motorcycle and snatched the woman’s purse in the parking lot. The motorcycle grazed their car during the theft. They reported the incident to casino security guards, expecting that the crime would be reported to the Sheriff’s Department. They found out later, when they made an insurance claim for the damage to their car, this incident was never reported to the police. This is but another of the many negative impacts of Indian casinos, the fact that the primary duty of Indian casino security staff is to conceal any negative incidents that occur or insinuate the false claim that some kind of “sovereign status” permits them to deal with criminal acts when it does not.”

When you enter the reservation you do so at your own risk.

tv“Another problem is the failure and refusal of many local media outlets to report the crime, corruption and negative incidents occurring regularly at Indian casinos because those casinos are the biggest television, radio and newspaper advertisers they have. So the so-called “free press” has in effect, been co-opted by the fear of offending these gambling casinos who are their best advertising customers.”

This is a genuine concern. The Tribes advertise their casinos on television incessantly. One of our television stations, Channel 12, is connected to the Arizona Republic. Neither of these two giants of media are going to jeopardize their revenue streams by going negative. When was the last time you remember any media reporting on the use of the Tribal land, just north of Arizona’s southern border, as an open conduit for drug smuggling or illegal border crossings?

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medicalAn “atta boy” goes out to the Mesa Fire Department. The Arizona Republic’s April 21, 2013 edition ran a story written by Maria Polletta. This past August Mesa began a pilot project placing a physician’s assistant and a paramedic on a smaller response vehicle (called a Transitional Response Vehicle or TRV) equipped with nearly everything necessary to handle “low level” emergency medical calls. Tom Morris, a physician’s assistant says, “There’s not much I don’t have here that I wouldn’t have in a traditional (urgent care or ER) setting.”

This concept frees traditional fire vehicles to respond to more serious calls for service. It also offers an unanticipated benefit of greater partnership with police. This type of unit can determine if an arrestee needs medical treatment or can be cleared for custody of an officer at the scene of the incident. It saves the police department time, manpower and costs associated with taking suspect to a major medical facility for minor treatment or clearance.

Mesa Fire spokesperson, Forrest Smith, said, “It basically costs an average of 32 cents a mile to run a TRV, as opposed to $2.76” to run a traditional fire engine.  That cost per mile includes fuel, maintenance and labor, as miscellaneous costs.

truck 1This is an idea whose time has come. With cities facing rising costs to deliver service to their residents innovation that works and delivers cost savings is a “no-brainer.” I can’t begin to count the number of times I remarked to Glendale’s Fire Chief that there had to be a better way to respond to medical calls than using expensive 4 man fire trucks and ladders. Of course major equipment is needed to respond to a medical call such as a vehicle accident but for minor calls such as cuts and sprains the use of large trucks is a waste of money and manpower.

This Mesa pilot project is still under evaluation but cities in other states have expressed interest in and are learning about this project and Scottsdale is considering starting a similar program. It’s time cash strapped Glendale get on board the TRV.

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BeaconToday the Beacon RFP for arena management was made public and is posted on the city’s website at  http://www.glendaleaz.com/purchasing/bidopportunities.cfm. You can read the entire document for yourself.

One of the most important elements of the RFP is the duties of the manager. There is one that is the most telling and confirms that the new manager perhaps may not be the owner of a team/anchor tenant, “Act as agent for the City in executing the operational requirements of any license/lease agreements with professional sports team(s) and/or anchor tenant(s) (i.e. manage day of game activities and interact with the sports teams regarding use of the Arena).”  As you can see, the city is seeking an entity to be its agent in dealing with any sports team that wishes to use the arena.

This manager would be responsible for booking all events, be a party to all marketing efforts and have control over the concessions.

In terms of qualifications, the manager must be a nationally recognized company (this banishes the very thought of the Phoenix Monarch Group forever); have three years experience in managing a facility with an NBA or NHL team; and “The Manager must have current experience in operating such a facility on behalf of a public entity, such as the City of Glendale.” Two entities immediately come to mind: AEG, which is managing the arena now for the NHL or Global Spectrum, which manages the University of Phoenix Stadium for the Arizona Sports and Tourism Authority (AZSTA).

The preferred term of the arena manager contract is 5 years with 2 options to renew for additional 5 year terms. It is up to the prospective candidate to bid on the cost the city would pay for such management. It is clearly understood that it contains an “at-risk” provision meaning any losses would be borne by the manager. The city is also asking for an alternative compensation plan that would enhance revenues that the city gets. The city is also asking that the arena manager plan to invest in the arena, “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 the Fiscal Year ending June 30, 2014 for further details). Describe any restrictions/repayment requirements on any such investment. Also, describe any additional fees, restrictions, or incentives that may apply to any investment.”

The evaluation criteria are as follows:

  • Business/Marketing/Transition plan worth 30%
  • Compensation price worth 30%
  • Experience and organizational structure worth 15%
  • Personnel worth 10%
  • Investment worth 10%
  • References worth 5%

All responses are due no later than May 24, 2013 at 5 pm EDT. But perhaps the most interesting element of the proposal is, “INQUIRIES OR OTHER CONTACT WITH ANY OFFICER, AGENT, OR EMPLOYEE OF THE CITY OF GLENDALE REGARDING THE ARENA AND/OR THIS REQUEST FOR PROPOSAL, INCLUDING CONTACT BY PROPOSER’S CONTRACTORS, AGENTS, REPRESENTATIVES AND CONSULTANTS, COULD RESULT IN A PROPOSAL BEING DISQUALIFIED.”  The very first question that occurs is why is Mayor Weiers scheduled to meet with Pastor and his group on Friday, April 19th? Either Pastor has no intention of managing the arena or he is not aware that such a meeting could disqualify him.

Well, there you have it. The RFP is pretty much what we expected it to be. Although at this point, Beacon and the RFP seem to have no relevance in an owner’s attempt to acquire the team. The NHL has staked out that territory and will let the city know whom it has chosen. With city council still holding fast to the notion of a $6M annual management fee to any prospective owner I dare say when they see current average annual revenues of $6M and current annual expenses of $12M, they may very well say Hmmmm.

Expect more commentary on this RFP after you and I have had more time to digest it. I thought it important to made public as quickly as possible so that it receives the widest public scrutiny and commentary as possible.

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Casino…to be or not to be, Part 1

Posted by Joyce Clark on April 11, 2013
Posted in Casino  | Tagged With: , , | 4 Comments

On April 9, 2013 there was a court hearing in Phoenix on the issue of the proposed Tohono O’odham casino. From the reporting that has occurred Judge Campbell’s mind appears to be made up and it does not bode well for the State, the Gila River tribe or Glendale. Today I begin a series on the proposed Tohono O’odham casino. It’s proposed location is in a County island within the borders of Glendale, Arizona. We’ll look at geography and where the proposed casino sits in relation to other sites within Glendale. I created this map. It is not to scale but it does demonstrate the relative position of other, established development to the proposed casino site. Unfortunately, this site does not allow for a larger image. If you would like to see a larger version, email clarkjv@aol.com and I will send it to you as a jpg. file.

Casino Map LARGE JPG Ap 9 2013Perhaps the most important piece of geographical information is that the proposed casino will be approximately less than a 1/2 mile north of the Westgate site and Jobing.com arena. Another piece of the puzzle is the number of homes nearby:

There are 4 high density residential sites. Two of them are near Cabelas, directly south of and adjacent to the proposed casino site, for a total of approximately 800 units. The two other high density sites are in Westgate and are another approximately 800 units.

Now, add to those 1600 apartment units, these nearby residential communities: ProvenanceProvenance (across 91st Avenue and within 1/4 mile) with 120 homes; Rovey Farm Estates (across 91st Avenue and witin 1/4 mile) with 800+ homes; Broadway (within a mile) with 60+ homes; Pendergast Estates (within a mile) with 60+ homes; and Desert Mirage/La Buena Vida (within a mile) with 1200+ homes. That’s a total of 3,840 residential units in close proximity to the proposed casino. The recognized multiplier of residents per home is 2.5. Multiply those units by 2.5 persons per unit and that equates to 9,600 or almost 10,000 people living in very closeRoveyFarmEstates proximity to the proposed casino.

Centrada Norte

Centrada Norte

In addition to existent development in the area there are many future developments that have already been approved by Glendale City Council. These developments would add more hotels, more commercial and some additional residential units to the area. Some of these approved projects are: Centrada Norte, Bella Villagio, Sportsman’s Park East/Sportsman’s Park West, and Zanjero – all within a quarter of a mile to a mile away). By no means is this a complete list.

Kellis HS

Kellis HS

There is also a Peoria district high school. Raymond Kellis, directly east and across 91st Avenue from the proposed casino. The Peoria district also owns land to the east of the high school that has been planned for a number of years to beome an elementary school.

To recap, the proposed casino would impact nearly 10,000 people, a high school, Westgate and all future development of the area.

Next up…how did the Tohono O’odham get the land?

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Just for fun…

Posted by Joyce Clark on April 7, 2013
Posted in City of Glendale  | Tagged With: , , | No Comments yet, please leave one

Rumors abound about the Coyotes’ ownership saga. Sightings of potential owners now occur regularly at every home game. Thank goodness, according to the research done by one of our Coyotes’ “thug gang,” Greg Dunaway, average attendance is up by at least 7%. When you go to a game, it looks like a full house to me. That surely warms the heart of any potential owner of the team.

At the last game I had my trusty binoculars in tow (usually I forget to bring them or am too lazy to carry them). I spotted John Kaites in Mike Nealy’s suite and George Gosbee chatting in the lower level. I didn’t see LeBlanc, Hulsizer or Jamison. That doesn’t mean they weren’t there. I simply did not spot them. I also saw Councilmember Sherwood in his new Coyotes jersey with his name and number 13 on the back. He visited Nealy’s suite for a generous helping of snacks and goodies and then swiftly disappeared.

Just for fun I have once again added what is fast becoming the Coyotes’ Wheel of Fortune. If you could spin it wherever Wheel of fortune 4the pointer landed would be as good a guess as any as to who the new owner will be. There was an old radio show when I was a kid called “The shadow knows.” In this case, it’s not the shadow, it’s Commissioner Bettman who knows the winner of this contest.

ouija boardOnce the new owner is announced and brought to Glendale for the final act, you can then use this trusty Ouija board to find the answer to the question of: Will a majority of the Glendale City Council award the lease management contract? Right now, a Ouija board will give you a comparable answer to any of the speculators.  Have fun!

 

 

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Late on Friday, April 4, 2013, Craig Morgan, who covers sports for Fox Sports Arizona among a growing list of other media, did an outstanding job of summarizing the recent Coyotes saga. To read his entire article, please go to http://www.foxsportsarizona.com/nhl/phoenix-coyotes/story/Coyotes-ownership-saga-hits-stretch-run?blockID=889001&feedID=3702.

board-gosbee

George Gosbee

Leblanc

Anthony LeBlanc

I have chosen some of the most salient snippets for further commentary. He said, “The group led by George Gosbee and Anthony LeBlanc has already submitted its purchase bid to the NHL, and Darin Pastor’s group submitted the paperwork for its proposal to the league on Friday. Greg Jamison’s group is still working on a proposal, but it is expected that they will submit it by the middle of next week, likely under pressure of an imposed NHL deadline.”

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Darrin Pastor

Jamison

Greg Jamison

The latest rumors say the LeBlanc/Gosbee deal is for 15 years, with no opt-out clause and an option to buy the arena. There is no word on the kind of deal submitted by the Pastor group. That’s odd after his flurry of recent publicity. I am especially gratified to see that Greg Jamison is still a player. I must admit that I hope he prevails. I have met him and talked to him in depth and it is still my belief that this man is a perfect fit for the Coyotes. Morgan offers that Matt Hulsizer may still be in the hunt as well. Maybe…maybe not. Mr. Hulsizer, a successful businessman, married into a family of wealth. They were willing to support him on his first attempt to buy the Coyotes…and why not? A hundred million dollars would have come from the City of Glendale. Yes, the family investment was still healthy but not as much was on the line as the city’s investment under Hulsizer. My guess is that there is no will to continue on the part of the family. I could be wrong for I have proven so in the past but somehow or another, I am willing to write him off.

Mr. Morgan then goes on to say, “What is likely to happen soon is that the NHL will choose an exclusive buyer, then approach Glendale to negotiate the lease agreement. The Glendale City Council hired Beacon Sports Capital in late March to solicit bids from management companies to run the arena, as well as to handle negotiations with any prospective owners.”

Bettman

Gary Bettman

This confirms my assessment in previous blogs that the League is in the driver’s seat this time. They will choose the buyer and Glendale will either come to terms with that buyer or not. The option of relocation of the team is certainly not dead yet.  This council may have thrown good money after bad in hiring Beacon Sports Capital. It appears that Beacon will have no role in the process when the NHL selects the owner. There will be no one to vet. If, however, Glendale cannot or will not come to terms with the newly selected owner, Beacon will then have a role as council will most likely Mayor Weiers’ Plan B with the use of 4 managers for the arena.

In additon, Morgan states, “What that lease agreement will look like is anyone’s guess. Glendale City Councilwoman Yvonne Knaack said recently that the annual fee to the city could “be anywhere from $6 (million) to $10 million on operating, and then maybe another $9 million on debt.” 

Councilmember Sherwood publicly recognized a figure of at least $10M to $12M annually for a lease management agreement.  Vice Mayor Knaack acknowledged a similar figure as well. She is also correct about the arena construction debt of approximately $9M a year. This is where it gets dicey. Will this council accept a deal that requires a substantial annual payment along with the annual construction debt? Combining the two, the figure will be somewhere in the $20M range annually. greed 1But that requires this council to cut expenses elsewhere to absorb the costs of the deal and to continue to build a contingency reserve fund. To date there has been absolutely no will to cut by the new council. In fact, they are considering adding 15 firefighter positions and a new $650K truck and 31 police positions to this budget. They simply cannot do both – manage the annual costs associated with the arena while creating new budgetary expenditures.

Norma Alvarez

Norma Alvarez

We have heard enough from Councilmember Alvarez to know that she wants to pay nothing for the arena and I suspect she thinks there is some group out there that will pay the city for the privilege of managing the arena. Not even her beloved Phoenix Monarch Group was willing to fall for that. If you remember, their base fee was $7M for a limited number of events…read tractor pulls. Nevertheless, she stubbornly holds to that position and has even managed to elicit support from Councilmembers Hugh and Chavira. Councilmembers Martinez and Sherwood recognize the importance of keeping an anchor tenant at the arena for the future of a vibrant Westgate that attracts new development in and around it.

Knaack

Yvonne Knaack

Weiers

Jerry Weiers

That leaves two question marks, Vice Mayor Knaack and Mayor Weiers. Vice Mayor Knaack is on the horns of a dilemma. I suspect in her “heart of hearts” she knows that keeping the team as an anchor tenant would be the right choice. But her strongest backers, the fire union, will put tremendous pressure on her if they see their 15 additional firefighter positions and new truck evaporate in this year’s budget. Mayor Weiers, on the other hand, derided the deal the previous council had with Greg Jamison. He should be reminded that Anthony LeBlanc has said publicly that any deal with the city must be similar to the previous deal on the table with Jamison. Weiers is also looking for a deal on the cheap. It will be time for these two people to decide what is more important. Is it more important to send the team packing and leave the legacy of an uncertain future for the arena and Westgate because it’s what their supporters in their previous election now expect of them? Or is it more important to accept that for the sake of Glendale, of Westgate and of West Glendale’s future development potential that sometimes one has to make the difficult and unpopular decision? We will see…soon enough. We all hope that they realize the importance of keeping an anchor tenant at the arena.

I am pleased that this long, painful Coyotes ownership saga is coming to an end. I wish all theCoyotes logo potential owners well although I continue to root for Greg Jamison.  The Coyotes team has been beleaguered and beaten for too long. They, more than anyone or anything else, have earned certainty about their futures.

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convention 2Wow! It’s difficult to summarize the 2 1/2 hour, April 2, 2013, Glendale city council workshop into about 1,500 words – but here goes. First up was the city’s Intergovernmental Director, Brent Stoddard, reporting on HB 2657 before the state legislature.  In a nutshell, cities can support 7 provisions of the bill but 3 provisions are in dispute with the state.  The legislature wants the state Department of Revenue (DOR) to collect all sales taxes from all cities in the state. Currently Glendale and 17 others collect their sales taxes, report and remit the state’s portion to the state. Guess the state doesn’t trust those cities. The cities have countered with a proposal to offer a one-stop portal through a third party that would be managed by the DOR. I guess the state doesn’t trust cities to audit businesses either and want to take over that function exclusively as well. The cities have proposed the creation of uniform auditing standards; and the ability to request of and notify the DOR so that a city could still perform the audit. Lastly, the issue of dreaded construction sales tax issue was discussed. It appears that both sides, the state and the cities, are miles apart on this one. No resolution to be had as of this date. Stay tuned for the next chapter on this issue.

Chavira photo

Sam Chavira

Next up was the Police department presentation by Interim Chief Black. Our fearless leader of and advocate for all things Public Safety Councilmember Chavira asked, if the department was adequately staffed to protect residents and keep officers safe. After winnowing through all of the rhetoric, Chief Black reluctantly said, yes by saying, “we are meeting the needs of the community as best we can with the allocated funding.” How’s that for threading the needle?

Chief Black and her department are to be commended for their innovation and creativity. As a result of their reorganization efforts patrol staffing will go from 166 to 182 officers, increasing an officer’s pro-active patrol time from a low of 11 minutes to about 16 minutes per hour. That is phenomenal considering Glendale’s current financial position.  Their adoption of a new CAD system this fall will include an automated vehicle locator on all patrol cars enabling the dispatcher to send the closest available unit. This new system will create fuel cost savings and reduce response times.

Norma Alvarez

Norma Alvarez

Naturally, Councilmember Alvarez admitted that she didn’t understand all the numbers and “stuff.” Based upon her Ouija board, she KNOWS that the city’s residents are not well protected, especially in south Glendale, the area in which she lives and which she represents. The heck with the entire city. She went on to say that she didn’t want Chief Black to be a good employee and to work within the city’s fiscal constraints. Alvarez also said “we have to put more officers out there” and we can take dollars from programs that are a luxury. It will be interesting to see what she defines as a luxury.

There was a lot of discussion about the 8 police zones into which the city is currently configured. It seems no one on council could wrap their heads around this concept. What was not communicated is that all zones are not created equally, at least in size. Their dimensions are based on the number of calls for service as well as what makes sense geographically for patrol and response times. The more calls for service in an area, the smaller the zone gets.

Knaack

Yvonne Knaack

Vice Mayor Knaack then said the level of police staffing was “unacceptable.” By whose or what definition?  I guess the fact that our police department in July, 2012, was re-accredited by the Commission on Accreditation for Law Enforcement (CALEA) once again and for the first time was awarded the Gold Standard doesn’t mean anything and can be ignored. Really? When pressed by Knaack, Chief Black indicated it would be nice to be at fully authorized strength by adding another 31 officers. Bingo. Yet the police department has $7M as contingency in their public safety sales tax fund. I, like Vice Mayor Knaack, remember distinctly that one of the purposes of this public safety sales tax was to hire more officers.

Fire Chief Burdick’s presentation was interesting for what he said but also for what he did not say. The fire department still holds to a 4 person staffing model on all of its engine and ladder trucks and one is a firefighter/paramedic on each truck. Four men on a truck to answer fire calls is necessary to meet OSHA’s 2-in-2-out law. That mandate makes sense. That means for a working fire, while 2 firefighters are in a building, there are 2 on the outside to make rescue if necessary. Perfectly logical for working fire service calls. True, the number of working fires has increased by 26% due to automatic aid. Are all of those working fires in Glendale? Probably not.

The vast majority of calls are medical (estimate is that they are at least 80% of all calls for service) requiring either advanced life support or basic life support. Why doesn’t the city have smaller vehicles staffed with paramedics?  When a fire unit is dispatched it is told what kind of call to which it is going to respond. Smaller vehicles used for medical calls would be more fuel efficient and cost less to operate and maintain and would not require 4 man units. Or perhaps a medical transport vehicle with 2 Glendale paramedics on board should be sent. There has to be a better, more cost efficient way to respond to medical calls than sending a very big and very expensive fire truck.

Weiers

Jerry Weiers

Mayor Weiers did ask about automatic aid and what was the ratio of calls between Phoenix and Glendale and Peoria and Glendale.  Bravo. Not surprisingly, Chief Burdick didn’t have that information and said he would provide it. This is typical of staff when there is a question that they would rather not answer publicly.  Usually it’s because the answer doesn’t advance their cause. Weiers did bring up another suggestion, the use of an LPN in answering medical calls. The LPN could write prescriptions and make a determination if medical transport was needed.  That idea met with a great deal of resistance by Chief Burdick despite his admission that it is a model being used in Mesa. It could very well be an idea whose time has come. Using a truck that gets 5 miles to the gallon with 4 firefighters/paramedic is no longer cost effective at a time when the majority of calls for service are medical.

Chief Burdick, after this annoying interruption with questions of fact, was then asked by Councilmember Chavira if the department was adequately staffed and if firefighters were safe. Once again, cutting through the rhetoric, his answer was, yes today, quickly followed by a need to address excessive call volume. Whose? Those of Glendale residents? Phoenix residents? Peoria residents? We don’t know because that information was not provided.

Vice Mayor Knaack cut to chase and asked what he needed. Immediately the chief responded with another 15 firefighters and another truck ($650,000 price tag but would pay $65K a year in a lease back). Bingo.

greed 1The councilmembers’ questions certainly fed both departments’ agendas of “gimme more.” And why wouldn’t they? Look at some facts. In the last election cycle both unions, police and fire, supported Weiers, Sherwood, Hugh and Chavira. Vice Mayor Knaack and Councilmember Martinez received the same healthy union support in their last reelection bid in 2010. The police union was a minor player in both elections not having the same political war chest or available personnel as the fire union. The fire union, on the other hand, made sure there were cash contributions by individual, non-Glendale, firefighters to their campaigns, paid for printing and mailing campaign literature and paid for and put up campaign signs for these very same people now deciding to beef up these departments-because staffing levels are “unacceptable.” There is nothing illegal about any of these actions. It’s Politics 101 but it doesn’t serve, you, the taxpayer very well. Perhaps the parks and recreation people or the finance people need a union to level the playing field.

Sherwood

Gary Sherwood

Under Council Items of Special Interest, Councilmember Sherwood called for starting a search for a permanent City Attorney. What was truly mind-boggling was Councilmember Alvarez’ request that the City submit grant applications to the Tohono O’odham tribe for Public Safety dollars. What about we are still in litigation with the TO doesn’t she understand? When one is in a legally adversarial position with another, one does not ask for handouts from his adversary. She also thinks the city is mean and nasty because it owns the web page for the West Valley Resort and the TO has to pay the city annually for the right to use it. It is true. Congratulations to the city for pulling such a wonderfully, snarky yet brilliant move.

Council then adjourned into Executive session. Topics up for discussion: external audit, arena RFP, compensation for departing City Attorney and compensation for the new Interim City Manager. I suspect we will find out the results in a day or two.

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cit mtg 2On the evening of April 1, 2013, the City made a public presentation of the state of its budget to the public. If you include myself and the councilmember representing our area there were a total of 5 people in attendance. That’s right. Three citizens and us. How embarrassing for the councilmember. Oh, but that’s OK. His only constituency these days is the fire fighters union.

staff multiplied jpgIn terms of city staff, it would be safe to say the citizens were outnumbered at least 3 to 1. There was at least 20-25 staff in attendance. Every director of every department was on hand to answer the flood of citizen questions (not), in addition to 2 of Glendale’s cable channel 11 TV crew filming the non-event. It almost begs the question as to why doesn’t the city ask the general public to RSVP? If a minimum number of citizens respond, the meeting is held. If only 2 or 3 respond, the meeting could be cancelled. After all if the public meeting had been cancelled, it would have only required calls to 3 people.

These staff members are salaried and not paid time and a half for extra duties such as attending this meeting.  These salaried personnel, if they so choose, can compensate themselves for the time by coming in to work a little later or taking a longer lunch break. It is an option available to them should they choose to use it. Many of them do not and put in more than a standard 40 hour work week.

Ms. Schurhammer, Executive Director of Finances, made a 15 minute presentation on the city’s budget. She concentrated on the city’s total Operating Budget by Fund and Department and the General Fund Budget by Department.  She pointed out that 34% of the city’s entire budget and 63% of the city’s General Fund budget goes to Public Safety. There was virtually a silent scream from all non-public safety staff asking how much more does Public Safety need? We’ll get to that in a minute.

Back in December, 2012, both the Fire and Police departments had their respective budgets balanced and were prepared for a vote of approval from the sitting council at that meeting. However, Vice Mayor Frate made a motion shark 2that their budgets be tabled and brought up again when a permanent City Manager was hired. The vote was 6-1 with me being the lone, dissenting vote. That action left their budget departments” doors open just a crack. Now, sensing an opportunity, they are smashing open those doors with a fire truck and tactical vehicle. They sense blood in the water and this new council (led on this issue by Councilmember Chavira, a Phoenix firefighter) is willing to give them everything and anything they want. Chavira will take care of his brothers in Glendale and we can only guess that Phoenix Councilmember Danny Valenzuela (a Glendale firefighter) will take care of his brothers in Phoenix.  Sweet, isn’t it? It has a nice, quid pro quo ring to it, doesn’t it? Note that the city does not have a permanent City Manager. Yet he will have to deal with the largesse that this council dispenses.

cit mtg 1After Ms. Schurhammer’s presentation, Ms. Julie Watters of the city’s Media and Communications Department, led the meeting by asking if there were any public comments. Mind you, a citizen could not ASK a direct question, only comment. If anyone had a question, they were directed to talk to that specific department director after the meeting. This is a tried and true practice that Glendale has practiced for years and which I have hated for just as long. For you see, if the question is a difficult or uncomfortable one, the answer is made only to the citizen seeking the answer after the meeting. After all, the city wouldn’t want all those citizens hearing that awkward answer to that difficult question. Would it? It’s a divide and conquer strategy that I believe is unfair to the citizens of our community.

cooler 3What were the water cooler musings? Several sources echoed one another. Much of it, dear reader, is old news for I have blogged about it previously. Nevertheless, here goes:

  • The Coyotes will be sold this month by the NHL.
  • The idea of 4 separate arena management contracts (you remember…hockey, entertainment, education and cleaning) still has legs and is not dead.
  • The general consensus is the Coyotes will be leaving Glendale as the city and the new team owner will not be able to come to mutually satisfactory terms on the arena lease management contract.
  • Or the other theory is that the team will stay in Glendale briefly (2-5 years) and then relocate.
  • This new council has no will to make the necessary and needed cuts over the next 4 years and likely will not sunset the temporary sales tax increase in 2017.

super bowlAll departments will struggle to come up with adequate funding to support the hosting of the 2015 Super Bowl in Glendale. Further diminishment of citizen services may be the only way to fund the costs.

 

 

 

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