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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.

On Tuesday, March 12th, the voters of Phoenix will choose their new mayor. The candidates are both former councilmembers, Kate Gallego and Danny Valenzuela. I noted an opinion column by Elvia Diaz in the March 7th edition of the Arizona Republic. In the piece Ms. Diaz remarks on Valenzuela’s unabashed support for giving the Phoenix Suns owner Robert Sarver over $170,000 dollars of Phoenix taxpayers’ money.

One of her comments struck me as particularly relevant, “There is a reason why he (Sarver) and other heavy-hitters are backing Valenzuela. They know they can keep getting sweet deals with him at the helm of City Hall.”

I find that remark of hers to be descriptive of Valenzuela’s style of leadership. I do not have a personal relationship with either candidate. I have met Valenzuela a few times and my last opportunity to talk to him was a ‘one-on-one’ over coffee. It was apparent at that meeting that he seemed to be seeking my support as a Glendale councilmember. It was something I would not give as there were events in Valenzuela’s background that bothered me.

The contrast between Gallego and Valenzuela couldn’t be starker. Gallego, in viewing her debate performances, exhibits a command of and a depth of knowledge about Phoenix issues and proposes solutions that Valenzuela simply could not match. He appeared to be out-of-his-depth.

Valenzuela, unfortunately, does not seem to be very bright.  His problem is when you don’t know about issues, you turn to others for answers. It seems apparent that Valenzuela will turn to those ‘heavy-hitters’ who contributed mightily to his campaign for his answers. Those answers may not serve the best interests of the ordinary Phoenix resident.

Perhaps the most concerning is his job as a Glendale fire fighter. I asked Danny if he were willing to terminate his Glendale fire fighting job if he should be elected mayor of Phoenix. He was unwilling to do so and stated that he would continue to perform both jobs. As a Glendale councilmember I know how much time I devote to this job and it is considerable. The job has odd hours as well. I could be going to staff informational meetings during the course of a day, attend a luncheon and do a ribbon cutting or attend a regional event in the evening. It is not a 9 to 5 job.

I just couldn’t envision how Valenzuela would manage doing a 24 hour shift at a Glendale fire station. I also couldn’t envision Valenzuela’s security detail riding on a Glendale fire truck with him as his station answered a call.

Over time, as this question of dual jobs became more and more prominent during his campaign, Valenzuela eventually modified his position by stating that he would take a leave of absence from his Glendale fire fighter’s job.  Really? Just how was that supposed to work? Glendale was going to hold his old job for him for 4 years and then whenever he decided he’d come back and he could pick up where he left off? A very sweet deal that I doubt you or I would ever be given.

There’s an old adage “that we are judged by the company we keep.” Time for a little back story. Sammy Chavira and Danny Valenzuela were buddies. After all, Sammy was a Glendale councilmember and a Phoenix fire fighter and Danny was a Phoenix councilmember and a Glendale fire fighter. Both were members of the Hispanic Fire Fighters Association (HFFA) until both resigned under curious circumstances. Both urged the HFFA to hold a major fund raising event using friends of both gentlemen to produce the event.  The HFAA lost tons of money and there was never an audited accounting of where the revenues from the event went. Shortly thereafter both men resigned.

Sammy Chavira disgraced himself as a Glendale councilmember with a series of questionable trips using taxpayer money such as flying to Washington, D.C. to see the Pope. Chavira even used his city credit card to buy dinner for a group of Phoenix officials, including Valenzuela. That was a ‘no-no’. When it became public all of the officials, including Valenzuela, reimbursed the city of Glendale for their portion of the dinner expense.

When Valenzuela announced his run for mayor, he cut all ties with Chavira and terminated their relationship. All well and good but it begs the question, how many other Chavira-type friends does Valenzuela have?

Speaking of friends, how does the fire union fit into Valenzuela’s candidacy? I think we can all assume that they are helping him every possible way that they can…money, expertise and manpower. They can be expected to be giddy with joy should Valenzuela win the seat. Finally, they would have a friend in a real position of power that would fulfill their agenda.

Lastly, as noted in a Laurie Roberts’ Arizona Republic column today, suddenly dark money is being spent at a dizzying rate for Valenzuela in the last few days before the election. Today there is a full page ad in the Republic paid for by Advancing Freedom, Inc. a non-profit based in Oklahoma. Who or what is Advancing Freedom? Is it the light rail folks, the fire union or Sarver and the Suns? We’ll probably never know as they are not required to list their sources of funding under $50,000.

 It certainly smells of last minute desperation. It seems like a ‘Hail Mary pass’. Do they know something through their polling that we don’t know? And is it that Gallego is about to become Phoenix’s second female mayor? Let’s hope so.

© Joyce Clark, 2019         

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It has been 18 years and 47 days since the city’s pledge to build the West Branch Library.

On January 29, 2016 the Wall Street Journal (WSJ) ran a story about Jerry Moyes entitled When a CEO Borrows on his stock by Ted Mann, Robbie Whelan and Theo Francis. For those who don’t know or may have forgotten, Jerry Moyes is the founder, chairman and former CEO of Phoenix-based Swift Transportation, one of the largest trucking companies in the United States. Moyes is also owner of the charter airline Swift Air and a marina at Lake Powell. Moyes is the controlling owner of SME Steel Contractors Inc., a steel erector company based in Utah. He was a majority owner of the Phoenix Coyotes of the National Hockey League before he filed bankruptcy and the team was sold to the NHL in 2009, and the Arizona Sting of the National Lacrosse League. Moyes is also a limited partner in the Arizona Diamondbacks, and was once a minority owner of the Phoenix Suns.

Moyes is a Glendale resident best known for his bankruptcy filing of the NHL Coyotes in a failed attempt to sell the team to Jim Balsillie, one time CEO of Research in Motion (RIM), makers of the Blackberry cell phone. As a result of these manoeuvrings the team was eventually sold to the NHL and then the NHL sold the team to IceArizona resulting in a $15 million dollar a year management fee paid by the City of Glendale until recently.

The story relates the fact that Moyes has borrowed heavily against his shares of Swift Trucking. Demands for additional loan collateral were made and three times Swift’s board has taken action beneficial to Moyes in dealing with his loans. The board policy had been that senior directors could pledge no more than 20% of their stock for margin loans. In 2013, the cap was lowered to 15% as of July 2014 and then lowered once again to 10% as of July 2015.  The board then amended the 10% limit from taking effect until the end of 2016. In 2015 Swift stock lost 52% of its value and as the stock value he had pledged as collateral declined he needed to pledge even more of his stock as further collateral.

However, his use of his stock as collateral exceeded the board’s limits. Other investors including the Teamsters’ Union are concerned with the board’s actions and accused Mr. Moyes of, “using Swift as his personal bank.”

According to the WSJ, “Swifts’ board is unusually small, just six members. To analysts of corporate governance, boards size matters: While too-large boards can be unwieldy, too-small boards can turn into echo chambers and foster an eagerness among directors to get along in the face of tough decisions.” It goes on to say, “the Phoenix-based company has just four independent directors, as defined by New York Stock Exchange rules. And one of those deemed independent, Mr. Dozer, spent years helping run a business that was partly owned by Mr. Moyes, the Arizona Diamondbacks. Mr. Dozer was the baseball team’s president from 1995 until 2006, and Mr. Moyes was a minority owner from 1996 until last year.” Hmm…It looks as if you own a company you can use it as your personal bank just a long as your close friends on a very small board approve.

© Joyce Clark, 2016

FAIR USE NOTICE

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

It has been 17 years and 95 days since the city’s pledge to build the West Branch Library.

For 4 years, from the time Jerry Moyes declared the team bankrupt in 2009 until the end of 2012, as a councilmember I was part of the high drama surrounding the Arizona Coyotes and the arena, a city owned facility. Suitors to buy the team came and went with regularity. The city paid the NHL $25 million a year to manage the arena while everyone desperately hunted for a new owner. In 2013 a new city council was seated and promptly approved the current management agreement of $15 million dollars paid annually to IceArizona, the new owners of the team. If truth be told that $15 million goes directly to Fortress Lending and the NHL as interest payments on the IceArizona’s purchase debt owed by LeBlanc, Gosbee, and et.al. If you remember the cash raised for the team purchase was approximately $45 million. The rest of the purchase price of $170 million was strictly debt. Today Andrew Barroway is the majority owner (51%) of the team.

A recent article on March 30, 2015, by Mike Sunnucks of the Phoenix Business Journal entitled Could the Phoenix Suns, city build a new arena at Phoenix Convention Center site? It is intriguing to say the least. Sunnucks reports on speculation about where the Phoenix Suns will be playing its games in the future, “ ‘US Airways Center is owned by the city of Phoenix and the Suns lease doesn’t expire until 2029’, according to city spokeswoman Deb Ostreicher. The Suns could look to the city for renovations of the downtown arena or could look for a new home.” Sunnucks goes on to say, “One scenario being talked about — at least in real estate and downtown Phoenix circles — is a new arena being built where the current South Building of the Phoenix Convention Center is on Jefferson and Third streets. That is the oldest convention center building and is a block away from the Suns’ current arena.”

Granted all of this is extremely speculative but there is the possibility of the Phoenix owned US Airways Center becoming vacant if Phoenix and the Suns decide to build a new arena at the site of the south building of the convention center. Take it a step further and it is not outside the realm of possibility that Phoenix would attempt to lure the Arizona Coyotes to a newly renovated and vacant US Airways Center with better sight lines for hockey patrons.

Think about it. Since purchasing the team two years ago IceArizona has consistently lost money due to many factors. One of those factors has always been fan complaints about trekking out to Glendale for the games. Many in the East Valley as well as from other locations such as Tucson simply choose not to make the trip. A more centrally located arena in downtown Phoenix has a certain appeal for many.

One wonders if it appeals to Barroway. Today, 2015, the Glendale arena is 12 years old, having opened in December of 2003. In another 3 years, by 2018, the arena will be 15 years old and the Coyotes will have the available option of moving due to the opt out clause any time thereafter. One of Barroway’s imperatives is to keep the team viable over the next 3 years until some major decisions are made.

In 8 years, by 2023, the arena will be 20 years old and in need of major renovation and upgrades. In the meantime, if Barroway and the City of Phoenix worked out a deal regarding US Airways it could solve one persistent fan complaint by relocating to a more convenient and centralized location. It would certainly fulfill the owners’ mantra of “here to stay”…just not in Glendale.

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The 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 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 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.