$320-million over $20 years...
The Glendale (AZ) City Council, mired in budget shortfalls, public service deficiencies, and public servant shortages approved an arena deal with proposed Phoenix Coyotes suitor Greg Jamison approved the deal at a city council meeting late last night eastern time.
Jamison said he hoped to complete his purchase of the team in the next 30 to 60 days- which, of course, is something he's been saying for the last 180 days.
He is expected to pay US$170 million to the National Hockey League who has owned and operated the franchise for the last few seasons...
The agreement passed on a 4-2 vote...
Glendale's Interim City Manager Horatio Skeete said the city would need to cut $20 million within five years in part to pay the arena-management fee if the Coyotes were the anchor tenant at Jobing.com Arena. Without the team, Skeete thinks the city would need to cut about $12 million instead.
Skeete voted "no," but says keeping the Coyotes around may be in the long-term interest of the city. But it requires too many budget cuts now and would still leave the city in a financial hole in the long term.
Long-term or longer-term...???
The devil you know or the devil you don't...
Those are the questions and, now, Glendale has to live with the answer they gave in the short-term...
Good luck on that...
Here's Jamison...
((HT: azcentral.com/KPNX-TV))
Showing posts with label Elaine Scruggs. Show all posts
Showing posts with label Elaine Scruggs. Show all posts
Wednesday, November 28, 2012
Friday, June 8, 2012
BREAKING: Glendale Votes For Coyotes 4-2, Goldwater Thinking Next Move...
More when we know more...
But look for the Goldwater Institute to jump in...
Soon...
Here's the initial analysis from our friends at ABC15
The council ratified the 20-year, nearly $325 million agreement after a sometimes-contentious six-hour meeting attended by Greg Jamison, NHL Commissioner Gary Bettman and Deputy Commissioner Bill Daly.
Outgoing mayor Elaine Scruggs admitted in a minority opinion: "We just cannot afford this." The city rules require the rainy day fund have the equivalent of 10-percent of projected revenues. It doesn't...
The $17-million that is supposed to go to Jamison for next season, in part, is coming from a contribution in a city sales tax hike. Within five years, Jamison has option to buy (what is currently) Jobing.com Arena and the city would be debt-free and away from any arena fees.
Ouotgoing councilman Phil Lieberman wanted to table the vote for two weeks, but was turned down by the 4-vote majority.
NHL Commissioner Gary Bettman was part of the process and said: "If we're moving forward together, we will be in a position to discuss deferring at least a portion of what we are owed." But he also wanted to know what was more important to the city and whether they (Glendale) was interested in keeping the team during his time at Q-and-A.
When Jamison was asked who his partners are in the venture, he declined to name any. This jibes with the recent coverage from Forbes' Mike Ozanian that JEG is having problems getting partners.
Here's coverage from 12News and Ed Tribble...
Expect blowback from the Goldwater Institute- and how... the City of Glendale is also in the process of cutting 49 jobs because of budget shortfalls. The HQ is aware how that will sit with the voting base...
Christine Lacroix was in Glendale for 3TV...
((HT: Azfamily.com))
Here's the latest word from Goldwater and Darcy Olsen from Friday afternoon...
This morning, Judge Cooper denied the Goldwater Institute’s motion for a temporary restraining order on the grounds that she felt the court lacked the authority to block the vote. Simultaneously, she issued a strong warning to the City of Glendale about the implications of moving forward today, affirming the Goldwater Institute’s contention that the city has committed “clear violations” both of court orders and open meeting laws.
She emphasized the court would be receptive to considering holding the city in contempt if the council moves forward with the vote, stating that sanctions would be in order. We hope the council will heed the judge’s warning, comply with the law, and give the public sufficient time to review the council’s proposed action.
But look for the Goldwater Institute to jump in...
Soon...
Here's the initial analysis from our friends at ABC15
The council ratified the 20-year, nearly $325 million agreement after a sometimes-contentious six-hour meeting attended by Greg Jamison, NHL Commissioner Gary Bettman and Deputy Commissioner Bill Daly.
Outgoing mayor Elaine Scruggs admitted in a minority opinion: "We just cannot afford this." The city rules require the rainy day fund have the equivalent of 10-percent of projected revenues. It doesn't...
The $17-million that is supposed to go to Jamison for next season, in part, is coming from a contribution in a city sales tax hike. Within five years, Jamison has option to buy (what is currently) Jobing.com Arena and the city would be debt-free and away from any arena fees.
Ouotgoing councilman Phil Lieberman wanted to table the vote for two weeks, but was turned down by the 4-vote majority.
NHL Commissioner Gary Bettman was part of the process and said: "If we're moving forward together, we will be in a position to discuss deferring at least a portion of what we are owed." But he also wanted to know what was more important to the city and whether they (Glendale) was interested in keeping the team during his time at Q-and-A.
When Jamison was asked who his partners are in the venture, he declined to name any. This jibes with the recent coverage from Forbes' Mike Ozanian that JEG is having problems getting partners.
Here's coverage from 12News and Ed Tribble...
Expect blowback from the Goldwater Institute- and how... the City of Glendale is also in the process of cutting 49 jobs because of budget shortfalls. The HQ is aware how that will sit with the voting base...
Christine Lacroix was in Glendale for 3TV...
((HT: Azfamily.com))
Here's the latest word from Goldwater and Darcy Olsen from Friday afternoon...
This morning, Judge Cooper denied the Goldwater Institute’s motion for a temporary restraining order on the grounds that she felt the court lacked the authority to block the vote. Simultaneously, she issued a strong warning to the City of Glendale about the implications of moving forward today, affirming the Goldwater Institute’s contention that the city has committed “clear violations” both of court orders and open meeting laws.
She emphasized the court would be receptive to considering holding the city in contempt if the council moves forward with the vote, stating that sanctions would be in order. We hope the council will heed the judge’s warning, comply with the law, and give the public sufficient time to review the council’s proposed action.
Thursday, June 7, 2012
Goldwater Surfaces In Jamison Discussions (UPDATED: Goldwater Seeks Court Order)
The HQ knew it was a matter of time...
The Goldwater Institute has sent their warning shot across the City of Glendale's collective bow in the Greg Jamison/Jamison Entertainment Group purchase of the Phoenix Coyotes...
They have more questions than warnings at present (especially having to do with the lack of Indian nation involvement, possible violations of the Gift Clause, parking values, and putting everything up to a referendum vote) and finish up with the following paragraph...
We hope that these inquiries will assist the Council in its deliberations over the proposed deal. We further urge you to not to rush to a vote. The terms of the 100-page proposal were released to the public for the first time on Monday, and not all the exhibits and associated documents have been released yet. There should be an adequate public comment period after all the documents have been released, particularly when they commit substantial public resources over many years.
Lisa Halverstadt and Craig Harris put out an article for the Arizona Republic today. They also came up with the notion that no other Phoenix-based franchise gets any kind of subsidy like the Coyotes would get if Jamison takes over.
"We believe the average of $15 million over the course of the term is a fair price," Glendale spokeswoman Julie Frisoni said.
ABC15's Eric English covers the idea of the sales tax increase...
Councilwoman Joyce Clark posted an op-ed piece in the Republic trying to justify her anticipated "yes" vote:
Allowing the team to leave will hurt Glendale financially. The debt on arena bond construction and its operating and management costs still must be paid. The Coyotes pay monthly rent. A surcharge on every arena event ticket sold goes to Glendale. The team generates revenue for 42 games and more when there are playoff games. Hotels and restaurants are full. If the team leaves, there will be fewer nights when Westgate will produce substantial revenue for the city.
Although, the HQ doesn't see her logic, we'll let her say her peace here...
Phoenix Business Journal reporter Mike Sunnucks sits down for AZPBS to discuss the situation...
2210 UPDATE: Cecilia Chan reports from the Republic that Goldwater is going to seek a court order at 8:30AM Friday to prevent the Glendale City Council from voting on the Jamison deal.
The Glendale vote is scheduled for two hours later...
Not a shock...
The statement from Goldwater President Darcy Olsen:
Tomorrow morning the City of Glendale plans to consider what is estimated to be a $425 million arena management deal for Jobing.com Arena. Arizona’s Open Meetings Law and multiple court orders require the city to make public all documents related to the proposed contract at least 24 hours before a Council vote is taken, which it has not done. The 100-page deal released on Monday refers to a number of exhibits that are central to analyzing the impact of the deal on Glendale’s finances, which the city must make public. Per respecting Open Meetings Law requirements, the Goldwater Institute will be requesting a temporary restraining order to prevent the Glendale City Council from voting on the contract Friday morning.
Glendale city attorney Craig Tindall told the Republic's Lisa Halverstadt that their deadline for a deal was supposed to be five days after the last Coyotes game (May 22), but the team got a 30-day extension...
The Goldwater Institute has sent their warning shot across the City of Glendale's collective bow in the Greg Jamison/Jamison Entertainment Group purchase of the Phoenix Coyotes...
They have more questions than warnings at present (especially having to do with the lack of Indian nation involvement, possible violations of the Gift Clause, parking values, and putting everything up to a referendum vote) and finish up with the following paragraph...
We hope that these inquiries will assist the Council in its deliberations over the proposed deal. We further urge you to not to rush to a vote. The terms of the 100-page proposal were released to the public for the first time on Monday, and not all the exhibits and associated documents have been released yet. There should be an adequate public comment period after all the documents have been released, particularly when they commit substantial public resources over many years.
Lisa Halverstadt and Craig Harris put out an article for the Arizona Republic today. They also came up with the notion that no other Phoenix-based franchise gets any kind of subsidy like the Coyotes would get if Jamison takes over.
"We believe the average of $15 million over the course of the term is a fair price," Glendale spokeswoman Julie Frisoni said.
ABC15's Eric English covers the idea of the sales tax increase...
Councilwoman Joyce Clark posted an op-ed piece in the Republic trying to justify her anticipated "yes" vote:
Allowing the team to leave will hurt Glendale financially. The debt on arena bond construction and its operating and management costs still must be paid. The Coyotes pay monthly rent. A surcharge on every arena event ticket sold goes to Glendale. The team generates revenue for 42 games and more when there are playoff games. Hotels and restaurants are full. If the team leaves, there will be fewer nights when Westgate will produce substantial revenue for the city.
Although, the HQ doesn't see her logic, we'll let her say her peace here...
Phoenix Business Journal reporter Mike Sunnucks sits down for AZPBS to discuss the situation...
2210 UPDATE: Cecilia Chan reports from the Republic that Goldwater is going to seek a court order at 8:30AM Friday to prevent the Glendale City Council from voting on the Jamison deal.
The Glendale vote is scheduled for two hours later...
Not a shock...
The statement from Goldwater President Darcy Olsen:
Tomorrow morning the City of Glendale plans to consider what is estimated to be a $425 million arena management deal for Jobing.com Arena. Arizona’s Open Meetings Law and multiple court orders require the city to make public all documents related to the proposed contract at least 24 hours before a Council vote is taken, which it has not done. The 100-page deal released on Monday refers to a number of exhibits that are central to analyzing the impact of the deal on Glendale’s finances, which the city must make public. Per respecting Open Meetings Law requirements, the Goldwater Institute will be requesting a temporary restraining order to prevent the Glendale City Council from voting on the contract Friday morning.
Glendale city attorney Craig Tindall told the Republic's Lisa Halverstadt that their deadline for a deal was supposed to be five days after the last Coyotes game (May 22), but the team got a 30-day extension...
Wednesday, June 6, 2012
Greg Jamison Better Not Agree With This In Glendale... Part 2 In A Series... (UPDATED w/Jamison Problems)
Lisa Halverstadt and Cecilia Chan filed another piece today in the Arizona Republic that says the HQ's initial analysis is pretty close to right...
A Republic analysis revealed that even if the Coyotes went to the Stanley Cup Finals for the next 20 seasons and the arena booked 30 sold-out concerts each year for the next 20 years, Glendale could still expect to lose about $9 million annually.
That figure does not include the city's annual arena debt payments, which will average about $12.6 million a year over the next 20 years.
Longtime Glendale Mayor Elaine Scruggs, who has said next year's budgeted $17 million arena management fee is too steep, said Monday she cannot support the deal.
Scruggs is also concerned that capital improvements won't be seen in the city (which has its ghost-town moments both commercially and residentially these days) for, at least, five years as Glendale itself is seeing its budget for the same thing decrease.
And this deal with Jamison would grant him something over the city's own needs...
Really...???
Another issue... TL Hocking and Associates...
Thomas L. Hocking is a former investment banker who knows his way around the idea of municipal bond financing. Hocking formed "TL Hocking and Associates, LLC" and partnered with Global Entertainment Corporation to promote the development of mid-sized event centers and arenas including one in Prescott, Arizona- home of the Central Hockey League's Arizona Sundogs in the 2000's. The Sundogs and the CHL are owned by Boston Pizza magnate James Treliving.
Treliving has been linked to the Coyotes sale, but has denied any involvement in a purchase- despite being linked by Canadian talk show host Bob McCown
As told by OSG hyah in May and hyah in April...
According to Halverstadt and Chan, Glendale Deputy City Manager Jim Colson said an analysis by TL Hocking & Associates
(and paid for by the city) projected Glendale could expect to bring in an average of $15.7 million annually over a 20-year lease with Jamison and $6.5 million without the Coyotes.
From their article again...
A 2009 study the consultant completed for Glendale assumed all city sales-tax revenue the surrounding Westgate City Center and fees from the arena would halt if the team left, adding up to a $500 million loss for Glendale over 30 years.
But the team is losing ten million more than that by being around... and the city is still pouring more money over the idea that the Coyotes are the savior...
The problem... can Hocking be trusted since they were a party in a lawsuit brought forth against the city of Prescott
in September of 2009 by Wells Fargo...? Fargo felt they were duped by an artificial rating of bonds used to build the Prescott Events Center.
In an 83-page brief filed in Arizona State Superior Court, Wells Fargo was looking to take all defendants to court because of what they called...
"...the negligent offering and sale of $35 million in face value of what were misrepresented to be “A-” rated, investment grade excise tax revenue bonds (“Bonds”) used to finance construction of a 5,000 seat event center in Prescott Valley, Arizona (the “Event Center”)."
((The Events Center is on the right, thanks timtoyotacenter.com))
Wells Fargo was also looking to claim sales taxes in the neighborhood of $1.2-million that were failed to be paid to them as a bonds Trustee by October 1, 2007. Wells Fargo claimed that certain information wasn't disclosed to them by a combination of the defendants saying that there was no way that the Prescott Events Center would ever generate the income it was claimed it would...
Retail Bondholders, reasonably believing that they were buying investment grade securities, purchased the Bonds in reliance upon recommendations from their brokers in many cases employed by the Defendant underwriters and/or upon review of the prospectus called a “Preliminary Official Statement”
Revenue was supposed to come from sales taxes from in and around the area of the Events Center that even included what was referred to as an "Entertainment District" adjacent to the Events Center and something called a "Secondary Credit Support Area"- which could be considered businesses not in the "Entertainment District," but close enough to be part of any revenue stream.
The HQ would like to ask if this is sounding the least bit familiar in the Glendale situation at present...
The feasibility studies, according to Wells Fargo's suit, had padded numbers for events in the venue- and the number hasn't been reached to date. Padded numbers for events led to padded numbers for return on the bonds and that would, eventually mean Prescott would not meet its financial obligations.
One of the 17 defendants, Global Entertainment Corporation, was referred to in the lawsuit as being operated by its directors- which included Treliving...
"General Allegations" in the suit included the following...
36. Global is a holding company established in April 2000 through a
reverse merger with the Western Professional Hockey League, Inc. In June 2001
Global negotiated a Joint Operating Agreement with the Central Hockey League
(“CHL”) and fielded sixteen teams using the CHL name. In November 2002
Global acquired International Coliseums Company (“ICC”) which was in the
business of designing, managing and operating multi-purpose event centers.
According to Global (Official Statements p. 27), this vertical integration provided
Global with, “the expertise to develop, design, build and manage multi-purpose
event centers.” Global also arranges the financing of event centers. At all times
pertinent to this Complaint, Global was directly and indirectly controlled by its
officers and directors, including Treliving and (Richard) Kozuback.
37. Global and Hocking seek to persuade communities that are not large
enough to attract major league professional sports franchises to build event centers
that will be anchored by a CHL hockey team or other minor league sports teams.
Global offers to develop, arrange financing, build and operate the event center.
38. Revenues from event centers are derived from the annual number of
events and the number of people who pay to attend those events. Net operating
revenues from event centers are a function of project revenues less operating
expenses. The amount of attendance at events depends primarily on the population
and number of households in the market area for the event center and disposable
income. The annual number of events an event center can attract also depends
upon the population and number of households in the market area. The amount of
sales tax revenues generated by an event center and surrounding businesses is also
dependent upon the population and number of households in the market area. The
economic feasibility of an event center that uses both operating revenues and sales
tax revenues to service the debt incurred building the event center is highly
dependent upon the surrounding population and the level of disposable income.
Once again, we'll assert that through Section 37 of the Wells Fargo suit that the Prescott situation is virtually the same as the Glendale situation- only possibly larger in scope if followed through since Hocking was directly involved in the Glendale appraisals.
Because the town of Prescott defaulted, in Wells Fargo's view, on two occasions in paying on the Events Center (delivering tax revenues and interest payments on schedule), they had no recourse but to file the lawsuit.
Fargo asserted that the defendants (including TL Hocking and Treliving) were party in artificially inflating the numbers in feasibility studies released in 2005 that reflected a (seemingly) magical 50-percent increase in activity to justify a $35-million bond to build the Events Center. A third-party was brought in to back up the appraisals and was, subsequently, not renewed when their numbers didn't mesh with the defendants supposed needs.
Leading to Section 109 of the Wells Fargo suit:
109. Global, Hocking, the Town, PVEC, PVSE and Fain Group had actual
knowledge that Global had substantially and wrongfully inflated the revenue, event
and attendance figures in the Official Statements over the projections contained in
the 2001 Feasibility Report and the 2005 Preliminary Feasibility Report because
they each received and reviewed the 2001 Feasibility Report and the 2005
Preliminary Feasibility Report.
The end claim by Wells Fargo was that the underwriters and the Events Center Authority, all acted negligently by issuing the bonds. They were also negligent since they "DRAFTED OR APPROVED DEFECTIVE BOND DOCUMENTS GIVING THE TOWN THE ABILITY
TO EVADE THE PAYMENT OF SALES TAX REVENUES." (ed. note- capitalization from header in the lawsuit wording)
Wells Fargo asserted in the suit that all defendants were in violation of the Arizona State Securities Act, were negligently misrepresented in this case, and claimed that the town of Prescott was in breach of contract.
And, if that doesn't set, another plaintiff- Allstate Life insurance Company- spun off to chase after the defendants themselves as part of a class action suit.
The second amended case was filed in 2010 in District Court in Arizona...
We're still looking for a resolution in either case...
These days, if you try and access Global Entertainment's website, you don't get anything but a dead link while the Sundogs were dead last in the CHL's Western Division.
Attendance figures have been the following since their entry into the CHL:
2006/07- 8th at 4,225 per game average
2007/08- 6th at 4,310
2008/09- 9th at 3,521
2009/10- 13th at 2,689
2010/11- 16th at 2,150
2011/12- 10th at 2,507
NB: Those are the attendance figures released by the league, so accept them as you wish...
The best we can figure, the HQ would like to equate all of this activity in the last three years to that of the duck and its walking and quacking- from Prescott all the way down Interstate-17 to Glendale...
If Greg Jamison is looking for a boondoggle or a massive tax write-off, he should take the deal with the City of Glendale. If he's a smart businessman, he runs away from the deal. It looks like there are too many shady folks out there looking for another run...
If the Goldwater Institute is watching, all of this may not get that far...
More when we know more...
Here's the video from FSArizona when the Sundogs hosted the CHL All-Star Game this season...
1600 UPDATE: According to a report from Forbes Magazine's Mike Ozanian, Jamison is having issues raising the $170-million.
Investors are coming to their senses and are having issues believing that the team could be profitable. Forbes gave the value of the Coyotes at US$134-million...
A Republic analysis revealed that even if the Coyotes went to the Stanley Cup Finals for the next 20 seasons and the arena booked 30 sold-out concerts each year for the next 20 years, Glendale could still expect to lose about $9 million annually.
That figure does not include the city's annual arena debt payments, which will average about $12.6 million a year over the next 20 years.
Longtime Glendale Mayor Elaine Scruggs, who has said next year's budgeted $17 million arena management fee is too steep, said Monday she cannot support the deal.
Scruggs is also concerned that capital improvements won't be seen in the city (which has its ghost-town moments both commercially and residentially these days) for, at least, five years as Glendale itself is seeing its budget for the same thing decrease.
And this deal with Jamison would grant him something over the city's own needs...
Really...???
Another issue... TL Hocking and Associates...
Thomas L. Hocking is a former investment banker who knows his way around the idea of municipal bond financing. Hocking formed "TL Hocking and Associates, LLC" and partnered with Global Entertainment Corporation to promote the development of mid-sized event centers and arenas including one in Prescott, Arizona- home of the Central Hockey League's Arizona Sundogs in the 2000's. The Sundogs and the CHL are owned by Boston Pizza magnate James Treliving.
Treliving has been linked to the Coyotes sale, but has denied any involvement in a purchase- despite being linked by Canadian talk show host Bob McCown
As told by OSG hyah in May and hyah in April...
According to Halverstadt and Chan, Glendale Deputy City Manager Jim Colson said an analysis by TL Hocking & Associates
(and paid for by the city) projected Glendale could expect to bring in an average of $15.7 million annually over a 20-year lease with Jamison and $6.5 million without the Coyotes.From their article again...
A 2009 study the consultant completed for Glendale assumed all city sales-tax revenue the surrounding Westgate City Center and fees from the arena would halt if the team left, adding up to a $500 million loss for Glendale over 30 years.
But the team is losing ten million more than that by being around... and the city is still pouring more money over the idea that the Coyotes are the savior...
The problem... can Hocking be trusted since they were a party in a lawsuit brought forth against the city of Prescott
in September of 2009 by Wells Fargo...? Fargo felt they were duped by an artificial rating of bonds used to build the Prescott Events Center. In an 83-page brief filed in Arizona State Superior Court, Wells Fargo was looking to take all defendants to court because of what they called...
"...the negligent offering and sale of $35 million in face value of what were misrepresented to be “A-” rated, investment grade excise tax revenue bonds (“Bonds”) used to finance construction of a 5,000 seat event center in Prescott Valley, Arizona (the “Event Center”)."
((The Events Center is on the right, thanks timtoyotacenter.com))
Wells Fargo was also looking to claim sales taxes in the neighborhood of $1.2-million that were failed to be paid to them as a bonds Trustee by October 1, 2007. Wells Fargo claimed that certain information wasn't disclosed to them by a combination of the defendants saying that there was no way that the Prescott Events Center would ever generate the income it was claimed it would...
Retail Bondholders, reasonably believing that they were buying investment grade securities, purchased the Bonds in reliance upon recommendations from their brokers in many cases employed by the Defendant underwriters and/or upon review of the prospectus called a “Preliminary Official Statement”
Revenue was supposed to come from sales taxes from in and around the area of the Events Center that even included what was referred to as an "Entertainment District" adjacent to the Events Center and something called a "Secondary Credit Support Area"- which could be considered businesses not in the "Entertainment District," but close enough to be part of any revenue stream.
The HQ would like to ask if this is sounding the least bit familiar in the Glendale situation at present...
The feasibility studies, according to Wells Fargo's suit, had padded numbers for events in the venue- and the number hasn't been reached to date. Padded numbers for events led to padded numbers for return on the bonds and that would, eventually mean Prescott would not meet its financial obligations.
One of the 17 defendants, Global Entertainment Corporation, was referred to in the lawsuit as being operated by its directors- which included Treliving...
"General Allegations" in the suit included the following...
36. Global is a holding company established in April 2000 through a
reverse merger with the Western Professional Hockey League, Inc. In June 2001
Global negotiated a Joint Operating Agreement with the Central Hockey League
(“CHL”) and fielded sixteen teams using the CHL name. In November 2002
Global acquired International Coliseums Company (“ICC”) which was in the
business of designing, managing and operating multi-purpose event centers.
According to Global (Official Statements p. 27), this vertical integration provided
Global with, “the expertise to develop, design, build and manage multi-purpose
event centers.” Global also arranges the financing of event centers. At all times
pertinent to this Complaint, Global was directly and indirectly controlled by its
officers and directors, including Treliving and (Richard) Kozuback.
37. Global and Hocking seek to persuade communities that are not large
enough to attract major league professional sports franchises to build event centers
that will be anchored by a CHL hockey team or other minor league sports teams.
Global offers to develop, arrange financing, build and operate the event center.
38. Revenues from event centers are derived from the annual number of
events and the number of people who pay to attend those events. Net operating
revenues from event centers are a function of project revenues less operating
expenses. The amount of attendance at events depends primarily on the population
and number of households in the market area for the event center and disposable
income. The annual number of events an event center can attract also depends
upon the population and number of households in the market area. The amount of
sales tax revenues generated by an event center and surrounding businesses is also
dependent upon the population and number of households in the market area. The
economic feasibility of an event center that uses both operating revenues and sales
tax revenues to service the debt incurred building the event center is highly
dependent upon the surrounding population and the level of disposable income.
Once again, we'll assert that through Section 37 of the Wells Fargo suit that the Prescott situation is virtually the same as the Glendale situation- only possibly larger in scope if followed through since Hocking was directly involved in the Glendale appraisals.
Because the town of Prescott defaulted, in Wells Fargo's view, on two occasions in paying on the Events Center (delivering tax revenues and interest payments on schedule), they had no recourse but to file the lawsuit.
Fargo asserted that the defendants (including TL Hocking and Treliving) were party in artificially inflating the numbers in feasibility studies released in 2005 that reflected a (seemingly) magical 50-percent increase in activity to justify a $35-million bond to build the Events Center. A third-party was brought in to back up the appraisals and was, subsequently, not renewed when their numbers didn't mesh with the defendants supposed needs.
Leading to Section 109 of the Wells Fargo suit:
109. Global, Hocking, the Town, PVEC, PVSE and Fain Group had actual
knowledge that Global had substantially and wrongfully inflated the revenue, event
and attendance figures in the Official Statements over the projections contained in
the 2001 Feasibility Report and the 2005 Preliminary Feasibility Report because
they each received and reviewed the 2001 Feasibility Report and the 2005
Preliminary Feasibility Report.
The end claim by Wells Fargo was that the underwriters and the Events Center Authority, all acted negligently by issuing the bonds. They were also negligent since they "DRAFTED OR APPROVED DEFECTIVE BOND DOCUMENTS GIVING THE TOWN THE ABILITY
TO EVADE THE PAYMENT OF SALES TAX REVENUES." (ed. note- capitalization from header in the lawsuit wording)
Wells Fargo asserted in the suit that all defendants were in violation of the Arizona State Securities Act, were negligently misrepresented in this case, and claimed that the town of Prescott was in breach of contract.
And, if that doesn't set, another plaintiff- Allstate Life insurance Company- spun off to chase after the defendants themselves as part of a class action suit.
The second amended case was filed in 2010 in District Court in Arizona...
We're still looking for a resolution in either case...
These days, if you try and access Global Entertainment's website, you don't get anything but a dead link while the Sundogs were dead last in the CHL's Western Division.
Attendance figures have been the following since their entry into the CHL:
2006/07- 8th at 4,225 per game average
2007/08- 6th at 4,310
2008/09- 9th at 3,521
2009/10- 13th at 2,689
2010/11- 16th at 2,150
2011/12- 10th at 2,507
NB: Those are the attendance figures released by the league, so accept them as you wish...
The best we can figure, the HQ would like to equate all of this activity in the last three years to that of the duck and its walking and quacking- from Prescott all the way down Interstate-17 to Glendale...
If Greg Jamison is looking for a boondoggle or a massive tax write-off, he should take the deal with the City of Glendale. If he's a smart businessman, he runs away from the deal. It looks like there are too many shady folks out there looking for another run...
If the Goldwater Institute is watching, all of this may not get that far...
More when we know more...
Here's the video from FSArizona when the Sundogs hosted the CHL All-Star Game this season...
1600 UPDATE: According to a report from Forbes Magazine's Mike Ozanian, Jamison is having issues raising the $170-million.
Investors are coming to their senses and are having issues believing that the team could be profitable. Forbes gave the value of the Coyotes at US$134-million...
Monday, June 4, 2012
Can Greg Jamison Really Agree To This In Glendale...??? (UPDATED)
((HT: AZCentral.com/Lisa Halverstadt))
Or, to be more honest, can anyone really agree to this...??? Especially in advance of the public update Thursday at the Glendale City Council meeting...
The City of Glendale has released its terms for negotiation with Greg Jamison, JEG, and the rest of the world in the short term...
Here's the Arena lease/management part of it...
And here's the "non-competition/non-relocation" part of it...
The city agreement would have Glendale pay roughly $300 million in arena management fees to Jamison and another $24 million in capital funding (presumably for improvements) over the 20-years of any proposed deal. But, and this is a big BUT, Jamison (or whomever) would get $94-million in the first five years of the lease...
Really...???
Glendale thinks they're going to receive upwards of eight figures of revenue from rent and ticket surcharges. What the city doesn't quite realize is that attendance figures won't mesh enough for those kinds of revenue...
The Arizona (ha!) Coyotes (another part of the deal) were last in home attendance averaging almost 800 fans less than the next-to-last place NY Islanders and only had 72.5-percent capacity...
Fans could get Western Conference Semi-Finals tickets for $45 a piece for games in Glendale a day before the game against the LA Kings...
No relocation for the entire term of the lease agreement, either...???
Seriously...
This will fly...???
David Shoalts (@dshoalts) over at the Globe and Mail doubts it...
As does the HQ...
To recap, here's Jamison's appearance in Phoenix to discuss a while back...
((HT: MyGlendale11))
More when we know more...
Or, to be more honest, can anyone really agree to this...??? Especially in advance of the public update Thursday at the Glendale City Council meeting...
The City of Glendale has released its terms for negotiation with Greg Jamison, JEG, and the rest of the world in the short term...
Here's the Arena lease/management part of it...
And here's the "non-competition/non-relocation" part of it...
The city agreement would have Glendale pay roughly $300 million in arena management fees to Jamison and another $24 million in capital funding (presumably for improvements) over the 20-years of any proposed deal. But, and this is a big BUT, Jamison (or whomever) would get $94-million in the first five years of the lease...
Really...???
Glendale thinks they're going to receive upwards of eight figures of revenue from rent and ticket surcharges. What the city doesn't quite realize is that attendance figures won't mesh enough for those kinds of revenue...
The Arizona (ha!) Coyotes (another part of the deal) were last in home attendance averaging almost 800 fans less than the next-to-last place NY Islanders and only had 72.5-percent capacity...
Fans could get Western Conference Semi-Finals tickets for $45 a piece for games in Glendale a day before the game against the LA Kings...
No relocation for the entire term of the lease agreement, either...???
Seriously...
This will fly...???
David Shoalts (@dshoalts) over at the Globe and Mail doubts it...
As does the HQ...
To recap, here's Jamison's appearance in Phoenix to discuss a while back...
((HT: MyGlendale11))
More when we know more...
Friday, March 16, 2012
Glendale Paying To Keep The Coyotes And Not Public Safety...???
((HT: News12/Phoenix))
There is the point-of-view that what Glendale, Arizona Mayor Elaine Scruggs is doing is keeping the Phoenix Coyotes afloat in her town at the expense of other things that might be more important than a tenant at City Center...
Scruggs can't give updates on the Coyotes status, but the town is on the hook for a lot of money to the NHL just to keep the team around...
Instead of, oh y'know, letting an actual owner with pockets give them a better home or something like that...
What those other aspects of life in Glendale that may be at risk are is addressed below... but the HQ will admit that the sections offered are, probably, some of the easier ones to discuss readily...
Here's Mark Curtis and Melissa Blasius...
Remember, in late January Moody's Investors Service cited Glendale's payouts (which could be in the US$50-million neighborhood this year) to the National Hockey League as it downgraded the city's bond rating on several fronts.
Moody's said the NHL payment led to a drop in reserves in the general fund- from $38.8 million in fiscal year 2010 to $11.7 million last fiscal year.
And this is good business...???
Three groups are in the running, according to optimistic sources, that want to buy the Coyotes and keep them in Phoenix. At the All-Star Game in Ottawa this past season, NHL Commissioner Gary Bettman wouldn't elaborate on the process. But Jeremy Roenick disclosed that he is plugged into the Jamison group that has shown interest.
There is the point-of-view that what Glendale, Arizona Mayor Elaine Scruggs is doing is keeping the Phoenix Coyotes afloat in her town at the expense of other things that might be more important than a tenant at City Center...
Scruggs can't give updates on the Coyotes status, but the town is on the hook for a lot of money to the NHL just to keep the team around...
Instead of, oh y'know, letting an actual owner with pockets give them a better home or something like that...
What those other aspects of life in Glendale that may be at risk are is addressed below... but the HQ will admit that the sections offered are, probably, some of the easier ones to discuss readily...
Here's Mark Curtis and Melissa Blasius...
Remember, in late January Moody's Investors Service cited Glendale's payouts (which could be in the US$50-million neighborhood this year) to the National Hockey League as it downgraded the city's bond rating on several fronts.
Moody's said the NHL payment led to a drop in reserves in the general fund- from $38.8 million in fiscal year 2010 to $11.7 million last fiscal year.
And this is good business...???
Three groups are in the running, according to optimistic sources, that want to buy the Coyotes and keep them in Phoenix. At the All-Star Game in Ottawa this past season, NHL Commissioner Gary Bettman wouldn't elaborate on the process. But Jeremy Roenick disclosed that he is plugged into the Jamison group that has shown interest.
Friday, July 8, 2011
Has Scruggs Had Enough...??? Are The Coyotes Really Done...???
((HT: KPNX-TV Phoenix))
Since Matthew Hulsizer pulled out of the latest deal to buy the Phoenix Coyotes, the team that calls Glendale home is now on the clock...
And, yes, we know people in Atlanta are now kicking themselves over this one...
But now with the NHL and Glendale pointing fingers over who caused the Hulsizer exit, Glendale Mayor Elaine Scruggs either sees the writing or is trying to court Jerry Reinsdorf one last time before she has to figure out whether out another US$25-million can come from city coffers...
Kevin Kennedy got a sitdown with the mayor...
So, the larger question is: Where do they go since Winnipeg is out of play...? Quebec City...??? Kansas City...??? The options are slim and he's heading out of town...
Since Matthew Hulsizer pulled out of the latest deal to buy the Phoenix Coyotes, the team that calls Glendale home is now on the clock...
And, yes, we know people in Atlanta are now kicking themselves over this one...
But now with the NHL and Glendale pointing fingers over who caused the Hulsizer exit, Glendale Mayor Elaine Scruggs either sees the writing or is trying to court Jerry Reinsdorf one last time before she has to figure out whether out another US$25-million can come from city coffers...
Kevin Kennedy got a sitdown with the mayor...
So, the larger question is: Where do they go since Winnipeg is out of play...? Quebec City...??? Kansas City...??? The options are slim and he's heading out of town...
Subscribe to:
Comments (Atom)