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troutman · 03-29-2011, 10:16 AM

Why saddle Glendale taxpayers with risk?
http://www.winnipegfreepress.com/spe...118826079.html

Scottsdale Mayor Jim Lane penned an editorial on the weekend torching the deal between Glendale and Hulsizer.

"Desperation creates an environment for desperate acts. As a result, (Glendale) temporarily waived rental fees and then offered up another $25 million in cash to keep the team afloat," writes Lane. "Now, Glendale has increased the risk for taxpayers by seeking to borrow another $116 million to facilitate the private purchase for a new owner. Throwing good money after bad can be a desperate strategy. In the past, cities engaged in these types of large "risk" capital investments with disregard for the true risk or downside.

"The reality of this risk is not fair to a community that already has put so much of its credit on the line for this single private franchise. Glendale taxpayers originally shelled out $180 million for the facility. The potential buyer, Matthew Hulsizer, has a great opportunity to rescue the Coyotes and respect the existing taxpayers' investment commitment. Hulsizer's success as a Chicago investment-fund manager has brought him personal wealth and access to financial capital to expand his business portfolio. As a man with considerable wealth, he has said, "I don't need the city's credit to buy the team." So why saddle Glendale taxpayers with risk in his personal investment in purchasing the team?"

03-29-2011, 10:16 AM	#733
troutman Unfrozen Caveman Lawyer Join Date: Oct 2002 Location: Crowsnest Pass Exp:	Why saddle Glendale taxpayers with risk? http://www.winnipegfreepress.com/spe...118826079.html Scottsdale Mayor Jim Lane penned an editorial on the weekend torching the deal between Glendale and Hulsizer. "Desperation creates an environment for desperate acts. As a result, (Glendale) temporarily waived rental fees and then offered up another $25 million in cash to keep the team afloat," writes Lane. "Now, Glendale has increased the risk for taxpayers by seeking to borrow another $116 million to facilitate the private purchase for a new owner. Throwing good money after bad can be a desperate strategy. In the past, cities engaged in these types of large "risk" capital investments with disregard for the true risk or downside. "The reality of this risk is not fair to a community that already has put so much of its credit on the line for this single private franchise. Glendale taxpayers originally shelled out $180 million for the facility. The potential buyer, Matthew Hulsizer, has a great opportunity to rescue the Coyotes and respect the existing taxpayers' investment commitment. Hulsizer's success as a Chicago investment-fund manager has brought him personal wealth and access to financial capital to expand his business portfolio. As a man with considerable wealth, he has said, "I don't need the city's credit to buy the team." So why saddle Glendale taxpayers with risk in his personal investment in purchasing the team?"