General Ongoing Coyotes saga thread

[troutman]

Lisa Halverstadt ‏@LisaHalverstadt #Glendale
City Council is now set to get public update on #Coyotes deal at Thursday meeting. Time to be determined.

Lisa Halverstadt ‏@LisaHalverstadt #Coyotes
deal has #Glendale pay roughly $300M in arena management fees to Greg Jamison plus $24M million in capital funding over 20 years.

Lisa Halverstadt ‏@LisaHalverstadt
Jamison would likely pay $250-$350M to move.

Lisa Halverstadt ‏@LisaHalverstadt
Analysis: Proposed 20-year #Coyotes deal may cost #Glendale $45+ per resident annually. http://bit.ly/L7vBpZ

[troutman]

Non-Comp and Non-Relocation Agreement:

http://www.azcentral.com/ic/communit...-agreement.pdf

EXHIBIT A
LIQUIDATED DAMAGES
From the Effective Date and until _________, 2021: $350,000,000
From __________, 2021 and until _________, 2033 $250,000,000

[troutman]

http://www.azcentral.com/news/articl...ial-buyer.html

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.

Sports economist John Vrooman said the team brings intangible benefits to Glendale, but the balance sheet may not add up for taxpayers. "(The city) needs to make sure the costs and benefits are all lined up and match up," said Vrooman of Vanderbilt University. "The benefit and the cost doesn't seem to match up in this case."

[Hockeyguy15]

If it is going to cost them so much money, why do they want to keep them so bad??

I don't really think that the Coyotes bring in $9 million of random revenue a year.

[Resolute 14]

Yeah, that's the big one. There is obviously no doubt Glendale is getting it without the benefit of lube in any scenario. It is just a matter of what scenario sees them lose the least money.

[troutman]

Originally Posted by Hockeyguy15

If it is going to cost them so much money, why do they want to keep them so bad??

At least one councilor is a big Coyotes fan, and may not be thinking logically.

But other city officials say keeping the Coyotes is best for Glendale.

Councilwoman Joyce Clark, an ardent Coyotes supporter, has said arena debt and operation costs exist whether the team stays or goes. She did not return requests for comment Monday.

Having the team helps Glendale pay those bills, Clark said.

Other Glendale officials have emphasized the economic benefits of the team, including dozens of jobs and increased business at the sports and entertainment complex that surrounds the arena.

Read more: http://www.azcentral.com/news/articl...#ixzz1wwBFrsPJ

[Resolute 14]

Originally Posted by Hockeyguy15

If it is going to cost them so much money, why do they want to keep them so bad??

They fear it will cost more to have an arena sit mostly empty for 20 years. As it is, there is nothing at all booked for June, and all of nine events from now until November (excluding Coyotes games, which aren't yet scheduled).

One story I saw - iirc, the one Vulcan posted not long ago - pegged interest and principal on the outstanding balance at $500 million over those same 20 years if the city can't pay it down faster. And then there are upkeep and maintenance costs on top.

[automaton 3]

The agreement is conditional on Jamison's company obtaining financing acceptable to them in their sole discretion. Not an unusual condition in the ordinary course, but given the past history here hopefully the City of Glendale is kicking the tires hard before execution of the agreement.

[getbak]

Originally Posted by Resolute 14

One story I saw - iirc, the one Vulcan posted not long ago - pegged interest and principal on the outstanding balance at $500 million over those same 20 years if the city can't pay it down faster. And then there are upkeep and maintenance costs on top.

That's what it says on Page 1 of the draft lease:

E. The City has found and determined that the entering into of this Agreement by the City is part of the City’s endeavor to mitigate the more than $500 million in future damages to the City caused by the termination of the Former AMULA by the Debtors.

[valo403]

Originally Posted by troutman

Thanks - it looked like we would not see that until Friday evening.

Some are suggesting Jamison could still collect the AMF if the Coyotes left, as long as there is an "anchor tenant" - ex. an AHL team.

I didn't read the full document, but the Recital seems to indicate that the agreement is subject to the purchase of the Coyotes:

Subject to the closing of the
NHL Purchase Agreement, the City and the Team Owner desire that the Team will play all of its home games, commencing on the Closing Date and continuing for the term specified in this Agreement (together with any additional complete NHL hockey seasons as may occur during any extension of the Term pursuant to this Agreement), at the Arena Facility subject to the terms and conditions set forth in this Agreement and the terms of the Noncompetition/Non-Relocation Agreement, executed contemporaneously with this Agreement.

As you can see this also contemplates relocation. I'd be curious to see how people think Jamison could collect with an AHL team in there, the terms explicitly refer to an NHL tenant.

[Jordan!]

Workshop meeting this Thursday, with a tentative vote this Friday.

[troutman]

Our View: Explain the math on Coyotes deal


http://www.azcentral.com/members/Blo...torials/163692

The onus is on council members who support this arena agreement to convince us why this particular deal is best for Glendale. If they approve this agreement, the city will be saddled with substantial debt — debt that may be too much considering Glendale’s financial situation.

Glendale's City Council last month approved a preliminary spending plan for next fiscal year that closed a $35million shortfall with layoffs and tax increases. The budget, which received tentative approval by a 4-3 vote, includes a $17 million placeholder for the arena deal.

It now appears those same four council members are poised to approve the new deal as soon as this week. Slow down and allow this agreement to be fully vetted.

Please, council members who support this deal, help us understand exactly why this is in the best interest of the people you serve. Why does this make fiscal sense? You own this decision and you owe it to residents to explain your actions.

The reader comments under the article will be entertaining . . .

[troutman]

Glendale to vote Friday on proposed Coyotes deal

http://www.azcentral.com/news/articl...otes-deal.html

Glendale Mayor Elaine Scruggs and Councilman Phil Lieberman told The Arizona Republic that the council will hold a special meeting at 10:15 a.m. Friday to vote on the proposed 20-year deal with former San Jose Sharks executive Greg Jamison.

The council also is set to gather for a 10 a.m. closed-door session on Thursday to review the terms of the lease and non-relocation agreements with Jamison.

A public session, where residents will likely hear from legal and economic experts, is scheduled follow. City officials could not say when the public portion of the gathering will begin.

"This process should be slowed down," Scruggs said. "I think the public expects an open dialogue."

Lieberman agreed.

"This is absolutely deplorably terrible," he said, adding that the meeting times would make it difficult for most Glendale residents to weigh in before council votes.

The four who appear poised to approve the deal, were not immediately available for comment Tuesday.

I hear councilor Alvarez is ill and unavailable to vote. Make it 4-2.

[troutman]

http://translate.google.com/translat...tente-devoiles

The Goldwater Institute, a watchdog of public funds in Arizona, could decide to take legal action if the financial details it deems too disadvantageous to taxpayers.

Yesterday, a spokesman for the agency told the newspaper The Arizona Republic that details were currently scrutinized by lawyers and that comments would be issued later this week.

In a recent statement, Goldwater had left all that annual investment exceeding 12 million would be unacceptable.

[liamenator]

Sometimes a boondoggle is just a boondoggle.

http://www.theatlanticcities.com/job...ndoggle/2105/#

Developers have wielded considerable power in the city halls of the world since the invention of the mayor’s race. But by the latter part of the 20th century, the increased mobility of big business and its nearly constant (not to mention credible) threat to relocate had afforded corporations unprecedented might before evermore enfeebled municipal governments. Mega-projects like stadiums, festival marketplaces, or amusement parks have all begun to demand public funds as a matter of course.

If a city is lucky, these projects are successful in retaining or attracting jobs. But often enough they leave nothing behind save for an empty building and a heavy public financial obligation.

[PegCityFlamesFan]

This could be exposed even more once the Finals end.

[Jordan!]

Can't believe this is finally reaching a conclusion.. This week!

[Jordan!]

I just made these for kicks.. the coyotes actually have the logo trademarked



or

[troutman]

^^^

Is that official? Nice combination of old and new.

[troutman]

Originally Posted by Bouw N Arrow

Can't believe this is finally reaching a conclusion.. This week!

How many seasons before Jamison pays the penalty to leave?