Phoenix LXXXVIII: The Final Cupcake?

[Major4Boarding]

Tuesday, July 2nd 2013 - 7PM. Vote Meeting

 

[LPHabsFan]

Craig Morgan ‏@cmorganfoxaz 24m https://twitter.com/cmorganfoxaz/status/350643003985113088
Today's workshop is considered a “working meeting†& the public does not have the opportunity to provide comment at these types of meetings.

 

[gstommylee]

Tuesday, July 2nd 2013 - 7PM. Vote Meeting

wow 7pm thats kinda of late in the day.

 

[Donwood]

I do not think any schedules have been done since they still haven't finalized anything associated with the Olympics. If they allow players to participate then how long is the season shut down?

Schedules are always drawn up early and often have different versions, I have zero doubt there are a number drawn up.

 

[CasualFan]

Tuesday, July 2nd 2013 - 7PM. Vote Meeting

Did they motion for the meeting in this morning's session?

 

[CC Superfan]

Did they motion for the meeting in this morning's session?

Yes, Knaack brought it up, Sherwood seconded it. Weiers surveyed the rest of council and I believe only Norma voted Nay.

 

[cbcwpg]

http://www.bizjournals.com/phoenix/morning_call/2013/06/phoenix-coyotes-group-defends-deal.html

Well, this definitely confirms it....

The lender in that sale is insisting on a $15 million payment before it will approve financing of the Coyotes purchase from the NHL.

No $15MM AMF payment from the CoG --> no money being lent to RSE/IA --> no money to buy the team from the NHL.

 

[gstommylee]

http://www.bizjournals.com/phoenix/morning_call/2013/06/phoenix-coyotes-group-defends-deal.html

Well, this definitely confirms it....

The lender in that sale is insisting on a $15 million payment before it will approve financing of the Coyotes purchase from the NHL.

No $15MM AMF payment from the CoG, no money being lent to RSE/IA, no money to buy the team from the NHL.

so its dead deal by no financing of sale?

 

[Guardian452]

wow 7pm thats kinda of late in the day.

It's common for city councils to meet in the evening. Unless it's a large city, other than the mayor, councilors are typically part-time gigs, so most usually have day-jobs.

 

[cbcwpg]

so its dead deal by no financing of sale?

Looks that way.... But. It still come down to the vote on July 2 by the CoG.

The budgeted $6.5MM the CoG is willing to pay for the AMF is dead. The CoG must agree on July 2nd to increase the AMF to $15MM / yr and hope they get what they can back from revenue sources to ease the burden of paying $15MM / yr. If the CoG does this, then RSE can go and get their financing that they will turn around and buy the team with.

One question on July 2nd.... Can the CoG afford $15MM less questionable revenues?

 

[gstommylee]

Looks that way.... But. It still come down to the vote on July 2 by the CoG.

The budgeted $6.5MM the CoG is willing to pay for the AMF is dead. The CoG must agree on July 2nd to increase the AMF to $15MM / yr and hope they get what they can back from revenue sources to ease the burden of paying $15MM / yr. If the CoG does this, then RSE can go and get their financing that they will turn around and buy the team with.

One question on July 2nd.... Can the CoG afford $15MM less questionable revenues?

so does the current whats going to be voted on mention 15/y?

 

[checkerdome]

http://www.theglobeandmail.com/spor...l-draft-weekend-celebrations/article12883834/


"The risk is quite simple. The Coyotes have never sold enough tickets at high enough prices to put them above the bottom two or three of the NHL’s 30 teams in revenue. But most of the revenue IceArizona wants to share with the city is based on ticket surcharges and the introduction of paid parking, which will add at least $11.50 to the cost of attending a Coyotes game for most fans. No wonder the prospective Coyotes owners don’t want to guarantee much of that revenue."

 

[David_99]

http://www.theglobeandmail.com/spor...l-draft-weekend-celebrations/article12883834/


"The risk is quite simple. The Coyotes have never sold enough tickets at high enough prices to put them above the bottom two or three of the NHL’s 30 teams in revenue. But most of the revenue IceArizona wants to share with the city is based on ticket surcharges and the introduction of paid parking, which will add at least $11.50 to the cost of attending a Coyotes game for most fans. No wonder the prospective Coyotes owners don’t want to guarantee much of that revenue."

I'm sure the fans will be happy to pay the extra $$. They'll just skip shopping/dining at Westgate...

 

[cbcwpg]

so does the current whats going to be voted on mention 15/y?

This is the lease agreement they are voting on:

http://www.glendaleaz.com/documents/coyotes--leaseagreementdraft_17319116_6062713.pdf

http://www.glendaleaz.com/documents/CityofGlendaleArenaManagementAgreementUpdate062713.pdf

The term of the agreement calls for the NHL Coyotes to remain as the anchor tenant at the city-owned Jobing.com Arena for the next 15 years

 Glendale pays $15 million annually to the Renaissance Group to manage and operate the arena

 Renaissance’s proposed yearly revenue projections to the city of Glendale:
o Rent - $500,000
o Hockey ticket surcharge - $1.5 million
o Non-hockey ticket surcharge- $1.7 million
o Parking revenue - $2.2 million
o Arena naming rights- $670,000
o Naming rights for new, smaller stage/theatre - $150,000

 These projections are in addition to the city’s collection of sales tax for admissions, concessions, etc…

 Guarantee to the city: $1.2 million if projected revenues fall short based on a $1.50 surcharge on each ticket

 City receives limited rent-free use of arena for city sponsored events and community events

 A five-year out clause allows the Renaissance Group the ability to negotiate new terms or terminate the agreement.

 

[gstommylee]

This is the lease agreement they are voting on:

http://www.glendaleaz.com/documents/CityofGlendaleArenaManagementAgreementUpdate062713.pdf

The term of the agreement calls for the NHL Coyotes to remain as the anchor tenant at the city-owned Jobing.com Arena for the next 15 years

 Glendale pays $15 million annually to the Renaissance Group to manage and operate the arena

 Renaissance’s proposed yearly revenue projections to the city of Glendale:
o Rent - $500,000
o Hockey ticket surcharge - $1.5 million
o Non-hockey ticket surcharge- $1.7 million
o Parking revenue - $2.2 million
o Arena naming rights- $670,000
o Naming rights for new, smaller stage/theatre - $150,000

 These projections are in addition to the city’s collection of sales tax for admissions, concessions, etc…

 Guarantee to the city: $1.2 million if projected revenues fall short based on a $1.50 surcharge on each ticket

 City receives limited rent-free use of arena for city sponsored events and community events

 A five-year out clause allows the Renaissance Group the ability to negotiate new terms or terminate the agreement.

Thank you. And people want to approve 15/y? Yea they are crazy.

 

[Donwood]

The city manager is advising this is a bad/risky deal. And unlike the past managers that seemed to "fudge" the facts,(that's the polite way of putting it) Bowers is a responsible manager. Despite that stupidity has always prevailed in Glendale thanks to scare tactics. So I assume stupidity will repeat itself Tuesday.

As I said once before Glendale the Forest Gump of cities,
Stupid is as council does.

 

[Major4Boarding]

Yes, Knaack brought it up, Sherwood seconded it. Weiers surveyed the rest of council and I believe only Norma voted Nay.

Correct

 

[gstommylee]

The city manager is advising this is a bad/risky deal. And unlike the past managers that seemed to "fudge" the facts,(that's the polite way of putting it) Bowers is a responsible manager. Despite that stupidity has always prevailed in Glendale thanks to scare tactics. So I assume stupidity will repeat itself Tuesday.

As I said once before Glendale the Forest Gump of cities,
Stupid is as council does.

All thanks to a couple idiots forcing a vote on a bad deal.

 

[Whileee]

Probably not for at least five years. If RSE can actually close on this thing, there is a very, VERY good chance they'll run it right into the ground and the NHL will need another landing spot as soon as they can exercise the out-clause.

I think that this is the play. It almost feels like RSE is calibrating the AMF and the revenues back to the COG to end up with about $51 million in "operating losses" over 5 years, allowing them to trigger the out clause and either relocate the team to a lucrative market, or sell the team for a profit. I suppose this is the sort of deal one might expect when much of the purchase is financed by an organization like Fortress.

If the deal was more equitable, the COG should be able to trigger an "out clause" of their own in the RSE's revenue projections are not met, or else be allowed to reduce their AMF contribution accordingly.

 

[goyotes]

Thank you. And people want to approve 15/y? Yea they are crazy.

Perhaps. The folks who will support this deal will not argue it is a great deal for the City. I think, for them, it comes down to the danger you know may be less than the danger you can't predict. There is concern, justified or not, that if the Coyotes leave the arena. Westgate and the City will suffer greater handship. As with many financial projections, an argument can be made for and against that concern.

 

[gstommylee]

Perhaps. The folks who will support this deal will not argue it is a great deal for the City. I think, for them, it comes down to the danger you know may be less than the danger you can't predict. There is concern, justified or not, that if the Coyotes leave the arena. Westgate and the City will suffer greater handship. As with many financial projections, an argument can be made for and against that concern.

Oi so seattle potentially get hockey falls on the crazies in glendale. Well we (seattle) knew this could happen.

 

[goyotes]

The city manager is advising this is a bad/risky deal. And unlike the past managers that seemed to "fudge" the facts,(that's the polite way of putting it) Bowers is a responsible manager. Despite that stupidity has always prevailed in Glendale thanks to scare tactics. So I assume stupidity will repeat itself Tuesday.

As I said once before Glendale the Forest Gump of cities,
Stupid is as council does.

I know Bowers. He is a solid as they come. While I would like to see the Coyotes stay, his concern is reason for me to have concern on Glendale's behalf.....

 

[CasualFan]

Correct

The only way this doesn't pass is if the council members have to use their own property as collateral in the event that revenues do not meet projections.

 

[Major4Boarding]

The city manager is advising this is a bad/risky deal. And unlike the past managers that seemed to "fudge" the facts,(that's the polite way of putting it) Bowers is a responsible manager. Despite that stupidity has always prevailed in Glendale thanks to scare tactics. So I assume stupidity will repeat itself Tuesday.

As I said once before Glendale the Forest Gump of cities,
Stupid is as council does.

Once upon time, in a galaxy far, far away (in the "Zero Cuts" era), Skeete also advised against the Jamison deal. Just sayin'...

 

[IceAce]

Uncle Gary is likely greasing some of the Council members behind the scenes (as opposed to RSE lubing them in front of the scenes.) Probably with the money that's going to come from the Seattle and Quebec expansion fees.

*HF Boards Goes Nuclear!!!!*