Phoenix XXI: When will then be now?

[Whileee]

I'm honestly not seeing anything in the memorandum that would cause people in Winnipeg to get their hopes up. The only hope is if Goldwater steps in.

The only thing I found interesting was if the City of Glendale fails of pay the full management fees at any time, then Hulsizer can seek relocation, otherwise he's stuck with the team (unless he claims bankruptcy )

Bingo!.

So the main differences between Hulsizer's deal and Reinsdorf's is: a) Reinsdorf's deal was going to be paid for by a CFD rather than the City of Glendale and, b) Instead of $70 million up front and $100 million over 5 years (Reinsdorf), Hulsizer gets $100 million up front and $97 million over 5.5 years.

I say that Glendale should snap up this deal ASAP, because things are going from bad to worse.

 

[Hawker14]

So, trying to follow along:

Walker gives a valuation for the parking bonds of $70m, of which only approximately $42m (60%) is attributable to the NHL team ?

The CFD will provide approximately $1.5m/yr towards the $17-20m arena management fee (for which Glendale, at least as far as the public is aware, has never previously paid) ?

Correct ?

 

[Coach]

So, trying to follow along:

Walker gives a valuation for the parking bonds of $70m, of which only approximately $42m (60%) is attributable to the NHL team ?

The CFD will provide approximately $1.5m/yr towards the $17-20m arena management fee (for which Glendale, at least as far as the public is aware, has never previously paid) ?

Correct ?

The CoG never decided the use of the CFD money. As far as I know there is nothing in this agreement mentioning any money from a CFD. Has anyone seen this written in the new agreement.

 

[blues10]

I know I'm asking a lot - but is there any chance you could summarize the interesting bits/changes in the (allegedly) final lease? I'd read it myself, but in all honesty, I'm getting kinda burned out on this saga.

Pretty please!

I certainly can't recap the entire lease as I'm not finished but some points that stood out to me are the arena management fees. It seems like after 5 years that if the arena is profitable the fees will no longer be paid or greatly reduced. That hardly does the arena management fees portion justice but rather a nutshell in my opinion. It looks like the loose ends are tied up. However, it does not get around the fact the arena management fees were not tendered out and that the COG is most likely overpaying. Conversely the COG would receive the first 5 million of arena profits and 50% after that. This changes throughout the years of the lease. If there is any section to read this is it. It may be the part that the COG is overpaying for hence it may be a gift. That being said I believe GWI is running out of time if they are going to act.

In my opinion something else to watch out for may have something to do with the finalized "Walker" parking report. There are major shortfalls in parking revenues. Thus excise tax will have to be used as everyone knows. It does confirm Walkers earlier parking projections for this season to be correct. Regardless this whole thing is awfully complicated and the more you look at it or examine it the more confusing it gets.

I recommend everyone reads the lease, especially if you are having trouble falling asleep at night. It works wonders for me. Not ten minutes in and I'm fast asleep. For additional reading study the updated Walker parking report. Who needs sleep-aid when you have this stuff.

 

[yotesreign]

And risk another Saturday night?

I think I know that guy... or a half dozen just like him.

 

[Hawker14]

The CoG never decided the use of the CFD money. As far as I know there is nothing in this agreement mentioning any money from a CFD. Has anyone seen this written in the new agreement.

Sorry

I was making a presumption based on 7.(a) from the agreement with Ellman ... ( http://www.glendaleaz.com/Clerk/agendasandminutes/Meetings/Agendas/012511-14.pdf )where the funds would be used for, to paraphrase, "maintaining the arena", a fund for a new parking garage, or other purposes approved by the owners of the land, ... that this is where the CoG would target these funds going forward.

 

[Coach]

Sorry

I was making a presumption based on 7.(a) from the agreement with Ellman ... ( http://www.glendaleaz.com/Clerk/agendasandminutes/Meetings/Agendas/012511-14.pdf )where the funds would be used for, to paraphrase, "maintaining the arena", a fund for a new parking garage, or other purposes approved by the owners of the land, ... that this is where the CoG would target these funds going forward.

I have no doubt that Glendale will lose so much money on this deal that they will be taking money from everywhere to pay for the losses. So sure in the end this money will go to service the debt. I was just refering to officially it isn't included in the 150 page agreement which is the basis of the agreement and any possible lawsuit.

 

[Killion]

I say that Glendale should snap up this deal ASAP, because things are going from bad to worse.

Almost as bad as the time I was forced to suffer through a version of Ruby Tuesday by the Mormon Tabernacle Choir in an unheated & leaky old Church.

 

[DeathToAllButMetal]

The 1 pm meeting IS NOT behind closed doors. It is a public meeting to discuss the ARENA AND COYOTES AGREEMENTS, to be followed by a public vote. The meeting will then be adjourned.

The 1:30 pm meeting is the REGULAR bi-weekly Council workshop, when the council routinely goes into Executive Session behind closed doors to receive updates on matters from staff and legal council. There can be discussion of those matters but no action can be taken.

Correction -- staff direction can be given. Or so I would think. Otherwise, these sessions would never generate any action at all.

This is the same in Ontario. You can't pass motions while in-camera, but you can give staff direction, and then come out of in-camera, rise and report, and put a motion on the floor based on the in-camera discussions.

 

[peter sullivan]

at this point i would actually be pretty disappointed if glendale doesn't put the ball over the try line.....it would be like reading a book for 2 years and then skipping the last chapter....i really want to see how the city of phoenix reacts....will the fans flock to the arena?...what will the new series of excuses be if they don't?....will glendale declare bankruptcy?...will matty?.....what will the be the effect of charging for parking?.....what will they name the parking lots?.....there is so much more to the story.

 

[MAROONSRoad]

Anyone with knowledge of the US muni bond market, I asked this before but did not get an answer: do we know who the underwriter(s) are for the proposed issue? I assume they would purchase the bonds at a discount ahead of time and then try to sell them to their clients/investors. On the other hand, if there is no underwriter, what does that mean? Thanks.

GHOST

 

[OthmarAmmann]

So, trying to follow along:

Walker gives a valuation for the parking bonds of $70m, of which only approximately $42m (60%) is attributable to the NHL team ?

The CFD will provide approximately $1.5m/yr towards the $17-20m arena management fee (for which Glendale, at least as far as the public is aware, has never previously paid) ?

Correct ?

Walker did not actually give a valuation. The $70 million number was in their bid letter and looks to have been part of Glendale's RFP.

A valuation could be obtained by discounting the earning in the Walker report. That is given in one of the appendices I believe.

edit: I did that out of curiosity. At 6% their base case is $65 million and their stagnant case is $56 million. In the base case, the income from parking is not sufficient to cover an annual interest cost of $6 million until 2029 (2035 for the stagnant)

If this ends up being a public deal (I don't think it is though since they said it would take a week) and they only disclose Hocking, they will have some very serious problems with the SEC.

 

[YogiCanucks]

I think the bailout lease agreement vote by the CoG and Jim Ballsillie is outrageous....

Oh who am I kidding, I just wanted to be part of history

 

[Coach]

So any predictions on the final vote. I believe it will be either 4 - 3 or 5 - 2 in favour. I think Alverez and Lieberman vote against it. I'm unsure about Clark the 10 million dollar safety account may or may not be enough to swing her vote.
I'd love to see no getting the majority but just don't believe the Mayor would send it to a second vote unless she felt she had the vote locked up.

 

[Gump Hasek]

Anyone with knowledge of the US muni bond market, I asked this before but did not get an answer: do we know who the underwriter(s) are for the proposed issue? I assume they would purchase the bonds at a discount ahead of time and then try to sell them to their clients/investors. On the other hand, if there is no underwriter, what does that mean? Thanks.

GHOST

I don't follow this particular market segment so am unable to answer your question regarding the underwriter.

The final disposition of the bonds depends upon the purchaser. If sold via private placement the pricing terms are most often set by buyer and seller through negotiation. If the bonds are purchased by a private equity group they will most likely simply become a part of the pool's holdings. Same if they are purchased by an open fund, they become a part of that group's portfolio and are not broken apart to sell to individuals. Each individual investor in a fund owns X amount of the whole, dependent upon the size of their initial investments versus those of others.

What I am trying to say is that if sold via private placement, IMO the odds are better that the bonds simply become a portion of an overall pooled portfolio.

 

[Moe Mantha]

And risk another Saturday night?

That is hilarious!

Where is that from? and why is everyone else in the crowd looking and pointing in a different direction?!?!

 

[Killion]

If this ends up being a public deal (I don't think it is though since they said it would take a week) and they only disclose Hocking, they will have some very serious problems with the SEC.

Precisely. You've just got to assume its' private. I cant see the SEC letting this slip by withour some serious alterations.

Oh who am I kidding, I just wanted to be part of history

Well Welcome to Major League Yogi, The sandwiches are right over there, Hep' yourself.

What I am trying to say is that if sold via private placement, IMO the odds are better that the bonds simply become a portion of an overall pooled portfolio.

You said it well. Thats what Im assuming, however, I guess we've all come to expect the unexpected & assume nothing. As far out as it may be to consider, they just might believe a public offerings Kosher, blithely trying to hopscotch their way through the SEC's mazes' & minefields, blinded to the realities in a really bad case of faulty groupthink.

 

[RR]

That is hilarious!

Where is that from? and why is everyone else in the crowd looking and pointing in a different direction?!?!

Action was going on at the other end, but I was taunting the opposing goalie.

 

[RECCE]

And that was a great save Bryz made on Kane's breakaway in the OT. Of course I was going to sing about it.



Took me 30 minutes to write those 16 words. And another 15 to find the emoticon.

All in good fun RR, I hope you're not mad at me?

 

[PeeBee78]

Goldwater Injunction?

Can someone send an email to Carrie (I think?) from Goldwater to find out if they are suing? Seems like the bonds would be placed tomorrow and if they need an emergency injunction they have to file today.

Would be nice to know one way or the other if they are going to be getting involved prior to the bond sale....

 

[Killion]

Action was going on at the other end, but I was taunting the opposing goalie.

Message For; RR
Date; 12/2/11
Time; 9:43pm

Message;

Mike Reno of LoverBoy called from 1983. He wants his hairpiece back.

 

[RECCE]

That is hilarious!

Where is that from? and why is everyone else in the crowd looking and pointing in a different direction?!?!

For context and reference.

 

[Whileee]

For context and reference.

And this is why they have boards and plexiglass around NHL hockey rinks...

 

[Dado]

Does GWI have to file an injunction against the bonds, or is it enough to file an injunction against whatever lease is voted on today?

I mean, without a definitive lease, the bond sale is pretty much ****, right?

 

[Killion]

Does GWI have to file an injunction against the bonds, or is it enough to file an injunction against whatever lease is voted on today?
I mean, without a definitive lease, the bond sale is pretty much ****, right?

Thats what Im' assuming. No Lease = No Issuance therefore the Lease will have to be signed, at which point the GWI could proceed with a suit. Thus far, its' all "intent" as opposed to "substantiation" in the form of documentation & hard evidence. They'll only get one kick at the can, and despite what appeared to be the COG's attempts to force GW's hand with their provocative releases' to act prematurely, they have thus far avoided the temptation as we know. "Flaming" didnt seem to work as effectively here as it does seem to do so in certain quarters Dado. Hmmmm?...