[Source: Mike Sunnucks, Phoenix Business Journal] — A measure put forward at the Arizona Legislature would allow the city of Glendale to create a special tax district to help the Phoenix Coyotes and Jobing.com Arena. The legislation, sponsored by Rep. Jerry Weiers, R-Phoenix, also could allow the city of Phoenix to establish a similar tax zone around US Airways Center downtown, where the Phoenix Suns play.
House Bill 2193 would allow Arizona cities to create special tax districts around enclosed, city-owned sports arenas. Sales tax revenue collected within two miles of those venues would be earmarked for use by the arenas and for public infrastructure within their zones. The cities also could issue bonds against the money to finance projects and the sports complexes’ operations.
Weiers said earlier this week the bill is aimed at helping the Coyotes hockey team stay in the Valley. The Coyotes are in Chapter 11 bankruptcy and have lost more than $300 million since moving to Arizona from Winnipeg in 1996. The team currently is owned by the National Hockey League…
The bill would exclude University of Phoenix Stadium from a Glendale tax zone, Weiers said, because the measure limits the taxing districts to areas around enclosed arenas owned by Arizona cities. That could allow a tax zone in downtown Phoenix, as US Airways Center is owned by the city of Phoenix. But Chase Field and the Phoenix Convention Center would not be included in that tax zone. [Note: Read the full article at Proposed tax zones could benefit Phoenix Coyotes and Suns arenas.]
[Source: EV Living] — Glendale is home to two professional sports franchises, an Air Force base, and more than a few casinos, but not the Metro Light Rail. Valley Metro introduced the light rail in December, 2008, with a 20-mile route extending from Mesa through Tempe, and into Phoenix.
The light rail is the first of its kind in the Valley. Although effective in transporting Arizona State University students between campuses, fans to downtown Phoenix sports complexes, and commuters going to work, the rest of the Valley has yet to feel its impact. But Valley Metro has future extension plans in the works.
According to http://www.valleymetro.org, they plan to extend further into north Phoenix, further east into Mesa, and west to Glendale between 2012 and 2030. The Valley Metro board is already beginning to enter into a study phase of five different routes to the Glendale area, Metro Light Rail Public Information Officer Hillary Foose said.
Some of the proposed routes include one to historic downtown Glendale, one west along Interstate 10 and north on Loop 101, and one going along Glendale Avenue, Foose said. Initial plans were to have the extension go directly to downtown, however after some uproar they decided to look into other options. “Plans are still very preliminary at this point,” she said. [Note: To read the full article, visit Future light rail extensions to Glendale in study phase.]
[Source: Max Jarman, Arizona Republic] — Bashas’ Supermarkets Inc. said late Sunday that it would close 10 more stores July 21, resulting in approximately 1,000 job cuts. The company also said it would make an important announcement today that would affect the future of the company. Mike Proulx, Bashas’ president and chief operating officer, would not elaborate on the nature of the announcement. [Note: Read the full article at Bashas’ to close 10 Arizona stores, cut 1,000 jobs]
Phoenix Store Closings
- 1648 S. 16th St.
- 4727 E. Bell Road
- 4338 W. Thomas Road
[Source: Mike Sunnucks, Phoenix Business Journal] — The University of Phoenix Stadium outranks the region’s other pro sports venues, according to fan surveys conducted by ESPN and the University of Oregon. The ESPN magazine survey asked 5,000 fans nationwide their impressions of pro sports teams, owners, stadiums, and arenas.
The UOP Stadium in Glendale, home to the Arizona Cardinals, ranked 24th on the list. The Arizona Diamondbacks’ Chase Field in downtown Phoenix came in 39th for stadium experience. Jobing.com Arena where the financially struggling Phoenix Coyotes play came in 72nd ahead of the Suns. The Phoenix Suns’ US Airways Center ranked 88th among the 122 pro sports franchise stadiums and arenas. [Note: To read the full article, click here.]
[Source: Rebekah L. Sanders and Scott Wong, Arizona Republic] — Glendale is pushing to change the route of the first light-rail line planned for the West Valley, seeing greater value in taking the line to the city’s bustling stadium district than its quaint downtown. But it’s likely an uphill battle, as Phoenix officials say they can’t provide the financial support that Glendale needs from them.
Building the alternative rail route would cost hundreds of millions of dollars more, require months of extra planning and support from other Valley cities. Backers of the new line argue it would boost regional economic growth and reduce the crush of rush-hour traffic along congested stretches of freeway. It could also ferry football fans to University of Phoenix Stadium, as well as hockey and baseball fans to nearby games.
Glendale Mayor Elaine Scruggs says Glendale can’t afford to build light rail anywhere in the city alone. So, officials are pitching the route with the most benefit to Phoenix, along Loop 101, in the hope of persuading Phoenix to pay for a part of Glendale’s line. “I don’t believe we will ever have light rail in Glendale if we go by what’s on the map,” Scruggs said, referring to the current proposed route to her city’s downtown. “The Loop 101 option is the only one that has a chance of getting any financial support from Phoenix, and we can do nothing without that.” [Note: To read the full article, click here.]
[Source: Total Pro Sports, December 8, 2008] — With the economy headed for the second great depression, it seems only fitting that teams in the big four sports leagues (NBA, NHL, NFL, MLB) start filing for bankruptcy and suspend operations. The NBA is already feeling this with arenas that are empty and ticket sales declining on a game to game basis. Just take a look at the Memphis Grizzlies, Atlanta Hawks, and Sacramento Kings attendance decline. The Phoenix Coyotes of the NHL are one of the teams headed for extinction, this year they are expected to lose anywhere from $25 to $35 million. After seeing a slight increase in ticket sales in the beginning of the season the Coyotes have cooled down and ticket sales have dropped severely.
Two sources said [owner Jerry] Moyes is so eager to unload the Coyotes that he approached his former partner, Steve Ellman, about buying the team back wrote the Globe And Mail. The Coyotes management has a different outlook on the economy and the future of the team. “I am confident not only that hockey will be here in five years, but that we will be doing well in five years,” Coyotes governor and chief executive officer Jeff Shumway said, pointing to improved ticket and suite sales and fewer giveaways. “We run a great franchise in a great sport, a sport we love. And we’re in one of the fastest-growing markets in the U.S.”
Since 2001 the Phoenix Coyotes have lost more the $200 milliion, that’s $80 million more then the team was orginally purchased for. What we still don’t understand is that day when the NHL commissioner decided to move the Winnipeg Jets to the Phoenix, Arizona area. A city of Winnipeg that loves snow and ice to a city that averages 100+ degree weather. Make sense? Yes, the Jets were struggling in Winnipeg but we highly doubt they would be in such a financial crisis that the Coyotes are right now.
The problem with the Coyotes is that they play almost 25 minutes out of downtown Phoenix in Glendale, Arizona. When you’re bringing a team into a new market, it’s best to situate the team in the downtown core. Where big business can buy suites and season tickets for the business. This would not end the financial crisis of the Coyotes, but it would eliminate some of the financial stress they are enduring right now. The big-money guys, the corporate guys, don’t live in Glendale,” Paul Kelly (NHLPA Executive Director) said. “If you live in Scottsdale, Glendale is not an easy place to get to. That hurts them in the area like club seats and boxes. You could see evidence of that the other night [at a Coyotes game].”
Reports now out of Phoenix is that they are seeking a loan from Citibank, but with all the banks problems in the United States it’s highly unlikely they will get approved. So if anyone is interested Total Pro Sports is looking at putting together a group of investors to buy the Phoenix Coyotes. We can probably buy them undervalued at about $85 million. If anyone is interested please contact us…just kidding. [Note: Updates: ESPN (12/23/08) and Globe and Mail (12/23/08).]
Photographer John T. films this panoramic view of metro Phoenix as seen from high atop South Mountain. Included are shots of downtown Phoenix, Chase Field, US Airways Center, Sky Harbor International Airport, Camelback Mountain, Tempe, and the University of Phoenix Stadium in Glendale.
The O’Neil Associates/ASBA Economic Indicators Monitor asked 3,000 small businesses across the state two questions about quality of life. The first of these asked, “Which of these cities do you believe has the best quality of life?” Three cities dominated responses. Tempe was the city chosen most often for best quality of life, with fully a quarter (25%) of respondents. Tempe was followed by Tucson (21%), and Prescott (21%). No other city received responses in double digits, although Phoenix (8%), Flagstaff (7%), and Gilbert (7%) were notable.
When focus was moved exclusively to the issue of the best downtown, only four cities received significant numbers of mentions. Again, the most commonly cited city was Tempe (29%). This was followed by Phoenix (23%), Scottsdale (21%), and Prescott (15%).
The results are taken from the Q3 O’Neil Associates/ASBA Arizona Economic Indicators Monitor. Results provide insights into the perceptions of business owners on the economic health and vitality of the Arizona economy. The survey has a margin of error (at the 95% confidence level) of approximately +/-6%. For a complete copy of all O’Neil Associates/ASBA Arizona Economic Indicators Monitor reports released to date, as well as opinion research reports on an array of other topics, click here.
[Source: J. Craig Anderson, Arizona Republic] — Lenders’ pledges to be more aggressive about modifying delinquent mortgage loans did nothing to ease Maricopa County’s swelling foreclosure rate in October, according to the latest housing report from Arizona State University. Foreclosures on single-family homes increased from 3,655 in September to 3,745. Meanwhile, home resales followed a predictable pattern of seasonal decreases, dipping to 4,465 transactions in October from 4,625 sales the month before.
The city with the highest ratio of foreclosures to resales was Phoenix, where there were 65 more foreclosures than regular sales. The median resale price also fell slightly, to $175,000 in October from $180,000 in September. The median price is down 30% from $250,000 in October 2007.
|Home Resale||Median Price||
|2007 Population||Foreclosures Per Capita|
Color Key: East Valley (green), West Valley (yellow), Phoenix (orange)
[Source: Arizona Republic from U.S. Bankruptcy Court records] — Bankrupt construction lender Mortgages Ltd. has reached settlements with seven developers that account for more than one-half the company’s $925 million loan portfolio. Under the agreements, Mortgages Ltd. will subordinate investor interest, find additional capital for certain borrowers, and reduce interest rates for others. The borrowers agree to drop pending lawsuits against the company.
- SOJAC I LLC — Proposed Jackson Street Entertainment District in downtown Phoenix.
- MK Custom Residential Construction LLC — Various condo projects in central Phoenix.
- Grace Communities — Hotel Monroe in downtown Phoenix, X Wine Lofts in Scottsdale, and others.
- University & Ash LLC, Roosevelt Gateway LLC, Roosevelt Gateway II LLC — Various proposed condo developments in Phoenix and Tempe.
- Rightpath Ltd. Development Group LLC — Main Street Glendale near University of Phoenix Stadium.
- Avenue Communities LLC — Centerpoint Condominiums in Tempe
- Bisontown LLC — Residential communities.