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Glendale gives $325 million in corporate welfare to Phoenix Coyotes

  Bend over Glendale residents, you're about to get screwed by your royal rulers.

According to other articles this corporate welfare will cost each and every Glendale city resident $45 for the next 20 years.

If you think the millionaire owners of professional sports teams deserve a cut of what's in your wallet you will love this deal. On the other hand if you are sick of royal government rulers taking your money and giving it to special interest groups you may be thinking about grabbing your guns.

But there may still be hope, the Goldwater Institute may sue the city of Glendale, because this corporate welfare almost certainly violates the clause of the Arizona Constitution which make it illegal for our government masters to give away our tax dollars.

Source

Glendale OKs Phoenix Coyotes deal

Deal paves way for purchase from NHL

by Cecilia Chan, Lisa Halverstadt and Sonu Munshi - Jun. 9, 2012 12:07 AM

The Republic | azcentral.com

The Phoenix Coyotes ended their three-year roller-coaster ride Friday as Glendale approved a taxpayer-funded deal to keep the team playing in the city for the next 20 years.

The twists and turns included the National Hockey League franchise's bankruptcy, failed ownership deals and court battles that culminated in a nearly seven-hour City Council meeting and a 4-2 vote to approve an arena agreement.

The $325 million payout to likely team buyer Greg Jamison to manage and improve city-owned Jobing .com Arena divided council members and residents. Jamison, who had publicly stayed silent in recent weeks as discussion swirled around the proposal, quietly answered questions from council supporters and opponents.

"I look forward to the future," Jamison said.

Jamison still has to show his finances are in order and get approval from the NHL board of owners and executives to buy the team from the league. Given that NHL Commissioner Gary Bettman flew in on a red-eye flight to sit beside Jamison at Glendale City Hall, that path may prove easy. Bettman told council members the NHL board of governors expects to approve Jamison as owner in about three weeks.

Difficulties may come from the Goldwater Institute, a watchdog group that lost a last-minute court bid Friday morning to prevent the council decision but vowed to take the city to court over the vote.

'A judgment you have to make'

As the meeting began, several protestors gathered outside Glendale City Hall, carrying signs that said: "Fans should pay for hockey! Not our mistreated citizens."

Coyote fans decked out in team jerseys and hats were among nearly 100 people who attended the meeting.

Television news cameras lined the council chambers, and the heated discussions were being monitored from as far away as Canada, with hockey fans and others following on social media or watching the discussions live on the city's website.

The two front rows were reserved for dignitaries, including Bettman, NHL Deputy Commissioner Bill Daly and Jamison, former chief executive of the San Jose Sharks.

Bettman praised the council for its vision in transforming the city from rooftops to a destination with professional sports, including hockey. He said the NHL wants the team to remain in Glendale.

"The question is: Now, are you better off with or without the team?" Bettman asked. "It's a judgment you have to make."

Jamison said he was impressed with the city's commitment to protect its investment. Glendale had pledged up to $50million to the NHL over two seasons to manage the team and arena until a buyer could be secured.

The NHL bought the bankrupt team in 2009 after other bids had fallen through. 'Can we afford' this?

The council's vote was signaled weeks ago and confirmed Friday as council members Steve Frate, Manny Martinez, Joyce Clark and Yvonne Knaack explained why they supported keeping the team in Glendale.

"To abandon that vision now will hurt Glendale for years to come," Knaack said.

Mayor Elaine Scruggs and Councilman Phil Lieberman opposed the deal, saying Glendale can't afford to keep the team.

Under the agreement, the city would pay Jamison $17 million the first year from a city budget that covered a $35 million shortfall with layoffs, service cuts and tax hikes.

Scruggs said she couldn't support the deal because of the city's depleted finances.

The city has just $2.1 million left in its rainy-day fund.

"Can I vote to take on a 20-year obligation?" Scruggs asked. "Can we afford these payments?"

The annual city payment to Jamison fluctuates over the 20years, but it averages $15 million.

Jamison would pay the city rent of approximately $13 million over the two decades. And Glendale would continue to receive a ticket surcharge, estimated to raise $60 million over the life of the lease, plus 15 percent naming-rights revenue for the arena, estimated at $4 million to $10 million over the life of the agreement.

About a dozen residents spoke during the meeting, mostly against the deal.

State Rep. Jerry Weiers, who is running for Glendale mayor in the August primary, said the public has had less than a week to study a deal that he called the "largest special-interest subsidy in the history of the state." Weiers added, "It's the wrong thing to do."

Glendale resident Rosilyn Miller, a Coyotes season-ticket holder, urged the council to approve the deal, saying it's the best of several previous proposals the city has considered.

"We are close to the harvest," Miller said. "Let's not be foolish." More legal challenges

Jamison said he hopes to complete the purchase of the team in three weeks, after the NHL board decision.

But the Goldwater Institute, which has battled the city over the Coyotes negotiations, said it will return to court after the vote. The institute says the city has not given the public access to documents central to understanding the deal.

Goldwater officials have said the deal may amount to a subsidy, which would violate the state Constitution's gift clause.

Glendale officials said the agreement is legal.

Maricopa County Superior Court Judge Katherine Cooper denied Goldwater's bid for a temporary restraining order, saying she had no authority to stop a vote.

'Clear violations'

However, Cooper added, there were "clear violations" to a 2009 court order that Glendale provide all documents to Goldwater in a timely manner regarding Phoenix Coyotes negotiations with proposed buyers.

Cooper said that although the city may go ahead with Friday's vote, "what the city is preparing to do, not complying with the court's order, may jeopardize the ability to carry forward with that agreement because it would be subject to attack legally." The judge said Glendale could be sanctioned for voting.

Goldwater Institute attorney Carrie Ann Sitren said the judge's remarks made it clear that a council vote would violate the 2009 court order. Sitren said earlier Friday that if the council vote proceeded, Goldwater would be back in court to ask that the deal be declared invalid.

Still, Glendale officials were relieved.

"It's like being in labor for three years, and it's finally over," Glendale spokeswoman Julie Frisoni said.

 

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