Monday, December 19, 2011

Guest View-John Musolf: Oro Valley's TREO Investment... A Joke


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"Here we go again!"
On September 15th, the Oro Valley Town Council voted to contribute $40,000  to the Tucson Regional Economic Opportunities (TREO). It is my contention that this expenditure is not justified. It is the contention of many others that TREO itself, is a poorly functioning, poorly performing organization.
On December 7, 2011. the Oro Valley Town Council approved, without public discussion, the Tucson Regional Economic Opportunities (TREO) first quarter report of performance in relation to the Town of Oro Valley. This report is incomplete. It should have warranted the full attention of the members of the Oro Valley town council.
TREO trumpets its relationship with Raytheon Missile Systems.
What a joke!
In the Dec. 2 issue of Inside Tucson Business, Patrick McNamara made this statement about Raytheon Missile Systems when he was talking about bringing business (economic development) to Tucson:
Such was the case last year when Raytheon Missile Systems put out the word it was looking to set up a new manufacturing facility. Local officials were dumbfounded - and pointed fingers at each other - when leaders from Huntsville, Ala., showed up with Raytheon execs at the Farnborough International Airshow in England to announce they had agreed to build the new plant in Alabama. It was embarrassing that officials in Tucson, in Raytheon Missile Systems' hometown, didn't know what was going on.
However, in the same editorial article, Mr. McNamara also commented on the most recent failure of economic development and political leaders involving Caterpillar’s manufacturing facility search:
Mr. McNamara reported on the efforts - or lack thereof - of the Tucson region's economic development and political leaders to get in front of executives at Caterpillar, which is searching for a new North American ma While officials at Tucson Regional Economic Opportunities (TREO) played dumb with reporter McNamara, others within the organization said they were aware of Caterpillar's quest but that's it.
Why does the Town of Oro Valley continue to donate to an organization $40,000 to TREO for incomplete or questionable performance?

Where is due diligence by the Oro Valley Town Council?

John Musolf
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8 comments:

arizonamoose said...

Some more detailed comments from the 1st Quarter TREO activity report for Oro Valley (July 1 – September 30, 2011) Item 4

4) Additional Information: Support for the Aerospace & Defense Industry

“TREO continues to facilitate meetings with members of the Chairman’s Circle and Board of Directors with local, state and federal officials to stress the competiveness of the region and explore actions to improve that competitiveness. The dialogue has expanded to include working with both the Pima County administrator’s office and Pima County Bond Advisory Council on developing economic development components for an anticipated bond election. The support of Raytheon Missile Systems and the entire Aerospace & Defense industry remains the primary focus with possible tools to include development of an industrial park, infrastructure investments, aesthetic improvements, and financial incentives”.

In my guest view, I quoted Reporter Patrick McNamara (Inside Tucson) who found out that the economic development community and public officials were not even aware of Raytheon Missile System’s search for a new facility (site) and yet TREO says “it continues to facilitate meetings…with local, state and federal officials to stress the competiveness of the region and explore actions to improve that competitiveness”. Some facilitation! It says “region”. How does this relate specifically to Oro Valley?

TREO goes on to say: “The support of Raytheon Missile Systems and the entire Aerospace & Defense industry remains the primary focus with possible tools to include development of an industrial park, infrastructure investments, aesthetic improvements, and financial incentives”. Some support from Raytheon!

John Musolf

Nombe Watanabe said...

The last time I posted this no one commented. I will try again.

In a county where the median household income is about $44,000 per year, TREO president Joe Snell earned $313,000. His base salary was 232,117 and he received a $58,000 bonus.

These are the wages for underperformance.

arizonamoose said...

Some more detailed comments from the 1st Quarter TREO activity report for Oro Valley (July 1 – September 30, 2011) Item 4

4) Additional Information: Support for the Aerospace & Defense Industry

“TREO continues to facilitate meetings with members of the Chairman’s Circle and Board of Directors with local, state and federal officials to stress the competiveness of the region and explore actions to improve that competitiveness. The dialogue has expanded to include working with both the Pima County administrator’s office and Pima County Bond Advisory Council on developing economic development components for an anticipated bond election. The support of Raytheon Missile Systems and the entire Aerospace & Defense industry remains the primary focus with possible tools to include development of an industrial park, infrastructure investments, aesthetic improvements, and financial incentives”.

In my guest view, I quoted Reporter Patrick McNamara (Inside Tucson) who found out that the economic development community and public officials were not even aware of Raytheon Missile System’s search for a new facility (site) and yet TREO says “it continues to facilitate meetings…with local, state and federal officials to stress the competiveness of the region and explore actions to improve that competitiveness”. Some facilitation! It says “region”. How does this relate specifically to Oro Valley?

TREO goes on to say: “The support of Raytheon Missile Systems and the entire Aerospace & Defense industry remains the primary focus with possible tools to include development of an industrial park, infrastructure investments, aesthetic improvements, and financial incentives”. Some support from Raytheon!

John Musolf

PS Nombe Watamabe. I guess Oro Valley and others like to pay people like Joe Snell for underperformance.

arizonamoose said...

Some more detailed comments from the 1st Quarter TREO activity report for Oro Valley (July 1 – September 30, 2011) Item 2

2) National / International Marketing of Region
Strategies:
• Host 2 site selectors regionally, including presentation of Oro Valley.
_ Project Memory: Site visit by site selector in Oro Valley with special interest in the Miller Ranch Property.

“Memory Project” (site visitor) is part of My Class Cares a non-profit 501C organization funded by donations or grants, at 721 Hunters Trail, Sun Prairie, WI 53590, that sponsors the participation of art students from low-income schools worldwide. My Class Cares has two other projects: 1) “Books of Hope” (E-luminate) that created printed, bound books that would be transported in 40 foot shipping containers to rural schools in the African bush (they also went digital) 2) “Hopeful Voices” which is a collection of essays designed to be a powerful and unique curriculum supplement for social studies and language arts classes.
In my opinion, all three programs are very worthwhile.
TREO Analysis
In my opinion, TREO really didn’t perform an adequate financial due diligence prior to incurring expenses showing the Project Memory (My Class Cares Organization) the Conceptual Miller Ranch Corporate Park site.
The My Class Cares 2010 IRS 990EZ Form shows revenue of $123,182. Expenses were $130,085. This resulted in a deficit of $6,864. However, there was a fund balance at the beginning of the year of $49,919 which covered the deficit and resulted in a fund balance at the end of the year of $43,055.
• In my opinion, how can a non-profit organization (My Class Cares) that had a 2010 financial deficit afford to lease or build some office space in Miller Ranch Corporate Park?

The Memory Project Program (My Class Cares Organization) was shown the Miller Ranch Corporate Park Concept according to the TREO report.
Miller Ranch Corporate Park
1410 W Tangerine Rd Tangerine & La Canada Oro Valley, AZ 85755 Build-To-Suit -160,000 sq. ft. total. This concept was originally conceived by DESCO Southwest (DSW DESCO Southwest opened a development office in Tucson in 2001. The concept is on hold.
Miller Ranch is more than just an office building – it’s a work environment. The facility has ample parking and convenient access to major streets.
Landscaped walking paths provide peaceful places to enjoy lunch with a dramatic vista. They also connect offices with the on-site retail center.
Shopping and dining are conveniently located on site. The retail component of Miller Ranch offers a variety of choices from a quick lunch to dining venues suitable for entertaining clients. Retail shops and services make it easy to pick up anything from dry cleaning to a unique gift. Miller Ranch Shoppes is the Retail center located in Oro valley. Retail, Restaurant and Bank available for build to suit, lease or sale. Miller Ranch Marketplace is the retail component of the future 180,000 square foot office development named Miller Ranch Corporate Park.

John Musolf

artmarth said...

Hopefully enough Oro Valley voters will read this and all the Guest Views from John Musolf.

In that way, the people will get a much better understanding as to the way this mayor and council "Super Majority" continue to support every Special Interest Group.

Hopefully, the people will understand that the ONLY Council Member that has consistently supported the people is Bill Garner.

John---Thanks again for doing your best in your attempt to educate the people of Oro Valley.

arizonamoose said...

Some more detailed comments from the 1st Quarter TREO activity report for Oro Valley (July 1 – September 30, 2011) Item 2

2) National / International Marketing of Region
Strategies:
• Host 2 site selectors regionally, including presentation of Oro Valley.
_ Project Memory: Site visit by site selector in Oro Valley with special interest in the Miller Ranch Property.

“Memory Project” (site visitor) is part of My Class Cares a non-profit 501C organization funded by donations or grants, at 721 Hunters Trail, Sun Prairie, WI 53590, that sponsors the participation of art students from low-income schools worldwide. My Class Cares has two other projects: 1) “Books of Hope” (E-luminate) that created printed, bound books that would be transported in 40 foot shipping containers to rural schools in the African bush (they also went digital) 2) “Hopeful Voices” which is a collection of essays designed to be a powerful and unique curriculum supplement for social studies and language arts classes.
In my opinion, all three programs are very worthwhile.
TREO Analysis
In my opinion, TREO really didn’t perform an adequate financial due diligence prior to incurring expenses showing the Project Memory (My Class Cares Organization) the Conceptual Miller Ranch Corporate Park site.
The My Class Cares 2010 IRS 990EZ Form shows revenue of $123,182. Expenses were $130,085. This resulted in a deficit of $6,864. However, there was a fund balance at the beginning of the year of $49,919 which covered the deficit and resulted in a fund balance at the end of the year of $43,055.
• In my opinion, how can a non-profit organization (My Class Cares) that had a 2010 financial deficit afford to lease or build some office space in Miller Ranch Corporate Park?

The Memory Project Program (My Class Cares Organization) was shown the Miller Ranch Corporate Park Concept according to the TREO report.
Miller Ranch Corporate Park
1410 W Tangerine Rd Tangerine & La Canada Oro Valley, AZ 85755 Build-To-Suit -160,000 sq. ft. total. This concept was originally conceived by DESCO Southwest (DSW DESCO Southwest opened a development office in Tucson in 2001. The concept is on hold.
Miller Ranch is more than just an office building – it’s a work environment. The facility has ample parking and convenient access to major streets.
Landscaped walking paths provide peaceful places to enjoy lunch with a dramatic vista. They also connect offices with the on-site retail center.
Shopping and dining are conveniently located on site. The retail component of Miller Ranch offers a variety of choices from a quick lunch to dining venues suitable for entertaining clients. Retail shops and services make it easy to pick up anything from dry cleaning to a unique gift. Miller Ranch Shoppes is the Retail center located in Oro valley. Retail, Restaurant and Bank available for build to suit, lease or sale. Miller Ranch Marketplace is the retail component of the future 180,000 square foot office development named Miller Ranch Corporate Park.

John Musolf

Richard Furash, MBA said...

The following is from John Musolf:
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Some more detailed comments from the 1st Quarter TREO activity report for Oro Valley (July 1 – September 30, 2011) Item 2

2) National / International Marketing of Region
Strategies:
• Host 2 site selectors regionally, including presentation of Oro Valley.
_ Project Memory: Site visit by site selector in Oro Valley with special interest in the Miller Ranch Property.

“Memory Project” (site visitor) is part of My Class Cares a non-profit 501C organization funded by donations or grants, at 721 Hunters Trail, Sun Prairie, WI 53590, that sponsors the participation of art students from low-income schools worldwide. My Class Cares has two other projects: 1) “Books of Hope” (E-luminate) that created printed, bound books that would be transported in 40 foot shipping containers to rural schools in the African bush (they also went digital) 2) “Hopeful Voices” which is a collection of essays designed to be a powerful and unique curriculum supplement for social studies and language arts classes.
In my opinion, all three programs are very worthwhile.
TREO Analysis

In my opinion, TREO really didn’t perform an adequate financial due diligence prior to incurring expenses showing the Project Memory (My Class Cares Organization) the Conceptual Miller Ranch Corporate Park site.

The My Class Cares 2010 IRS 990EZ Form shows revenue of $123,182. Expenses were $130,085. This resulted in a deficit of $6,864. However, there was a fund balance at the beginning of the year of $49,919 which covered the deficit and resulted in a fund balance at the end of the year of $43,055.

In my opinion, how can a non-profit organization (My Class Cares) that had a 2010 financial deficit afford to lease or build some office space in Miller Ranch Corporate Park?

The Memory Project Program (My Class Cares Organization) was shown the Miller Ranch Corporate Park Concept according to the TREO report.
Miller Ranch Corporate Park
1410 W Tangerine Rd Tangerine & La Canada Oro Valley, AZ 85755 Build-To-Suit -160,000 sq. ft. total. This concept was originally conceived by DESCO Southwest (DSW DESCO Southwest opened a development office in Tucson in 2001. The concept is on hold.

Miller Ranch is more than just an office building – it’s a work environment. The facility has ample parking and convenient access to major streets.

Landscaped walking paths provide peaceful places to enjoy lunch with a dramatic vista. They also connect offices with the on-site retail center.

Shopping and dining are conveniently located on site. The retail component of Miller Ranch offers a variety of choices from a quick lunch to dining venues suitable for entertaining clients. Retail shops and services make it easy to pick up anything from dry cleaning to a unique gift. Miller Ranch Shoppes is the Retail center located in Oro valley. Retail, Restaurant and Bank available for build to suit, lease or sale. Miller Ranch Marketplace is the retail component of the future 180,000 square foot office development named Miller Ranch Corporate Park.

John Musolf

arizonamoose said...

Nombe Watanabe

It looks like someone heard your posting.

Contact Joe Higgins and Chris DeSimone at wakeuptucson@gmail.com. They host "Wake Up Tucson," 6-8 a.m. weekdays on The Voice KVOI 1030-AM. Their blog is at www.TucsonChoices.com.

Excerpts from an Article from these two gentlemen:

“Here's your quiz for the week: Match the director to the pay schedule. We've got the answers at the end of the column.

• Chuck Huckleberry, Pima County administrator. He is in charge of 6,000-plus employees and a budget of $1.4 billion.

• Richard Miranda, City of Tucson manager. Miranda is in charge of 4,500-plus employees and a budget of $1.3 billion.

• Joe Snell, CEO of Tucson Regional Economic Opportunities (TREO). He oversees 10 employees and a budget just shy of $2 million.

So there you have the three executives, match them to these annual salaries:
A. $272,266
B. $167,000
C. $313,411

One of its (TREO) targeted industries is logistics.
So how far along is TREO in its efforts on the logistics front? Some colorful brochures have been printed and we're told "TREO is on it."

TREO's problem, as with its predecessors, is that it takes money from governments. The Tucson region's stumbling block for the past couple of decades has been a poor business climate brought on by government policies. How on earth can we expect an economic development organization to speak truth to the same people who sign their paychecks?

For the Tucson region to see real results and return on investment of economic development dollars is for profit-motivated capitalists to fund the efforts. Chambers of commerce can combine political efforts with long-range plans to execute a strategy. Chambers can demand a better business climate or work hard to change the politicians that pull the strings.

Ineffective groups need to learn they are wasting time and money. Government involvement in economic development isn't working.

As promised, here are the salary matches to the executives:
Chuck Huckleberry makes $272,266.
Richard Miranda makes $167,000.
Joe Snell makes $313,411.

Great gig for Snell, if you can get it”.

John Musolf