Tuesday, February 14, 2012

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

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(Blogmaster Note: Yesterday, we posted regarding MTCVB. Today's posting is about the Tucson Regional Opportunities Organization (TREO).  Oro Valley contributes $43,000 annually to TREO. What does Oro Valley get for its investment?)
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 Item B on the Consent portion on the Town Council Agenda on February 15, 2012 is for approving (“rubber-stamping”) the Tucson Regional Opportunities Organization (TREO) second quarter report of performance in relation to the Town of Oro Valley. In my opinion, the report is incomplete and warrants the full attention of the members of the Oro Valley Town Council.

Here are some examples of why full vetting by Council is needed:

Objective One TREO set for itself for quarter two was to: "Facilitate High Wage Job Creation and Capital Investment Strategies by 2 sales mission/ trade shows related to the bioscience and/or the aerospace defense industry." The actual performance reported by TREO:

"During the IEDC conference in Sacramento, Business Development (BD) staff met with Aerospace and Defense prospects. One of the companies is a supplier for Sargent Aerospace and Controls."

Comment: What is IEDC? Why wasn't a copy of the presentation made to the Aerospace and Defense prospects included as an attachment to the report so the Council can judge the quality of the presentations made on its behalf? What other companies with which did TREO meet?

"As part of our Sun Corridor efforts, BD staff met with over 20 companies during the So Cal Bio and Opportunity Green Conferences.  Many of these companies are looking to expand to new markets. Innovation Park and Bio5 Oro Valley position our region well for those expansions."
Comment: Which companies? What was discussed that was specific to Oro Valley?

"Project Revival - TREO met several times with representatives from Project Revival to discuss their recent expansion as well as issues our region and state need to help solve that could lead to further expansions.

Project Rollup- TREO presented an incentive package, real estate options and programs to an existing solar manufacturer looking to significantly expand their operations. Other states are presenting highly competitive packages to attract this expansion to their respective regions making our efforts to engage our regional and state partners that much more important."
Comment: Project Revival and Project Rollup are code names for potential businesses interested in locating or expanding. Shouldn't these projects be discussed by Council in executive session so the non-disclosure can be honored and the Town Council can know who the companies are? As Ronald Reagan once said: “Trust, but Verify”. 

On Project Revival, the Town Council needs to know what industry TREO is talking to about that industry recent expansion and a detailed description of the issues that the region and state need to help solve to help the expansion. On Project Rollup, the Town Council needs a detailed description of any real estate options and program offers made to an existing solar manufacturer so the Town Council can approve of those representations.

There are numerous other items in the TREO report that also should be investigated. I have detailed them but, in the interest of brevity, have not posted them here.

The point is: The TREO second quarter report, like the MTCVB second quarter report, should not be a "consent agenda" item. TREO's accomplishments should be fully vetted by council in view of the citizens of Oro Valley.

John Musolf
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8 comments:

Fear the Turtle said...

One just needs to take a step back and realize how much citizens pay for not only for endless layers of government, but also for groups like TREO. It is sinful the waste that goes on the dole of the taxpayer.

Groups like TREO have it made because the gobbledygook they present is full of bs, and they know their intended audience of non business savy part time politicians fall for it hook, line, and sinker.

Funding has to stop for these types of groups, and the chamber of commerces, and marketing/business development departments within gov't have to step up to the plate and earn their pay.

OV Objective Thinker said...

Please see the comment for the other of John's guest view. Same comment applies here.

Nombe Watanabe said...

OVOT:

Well, do you support TREO or not?

Victorian Cowgirl said...

Please see my response to Thinker under John's other posting about MTCVB. Same comment applies here.

OV Objective Thinker said...

Nombe.....

Do I support TREO? Yes.
Do I support MTCVB? Yes.

Do I support the amount of money we give to them. The best answer I can give you is that I don't have privy to their reports (or don't take the time to read them) therefore I can't make an educated judgment. However I vote for Town Council people I trust to make good fiscal decisions.

I do know the the Hilton get a substantial amount of business through the convention bureau. The GM made a presentation a over a year ago which clearly showed a substantial amout of trackable room nights.

If you are a believer in a regional approach to these kinds of actiivities then you need to support the regional folks who do these things.

I don't agree with Fear that each local government should do their own thing. If you support that you support sending multiple government employees out from each community across the US and Europe chasing the same business. That doesn't seem cost effecting to me. But it sounds like a nice gig!!!

artmarth said...

Nombe--- I trust you're satisfied with cox's answer---especially knowing ---quoting him----"I vote for Town Council people I trust to make good fiscal decisions."

I guess he didn't vote for Hiremath, Snider, Hornat & Waters, and was against the appointment of Solomon.

My question is this: What does the government of Marana know that our mayor & council super majority don't know? I guess Marana studied the ROI (Return On Investment), and realized it wasn't too favorable.

On the other hand, we, the taxpayers of Oro Valley may be obligated to give TREO & MTVCB $118,000 to help pay for the big bosses exorbitant salaries, and get short changed with the ROI.

Nombe Watanabe said...

OVOT.

Thank you for your response. I do not think the town gets good return on the "investment". The leadership of these organizations receive far too much money when compared to the results.

I am reminded of the CEO (et al) of Merrill Lynch getting a big bonus while the company was failing! I think we learned our lesson around 2008.

arizonamoose said...

To OV Objective Thinker

OVOT’s (a.k.a. Don Cox) comment on my Guest View on TREO.

“Please see the comment for the other of John's guest view. Same comment applies here”.

I appreciate that Don Cox felt it was very laborious to copy and paste his comment from my other guest view on the LOVE Blog about MTCVB. I thought I would post it for him.

“Isn't there some penalty from the ASPCA for the continuous beating of a dead horse?”

Again, I need to thank Don Cox for his incisive and penetrating comment on my analysis of what OV gets from TREO for its investment. Again, Don’s continuing comment capability and quality shows clarity and depth!

I tried to show that TREO 2nd quarter performance report was questionable. Not only did I do a Guest View on the LOVE Blog, but sent the Mayor and Council Members an email on Tuesday, February 14, 2012 one day before the Town Council Meeting on February 15, 2012, with the same information questioning why it was on the Consent Agenda (Routine and Non-Controversial Items) and that the Council should do some due diligence on their investment.

Don also made another comment on my guest view on TREO, but it was about MTCVB?

Don cites how great the Hilton El Conquistador Hotel does with MTCVB.
With the Hilton General Manager Lynn Ericksen who serves as MTCVB Board Chairman I can see why they might have a warm relationship.

If only Marana and the Ritz Carlton Dove Mountain Hotel could see the light and pursue MTCVB they could reap great benefits. Wonder why they are not interested in MTCVB?

John Musolf