Napier Says Oro Valley Marketplace Lacks Vision and Leadership… But Is He Right?

Does Napier's claim "hold water"?
A campaign video posted on mayoral candidate Mark Napier’s site states that “The Oro Valley Marketplace is not living up to its potential due to failed leadership and no long-term vision for its development.” The claim is not substantiated. It is simply an assertion. The video gives the impression, especially to those who do not know the Marketplace’s history, that the empty storefronts, and there are many, are the fault of the current Town Council.

History says otherwise
LOVE has documented the Marketplace since its inception. Indeed, LOVE’s founding grew out of the efforts of residents who opposed Town financial support for the center. They did not like the agreement the Town made with the developer, Vestar. Vestar was to receive an estimated $23.2 million in rebated sales tax revenue over the center’s first ten years.

These residents fought to place that choice on the ballot so residents could approve or reject it. Bedazzled by the promise of an “upscale” mall like La Encantada in the foothills, and with the support of the Paul Loomis-led council, 58% of residents, in March 2006, voted in favor of the Town’s financial support for the center. They did not get that upscale mall. A subsequent Arizona Supreme Court ruling sharply restricted such arrangements by requiring that public payments provide direct and proportionate public benefits.

The Marketplace was troubled from the beginning
LOVE chronicled this history through 2019. We concluded that the Marketplace was doomed from its inception because it was not an economically feasible venture. Even with ongoing government support, it was, at best, only marginally successful. The only council that could be blamed for its failure, if any council could be blamed, would be the council in office when the decision was made to financially support the center in 2005. Indeed, the Marketplace would never have been built at that time had it not been for the financial support to which the Town had agreed.

The Marketplace struggled throughout its history. There were always vacant storefronts. No upscale stores located there. Its gross revenues fell far short of the plan. After ten years, the center had generated $16.4 million in sales tax revenue for Vestar. That was far less than the projected $23.2 million. Store after store failed. Remember Dick’s Sporting Goods? Best Buy? Ashley Furniture?

During most of those years, from 2010 to 2018, the Town was overseen by the Hiremath Council. That council included current council candidate Rhonda Piña and Joe Hornat, a vocal Napier supporter. The Hiremath Council did nothing to fix the plight of the center. And, really, what could it have done?

The Winfield Council inherited the problem
By 2019, the first full year of the Winfield Council, there were 22 open businesses and 23 empty storefronts. By October, the Marketplace had a new owner. Vestar sold the Oro Valley Marketplace to Town West Realty. The reported purchase price was $45.15 million.

Town West presented a new vision
Town West had a vision. It planned to transform the Marketplace from a primarily retail center into a mixed-use development. Town West believed that only a mixed-use development could provide the density needed to make the shopping center successful. The Town Council agreed. From 2022 to 2023, Town staff and the council worked with Town West to shape the redevelopment into a plan that could revitalize the Marketplace.

Council shaped it the Oro Valley way
The initial proposal from Town West contemplated approximately 730 apartments in two six story buildings. They sought numerous exceptions from the Town’s existing height and setback requirements. These exceptions were not consistent with the Town’s General Plan. Nor were they consistent with what residents wanted. The initial plan included a “public-private partnership” that would have required the Town to underground a wash and build and maintain an entertainment center.

After much work, the final agreement allowed 320 apartments in two three-story buildings, with the buildings limited to 39 feet. It also included a hotel. The agreement added an important condition: The agreement added an important condition: The hotel in Area 4 must receive its certificate of occupancy before certificates of occupancy may be issued for any apartments in Area 4. The initial recreational amenities would be the responsibility of the developer rather than becoming a Town-funded obligation. If the project succeeds, the council can later decide whether it wants to underground the wash to accommodate another hotel and food-court-type concepts in the entertainment district.

Redevelopment is now moving forward
Drive through the Marketplace and you can see that construction is in progress on the north side of the property. It includes one of the two approved apartment buildings, the hotel, intersection and pedestrian improvements, and the neighborhood park. Surf Thru Car Wash is ready to go on the south side. There is also a new restaurant where Red Lobster used to be. 

Napier should explain his alternative
If Napier does not see that as leadership, then we ask: What would he have done, and would it have achieved a better result? We believe that question is legitimate. We see a center that is being revitalized and is on the move again. We see a center whose redevelopment plan was shaped with the input and effort of Town staff and council. We see that as leadership.

But Napier’s video does not agree. So we wonder: What would he have done differently to make this redevelopment a reality? Would he have approved six-story apartment buildings? Would he have approved 720 apartments? Would he have committed millions of dollars in Town money upfront to fund the entertainment center?

Those are legitimate questions Napier ought to answer instead of simply trying to rewrite history.

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320 HSL Luxury Apartments On Their Way To The Oro Valley Marketplace

Commission recommends approval for new luxury apartments..Council may discuss tomorrow night
The Oro Valley Planning and Zoning Commission unanimously recommended to the town council conditional approval of the architectural design of the HSL Encantada luxury apartments at their meeting on April 1, 2025. The design is on tomorrow night's town council meeting agenda as a consent agenda item. The council will not discuss it unless a council member requests that they do so.

320 luxury apartments

The new development, consisting of 320 luxury apartment units across 14 buildings, will be situated near the southwest corner of Tangerine Road and Water Harvest Drive within the Oro Valley Marketplace. This project is part of a broader renewal initiative for the Marketplace, which also includes the construction of a new hotel scheduled to coincide with the apartments.

Fourteen two and three story buildings
The proposed development features a mixture of two-story and three-story buildings, complemented by a centrally located clubhouse and leasing office. Amenities for residents will include secured, gated areas. Architectural designs emphasize contemporary desert themes with horizontal bands, metal canopies, and stone veneer finishes. The buildings will incorporate design elements consistent with the existing aesthetics of the Marketplace, including varied parapets, facade articulations, and colors inspired by the Sonoran Desert.

Staff: New guidelines needed to accommodate 
Staff member Michael Spade noted that the proposal aligns well with Oro Valley's existing architectural standards outlined in the Marketplace's Master Architectural Concept Plan (MACP). Given that the MACP did not originally anticipate apartment buildings, staff recommended conditional approval contingent upon updating this guiding document. Tim Smith of Swain Associates Architects added that the clubhouse would serve as an inviting central hub, with significant use of stone veneer strategically placed to enhance visual interest, particularly at pedestrian entrances.

Few commission questions
Commissioner Nichols raised questions about the relatively limited use of stone veneer compared to adjacent buildings within the Marketplace. Smith clarified that the stone finishes were intentionally concentrated around pedestrian entrances to clearly define these areas. Nichols also sought clarification about the placement of two-story versus three-story structures. Smith confirmed that the buildings east of Water Harvest Drive would all be three-story, while the west side of the project would include both two- and three-story buildings.

Project next moves to council approval
Upon approval by the council, the Marketplace's Master Architectural Concept Plan will be updated to include apartment building standards, ensuring consistency in future developments.

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Bits and Pieces

Oro Valley apartment rental owner accused of price fixing

A lawsuit filed by the Arizona Attorney General Mayes against Tucson's HSL Properties and other apartment landlords for alleged price fixing involving RealPage rent has brought significant attention to pricing practices in the rental market. According to Mayes, RealPage offers "revenue management" to its clients listed in the lawsuit.

HSL Properties owns the Encantada apartments on Oracle Road in Oro Valley. They are also involved as an investor in the redevelopment of the Oro Valley Marketplace, which includes plans for two large apartment complexes. Owners and members of HSL contribute significant funds to the campaigns of Oro Valley pro-development candidates.

Centennial Flight on hold for a bit
"After a one-month delay, we departed Phoenix on January 28. We traveled through Mexico staying overnight in Cancun and then arrived in Lima, Peru the next day. Written permission for overflight, landing, visa and other required documentation was completed and submitted to all appropriate agencies several months ago.

After several days in country, it became apparent that we would not receive permission from Chile to travel in their country via Puerto Montt, Tierra del Fuego and Marsh Martin Station in Antarctica.

We then elected to cross Brazil to re-acquire our route via Brasilia to Recife. Brazilian authorities advised we would have to re-apply for our permits and that would take up to 72 hours. We reluctantly decided to terminate our trip at that point and return to the US. After applying for permission to depart, we left on February 4th arriving home on the 7th via Ecuador, Panama and Mexico.

The difficulties encountered in South America were compounding and voided permits and paperwork down line. Our trip insurance ($20,000) was good for one month and has now expired. The current Middle East circumstances are an important consideration. Additionally, after our return, it was determined there were mechanical issues with the engine requiring a complete evaluation. The inspection revealed the aircraft will be out of service for several months.

Determining a new window for our adventure requires coordinating personal time availability for both Canon and Tim in 2024 and is dependent on when the aircraft returns to service.

Our goal remains to complete a circumnavigation of the earth. We sincerely appreciate all who helped us, supported us, watched us and diligently tracked us. When we begin our trek again, we look forward to bring you all along on our adventure." (Source: Email from Tim Tarris) 

Hampton Inn Planned For Oro Valley Marketplace 

This week, the Oro Valley Planning & Zoning Commission discussed the proposed architecture for a Hampton Inn and Suites at the Oro Valley Marketplace. This is a first step in the revisioning the area into the Oro Valley Village Center. The site is 2.83 acres near Oracle Road and Water Harvest Drive. It is a 105-room hotel.

Guest View: Mike Zinkin – The darker side of Town government

As previously reported on LOVE, as if the antics of Town Manager, Mary Jacobs, aren’t bad enough (ignoring adopted Town Council Policies, convincing the current Council to set records for fiscal “management” including the highest budget in Town history, two sets of 3% employee raises in 12 months during a pandemic, and $50 million in added bond debt, and, most important, adding a veil of unprecedented secrecy with all the Executive Sessions)…we have recently discovered additional information on another high-ranking member of the Town Staff.

Town Attorney has possible Conflict-of-Interest
Some business associations on the part of the Town Attorney have recently been uncovered.

LOVE readers are aware of the “secret” proposed Economic Development Agreement between the Town and Town West regarding the Oro Valley Village Center (formerly Oro Valley Marketplace). The Executive Session on this topic during the January 19, 2022 meeting was cancelled when some Council members realized that any agreement with Town West was premature since there has been no approved action for the properties. The Town Attorney, Jonathan Rothschild, along with the Town Manager, have something proposed, but the details are being kept a secret.

Here's the problem. The principal characters with Town West are the Humberto Lopez family (HSL Properties), the Horvath family, and their attorney Keri Silvyn. It turns out that Rothschild has financial ties to all of them. In 2011, when Mr. Rothschild was running for the Mayor of Tucson, all the above-named individuals contributed to his campaign. [Click on the below attachment to enlarge it]

Possible lingering effects
Now you might say, “That was over 10 years ago, so what’s the big deal?” The problem is that Mr. Rothschild has had a prior relationship with the people who are the principles in any agreement that the Town might enter into with Town West. Will there be any lingering effects from those past campaign donations? Will Rothchild’s decisions on the Town West deal be in the best interest of the citizens of Oro Valley or will he be beholden to what’s in the best interest of the Lopez family and the Horvath family?

The Council is aware of these campaign contributions, thanks to communications sent to them from Oro Valley citizens.

Accordingly, Mr. Rothschild should recuse himself from any communications and/or dealings with Town West.

Decisions need to be made on what’s best for the residents of Oro Valley.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Guest View: Mike Zinkin – A Citizen’s Initiative and an interesting revelation about the Pusch Ridge Course

A Citizens’ Initiative is in the works
There is a movement afoot to start a petition drive to gather 2,600 signatures to put an initiative on the ballot to “rezone the Pusch Ridge Course as open space and designate it as a discontinued golf facility.”

The Town Manager is aware of this petition because I have been communicating with the Town Clerk about the logistics of such a project. There is nothing that goes on within the Town Clerk’s office (or any other department) of which Town Manager, Mary Jacobs is not knowledgeable.

A resolution for the La Canada course is on tonight’s agenda
While the Citizens’ Initiative was being drafted, I was in contact with a few Council members trying to persuade them to agendize the actions required to rezone and discontinue golf at the Pusch Ridge course. They opted not to do so.

However, on the Consent Agenda for tonight’s meeting is a resolution “authorizing and approving the addendum to the El Conquistador and Golf Courses Purchase and Sales Agreement.” Since this item is on the Consent Agenda, this means that if it is not removed and placed on the regular agenda, there will be no discussion.

The agenda item (attached) was submitted by the Town Clerk and requests authorization to approve an addendum to the sales agreement that resulted in the Town owning the golf courses. Although tonight’s resolution applies to the La Canada course, note that the text of the Council Packet states:

“In 2021, HSL opted not to exercise its right to operate/lease the Pusch Ridge course after the Town declared it a discontinued course, effectively extinguishing their option in the Agreement".

This begs the following questions:

If the Council discontinued the use of the Pusch Ridge course over a year ago, and HSL opted not to lease it:

• Why did the Pusch Ridge course reopen in November?
• Why did the Town waste millions of gallons of potable (drinking) water on this course? (including 10,382,000 gallons in November 2021)
• Why is the Town wasting thousands of dollars in maintaining this property as a golf facility?

Closure of the Pusch Ridge course will not adversely affect property values
For those residents who live around the Pusch Ridge course, let me put you at ease. Your property values will not be adversely affected because the Town is required to maintain that property in a manner compatible with a resort property.

The part of the agreement that will remain in place states:

“provided the Resort Owner does not elect to enter into a Discontinued Facility Lease for all or any portion of such Discontinued Facility, the Town shall comply with all Laws, rules and regulations with respect to such open space and/or recreational amenity, and shall maintain, repair, and landscape such open space: and/or recreational amenity in a manner that controls dust, removes litter and debris, and landscapes and maintains the open space or recreational amenity in a manner compatible with the operation of the Resort as a first class resort property.”

Did the Town Council forget or were they never aware?

It appears that my energies, as well as others, to close that course have been unnecessary because, although the Council apparently forgot or did not realize it, Pusch Ridge is no longer a golf course; it is open space. Hopefully, at the close of the meeting tonight, the appropriate changes will have been made and we can start saving water and money.

Thank you to the Town Clerk for bringing this to everyone’s attention.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Bits and Pieces

Oro Valley Village Center Developer Town West is a "member" of a close community of investors and developers known to Oro Valley

Town West Realty is proposing the "reimagining" of the Oro Valley Marketplace. Town West operates other facilities and centers in town including the Del Oro shopping center. That is located on the north east corner of Oracle and Orange Grove. Town West specializes in revitalizing facilities. Town West contributed $6,500 to Council Member Solomon's 2018 election campaign.

Town West Realty is also involved in a partnership with HSL Properties and Iridius Capital. Together, they purchased the La Encantada Mall in September for $165 million. Town West Realty will manage the mall. 

Iridius Capital invests in Avilla Homes. NexMetro, a Phoenix Based company with national reach, is seeking a rezoning of two commercial properties in Oro Valley to residential use in the area of Tangerine and Rancho Vistoso Blvd. 

HSL Properties sold  the town 45-holes of golf and what was a clubhouse, now the community center, to the town in 2015. Currently, they operate the El Conquistador Resort and apartment facilities in Oro Valley. The principals of HSL were also the major contributors to the campaigns of the former council majority, the same majority that approved the purchase. Love has published many articles regarding their involvement in Oro Valley. They contributed $12,000 to the campaigns of Rodman, Solomon, and Greene in 2020.

Remembering Christina Taylor Green

Christina Taylor Green is a nine year old who was murdered in the assassination attempt on Congresswoman Giffords on January 8, 2011. It was a Saturday. It was morning. It was at Safeway at Ina and Oracle. Christina had gone there to meet one of her heroes, Giffords.  A noble idea that met with tragic timing.

"The only girl on her Canyon del Oro Little League baseball team The Pirates. Christina-Taylor played second base and wanted to be the first woman to play in the Major Leagues. She came from a family of baseball players. Her grandfather, former major-league pitcher Dallas Green, was team manager for the Philadelphia Phillies when they won the World Series in 1980. Her father, John Green, is a scout for the Los Angeles Dodgers." (Source)

The baseball field on which she played is next to the Kreigh Park play area. Appropriately, it is called "Green Field." The scoreboard was dedicated by the Los Angeles Dodgers "Dream Foundation.". The scoreboard is in need of a bit of work, as seen in this photo. 

Town's Water Wasting Continues

The Town of Oro Valley, winner of last years LOVE water waster award, finished the year strong, wasting more than 36,249,000 gallons or 111.19 acre feet in calendar 2021. That's enough water to supply 432 typical Oro Valley homes for a year.

Oro Valley Town Manager's Inaction Caused Pusch Ridge Golf "Crisis"

Failure to act started last May

The Town of Oro Valley knew in April that HSL Conquistador was not going to take over operation of the Pusch Ridge 9-hole golf course. Yet, it continued to move forward with closing the facility despite knowing that it was never the intent of the the council to leave their neighbors who live on or near the course in jeopardy. 

The intent of the Town Council was never to close the course... It was to lease the course to the El Conquistador

On February 18, 2020 The Oro Valley Town Council unanimously approved a Memorandum of Understanding (“MOU”) with HSL El Conquistador and HSL Financial Management for the takeover of the Pusch Ridge Course. HSL was to lease the facility from the town, exercising a “discontinued golf” clause in the original 2015 purchase and sale agreement when the town purchased the Community Center, Golf, and Tennis. That Memorandum of Understanding stated that the town was going to discontinue operating the nine hole Pusch Ridge Course on October 1, 2020. The lease agreement was to come before council in the future.

Town Attorney Cohen assured the Town Council that HSL was going to take over operations. All that was left was the negotiation of a lease.

The MOU was negotiated by Town Attorney, Gary Cohen and Town Manager, Mary Jacobs.

 

According to Cohen “HSL is telling us, right now, that they are going to lease this course and that it will be effective October 1.” (Time stamp: 2:04:14 of 2-28-20 Oro Valley Town Council Meeting).

In late April, HSL told Town Manager Jacobs that they were not likely to lease the course

Town Manager Jacobs explained at the February 17 meeting that HSL indicated that they did not have the financial resources to do so.

Jacobs noted that “They were aware that operating the golf course would require a subsidy.”  In other words, HSL did a workup of the financial prospects and decided not to do lease the property, just as they had decided to get rid of it when they sold it to the town in 2015. 

It may even be possible that HSL has bigger plans in mind for that property (Please do use your imagination).

HSL has no pressing need for the course itself. The El Conquistador Resort no longer needs a golf course in order to be rated "five star." It now has a spa that qualifies them for this rating.

The town neglected the golf course, closed it, despite knowing that HSL was not going to take it over

The Town closed the course in April due to Covid. Then, the Town eliminated over-seeding and watering the course. The fairways were brown. Residents who live along the course were "up in arms." They launched an effort to get the grass green again and succeeded Wednesday night. As we reported last Thursday, the Town will consider a detailed plan to operate the course starting in November.

Town Manager Jacobs did not act early... created the crisis... dumped it on Council 

Town Manager Jacobs did not act to immediately include this property in the Parks and Recreation Needs Assessment that she commissioned. She should have done this in May when she knew HSL was not really interested in assuming operation of the golf course. But even if they were interested, the land should have been included in the Needs Assessment and Master Plan. Then, if HSL failed to lease the land, its use could be considered in the larger context of the town - not a one-off decision as is now the case.

It is likely that the council did not know of HSL's lack of interest until September 23. This is when they extended the agreement with HSL for 120 days.  The Town Council, like the rest of us, were "in the dark."

Jacobs' inaction disappointing. She is a strategic thinker.  Is it possible that she did not know that HSL was simply "playing the Town" because HSL is always "playing the Town?" 

All the signs were there. 

They even told her they weren't interested.

The town is where it is today on this because of her inaction. 

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The Watchdog Report: The $750,000 Dollar Question

 

Who remembers the letter to the Council from the Town Manager dated September 4, 2019?
Yes, this is a loaded question because I seriously doubt if any of the council members would remember it since it was communicated almost six months ago. Additionally, neither Council members Greene nor Bohen were on Council when the above communication was written.

However, this is an important document because it offers the Town Manager’s forecast with the important caveat that the Mayor stipulated -- that the 36-hole option would require no more than a $750,000 tax subsidy.

Ms. Jacobs’ report was full of prerequisites that had to be fulfilled before the maximum subsidy of $750,000 could be accomplished. One of the requirements was that “The irrigation replacement and general refurbishment of both 18-hole courses was completed.” This had not even been started and the costs for just the irrigation improvements for the Conquistador course alone are over $1 million. This money is to come from the existing Community Center Fund, when, and if, it becomes available.

The forecasted target dates
In her report Ms. Jacobs states:

“By adding in the sales taxes collected by Troon for golf ($46,500), the utility sales tax for the water ($40,400), and the projected additional revenue from opening up the member course to day-play ($175,000), the subsidy is projected to meet the $750,000 target by FY 22/23. If the HOA contribution discussed below is factored into the pro forma, the subsidy is projected to meet the $750,000 target by FY 21/22.”

Jacobs goes on to say:

“According to the pro formas attached, the $750,000 tax subsidy target is achievable by FY 21/22 and possibly sooner if revenue collections remain strong. The potential action plan and accompanying pro formas included in this memorandum more fully demonstrate the financial viability.”

You can read the entire report HERE.  

Since this communication was written almost six months ago, nothing has been accomplished toward improving the courses because the money is not there. Currently available financials from the first 5 months of FY 2020/21 (July-Nov) reveal that the tax subsidy is already over $1 million.

The current formula is not working

How many communications are going to be written, and forgotten, before the Council understands that the 36-hole formula is not working and will not work?

The Mayor and 3 Council members ran on a platform to do something about the golf financial drain. The meetings and abuse they took from the “Green Shirts” are over.

Although golf is up 30% nationwide due to the pandemic, losses continue for Oro Valley due to the fact that our golfing population cannot support one entity owning 36 holes. The Town could possibly support the losses with just 18 holes.

Mr. Lopez and HSL want nothing to do with golf as witnessed by their refusal to take on the 9-hole Pusch Ridge course. This is further evidence that golf does not make good business sense.

Oro Valley is made up of more neighborhoods than Canada Hills and the Villages. In fact, the vast majority of Oro Valley residents live outside those communities. What it is going to take for the council to represent the entire Town, and not just one faction?

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Pusch Course Options Puts Oro Valley "Between A Rock and a Hard Place”

Town Manager: Two "most viable options"
The town has two "most viable options" regarding what to do about the Pusch View 9-hole golf course. This according to a memorandum to the Oro Valley Town Council from Town Manager Mary Jacobs. 

The options are: To permanently convert the 9-hole course back to natural open space for passive recreation use; or to operate etc Pusch Course during the peak season beginning next fall. 

Golf is the most costly option

Over the next five years, operating the course will cost the town about $2.6 million. Allowing it to revert to natural space for recreational use will cost a minimum of $1.6 million. There is a third option the memo does not mention. The difference in cost of $1million is significant.  (See panel)

LOVE identifies Option 3: Add this decision to the Parks and Recreation Master Plan Study

The town is engaged in a lengthy process of developing a ten year parks and recreation master plan. This property should be included in that study. 

There is no reason to rush a decision. HSL, the owner of the resort, can not force the town to do anything as dictated by the original contract. This is because contractual agreements usually have a "Force Majeure" clause. That clause suspends enforcement of a contractual agreement clause when there is an "act of god". The pandemic is such. Certainly, the town's purchase agreement with HSL for the property has such a clause.  

We suspect that the pandemic will not be officially declared over by the federal government until mid 2022, assuming that the actual infections rate is close to zero by year end.  Then, in 2022, the town can reengage HSL, the resort owner, in a discussion of them taking back the course if that is the course of action it chooses.

As for homeowners and the homeowner associations next to the course, they can wait.... Just like the rest of us. What happens regarding this property is important to all of us.

Drinking water is a huge issue if a golf course is maintained
The course uses drinking water for irrigation  The town will have to use substantial amounts of drinking water to maintain the course. The course will use up to 45 million gallons annually. That’s equivalent to 139 acres of water covered to a depth of one foot. That’s enough water for more than 500 homes for a year!

Town admits error

"Under-billed" water to course for twenty years

In addition, the town has been billing the water at a bargain rate. The course pays on the the rate for the first tier of the water rate. That’s intended for up to 7,000 gallons per month. After that, there are two other tiers with water costing more per gallon used.

According to the memo, the town just discovered this error in billing while doing the options analysis.

 “For the past 20 years, the course has continually been billed at the Tier 1 rate.’ Jacobs has no idea when it happened or how it happened. This means that the town was incorrectly billing water before the town owned the property.

The memo suggests that the town create a “turf” water rate at the tier 1 rate just to keep the cost down. If the correct rate were applied, the estimated added cost of water would be $70,000 per year. That is a yet another golf subsidy.

Creating a community natural space amenity not a “slam dunk”
To be clear, the Town of Oro Valley did not get a bargain when it purchased this course. Much of the asphalt paving is cracking, uneven or in need of replacement. The memo notes that it is estimated that 70% of the pathways need to be replaced. In addition, the memo states, and we do not agree, that there may be some short-term negative impact on neighboring property values. The memo also voices concern that there may be people from outside of Oro Valley who will want to walk the trail. This, they claim, could cause safety issues.

Council to discuss Wednesday
The council will discuss what to do with the course this Wednesday. We imagine that many residents in or near the course and their homeowner's association will attend the meeting in an effort to pressure council to make a decision that favors their interests. This approach worked last year for those who wanted the town to continue to maintain the two 18-hole courses. Both Mayor Winfield and Council Member Jones-Ivey are highly susceptible to this approach.

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The Watchdog Report: November 2020 Financials - Cloudy with a lack of transparency

 

The November financials for the Community Center and Golf are posted and they continue to be cloudy. Due to a lack of transparency, it is difficult to completely analyze the report. I asked the Town Manager why the reporting format has changed from prior years. She responded that this is the way the contractor wishes to report.

The Town Manager and the Council apparently don’t understand that the golf management company works for the Town and will report whatever the Town requires them to report. Is the Town Council happy being left in the dark?

As a result of the lack of transparency I have submitted a records request as follows:

“Stop the lack of transparency in the Town’s financials. Please forward the cost of the utilities for the Community Center Fund, the total member revenues (Dues and Cart Fees), total revenues from non-member play (including any cart fees), the cost of water for golf (taken from each pond), the number of free (comp) rounds, for July 2020, Aug 2020, Sept 2020, Oct 2020, and Nov 2020.

In the future you can expect a request like this monthly until it becomes part of the Council’s financial attachments.”

Here is what we know
• Golf lost $22,094 in November 2020 (which is great) bringing the total losses to date as $658,349.

• Golf was originally forecasted to lose $922,245 in FY 2020/21, but that has been updated to $991,280.

• The Town reported an all-time high of 279 members. (Golf is up 30% nationwide, one of the positive results of the pandemic.) They also reported 3,891 non-member rounds on 36 holes.

For comparison, one public course nearby reported 3,570 rounds of play on 18 holes. Another course nearby reported member and non-member rounds as 6,971 on 18 holes, while the Town reported 7,545 combined rounds on 36 holes. Although our rounds are up, they still do not come close to what other courses are doing.

• The Community Center Fund shows a positive balance of $102,909 for the five months ending November 2020 and is forecasted to lose $45,749 by the end of the fiscal year (June 30, 2021). Your sales tax revenues have contributed $1,090,173 from July 1 through November 30, 2020.

Pusch Ridge Course
An agreement for the El Conquistador resort (HSL Properties) to lease the Pusch Ridge course was supposed to take place by the end of January. As of January 22nd, HSL had shown no indication that this will be accomplished.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

What happened to transparency in Oro Valley government?

The problem with Executive Sessions
During a Special Session on Wednesday, September 23rd, the Town Council went into Executive Session “regarding Town golf operations at the 9-hole El Conquistador Resort Course [Pusch Ridge Course], including Memorandum of Understanding thereon and lease thereof.”

This MOU has never been discussed in public. It has never been attached to an agenda. In fact, it has only been discussed in Executive Sessions.

Executive session proceedings are private. The participants cannot openly discuss what took place in those sessions. The minutes can only be seen via a subpoena. The Executive Session that took place on September 23rd was a prime example of using the Executive Session to shield information that should be available to the public.

The Council exited the September 23rd Executive Session and moved to continue the effective date of the MOU with HSL from October 1, 2020 to January 31, 2021.

Why was the start date for the HSL Pusch Ridge lease extended?
Oro Valley residents will never know the reasons for this extension. Yes, the COVID crisis has affected all facets of the economy, including the resort/hospitality area. But it has also adversely affected Oro Valley’s sales tax revenues. So why does our Council feel the need to spend an additional 120 days of your taxpayer money to assist HSL? Why do they cut Lopez some slack, but not the citizens?

There is no requirement to hold Executive Sessions
While it’s true that contracts are one of the 7 reasons to hold an Executive Session (see the full list below), there is no requirement to do so and there appears to be more Executive Sessions in recent years than in past years. Our Town Manager seems to relish Executive Sessions as they keep matters from the public and saddle the Town Council with nondisclosure. This practice needs to stop.

The Town Council needs to make public decisions in public.

Arizona Open Meetings Laws allow for 7 reasons to go into Executive Sessions:

1. Discussion or consideration of employment, assignment, appointment, promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer, appointee or employee of any public body.

2. Discussion or consideration of records exempt by law from public inspection.

3. Discussion or consultation for legal advice with the attorney or attorneys of the public body.

4. Discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation.

5. Discussions or consultations with designated representatives of the public body in order to consider its position and instruct its representatives regarding negotiations with employee organizations regarding the salaries, salary schedules or compensation paid in the form of fringe benefits of employees of the public body.

6. Discussion, consultation or consideration for international and interstate negotiations or for negotiations by a city or town, or its designated representatives, with members of a tribal council, or its designated representatives, of an Indian reservation located within or adjacent to the city or town.

7. Discussions or consultations with designated representatives of the public body in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property.

The Watchdog Report: Community Center and Golf Financials, End of Fiscal Year 2019/20

 

The Town has published the financials for the past fiscal year (July 1, 2019 through June 30, 2020).

• Contracted services (food and golf) lost $1,616,922. This is an improvement of only $52,311 from the prior fiscal year.

• There were 264 golf members at the end of the fiscal year, which is an all-time high. However, membership was back down to 257 as of August 31st.

• The Overlook/Garden Café lost $147,201 which is $33,284 more than the prior fiscal year.

• YOUR dedicated sales tax revenues funding the Community Center and Golf were $2,584,916, which is $121,827 more than the prior fiscal year.  Primarily due to YOUR sales tax input, the Community Center Fund (CCF) ended the fiscal year with a positive balance of $408,438. If you live in an HOA adjacent to the golf courses, you not only contribute with your sales tax, but you contribute another $125,000 via HOA fees.

• The Town’s operations (fitness, swim, and recreation) lost $231,729.

HSL gets another pass
The plan for FY 2020/21 is to withdraw another $750,000 from the General Fund to pay for the improvements needed to make the community center ADA compliant.

The current Council has foolishly decided to continue with the 36-hole model. They also recently extended the effective date from 10/1/20 to 1/31/21 for HSL to begin leasing the Pusch Ridge course from the Town. This means that the Town continues paying for 45 holes of golf for another 4 months. It appears that the hospitality industry has been adversely affected by COVID. So the Town will assist HSL by continuing to provide for the “resort” course. In other words, the Town will take $125,000 from homeowners while they give HSL a pass.

I imagine that you are as tired of all of this as I am.

Let’s talk about the water situation
In FY 2019/20, the Conquistador Course needed 103,920,000 gallons of water (319 acre feet), while the Canada Course needed 106,908,000 gallons (328 acre feet). To give you an idea of how much water that is, 1 acre foot of water will service 4 homes a year. That equals 870 homes for the Canada course and 729 homes for the Conquistador course. According to the Town Manager’s Executive report, there were 122 Single Family building permits issued in all of FY 2019/20.

Yes, it was reclaimed water, but WATER IS WATER. We pay Tucson for the water. How much could we save in water alone if we had only 18 holes of golf?

Tucson’s share of the CAP water is diminishing due to the drought and the increased population in the Colorado basin and the St. George Utah area. Water is a serious issue in Arizona and Oro Valley has decided to use more than its share on 45 holes of golf.

So, with the water situation and the continued losses, why does a Town of 45,000 citizens provide 45 holes of golf? This golf course fiasco gets more absurd and ill-advised as time goes on.

. . .
Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Guest View: Mike Zinkin - What Happened To Oversight?

What happened to oversight?
Oro Valley is not governed by the elected officials but by the Town staff. There hasn’t been any oversight over staff functions since the Hiremath regime.

Council authorized town manager to sign for El Conquistador Country Club without due diligence
A perfect example of this is the Purchase and Sales Agreement (PSA) executed between HSL and the Town. That agreement culminated with the Town owning the Community Center, 45 holes of golf, 2 swimming pools, and numerous tennis courts. The motion that allowed for this purchase was to instruct the Town Manager to negotiate and execute the agreement.

Council never reviewed the agreement

Click to enlarge

Prior to a vote on the motion to allow for this, a couple of Council members asked that the Council be allowed to review the agreement prior to it being signed. The Hiremath people were aghast with this proposal. After all, they argued, we hire the Town Manager and staff to do this kind of work…they are educated in this...they know more than we do. In other words, we, the elected officials, are delegating our authority to you, the town employees, to enter into this agreement.

The Council is accountable to the People, the staff is not
Why would council delegate, without oversight, something as important as this? We all can now see the results of the PSA. No elected official has signed the PSA. It was signed by the Town Manager and the Town’s Legal Services Director. I doubt that any elected official has even read the PSA.

Any legal document that binds the Town should be signed by the Mayor
The latest agreement between the town and HSL, the one that leases the Pusch Ridge 9-hole course back to HSL, is going to be signed by the town manager (see MOU above).

I wonder…Do the current council members know the “details” of this lease agreement? The lease agreement itself has not details at all.  Is HSL going to be responsible to make the Pusch Ridge pro shop ADA compliant of is this the town’s problem? Is HSL going to get reduced water rates for the potable water being used on the golf course? Is HSL paying $10,000/yr. to lease the course? How many years is the lease valid? The contract is misdated!

Return this power where it belongs, to the elected officials 
My message to council is simple: Do your job. Get in the “weeds.” Stop delegating your authority. The People trusted you to do a job on their behalf. They did not entrust an employee of the town to do that.

Twenty-Two compelling questions regarding the Town-owned golf courses

The following letter was recently submitted to the mayor, council, and town manager by three Oro Valley residents who believe that these questions should be explored prior to the council making a decision on whether or not to continue operating the golf courses.
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To: Mayor and Council
Copy: Town Manager

The three undersigned individuals are all residents of Oro Valley. We each have an idea on how the golf course dilemma should be resolved. One is an ex-Councilman who voted against the purchase of the property, the other is the current President of the Men’s Golf Association, and the third is an extremely interested and involved officer in a local HOA. We have set aside our biases in order to provide this communication to you.

We understand that you are the decision makers of Oro Valley. We believe that you cannot make a responsible decision until the following questions have been thoroughly investigated and answered without political bias or agenda.

Please consider the following questions:

1. What is the vision for the future of the golf courses?

2. What objective(s) are you attempting to achieve with the subject decision? For example: Minimize the tax subsidy? Protect property values? Maximize public access?

3. What quantitative and qualitative metrics (payroll, utility/water costs, maintenance, green space acreage, space and time allocated for public use, etc.) are going to be evaluated and who are the subject matter experts that will quantify the metrics?

4. Explicitly describe the “community outreach process” you believe necessary to be implemented prior to making a decision regarding the future of the golf courses.

5. What is the amount of acreage that will be repurposed as part of each of the golf configurations described in the Town Manager’s May 24, 2019, Memorandum to the Mayor and Council? (Attached) Please add an additional option that was not mentioned in the attached Memorandum, that being to convert to the original 18-hole configuration.

6. What would be the cost per acre for the repurposing acreage of the golf configurations described in question 5 above, and what authority was used to determine such cost?

7. Would any of the repurposed acreage in each of the above configurations (to include the original 18 configuration) be repurposed to green space and, if so, how much acreage would be involved and at what level as described in page 9 of the attached Memorandum?

8. How long would completion of the repurposing process take for any acreage involved in the above configurations, and how was that timeline determined, and by what authority?

9. What level of tax support would be required for each of the above configurations, including the costs for repurposing acreage, and the five-year costs for maintenance for the repurposed acreage associated with those configurations that include repurposing?

10. What is the revenue reduction to the Water Utility for reclaimed water currently paid by the golf operation that would result from each of the subject reconfigurations? OR – What is the true cost of providing reclaimed water to the golf courses under the current configuration, and how is this cost modified by each of the proposed configurations?

11. How was the estimated revenue reduction in the Water Utility that is described above determined?

12. In what manner would any revenue reduction described above be addressed by the Water Utility if a golf configuration resulting in such a revenue reduction were adapted?

13. If a golf configuration is adopted that requires the repurposing of acreage in a manner that would impact existing, or establish new washes, what would the provisions of the Federal Clean Water Act have on such work, and what steps are in place to address such impacts, if they exist?

14. What discussions have taken place, or are currently taking place, to involve HSL and the Pusch Ridge HOA in the potential of those entities taking on the responsibility of the 9-hole Pusch Ridge course?

15. What, if any, actions have taken place by Town officials to investigate the possibility of leasing the Town owned golf courses?

16. What, if any, consideration have Town officials given to the possibility of entering into a Private/Public partnership regarding the operation of the Town’s golf courses?

17. Has the Town prepared itself for the numerous lawsuits that will likely be filed if property values are adversely affected by any decision made with respect to the golf courses?

18. What specific actions has the Town considered to grow revenue (raise member dues, green fees, HOA assessment) and reduce payroll and irrigation (turf reduction) costs?

19. Will the Community Center Fund, with its sales tax revenues, be able to cover any additional debt service which might be needed?

20. Does the Town of Oro Valley have a fiduciary responsibility to the property owners on or near the golf courses?

21. Does the town know the assessed impact of lost business and tax revenue from visitors if the golf courses were to be shut down or change significantly?

22. Have Town Officials that may have personal interest in the outcome other than official business recused themselves from any deliberations or decisions?

We sincerely hope that you will seriously address each of the issues presented so that the decision that you ultimately make is truly in the best interest of the entire Oro Valley community.

Respectfully,
Rob Wanczyk
Michael Schoeppach
Mike Zinkin

Guest View: Kim Krostue ~ Preserving 18 holes on the La Canada course is the best option

After the adjournment of last Wednesday’s standing room only Town Council meeting, the Council held a “listening session” with residents regarding the Community Center Golf Courses. Oro Valley resident, Kim Krostue, gave the following speech.

My name is Kim Krostue. I have owned a home on the tenth fairway of the Views golf course for 8 years.

I have reviewed the financials of the Town’s 45 holes of golf. Clearly the status quo is not financially sustainable. A change needs to be made.

First, the 9 holes need to be sent back to HSL.

Second, I have studied the National Golf Foundation’s 2018 report. There were 3 options discussed. The 18-hole option (Option C) is the correct one. However, the 18-hole configuration as outlined in the report seems artificial with a new 18-hole course carved out of the La Canada and El Conquistador courses, preserving holes on each course.

I would suggest changing this and just keeping the La Canada course as is. I would repurpose the El Conquistador course preserving the views of all current El Conquistador homeowners. By selecting the La Canada course, I believe the 4.2M conceptual reconfiguration cost outlined in the NGF report (Option C) could be reduced perhaps dramatically thereby leaving money for community center improvements. Plus the move to 18 holes could be done almost immediately with all required irrigation work being completed this summer.

I believe moving from 45 holes of golf to 18 is the best option to preserve the property values of all homeowners living on every golf course in Oro Valley and will also allow the La Canada course to operate in the black.

Mr. Krostue also submitted the following comments on Take Back OV (Facebook Page):
If you weren't there, take the time to watch. The attitude in the room demonstrated why Hiremath and crew were crushed in the election. The golf club members led the charge for a continued free lunch. No other way to say it. I do not remember anyone in the “keep 36 holes group” arguing that golf should operate financially in the black. The NGF study captured this group’s attitude in the 2017 study and nothing has changed.

I learned something significant at the meeting. The deed restrictions in the HSL contract apply to the La Canada course and the 9 holes, not to the El Conquistador course. It appears that the town manager (staff) did not understand what the deed restrictions actually were until after last month’s study session. Think about that for a second.
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Editor’s Note: Mr. Krostue’s comment, “The NGF study captured this group’s attitude in the 2017 study and nothing has changed” was in reference to a comment by the National Golf Foundation after a 2017 meeting with El Con golf members and residents living along the golf courses.

“The feedback from these groups showed very little tolerance for change and lack of concern for the troubled facility economics." ~ Summary statement, Page 4, National Golf Foundation Study

Guest View: Jack Stinnett ~ How Special Interests have influenced our Town Council elections

Just since 2014, developers and special interests have contributed a quarter of a million dollars to influence the elections of Oro Valley’s mayor and council. So far it has worked to allow their candidates to control our town and approve every developer requested General Plan amendment and rezoning.

Town Council decisions allowing rampant over-development is viewed by many as being a direct result of developers and special interest money buying our small town elections. Below is the sequence of events that has caused our town to fall prey to outside big money influence.

2010 Election
This was Hiremath’s first run for mayor and he funded his campaign at a level 5 times greater than his opponent. Hiremath raised over $45,000, (some from personal loans) and $13,000 from special interests. Despite this advantage, Hiremath won the 2010 election by only 30 votes. His campaign later repaid his personal and family loans.

2014 Election
In the 2014 election, Mayor Hiremath and Councilmembers Hornat, Snider, and Waters ran as a team who knew “what was best for Oro Valley.” Hiremath was opposed by Patrick Straney. Donald Bristow was the only opposing council candidate.

Hiremath-Hornat-Snider-Waters had now learned the campaign finance model, as did the developer, builder, and real estate community. This time, special interests kicked in $59,000 (a four-fold increase from 2010) for a second term of their team who knew “what was best for Oro Valley."

The Top 5 Donors in the 2014 Election were: [click to enlarge]

The special interest funded candidates won re-election. Why was this unheard of level of Special Interest funding needed to fend off two first time candidates -- and two incumbent council candidates who were effectively running unopposed?

2015 Recall Election
In the 2015 Recall election of Hiremath-Hornat-Snider-Waters, special interests once again contributed heavily to keep their council in office. Humberto Lopez (HSL Properties), the HSL Family trust, and HSL employee Omar Morales donated $24,000 to defend Hiremath-Hornat-Snider-Waters against four recall opponents.

Through the October 15, 2015 campaign finance report, Mayor Hiremath alone had raised $104,000 and spent $101,323 to retain his office against challenger Patrick Straney. Despite Hiremath outspending Straney by 15 to 1, Hiremath won with only 51% of the vote.

2016 Council Election
In the 2016 election, candidates Rhonda Pina, Bill Rodman, and Steve Solomon defeated incumbents Zinkin, Garner, and Burns, effectively giving Mayor Hiremath a 7-0 council. Zinkin, Garner, and Burns had refused to accept donations from special interests and were heavily outspent as a result. Once again, the special interest funded challengers won the election.

The result of three special interest funded elections (2014-2015-2016)
During the period 2014 through 2016, special interests funded Mayor Hiremath and our six elected council members to create an unassailable 7-0 council majority. Since the new council took office in November 2016, over 90% of all decisions have been 7-0 votes, with many items agreed prior to council meetings by "consent agenda" and never discussed in public. Not one developer requested rezoning or General Plan amendment has been denied by the Oro Valley mayor and council.

The Top Donors to Mayor Hiremath and the current council from 2014 to 2016 were: [click to enlarge]

2018 Primary Election
Now running for a third term, Hiremath-Hornat-Snider-Waters reported $61,580 in campaign contributions during the 2nd quarter reporting period [April 29 - June 30]. (Editor’s Note: Campaign Finance Reports through August 11th reveal that the incumbents raised an additional $35,581 since the June 30th reporting period.)

Further inspection reveals that over 90% of this amount came from developers, landowners, and other special interests expecting to do business with or in Oro Valley.

As of the June 30th reporting period, the incumbents raised less than $2,000 from Oro Valley residents. That’s not nearly enough to pay for the multiple glossy, multicolor mailers we have received, much less the multiple full page ads in the Explorer.

So when you receive all their promotional material, recognize that it is coming from special interest contributions to influence your vote to keep the status quo for them.

Let’s vote ‘em out.

Editor’s Note: For more information on the updated Campaign Finance Reports, please scroll down to read our Special Saturday Edition that you may have missed since we don’t normally publish on the weekends.

Guest View: Mike Zinkin ~ Oro Valley Government lies to the citizens

Those who saw the movie, "The Post" learned that the "Pentagon Papers" were a classified government document that showed that every presidential administration from Eisenhower to Nixon lied to the American people about what was going on with the Vietnam War. Although not of the same scope, something very similar is happening in Oro Valley.

Town Staff Controls the Message
When one attends the Newly Elected Training Session (for new councilmembers) presented by the Arizona League of Cities and Towns, one learns (among other things) about the Open Meeting Laws, how to work with the media, and that Town staff controls the message.

Governing boards, whether they be City Councils, School Boards, Boards of Supervisors, etc., are made up of ordinary people. They are not Planners or Civil Engineers or Public Safety experts. They are laymen that are interested in their communities and have a desire to help establish policies. As a result, they depend on the information provided to them by their staff.

Staff works for the Town Manager, who works for the majority of Council. During my four years as an Oro Valley Town Council Member, I was told on many occasions by former Town Manager, Greg Caton, that, "I do not work for any individual Councilmember, I work for the Council majority."

Why is this the case? Because if the Town Manager does not please the Council majority, the Town Manager will lose his/her job. As a result, the message that the Town Manager gives to the 7-member Town Council is manipulated to please the 4-member Council majority. It’s in the Town Manager’s best interest to tell them what they want to hear.

This happens all the time, but on December 17, 2014, the night the Council voted to purchase the HSL property (the Community Center plus Golf and Tennis), the staff controlled the message to show that the purchase was desirable for the Town because that’s what the mayor and his Majority-4 cohorts wanted to hear.

The Message was a Lie
Now that we have almost three years of financial data as evidence, we can see that the message was a lie.

The message was that all expenditures, including the needed capital improvements, would be covered by the dedicated increased sales tax plus the revenues derived from the facility and that no money would be taken out of any other Town funds to supplement Community Center/Golf expenses (other than for the initial transfer of $1.2 million from the General Fund to the Community Center Fund which would be paid back at $120,000 per year for 10 years.)

The Power Point presentation provided to the Council shows that in the area of capital improvements for both the facility and golf, they would spend the following:

$810,000 in FY 2014/15      (including $50,000 for golf improvements)
$1,860,500 in FY 2015/16   (including $1,310,500 for golf improvements)
$1,772,500 in FY 2016/17   (including $1,282,500 for golf improvements)
$596,000 in FY 2017/18      (including $130,000 for golf improvements)

And between 2015-2018, they were going to spend:

$1,037,000 for "ADA and Code Compliance Life Safety Issues"
$522,000 in "Facility Restoration"

These two slides show what they were planning to spend on golf improvements, ADA compliance, and facility restoration in each fiscal year. [Click to enlarge]

With this information, the Council majority (Mayor Hiremath, Vice Mayor Waters, Councilmembers Hornat and Snider) voted to purchase the property. However, it now appears that the staff lied in order to please the Majority-4 Councilmembers.

The Budget was a Lie

In fact, after the purchase was made, staff only budgeted the following:

$1,115,000 in FY 2015/16    (NOT the $1,860,500 that was promised)
$527,200 in FY 2016/17       (NOT the $1,772,500 that was promised)
$94,250 in FY 2017/18         (NOT the $596,000 that was promised)

How much did they actually spend?

The real story lies in what they promised vs. what they budgeted vs. what they spent.

In FY 2014/15, they spent only $37,873 of the $810,000 they promised. I’ll give them a pass on this due to the 2015 referendum which delayed the purchase until May 2015; however, the promised capital improvements were not carried over to the next fiscal year.

In FY 2015/16 the total capital outlay was only $499,744 of the $1,860,500 they promised.

In FY 2016/17 the actual capital outlay was only $72,414 of the $1,772,500 they promised.

Half-way into FY 2017/18, the capital outlay is only $29,464 which is a far cry from the $596,000 they promised.

The promise that no money would be taken from any other Town funds was a Lie
Remember that all this money was going to come from the sales tax increase and revenues from the golf and community center. There was not going to be any more money taken from the General Fund (other than the $1.2 million to start the Community Center Fund).

Here’s what actually happened. In June 2017, the Town Council voted to transfer an additional $350,000 from the General Fund to the Community Center Fund. Later in 2017, the staff took $21,323 from the Bed Tax fund (hotel room tax) to cover the overage from tennis court improvements.

Now the Town Manager and Council are discussing the potential of bonding (incurring a debt service) for the continued improvements required for the Community Center facility and Golf courses.

They lied. It’s clear that there was no way the needed capital improvements and the required Operations and Maintenance for the purchase would be covered by the sales tax increase. They didn't even budget for the promised improvements in the subsequent budgets. They promised there would be no debt service (bonding) but now they’re discussing bonding to pay for Community Center expenses. They lied.

You think this is bad? Part 2 will discuss Troon’s lies.

[Slides provided in this article are from the December 17, 2014 Power Point presentation]

Part 2 will be published on Thursday.

From our Readers

One of our readers sent us the following information that they found on the Town website on the Parks and Recreation page. The notice is on the bottom left of the Parks page under the “Announcements” tab.

NARANJA FIELD 1 AND 2 CLOSED JANUARY - FEBRUARY

"Naranja Field 1 and 2 will be closed from Monday, January 8, 2018 - February 24, 2018. The closure is due to a training camp for Major League Soccer team, the New York Red Bulls. For more information please call 520-229-5050. Thank you."

You can read the notice HERE

We all thought that the critically needed fields in Naranja Park were “ for the kids.” Guess not. It seems the kids have been kicked off fields 1 & 2 throughout January and February so the fields can be used for exclusive training use by a Major League Soccer Team.

Maybe that’s why the town spent $600,000 for each soccer field, twice what youth fields cost in other communities. But hey, the team is staying at the EL Conquistador Resort so it’s a win-win for HSL. 

Oro Valley Soccer Mom voices her displeasure

The below comment was left on the Parks and Rec Facebook page by a mother of two soccer players.

"I am a bit confused.  I am a parent of twin U6 soccer players who just got informed that the Town gave away our practice space, and despite many parents already paying the fees, we don't have a start date for our season.  It was supposed to start Monday the 8th.  Back when the Town wanted the parents of soccer players to vote for the Bond Measure, it was supposedly [because] we did not have enough space for the children.  However, we have enough of our meager space for New York soccer teams?"

Guest View: Mike Zinkin ~ The impact of the HSL Contract

Town Council never reviewed the Community Center/Golf Courses Purchase Agreement
In December 2014, the negotiated purchase agreement between HSL (Humberto Lopez) and the Town was delegated to former Town Manager, Greg Caton. Former Town Attorney, Tobin Sidles, was also on the team. During the process, three council members (Bill Garner, Brendan Burns, and myself) requested that the Council have a chance to review the agreement prior to the closing of escrow.

The Council majority (Hiremath-Hornat-Snider-Waters) did not think this was necessary because [paraphrasing], "We pay these people (Caton and Sidles) because of their expertise and who are we to interfere?" The agreement is a 585 page PDF file that appears to have been written entirely by the HSL team as it is heavily slanted in favor of the seller.

Below are excerpts from the self-serving contract:

Agreement: The Town can never manage golf because the agreement states that, "the Purchaser (Oro Valley) shall not terminate the Management Agreement unless…Troon is replaced with a professional national or regional golf management company with prior experience managing both municipal and resort courses."

Impact: The Town cannot reduce expenses by managing the golf courses themselves.

Agreement: The El Conquistador resort gets priority golf and tennis reservations.  "Resort owner and its hotel management agent shall be permitted to book reservations for the La Canada Course and at all tennis facilities for its hotel guests ....which allows the Resort owner to reserve golf and tennis for Resort guests on a priority basis (provided the booking is made at least two weeks in advance)."

Impact: The El Conquistador Resort gets priority tee times over golf members and outside players, even when resort guest rounds are comped. Golf Members are paying for resort guests to get priority tee times.  Taxpayers (you) are paying for other people to enjoy free golf!

Agreement: Remember when the Mayor (and others) used scare tactics to convince citizens that if the Town did not purchase this property, there was the potential for other development on the golf courses?  This is not true.  The agreement states: "The Resort Course and the La Canada Course shall be deed-restricted so that such courses are used as golf courses, open space, or recreational amenities, the Tennis Facilities for at least 28 courts shall be deed-restricted and may only be used and operated as tennis courses and related uses, if the Town ceases to operate the Canada Course or Tennis Facilities, then the Resort Owner shall have the right to lease such facilities from the Town for a 50-year term.” [$10,000 per year for 50 years.]

Impact: Residential and/or commercial development is not permitted on the Resort (Pusch Ridge) and La Canada course. A minimum of 28 tennis courts must remain in operation even if the Town is losing money on them.

Agreement: The agreement states that "as long as the Resort Property is used as a resort or hotel, at the election of the resort owner, the name of one or both of the two 18-hole Golf Courses SHALL contain the words "El Conquistador."

Impact: The Town must provide free advertising for the El Conquistador Resort.

Agreement: The agreement states that "if, at any time the Resort Course and or/La Canada Course become a discontinued Facility, and is utilized as open space or a recreational amenity instead of a Golf Course Facility, then, provided the Resort owner does not elect to enter into a Discontinued Facility Lease for all or any portion of such Discontinued Facility, the Town SHALL maintain, repair, and landscape such open space and/or recreational amenity, in a manner that controls dust, removes litter and debris, and landscapes and maintains the open space in a manner compatible with the operation of the Resort as a first class resort property."

Impact: If the Town discontinues the golf facilities, the Town is still obligated to pay for maintenance, repair, and landscaping of those grounds if the Resort does not exercise its option to lease the courses. The Town must continue to maintain the property for the holes south of Lambert even though it is not Town property and is owned by The Village of La Canada HOA.

A contract by HSL for HSL
It’s clear that this contract was written “by HSL for HSL” as everything in the contract is written to protect HSL. This is a legal document, signed by the former town manager. Hence, we are stuck with it.

Nice job, Mr. Caton, Mr. Sidles, and those four members of the Council who did not desire to review the Agreement prior to the close of escrow. Too bad the mayor and his cohorts did not desire to "get into the weeds.” During the last Council meeting that Mr. Caton attended as our Town Manager, the mayor stated that Mr. Caton "always hit it out of the park.” After reading this agreement, one might wonder -- for whose team was Mr. Caton playing? What happened to Oro Valley Residents being at the top of the Town of Oro Valley Organizational Chart?

The REVISED Town of Oro Valley Organizational Chart