Editorial ~ A Calculated Investment

HSL's Deal With Oro Valley A Sweet One Indeed
According to Campaign Finance Reports from 2014-2016, Mr. and Ms. Humberto Lopez and Mr. Omar Mireles of HSL Properties have given over $80,000 in campaign contributions to Mayor Hiremath and Councilmembers Hornat, Snider, Waters, Pina, Rodman, and Solomon. That’s correct. HSL spent $80,000 to ensure that the Majority-4 would be elected, survive their recall, and also add three more members to the "cohesive unit" of the “Developers’ Council” in 2016. Why would HSL Properties find it so important to get a Majority-7 elected?

Since the town purchased the property, the El Conquistador resort has been able to provide the amenity of golf to its clients at no cost to the resort. Oro Valley is now paying for all the maintenance required to provide golf and tennis to the hotel guests of the El Conquistador "Resort.” We all know how much this is costing Oro Valley taxpayers who are subsidizing this deal ($2.4 million in losses in FY 2015/16). Meanwhile, it’s costing the owners of the resort (HSL) nothing.

The Art of the Deal
The purchase agreement between the Town and HSL stipulates that should the Town no longer desire to remain in the golf business, the resort owner has the option to lease the Canada course from the Town for $10,000 a year for 50 years. If the majority of Council voted to make that decision, HSL would now have a real dilemma.

Why? Because it’s a requirement of the Hilton Hotels chain that in order to retain the "resort" moniker, the hotel must supply 18 holes of golf for its guests. Therefore, HSL would either have to maintain the 18-hole Canada course or relinquish their "resort" status. For HSL to maintain 18 holes of golf, it would cost them at least $700,000 per year...much more than the $80,000 HSL Properties spent to ensure that the Oro Valley Town Council continues to provide golf for them.

HSL Reaps Dividends
That's why the $80,000 investment to get the current council elected was a real deal for Humberto Lopez and HSL Properties. HSL turned an initial $80,000 investment into a $700,000 a year dividend.

Guest View-Jack Stinnett: “Mo” Greene’s Shocking Ties to Developer Donations

Accused Price Fixer, HSL Properties, bas been a fixture in financing Oro Valley candidates since 2014
Since 2014, their practice has been to invest in the campaigns of development-friendly candidates. Their goal is to displace non-aligned, self-funded candidates on the council, none of whom were development-inclined. 

This approach reached a zenith in 2016 when HSL-funded council members Steve Solomon and Bill Rodman were elected to the council by outspending and defeating incumbents Mike Zinkin and Bill Garner.

The HSL strategy of financing candidate campaigns paid off for them
Since buying the El Conquistador resort in 2015, HSL Properties has developed apartments along Oracle Road. In addition, it has 500 apartments approved for their Oro Valley Marketplace development and is Oro Valley’s largest rental landlord. HSL is currently charged with price fixing rents.

Residents said "No" to developer campaign financing in 2018
Oro Valley residents voted out HSL-supported candidates in the 2018 council election and in 2022 rejected the HSL candidates once again. This occurred despite more than $81,000 of HSL-directed donations to mayoral candidate Sharp and council candidates Rodman, Hurt, and Erceg.

These donations included $32,000 from four HSL family trusts, which constitute campaign finance violations. That matter is currently being investigated by the Pima County Attorney.

Solomon and Greene, HSL-financed current council members, championed high-rise apartments for the Oro Valley Marketplace in 2022
Re-elected in 2020, council member Steve Solomon was the HSL spokesman for their proposed five and six-story apartments at the Oro Valley Marketplace. Dr. Harry “Mo” Greene, newly elected in 2020, provided the necessary second for Solomon’s pro-HSL Oro Valley Marketplace motions and voted with Solomon to approve the Town West / HSL plan for these apartments. Fortunately, the Winfield majority voted down the Solomon-Greene motion and approved two and three-story apartments at the Marketplace. These apartments will be adjacent to the Tangerine Road and Oracle Road scenic corridors.

Now, HSL funds Greene’s re-election campaign
In the first quarter of this year, HSL’s owner and employees contributed $13,050 to “Mo’s” re-election campaign [panel above right]. None of the contributors are residents of Oro Valley. The second quarter campaign finance report may show more.  Even, then, there will be a campaign finance report filed after the election. That may contain more.  For example, Greene reported an added $4,500 recived  from HSL officers and employees after the 2020 election. 

With council member Solomon’s recent announcement that he will not seek re-election in 2024, it looks as if Dr. Greene, if re-elected, will likely be the HSL spokesman on the Oro Valley Town Council. So look for HSL funded campaign ads and thousands of mailers supporting “Mo” and attacking his opponents to help re-elect their main man.
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Editor Note: No other candidate has accepted donations form the development community.

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The Dots Connect Between Mayor Hiremath and HSL Properties

On May 2, 2014...
Mayor Hiremath receives a $5,000 political campaign donation from Humberto S. Lopez. Lopez is not an Oro Valley resident. Lopez owns and operates Tucson-based, HSL Properties. The amount of the contribution is so large that Mayor Hiremath amends his campaign filing report to split the donation between Mr. Lopez and his wife.

From June through December 2014
Mayor Hiremath leads a negotiation between Town Of Oro Valley and Lopez' HSL Properties to purchase and operate the El Conquistador Country Club. Oro Valley will make this purchase once HSL buys the Hilton El Conquistador Hotel and Resort out of bankruptcy.

Though other council members could have been appointed to lead this effort, Mayor Hiremath takes the lead in these negotiations. He does not recuse himself. That would have alleviated concerns by the public of a conflict of interest.

The deal is rushed to council because, according the Hiremath, HSL must have an answer on whether Oro Valley will buy the property because "...there are 2 other buyers in line." He does not identify the other buyers. None materialize after a 6 month delay in the actual purchase. As a result, people believe that there were no other buyers.

The deal negotiated by Hiremath is of great benefit to HSL Properties (See panel on right).

December 17...
The deal goes before council for final approval. There is a "faux" public hearing.

Many respected Oro Valley residents speak on the matter. They include residents you may not know like Marv Snyder, George Kates, Bill Ayers and Wally Vetty. They include some you should know like Helen and Alan Denkwerth.

The vast majority of the 39 speakers are either against the purchase or urge greater caution before making the purchase decision. They raise issues such as inadequate plans, financial forecasts that are far too optimistic, the negative impact on property taxes because the town, and not a private enterprise, will own the golf course, the downturn in the game of golf, and Oro Valley going into competition with private enterprise.

One Oro Valley resident, Lori Pettijohn, reminds the council that not all people who live in Oro Valley can afford the sales tax increase to pay for this transaction. Her family is a military family. She reminds the Mayor: "Not everyone has a dentist's income."

The deal is so confusing, so rushed and so poorly studied that the minority says that they will vote "no."

The Mayor brooks no motion to delay the decision. "I promised HSL that they would have an 'up or down' decision tonight."

A vote ensues. It is 4-3.

Mayor Hiremath and council members Hornat, Snider and Waters approve the purchase of  45 holes of golf, tennis courts, 2 small swimming pools, a snack bar, a full service restaurant, and a clubhouse. They state that the town will convert the clubhouse into a community and recreation center.

Next, the four approve a sales tax increase from 2.0% to 2.5%, a 25% increase in the rate, to cover some of the losses from the golf course and community center.

The result...
This deal splits Oro Valley residents apart such that residents become active. Some form a PAC to put the purchase to a vote. This effort fails because of the use of the wrong reference number on the petition form. Others turn to their next avenue: A recall vote on the four incumbents. They spend enormous effort (See Monday's post) to make this happen.

Their assertion is that Mayor Hiremath and council members Hornat, Snider and Waters disregarded substantial resident input against the deal or the caution that further study and public vetting be done. They assert that the four ignored the fact that a 25% increase in the sales tax rate has a significant impact on families who are struggling to make ends meet. They assert that the Town Of Oro Valley should not be in competition with private enterprise. They assert that the purchase commits Oro Valley to multi-million dollar deficit spending on the golf course. They assert that the purchase commits Oro Valley to decades of a contract with Troon Golf to manage and operate the course and the restaurant even if these facilities lose money (Town forecasts show millions is losses).

As LOVE reported Monday, Mayor Hiremath and council members Hornat, Snider and Waters, the four being recalled, have yet to directly address these assertions. Instead, they focus on anything but what they did since last August.

November 3...
 The trail of "quid pro quo" between Mayor Hiremath and Lopez is documented by fact. Lopez donated $5,000 to Hiremath's reelection in May. In December, Oro Valley facilitated Lopez' purchase of the El Conquistador Resort. Oro Valley did so by purchasing and then agreeing to operate, virtually in perpetuity, 45 holes of money losing golf. It is Hiremath who led the negotiations and who pushed the purchase through with the help of council members Hornat, Snider and Waters.

It is possible that these events are non connected. It could be a coincidence.

What do you think?

This is what actually happened. It's documented. However, the story is not complete.

You will write the rest of the story on November 3.

Recall Petitions Filed Today as Town Of Oro Valley Announces Purchase of El Conquistador Country Club

Oro Valley Citizens For Open Government ("OVCOG") announced Friday "...that it has amassed sufficient petition signatures for (a recall election of) Council members Hornat, Waters, and Snider." OVCOG will submit the petitions to town clerk Bower today.

Also Friday, the Town Of Oro Valley announced that it has entered into an agreement to purchase the El Conquistador Country Club. "On April 23, 2015, [Town Of Oro Valley and HSL Properties] signed the tentative contract for the purchase, which is currently at the title company for finalization. The Town anticipates a transfer of ownership to take place by May 1, 2015." (Town Of Oro Valley Press Release)

A recall election is far from a sure thing
In order for the recall election to occur, Oro Valley Town Clerk Bower must review the submitted petitions. She will determine if they are in substantial compliance with legal requirements. Any error of any magnitude will result in the rejection of the petitions. If the petitions past her inspection, the petitions will go to the county. They will seek out invalid signatures. These processes will take at least 5 weeks.

The right of recall is in the Arizona state constitution. The legislature has written requirements for petitions that are so stringent as to prevent the right of recall. Even the most insignificant mistake will result in rejecting the petitions. For example, in January Oro Valley Town Clerk Bower rejected the petitions that would have allowed a vote on the town's purchase of El Conquistador Country Club. She rejected the petitions because the petitions did not include the correct filing number on each page of each petition. The rejection was upheld in both the lower court and the appellate court. The Supreme Court has been asked to hear the case on constitutional grounds. The court will not decide until late May if it will consider the case. 

If, after the scrutinization of both the town and county clerk, the petitions are approved and if there are sufficient valid Oro Valley registered voter signatures, then a recall election will occur. This would be on November 3. This is at the same day voters will be asked to approve property taxes to pay for a massive $800million Pima County Bond Issue.

OVCOG contines to seek signatures for Hiremath recall
"Signature gathering continues for Mayor Hiremath - accounting for the required higher threshold [in the number of Oro Valley registered voter signatures] for the mayor's position and the desire for a sufficient cushion to ensure a successful recall process." The group did not release a date on which they plan to turn in these signatures.

Oro Valley purchases El Conquistador Country Club
While all this has taken place, the Town Of Oro Valley has moved forward with its purchase of the El Conquistador Country Club from HSL properties. HSL is known in Pima County for is unusual dealings with the City of Tucson regarding its "begging" for help with a downtown hotel. They are know in Oro Valley because they built the large apartment complex, La Encantada at Steam Pump on Oracle Road. This required rezoning that was approved by the council majority.  HSL was a significant contributors to the 2014 election campaigns of Mayor Hiremath and council members Hornat, Snider and Waters.

The transfer of ownership of the El Conquistador Country Club will occur on May 1.

The purchase may have "strings" that benefit HSL and preclude future property sale
We have previously reported that the sale of the property to Oro Valley by HSL may have conditions that guarantee great benefits of golf course and club use to the Hilton El Conquistador, which HSL owns, over many years. At one point, we understand that HSL was requesting the right to approve any Oro Valley sale of the property. This kind of condition would diminish the market value of the property and make it more difficult for a third party to purchase it. As we reported, there is a bone fide offer by Oro Valley resident Rick Chandler to purchase the property.

LOVE will provide a detailed analysis of the purchase agreement once it becomes available.

Mayor Hiremath: "An exciting time for our community"
"This is a very exciting time for our community," said Mayor Satish I. Hiremath. "Since the 1990s, our residents have expressed a desire for a community center-for a central gathering place. We now have the amenities to meet that need as well as provide increased parks and recreation programming for all ages." (Oro Valley press release)

Many do not share the mayor's enthusiasm. 
This is because the purchase is far more than for a community center.  "The purchase includes 324 acres of land, a 31,475 square-foot building, restaurant, 31 tennis courts, 45 holes of golf and two swimming pools." (Oro Valley Press Release)

To many, this is a massive, costly, and risky undertaking for Oro Valley
The purchase is a massive undertaking by Oro Valley. The $1million purchase price is small in comparison to the amount of investment required to rebuild the property. Oro Valley Town Manager Caton has recommended 2015-16 funding for the facility at almost $8.2million. $6.3million of this is to pay for a management contract with Troon Golf. The town's investment, according to information provided to us by the town, is well over $8million over 5 years. There are others, however, who believe that the investment will be more than $13million.

The council majority increased the sales tax one half percent to pay for some of the cost of operating this facility.

The purchase is also significant risk. The sport of golf is in decline. Green fees are dropping as competition for fewer golf rounds heatsup. In addition, the town is using public money to compete with the private enterprise golf clubs in our community. Every one of these courses is struggling to survive.

Bits and Pieces

Lopez Sets Record Straight: HSL Would Not Have Waited If Oro Valley Had Not Voted To Buy El Conquistador Country Club

"I want to make it clear that if the decision to buy the El Conquistador Golf Club had not been made [by the Oro Valley Town Council] on December 17th, we would have pursued our other sale opportunities and would be unwilling to wait until May or even March to complete this transaction."

This is a direct quote from a letter that Lopez of HSL properties, the company that is going to sell the El Conquistador Country Club To Oro Valley, sent a letter to the Greater Oro Valley Chamber of Commerce.

In this letter Lopez said that HSL is now willing to wait for the town to purchase the property because the town had agreed to do so.

Superior Court Judge Aragon To Hear TOOTHINOV.ORG Appeal Tuesday

We have received information from TOOTHINOV.ORG that their appeal appeal of the rejection of the referendum will be heard next Tuesday.  The the judge assigned to the case, the Honorable Gus Aragon, will hear pleadings at 10 am in Superior Court. (Related News Story)

HSL Hopes To Close Deal on El Conquistador Country Club Sale To Oro Valley By March 1

"Hospitality specialists from CBRE offices around the country negotiated the recent $15 million sale of Oro Valley’s Hilton El Conquistador Golf & Tennis Resort and the El Conquistador Country Club to Tucson-based developer HSL Properties.

HSL plans about $16 million in rehabilitation and capital improvements on the hotel portion of the property, with work to take place over the next 12 to 18 months. HSL has also started the process to split off the resort’s country club and 45 holes of golf to the Town of Oro Valley. HSL hopes to finalize that sale by March 1, although local residents have initiated a referendum petition drive that could potentially halt the sale." (Source)(Alternative Source)
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Oro Valley Cops Stolen Wallet Found In Stafford

Stafford Police arrested a man in possession of an Oro Valley Police Officers stolen possession.

"Alejandro Andres Martinez, 31, of Safford, was arrested and booked into the Graham County Jail early Saturday morning on charges of taking the identity of another person, theft and failure to comply with a police officer after numerous identification, debit and credit cards belonging to an Oro Valley Police officer were found in his possession.

After placing Martinez in their patrol car for failing to comply with the officer’s command, the police performed an inventory check of the car and located a driver’s license, Oro Valley Police Department identification card, Pima regional SWAT callout card, town of Oro Valley insurance card, two credit cards, three debit cards and a Sam’s Club card all belonging to an Oro Valley Police officer. The cards were previously reported stolen by the victim, who said his wallet was taken when he was at a gym." (Source)

None of us are immune from car theft "smash and grab" crime. So, keep you valuables out of sight an locked away.
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Oro Valley Launches "5 Questions In 5 Minutes" To Solicity Your Input On 2015-16 Budget

It’s budget time in Oro Valley, and in lieu of a public forum which has traditionally garnered low attendance, the Town has launched an online opportunity for residents to give direct input on what they feel are priorities for the Town. The online questionnaire, 5 Questions in 5 Minutes, opens today, January 26, and will run through February 8. In this questionnaire, participants will have an opportunity to rank potential capital improvement project categories and indicate priority levels on Town programs and services.

This is the link to access the survey.
(Source)
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Councilmember Zinkin Appointed To Two National League of Cities Committees

Oro Valley, Arizona (January 27, 2015) - Town of Oro Valley Councilmember Mike Zinkin has been appointed to the National League of Cities (NLC) 2015 Community and Economic Development Steering Committee and the Small Cities Council.

Community and Economic Development Steering Committee has the lead responsibility for developing NLC federal policy positions on issues involving housing, community and economic development, land use, recreation and parks, historic preservation and international competitiveness. The appointment was announced by NLC President Ralph E. Becker, mayor, Salt Lake City, Utah.
(Source: Town Of Oro Valley Press Release)
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Oro Valley El Conquistador Country Club Purchase: A Great Deal For HSL Properties

A lifetime use of golf course and tennis facilities at under market rates are just two of the benefits for HSL Properties in its sale of the El Conquistador Country Club to the Town Of Oro Valley.

HSL's Benefits Are Many
These and other benefits to HSL are detailed in agreements that the town signed when it purchased the El Conquistador Country Club earlier this month. The agreement includes priority bookings for tee times and the full use the golf courses and tennis facilities.

The Hilton El Conquistador Resort looks like a four star Hilton resort but does not have the huge and money losing proposition of operating golf and tennis facilities.

The agreement is a "no recourse" agreement.  Oro Valley will bear the full cost of remediation for any reason.

The agreement stipulates that the sale is at a bargain price. That purchase price is $1million. Thus, HSL may be entitled to a large donation deduction on their tax return. Who knows how much of a tax deductible loss they will claim, a loss that returns 30 cents on the dollar. Remember too that HSL purchased the resort and property out of bankruptcy for an estimated $15million.

Oro Valley's Benefits Are Few
Mayor Hiremath, the rest of the Majority-4, and Town Manager Caton tout this purchase as great deal for Oro Valley.  They claim that the town gets a community center. They claim that they are protecting land from possible future development. Many question these assertions.

Instead of a first class community center, Oro Valley gets to rehabilitate 2 plus golf courses, refurbish an old building, and operate at least some of these facilities for 2 generations. Oro Valley will spend an added $8+mil plus to fund this endeavor in 2015-16 alone, with millions to follow for at least the next 4 years.

Oro Valley has assumed a contract with Troon Golf. It is a contract that, given the timing and circumstances, HSL negotiated on behalf of the town. The town avoided competitive bidding requirements even though it has been party to the Troon discussions for some time. Troon, for example, attended and spoke at the Oro Valley council meetings in December. 

What options does Oro Valley have if things don't work out?

It looks as if those who live along or use the El Conquistador Course will be the first to know. The town has the option of closing this course. The town could let this course return to desert. Or, perhaps, the town could sell it for whatever purpose it wishes. It seems that not all of the property owners were protected in the purchase of the El Conquistador Country Club, as alleged by Mayor Hiremath.

What else can the town do?  By agreement, the town must keep at least one course operating, the La Canada course. If it abandons that course, HSL has the right to lease it from the Town Of Oro Valley for $10,000 per year, plus a stipend that repays Oro Valley over 50 years, interest free, for any improvements the town makes to that course. If Oro Valley closes the 9 hole resort course, the agreement requires the town to maintain it as a park. What a great benefit for the El Conquistador Resort.

Benefits To Oro Valley's 41,000 residents are few
Residents get to pay a half cent sales tax increase. They get to drive to a golf club to visit their community center, a building that has no physical closeness to any park or recreation center. Indeed the community center will be a "an island unto itself."

Those who are members of any of Oro Valley's private golf courses will see the Town competing for golf memberships and player rounds. Pricing will become even more competitive because. unlike a private club, the town seems to think that it has an infinite well of revenue to support what could turn out to be a huge long term financial and operating headache.

Guest View-Jack Stinnett: Who Benefits from the "Golf Ticket"

The golfers and golf residents benefit...
Let’s ask who benefits from the golf ticket of incumbents Solomon, and Rodman plus golfer Mo Greene? The obvious answer is the EL Conquistador Men’s Golf Association, and the adjacent property owners whose views we are subsidizing by paying the golf sales tax of $2 ½ million each year.

...HSL Properties also benefits
If we look deeper and follow the money, another picture emerges When HSL Properties purchased the Hilton resort out of bankruptcy they dumped the El Conquistador Country Club and 45 holes of golf (losing ~ $1.5 million a year) on our former Hiremath led council. A brilliant move by HSL: Stick the naive town council with the losses and still promote the El Conquistador as a destination golf resort.

HSL needs the town to keep courses in top condition to support their "golf resort vacation" narrative
Big spender golfers from flyover country are rubes, but not stupid. One look at the dated 1980 clubhouse, the tired Overlook, and they start complaining about paying for a golf resort vacation and getting a bad deal. So for the past several years HSL has been bankrolling the Hiremath council while lobbying them to fix the courses and update the clubhouse. Since 2015 ,HSL has invested tens of thousands to support friendly council members. In the 2016 council election Pina, Rodman and Soloman each received over $12,000 from HSL .

Solomon and Rodman voted to do that
So how did they vote? Incumbents Solomon, and Rodman have voted the party line, twice voting for the town to borrow $6 million to immediately fix the courses and rebuild the clubhouse. They voted against mayor Winfield’s pay as you go approach to pay for course irrigation repairs, and again voted for a $3 million bond for clubhouse repairs.

So I am voting for self funded candidates Tim Bohen and Bill Garner who will not support HSL over resident families who want playgrounds and trails and not a new clubhouse.

Jack Stinnett
Oro Valley
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Jack Stinnett is an Oro Valley resident. He graduated from the U.S. Naval Academy and served on Minesweepers and Destroyers. After his military service, Jack was employed as an engineer and plant manager in the Nuclear Power industry, a factory manager in the automotive industry, and Vice-President of a worldwide engine components business. Jack finished his career as President and CEO of Morris Material Handling in Milwaukee. He and his wife, Connie, moved to Oro Valley in 2011. Jack was a member of Oro Valley Parks and Recreation Commission from 2012-2014, serving as Chairman in 2013-2014. He enjoys woodworking, biking, and visiting his grandchildren.

Guest View-Diane Peters: Why You Should Sign The Tee’d Off in Oro Valley Petition (Part 3)

Here are even more reasons to sign the petition to allow a citizen vote on the The El Conquistador Country Club purchase. These reasons are found in the Agreement/ Contract for the facility.

As you will see, this contract was written for the benefit of HSL Properties and Troon, and to the detriment of the Town Of Oro Valley

Are you ready?  Here are just a few of the objectionable clauses in this contract.

Page 2 – Facility
If the Town purchases the facility, Troon will manage food and beverage service, all golf courses, part of the clubhouse, and the tennis courts at the hotel site.

Apparently, Troon will not be managing the pool or the 15 lighted tennis courts at the Community Center site. Therefore, Troon’s management of 31 tennis courts noted in the staff briefing is incorrect.

Page 3 – Operating Costs
Oro Valley will pay all operating costs for the golf course. This includes all supplies and equipment, the Troon management fee, employee costs, advertising and promotional expenses, administrative expenses, centralized services, operating licenses, fees and permits, grounds and landscaping, routine maintenance, insurance premiums, credit card and travel agent commissions.

Page 7, Sections 3.01 and 3.02 – Operational Standards / General Authority
Oro Valley is required to cooperate with Troon so that Troon will be able to operate the facility in accordance with the Operational Standards developed by Troon. Apparently, the Town is not allowed a say in the operational standards.

It will be Troon, not the Town, that implements all pricing, including green fees and rental fees. Troon has the right to provide complimentary or discounted use of the Facility, including food and beverages to existing or potential customers, employees and others. Oro Valley will be paying for other people to enjoy free or discounted rates.

Page 11, Section 4.05 – Personnel
If a Troon employee or Affiliate of Troon not employed at the Facility is temporarily assigned to the Facility, the Town will pay all costs for travel to and from the Facility.

Page 15, Section 4.10 – Operation Consistent with Resort Hotel
Resort guests will be allowed priority booking and reservations at all golf courses at rates not to exceed the rates charged to Oro Valley residents. Good luck reserving the greens for 7am on a weekend! You’ll be paying increased sales taxes for other people to play golf at their convenience and at your reduced rate. What a deal!

Of note also is the Appraisal Report which states: “According to our interviews with golf course managers, selling full memberships is a key to achieving profitability.” So non members, get in line behind resort guests and those with memberships.

Troon will operate the golf courses in part for the benefit of the Resort and in a manner which allows the Resort to retain its status as a franchised resort with Hilton Hotels and Resorts.

What? We’re paying Troon to help the Resort maintain its franchise status with Hilton Hotels?

Page 17, Sections 6.01 and 6.02 – Term of Contract / Renewal of Contract
This agreement is for approximately five years, commencing 12/18/14 and ending 6/30/19. Following this initial term it shall automatically renew for three consecutive 5-year periods.

The contract/agreement can only be terminated by the Town [the permitted transferee] with 90 days prior written notice to Troon and only if HSL Properties [the resort owner] consents to it! Read that again. HSL can block the termination of the contract by not consenting to it! With four consecutive 5-year terms (the original plus three automatic renewals) this means that the Town could be locked into this contract for the next 20 years!

Page 19, Section 7.01 – Payment Schedule
Troon is entitled to incentive management fees but there are no penalties if Troon does not perform to expectations. They will be paid a Minimum Base Fee of $144,000 per year or 2.5% of the Gross Revenues, whichever is greater.

Page 22, Section 8.07 – Reimbursement of out-of-pocket expenses
Troon’s out-of-pocket expenses shall be reimbursed by the town including travel, entertainment, telephone, electronic communication, postage, air express, recruiting (including agent’s fee), etc. This is in addition to the $144,000 management fee.

Page 26, Section 11.02 – Assignment by Owner
HSL has the right to assign the Agreement [Contract] to the Town of Oro Valley provided the transferee [the Town] agrees to assume all the obligations of the original owner [HSL] under this contract. Why should the Town be obligated to abide by a contract for which they never went out to competitively bid?

Additionally, once HSL transfers the agreement to the Town, HSL shall be released from any post-transfer liability.

Summary
Combine Sections 6.02 with 11.02 and what we have is a Town that is obligated to the terms of a 5-year and beyond contract that they didn’t negotiate and never saw, yet despite this, they can’t even terminate the contract without the consent of the Resort Owner! These are the most egregious sections of this contract.

I can see why the Majority-4 council enthusiastically voted YES. What with HSL having the final say on everything while the Town assumes all the costs, risks, and liability, Troon setting the fees and the annual budget while the Town pays all of Troon’s out-of-pocket expenses including travel and entertainment, and the Resort guests getting priority tee times at residents rates…well, Sweetheart Deals like this just don’t come along every day, now do they?

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Diane Peters has lived in Oro Valley since 2003, moving here to escape the humidity of the East Coast. Combining her love of animals and writing, she wrote her first protest letter at the age of 12 to the Canadian Prime Minister in support of ending the annual baby harp seal hunt. Years later, she flew by helicopter to the ice floes off the coast of Newfoundland to photograph baby harp seals. Her other interests include reading, nature photography, traveling to National Parks, Native American history, art galleries, museums, and politics. In her past life, she worked at various University Hospitals in New England assisting in Oncology Clinical Trials and preparing manuscripts for publication in medical journals. Her husband is an Army veteran who served in Germany and South Korea. A former hippie, he attended the 1969 Woodstock Festival..
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LOVE Exclusive: How Special Interests Can Corrupt Oro Valley Politicians

This is the first of a three part series on the influence of developer and contractor donations on Oro Valley politics
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Satish Hiremath introduced big money fundraising in 2010
Satish Hiremath introduced Oro Valley to the power of money in small town elections in 2010, He funded his campaign at a level five times greater than his opponent. Hiremath raised more than $45,000:

$20,000 from personal loans, which his PAC later repaid

$13,000 from special interests contributors

$12,000 from family and individual contributors

Hiremath won the election by less that fifty votes.

2013: First time HSL donates to Hiremath campaign
Many more donation were to follow.

2012: End of Innocence
In 2012, Hiremath got a taste of developer money as Diamond Ventures entered the scene.

In 2013, HSL Properties jumped on board (panel right).

This was the beginning of the end of innocence in Oro Valley fund raising. What was once a very pleasant, peaceful community was about to become a Developer paradise. Every general plan amendment and just about every zoning change was approved by council from 2010 through 2018.

$59,300 in developer money bought the 2014 election
In 2014. Mayor Hiremath and incumbent council members Hornat, Snider and Waters practiced the big money campaign finance model. This time special interest contributors kicked in $59,300. This was a four fold increase from 2010.

2014 Donations to Hiremath Majority

The top five donors (panel left) pumped $59,300 into the campaign of the incumbents. This is 76% of all contributions from individuals.

They did this at a time when these donors had continuing business dealings with the town, dealings that required council approval.

Here's the big one....

August 2014: Hiremath extols concept of community center... HSL becomes a "community partner"
On August 7, 2014, during a 2014 candidate forum, Hiremath extolled the virtue of Oro Valley having a community center.

At that time, LOVE asked if Hiremath had an epiphany. Up to then, the only council member who had even mentioned the need for a community center was current council candidate, then council member Bill Garner.

We reported in 2013: "Council Member Bill Garner has been advocating for a community center for years. His calls have been ignored by the Majority-4. 'I've been investigating a public/private partnership that could put a community center at Steam Pump Ranch,'" 

Now, suddenly, a community center was Hiremath's idea.  According to Hiremath speaking at the forum: "I'm in dialogue with other community partners about maybe doing something of a community center." (Source: Greater Oro Valley Chamber of Commerce Candidate Forum) "

The HSL Community Center
The "other community partner" to whom Hiremath had referred was HSL Properties. HSL was negotiating the purchase of the El Conquistador Resort. They needed to shed the golf courses in order to make the deal financially advantageous for them. At the same time, they wanted to retain five-star resort status. This meant that they needed to be able to offer golf.  The deal they cut with the Town of Oro Valley gave them both.

What Hiremath did not say at that forum was that the "community center" was a clubhouse that served the El Conquistador Country Club, that  the country club was part of the deal and that the seller was his biggest campaign contributor. He also failed to share this salient information during LOVE's September interview with him.

The result of all of this was a 2015 Recall Election and even more special interest money. That's our story next time.
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Thursday Mid Day Special: El Con Purchase Referendum Petitioning Underway

There are citizens of Oro Valley who are opposing Wednesday's Oro Valley Town Council's 4-3 approval of the purchase of theThe El Conquistador Golf and Tennis Country Club. They have established a political action committee.

The group filed a statement of organization this morning with the Oro Valley town clerk. The group now has 30 days to secure sufficient Oro Valley registered voter signatures to force a voter referendum on the purchase.

This filing complicates the situation regarding the purchase.

The filing presents a legal challenge to the town. Oro Valley can continue to negotiate with HSL. This is what last night's vote charged town manager Caton to do. However, the town can not consummate an agreement before the 30-day petition filing deadline. If sufficient signatures are obtained, then the town can only move forward with the transaction if it is voter approved.

The filing for a referendum also presents a challenge to HSL Properties. HSL Properties is the purchaser of the El Conquistador Golf and Tennis Country Club. and the El Conquistador Resort.  According the last night's council discussion, HSL was scheduled to buy the property from MetLife today.

HSL's timing regarding the sale to Oro Valley may be such that they can not wait for either the 30 day or vote, if one occurs. Mayor Hiremath stated at last night's meeting that HSL had other buyers that would purchase the property if Oro Valley did not agree to do so.  A delay in timing could trigger such an event.

If voting actually does occur, it is likely that more voters will vote in this referendum than in the August mayoral and council election. This is because all Oro Valley registered voters would receive ballots or be able to vote at the polls as opposed to just those who are registered partisans or who asked for ballots. Also, the issue is a "hot button" for many.
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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.

Mayor Hiremath and Town Of Oro Valley Seek To Rally Support For El Conquistador Country Club Purchase

Mayor Hiremath and the Town Of Oro Valley are seeking to rally public support for the purchase of the El Conquistador Country Club. This we deduced from recent emails sent by Mayor Hiremath, a recently-penned letter from HSL properties, a number of recent Oro Valley press releases, and two recently schedule open houses on the El Conquistador Country Club purchase.

These activities have occurred in advance of tomorrow's hearing before Superior Court Judge Aragon. The judge will hear a filing by TOOTHINOV.ORG as to Oro Valley's blanket rejection of the 3,100 plus referendum signatures on the basis of a clerical error.

Mayor Hiremath recognizes the importance of tomorrow's hearing.  He is hopeful that the Judge will dismiss the appeal:

Tomorrow "... will be a big day for us all because Judge Aragon can basically throw the whole case out and end this thing once and for all... Hopefully the Judge will rule on the law only and not let emotion get in the way because we have the law on our side." (Source: Hiremath email to his mailing list)

Hiremath Tries To Rally Public Support For The Purchase

Last Thursday, Mayor Hiremath sent an email to his mailing list. The purpose of that email is to get those who want the purchase to occur to become highly visible. 

First, he asks those who support the purchase to pack the council meetings "call to audience":

"I need bodies at both council meetings on Feb 4th and Feb 18th ... [to submit].. blue cards supporting the acquisition. In addition the Town is hosting a series of educational meetings beginning next week Monday Feb 2nd from 6-8 pm at the Town Hall Chambers and I would like to see it packed with supporters there as well."

Then, he wants them to submit letters of purchase support to the local advertising circular:

"...if you could get a few people to write letters to the editor of the Explorer, that would be great as well. Please spread the word around."

In what appears to be orchestrated media moment, last week Humberto Lopez, Chairman of HSL Properties, wrote a letter to the Greater Oro Valley Chamber of Commerce. The letter is dated last Wednesday. The letter tries to clarify a statement that Lopez made at a Greater Oro Valley Chamber of Commerce breakfast meeting regarding the timing of the purchase. At that meeting, he said that HSL would wait until May, if needed, to close the sale.

Lopez' statement caused many to question whether Mayor Hiremath was truthful when he said there was a need to approve the transaction immediately or the deal would "go away" because HSL had another opportunity in hand.

In the letter, Lopez states:  "If no decision had been made at the December 17th meeting, we were going to pursue another sale opportunity."

Lopez statement, however, does not affirm the two assertions that Hiremath made in December: Lopez did not say that pursuing another opportunity meant that the deal with Oro Valley would "go away"; or that HSL actually had a viable opportunity in hand.

Town Of Oro Valley's Unleashes Media Blitz 
The Town Of Oro Valley unleashed a press release media blitz starting on January 22.  It is positioned as "providing information" to the public. The press releases continued for 2 weeks. You can read these releases on the town web site via this link.

The releases are being followed by Town Of Oro Valley sponsored "open houses". The first is tonight in Oro Valley Council Chambers. The next is on January 9.

Zinkin Objects To The Use Of Town Funds To Sell The El Conquistador Country Club Purchase To the people.

Council Member Mike Zinkin believes that the town is wrong to engage in this media effort. Zinkin wrote to Town Manager Greg Caton:

"Using Town Staff to market something the people have no interest in is wrong and I strongly object to it. I also object to you publishing misleading numbers thinking that the Citizens believe that they must be gospel, when, in fact, they are not."

"A Town Divided Cannot Stand"

The Town Of Oro Valley and Mayor Hiremath have a very messy situation on their hands.  It will remain messy if Judge Aragon rules agains the TOOTHINOV.ORG petition. There are many angry residents who will not take kindly to having their opportunity to vote rejected. They will remain angry. The town will remain divided. "A house divided cannot stand."
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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.

Bits and Pieces

More evidence of Special Interest Influence
Mayor Hiremath stated that the discussion to purchase the El Con Country Club and Golf Courses from Humberto Lopez/HSL Properties began in mid-2014. Town records reveal this to be true as the initial meeting took place on June 18, 2014.

However, what Hiremath never mentions is that just one month prior to that meeting and again one month after that meeting (the meetings that would set the stage for the Town’s $1 million dollar deal with HSL) Humberto Lopez/HSL Properties donated a total of $14,000 to the campaigns of Hiremath-Hornat-Snider-Waters.

And they wonder why residents don’t believe their claim that special interest donations do not influence their decisions.

Another broken promise
In October 2015, Mayor Hiremath was quoted in the Explorer as stating:

“The upgrades for the (Community Center) buildings and golf courses will be paid for by a 0.5% increase in our sales tax rate. There is no borrowing involved so there would be no long-term debt. We are paying cash as we go.” [Oro Valley Recall Election Candidate Answers, Explorer, 10/21/15]

Fast-forward to the June 6, 2018 Town Council meeting:
Mayor Hiremath and the Town Council voted unanimously to bond for $6 million dollars in order to remodel the outdated Community Center and upgrade the aging golf course irrigation lines.

What happened to the upgrades being paid for with the half-cent sales tax increase? Looks like just another broken promise from Hiremath-Hornat-Snider-Waters.

Incumbent Flyer Myths – It’s the Recession stupid
The incumbents (Hiremath-Hornat-Snider-Waters) distributed a Myths vs. Facts flyer where they attempt to answer the so-called myths about their 8 years on council. We don’t have time to address all of their excuses, but this one was particularly amusing.

Myth: “This council is putting up too many homes too fast.”

Their Response: “From 2000-2010, the number of home permits issued was an average of 383 home permits per year. Since 2010, during this council’s tenure, the number of home building permits issued has been an average of only 182 per year (a 45% decrease).”

The Whole Truth: First of all, it’s disingenuous to compare a 10-year period with an 8-year period, but more importantly, they omitted the fact that the recession began in 2008 and continued through their first five years in office, 2010-2015. Homebuilders stopped building during the recession. The lack of new home permits during this time wasn’t because the incumbents were being selective with their approvals, it was because there were barely any developer applications to approve!

According to Town Finance Director, Stacey Lemos, Oro Valley was still feeling the results of the recession until around 2014-15. Quoting her from the June 6th budget discussions:

“The adopted budget amounts fluctuate (over the years) and not only reflect the impact of The Great Recession when we saw those budgets dip below $100M during FY 2011/12 through 2013/14, but we also see them start to rebound (in 2015) as the local construction activity started to gain speed in the single family and multi family housing markets.”

In a separate section of their “Myths” flyer, the incumbents admitted that their tenure took place “during Oro Valley’s worst recession in history.” This means that they knowingly included the low number of permits approved during The Great Recession in order to skew the calculations in their favor.

Town records reveal that in 2010 and 2011 (during the Recession) they approved only 50 and 47 single family home permits respectively…but by 2016 and 2017 they had approved 302 and 335 single family home permits respectively.

Town permit records do not yet show that in 2018, they also approved a total of 748 new “cluster homes” just in the LaCholla area. So while they claim that since taking office in 2010, their average is 182 home permits per year, that average jumps to 462 per year in the past three years. (302 + 335 + 748 = 1405 divided by 3 = 462)

Councilmember Mary Snider omits important details at El Con Forum
During the Candidate Forum held at the El Conquistador Hotel on July 31st, Councilmember Snider claimed that the proof that they listen to citizens regarding development proposals was that the Capella rezoning (west side of LaCholla between Naranja and Lambert) took three years to pass.

What she didn’t say was that the Major General Plan Amendments for this parcel were approved in May 2015 (after 9 months of negotiations with a citizens’ group in which Snider played no part) and that it was the applicant who chose to not come back to request the Rezoning until three years later in 2018.

Mayor Hiremath lies about “the simple things”
In the June 20th Explorer, Hiremath made this assertion about the challengers: “If they are willing to spread falsehoods to you about simple things, then you have to ask yourself what will they be willing to tell you on serious matters if elected?”

If you watched the Take Back OV video that we posted on Friday (Mayoral Fiction and Fantasy) you now know that while Mayor Hiremath claimed that, “It felt good to interact with the community while canvassing for signatures” and “we didn’t really get any negative feedback at all” (implying that he had done some serious door-to-door canvassing), a review of his petitions (public record) revealed that he collected only 20 signatures.

If he’s willing to spread falsehoods to you about simple things…

LOVE Exclusive: HSL Money Poured Into Rodman and Solomon 2016 Campaign

This is the third of a three part series on the influence of developer and contractor donations on Oro Valley politics. Our first article covered the special funding of the 2014 campaign.  Our second article discussed the special interest donations in the recall election of 2015 and in the primary election of 2018. This final article focuses on the special interest money that poured into the Rodman and Solomon candidacies in 2016. 
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The 2016 election of Bill Rodman and Steve Solomon
2016 was the only year between 2014 and 2018 in which Mayor Hiremath and his council majority were not on the ballot. There were six candidates that year. Three were incumbents. The incumbents raised a total of a few thousand dollars for that election.  Bill Rodman and Steve Solomon raised $47,600.

91% of Rodman and Solomon contributions came from special interest developers and contractors
In 2016, then candidates Bill Rodman and Steve Solomon were introduced to the big money special interests that Mayor Hiremath and his majority had solicited for the 2014 and 2015 elections.  Rodman and Solomon drank from this well of money. They took a huge gulp.

76% of Rodman and Solomon contributions were from HSL Properties
HSL Properties is the company that had so generously donated to the campaigns of Mayor Hiremath and his majority council members.

Somehow, current council members Rodman and Solomon had found the same "pot of gold" that Hiremath had uncovered in 2013; a source so rich that it literally financed all Oro Valley council majority campaigns from 2014 to 2018.

Two building related PACS further emphasized their funding financial dependence on the developer community. Rodman and Solomon each received $1,000 from the Southern Arizona Realtors PAC and $250 from the Southern Arizona Homebuilders Association (SAHBA).

Rodman and Solomon virtually had no public financial support
What is also striking is the lack of general public financial support of either candidate. Solomon received $33.38 while Rodman raised $925 from the public. Seven donors were listed on his report. Only three had residences listed as Oro Valley.

Does the past behavior predict future behavior?
Is it likely that Candidates Rodman and Solomon will raise funds from the special interest community for this election? It is, if past behavior predicts future behavior. We won't know who are their contributors until they file their campaign finance reports. One report is due at the end of this month. The other is due before the August election. Even then, we're not sure that information is accurate. Our review of the election reports revealed that information is sometimes left off of these reports, information that is reported later as amended campaign election reports.

So do stay tuned on this.

We will review and report what we learn when we learn it.
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Source: The campaign financing information in these three articles was from the campaign finance reports filed by the candidates. There were about a hundred of these. A few of them were clear and concise. Many reports, especially those of Mayor Hiremath, were difficult to follow. Sometimes, the information on current contributions was in the wrong column; or the contributions called "campaign to date" were wrong. In some instances the "occupation" of the contributor was incorrect or their affiliated employer was wrong. We don't know nor did we ask if these reports are reviewed and audited by the town. But they should be audited and verified before being accepted.

Guest View-Diane Peters: Why You Should Sign The Tee’d Off In Oro Valley Petition (Part 1)

Oro Valley Resident Diane Peters shares her view in this first of a three-part posting on why she believes residents should sign the petition that allow you to vote on the town's purchase of The El Conquistador Country Club:
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Reason #1: The El Con deal is a great deal for HSL Properties – not for Oro Valley.
 The deal was negotiated behind closed doors between Mayor Hiremath and HSL Properties (who contributed thousands of dollars to his re-election campaign.) The $1 million price-tag is more like a down payment as an additional $12 million in revenue losses, repairs, and upgrades is projected/planned for the next 5-10 years.

Reason #2: The decision was rushed and there was a lack of transparency. 
The acquisition was decided by a divided Council (4-3 vote) with only two weeks notice to the citizens. The council was clearly not afforded the appropriate time for due diligence as some pertinent documents were given to Council only a couple of hours before the meeting.

Reason #3: The contract was negotiated between Troon and HSL, not between Troon and the Town of OV.
The Council did not see the contract (which will be assumed by the Town upon purchase) until 6 days after the vote!

The council voted to approve this deal without ever seeing the contract!

Reason #4: The Troon contract was drafted on December 15th meaning it could have been made available for the council to inspect prior to the Dec. 17th vote. The contract could have been and should have been shown to the council but it wasn’t. Why?

Reason #5: A sales tax increase without public input is wrong.
Mayor Hiremath dictated to the citizens where the community center would be located, what it would contain, how much it would cost, and how we would pay for it (with an increase in our sales tax from 2% to 2.5%). The community center is supposed to be for the citizens, but the citizens were not allowed to have any input. In fact, a Town survey conducted in June 2014 revealed that a sales tax increase was the residents’ last choice for funding Parks and Recreation facilities.

Reason #6: A 2014 survey of residents revealed the top ten amenities that residents wanted. The list does not include tennis courts, pools, or golf courses.

According to this survey, 56% to 82% of respondents want the following in a Community Center:

1. playgrounds
2. ramadas and picnic areas
3. paved walking paths
4. Little League baseball fields
5. indoor racquetball and basketball
6. multi-sport fields for soccer, lacrosse
7. youth softball fields
8. rooms for aerobics and yoga
9. natural surface trails
10. outdoor basketball courts.

Where are the requests for tennis courts, pools, and golf courses? Of the 34 items listed on the survey, tennis came in at #11, golf came in at #33, and a pool was not mentioned at all. Yet the El Con deal includes 31 tennis courts, three golf courses, and two pools.

How can Mayor Hiremath claim that he’s doing this for the citizens when this isn’t what the citizens requested?

Tomorrow, in part 2, I will discuss the concerns of residents living along the golf course.
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Diane Peters has lived in Oro Valley since 2003, moving here to escape the humidity of the East Coast. Combining her love of animals and writing, she wrote her first protest letter at the age of 12 to the Canadian Prime Minister in support of ending the annual baby harp seal hunt. Years later, she flew by helicopter to the ice floes off the coast of Newfoundland to photograph baby harp seals. Her other interests include reading, nature photography, traveling to National Parks, Native American history, art galleries, museums, and politics. In her past life, she worked at various University Hospitals in New England assisting in Oncology Clinical Trials and preparing manuscripts for publication in medical journals. Her husband is an Army veteran who served in Germany and South Korea. A former hippie, he attended the 1969 Woodstock Festival.
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Tonight's The Night: What People Don't Like About The ElCon Purchase (Part 2)

Tonight, the Oro Valley Town Council will consider increasing the sales tax by one half cent to finance the operation of a community center and recreation facility. The facility will be the site of the The El Conquistador Golf and Tennis Country Club.  The facility includes several golf courses, two swimming pools, and 31 tennis courts. Oro Valley will  purchase from HSL Properties for $1 million.  HSL is purchasing it from Met Life.

Monday, we presented the town's case for approving this transaction.    In this posting, we present the objections of those who do not favor this transaction:

• The one half cent sales tax increase lacks community input
• There is a rush to make a decision 
• Some allege insufficient due diligence on the part of an inexperienced Oro Valley management team. (Monday we posted regarding the steps undertaken by the town.  You can and should draw your own conclusions as to whether these steps were sufficient to use to advocate for the purchase...or not.)
• Some fear an appearance of influence based on the campaign relationship between the Mayor, the council majority and HSL Properties 
• Some question the judgment of purchasing and running golf courses at a time when the golf busineess is in a major decline and when other golf courses in our town are suffering financially.
• Others fear the substantial investment required and a financial feasibility pinned on the "hope" of making money five years from now, after investing millions 
• Some question wither the town should go into a business that compete with private enterprise
• Oro Valley's private golf clubs 
• Oro Valley's fitness clubs 
• Perhaps, some allege, the inspection of the facility has not revealed big problems like an allege "black mold" problem
• Others wonder why Oro Valley wants to provide two activities, golf and tennis, that have never even been on the radar of the town before the El Con opportunity.

Some of these concerns have been asked and answered. For example, the town responded to a lack of community input, the urgency of the transaction, and the need for a multi-use facility in its press release last week. In addition, LOVE was provide a list of due diligence activities, which we wrote about on Monday.

• The community will have the opportunity this evening to opine on this transaction.  This will give them the opportunity to opine on the sales tax increase that is proposed.  
• The  urgency of the transaction is based on the timing of the other parties involved in it. 
• The town is providing golf  and tennis  this facility because the community, in a recent survey, said they wanted a multi-use recreation center. 
• The town provided us with a detailed list of due diligence activities that they undertook.  We posted these Monday.

Mayor Hiremath's view of the transaction is that any "...implication that campaign contributions are a factor in my decision making is ludicrous."

Some of the concerns have not been addressed by the town or others:

• It is wise to purchase and operate a golf course? 
• Is it wise for Oro Valley ito compete with private enterprise? 
• Is this transaction and the substantial future costs worth the investment?
• Do people want the community center but  not the "amenities?"

It is expected that many citizens will speak at tonight's meeting. Feelings are running strong.

We have been told  that some are prepared to form a PAC to petition for voter approval of this item. if he council approves this item tonight.

Mayor Hiremath faces a cross roads: Will he jam this purchase down the throats of the many who oppose it, as a 4-3 council vote would do; or will he have the wisdom to should slow down this race, take a breath, and let Oro Valley residents digest it?  

LOVE plans to attend this meeting and post results.  Stay tuned!

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Guest View-Don Bristow: "Guest View: Is El Con Deal A Good Deal Or Not For Oro Valley?"

On December 17, the Oro Valley Town Council will consider the purchase of the El Conquistador Golf and Tennis Club. The plan is to use it as a Community and Recreation Center and to raise of the Oro Valley sales tax to pay for its operations.  

Resident Don Bristow, a former council candidate, agreed to share a message he sent to residents about this transaction.  Based on feedback you have given us, his concerns are shared with many in the community.
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"In case you haven’t heard about the December 3rd Council meeting, and read that Oro Valley will raise sales taxes (without a sunset) to acquire El Conquistador’s country club, I have attached three items. Two are articles from the Arizona Daily Star, one appeared only online at Tucson.com. The other is an article about the decline of golfers and reasons for not getting into the golf course business. Course constructions, play and number of golfers continued to decline in 2013 as it has for many years, and it seems as though nothing can restart it. Even the proposed management company, Troon, agrees, when its vice president of sales says, “There’s no one thing that’s going to turn the industry or a club around.”

Pay back is hell! This deal is too good to pass up! These axioms are very appropriate for the Town Manger and Mayor Hiremath’s push for the Town to purchase the golf courses, tennis courts, and associated supporting facilities. The Town would purchase these through a collaborative arrangement with HSL Properties. This would allow HSL to buy the financiallydepressed Hilton El Conquistador Hotel which has been for sale for two years with no offers. Could HSL even buy the hotel if the golf courses are not sold?

You may know HSL as the owner of the new Encantada Steampump apartments near the Basis School; Hotel Arizona near the Tucson Convention Center; among other apartment and hotel holdings. You have probably read about Mr. Lopez and the Hotel Arizona which he let fall into shabbiness and disrepair; abandoned; and has refused to do anything to it unless Tucson gives him money.

You may also know HSL was biggest contributor to the reelection campaign of the four incumbents. The incumbents received close to $16,000 from HSL. Right before the election, the four incumbents began talking about the need for a community center. Mayor Hiremath claimed the discussions regarding sales of the Hilton have been going on for several months. Was he part of the discussions before the election? Is this purchase pay back for the money HSL invested in Oro Valley’s reelected officials?

Recently, the Stone Canyon Golf course sold for $20. The Ritz Carlton golf operations were sold for only $1. Is one million dollars a good price for Oro Valley to consider this? The Town’s PowerPoint presentation at the December 3rd meeting (view online) shows the Town will pay a yearly $1.2 to $1.5 million operating subsidy. That plus significant capital improvements of over $5 million, will leave the Town with a multimillion dollar deficit over the next five years.

On top of all this, the Mayor and his cohorts DO NOT WANT ANY PUBLIC INPUT. Is it fair for everyone who lives or shops in Oro Valley to pay increased sales taxes to support this purchase without input? Hopefully this is not a done deal.

Your opinions should be heard, and all your questions should be answered! Contact all of these people before the December 17th meeting when the decision will be finalized. Also, attend the meeting and let your voice be heard!

 gcaton@orovalleyaz.gov (town manager)      shiremath@orovalleyaz.com   (mayor)

  bburns@orovalleyaz.gov                                wgarner@orovalleyaz.gov

 jhornat@orovalleyaz.gov                                msnider@orovalleyaz.gov

 lwaters@orovalleyaz.gov                                mzinkin@orovalleyaz.gov

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