CXLIV - The Tempe era set to begin as ASU opens Mullett Arena

[Tom ServoMST3K]

Ahhh I see. I still refer to Vince McMahon's company as the WWF, so I'm not really current on my wrestling happenings.

Side note, I find it fascinating that intelligent adults like yourself still love pro wrestling. Guilty pleasures come in all shapes & sizes, who I am to judge!

It can be a really interesting storytelling medium.

I've been out of it for a while, but I was obsessed with AEW's run basically through the pandemic.

 

[Devils 3silverones]

Trust me, I'm never silent, especially when it comes to sports, lol.



I actually became a Journalist - maybe the hours spent watching Glendale council were an influence. Those were formative years for me, LMFAO

Great! A career I have dabbled in myself. Was NOT for me. Studied at RRC, SAIT, NAIT. funny enough(kinda) did same schools to do my HVAC... Odd.
Keep your mind open Tom. Feelings are hard to look past as MANY people in your field know.
Coyotes, would be a great start.
I want a signed copy when you are done.
You have 3 weeks, 100 thousand words.
(See.. Easy stuff!)..
Good to see ya back.

 

[TheLegend]

Meeting on now.... I got in about 30 minutes late and they're already at the pubic comments.

Tempe Channel 11

Live and Recorded Public meetings of Tempe Channel 11 for City of Tempe

tempe.granicus.com

 

[MNNumbers]

Meeting on now.... I got in about 30 minutes late and they're already at the pubic comments.

Tempe Channel 11

Live and Recorded Public meetings of Tempe Channel 11 for City of Tempe

tempe.granicus.com

What has actually come out? Anything interesting?

 

[TheLegend]

What has actually come out? Anything interesting?

The usual.... outside of one cagey lady who thinks she has the goods on Meruelo being a liar. Another guy who brought up planes crashing into the district. But so far it's run smoothly.

I missed the first part on the zoning change. Presuming it passed.

They're on the DDA motion right now.

 

[TheLegend]

RE GPLET: Gutierrez said only the arena and hotel and other parts in Phase 1 would be a 30-year GPLET. The remaining phases would be an 8-year. Pointed out it's exactly the same as other projects Tempe has approved.

Number of housing units now is just under 2000. Originally was 1500.

Nick Wood is up now.

 

[mouser]

The usual.... outside of one cagey lady who thinks she has the goods on Meruelo being a liar. Another guy who brought up planes crashing into the district. But so far it's run smoothly.

I missed the first part on the zoning change. Presuming it passed.

They're on the DDA motion right now.

I believe both the zoning change and DDA were introduced for public comments today, with the city council votes for both happening Nov 29th.


Context for readers unfamiliar with the details, the Tempe city council is considering two items:

1) A change to the city land use map to change parts of the property from “Commercial” to “Mixed-Use”, and residential use from “No Density” to “High Density — Urban Core”.

Necessary to allow residential development on the land parcel.


2) A Ordinance authorizing the Mayor to execute a Development and Disposition Agreement (DDA) with Bluebird Development (Meruelo) to purchase and develop the property.

 

[TheLegend]

I believe both the zoning change and DDA were introduced for public comments today, with the city council votes for both happening Nov 29th.

Looks like they switched to a CFD model to cover bonds. TED will also be used as the collateral for the bonds. So the city is protected.

Edit: Mayor did just say no votes this meeting.

 

[MNNumbers]

Looks like they switched to a CFD model to cover bonds. TED will also be used as the collateral for the bonds. So the city is protected.

Edit: Mayor did just say no votes this meeting.

Switched from a GPLET to a CFD?

 

[TheLegend]

Switched from a GPLET to a CFD?

GPLET still there. 30-year for Phase 1, 8-year for all other phases.

This was more for the bond repayment. They're removing as much risk to Tempe as possible.

When the city posts the meeting to YouTube I can embed it and index Nick Wood' explaination.

 

[mouser]

GPLET still there. 30-year for Phase 1, 8-year for all other phases.

This was more for the bond repayment. They're removing as much risk to Tempe as possible.

When the city posts the meeting to YouTube I can embed it and index Nick Wood' explaination.

My understanding is the GPLET is not 30 years for everything constructed in Phase 1. The 30 years is for the Arena and maybe one or more smaller development like the 3k capacity “music venue”.

Other parts of Phase 1 would be 8 year GPLET or not included in the GPLET.

Similar for Phase 2, a large percent of the development is 8 year GPLET, a smaller portion not included in the GPLET.

 

[TheLegend]

My understanding is the GPLET is not 30 years for everything constructed in Phase 1. The 30 years is for the Arena and maybe one or more smaller development like the 3k capacity “music venue”.

Other parts of Phase 1 would be 8 year GPLET or not included in the GPLET.

Similar for Phase 2, a large percent of the development is 8 year GPLET, a smaller portion not included in the GPLET.

I was presuming everything in Phase 1. He mentioned the arena, hotel, and one other item which I presumed was the market building.

I'll have to go over the video again.

 

[mouser]

I was presuming everything in Phase 1. He mentioned the arena, hotel, and one other item which I presumed was the market building.

I'll have to go over the video again.

From the city council doc:s:

Economic Impact and Public Benefit: Bluebird will purchase the City’s Property at a price of $25 square foot for a total of $50,377,140. Bluebird has requested a 30-year Government Property Lease Excise Tax (GPLET) on the arena, music venue, practice facility, and team headquarters and an 8-year GPLET on all other uses (residential, retail, and office). Hunden Strategic Partners (HSP) has determined the total economic impact of this Project over thirty years is Thirteen Billion Six Hundred Million Dollars ($13.6 Billion). The total fiscal impact to Tempe is Three Hundred Ninety-Seven Million Seven Hundred Thousand In Dollars ($397.7MM). However, the City will apply some of these resources to fund public improvements that will be funded by bonds issued by a Community Facilities District (rather than use other City resources). The CFD bonds will be repaid using City revenues generated from, and only from, the Project. As a result, City will realize a net impact of One Hundred Ninety-Eight Million Six Hundred Thousand Dollars ($198.6MM) over the thirty years after repayment of the CFD bonds.

Phase 1 includes residential, retail and office developments. I think the hotel also falls under 8 years.

 

[TheLegend]

From the city council doc:s:

Economic Impact and Public Benefit: Bluebird will purchase the City’s Property at a price of $25 square foot for a total of $50,377,140. Bluebird has requested a 30-year Government Property Lease Excise Tax (GPLET) on the arena, music venue, practice facility, and team headquarters and an 8-year GPLET on all other uses (residential, retail, and office). Hunden Strategic Partners (HSP) has determined the total economic impact of this Project over thirty years is Thirteen Billion Six Hundred Million Dollars ($13.6 Billion). The total fiscal impact to Tempe is Three Hundred Ninety-Seven Million Seven Hundred Thousand In Dollars ($397.7MM). However, the City will apply some of these resources to fund public improvements that will be funded by bonds issued by a Community Facilities District (rather than use other City resources). The CFD bonds will be repaid using City revenues generated from, and only from, the Project. As a result, City will realize a net impact of One Hundred Ninety-Eight Million Six Hundred Thousand Dollars ($198.6MM) over the thirty years after repayment of the CFD bonds.

Phase 1 includes residential, retail and office developments. I think the hotel also falls under 8 years.

Thanks! There’s a good graphic of the site plan in the package. I’ll try to highlight those items so it makes things clearer.

 

[TheLegend]

For anyone who wanted to see the meeting.... it's only 3 hours rather than 8 1/2.




0:02:00 - Nick Wood presents the request for zoning changes in the general plan.
0:17:00 - Tempe staff present the overview of the request and stipulations.
0:27:00 - Deputy Engineering and Traffic Director presentation.
0:35:00 - Public comments.....
1:28:00 - Begin of DDA discussion: Project presentation by Coyotes CEO Xavier Gutierrez.
1:41:00 - Nick Woods presents detail of the proposal financing and how they structured it.
2:10:30 - Gutierrez summarizes the benefits of the project.
2:14:00 - New video presentation of TED.
2:16:30 - Gutierrez addressed public comment about the team.
2:18:00 - Questions from Mayor Woods to Gutierrez and Wood on various subject from residents.
2:29:00 - Deputy City Manager and Economic Development Director present the finance stability and impact to the city.

 

[MNNumbers]

Legend,

Be as neutral as you can. Is there are risk for Tempe in the current proposal?

 

[Stumbledore]

Legend,

Be as neutral as you can. Is there are risk for Tempe in the current proposal?

Seriously? Review TheLegend's posting history and tell me how you think he could ever be neutral.

 

[sh724]

Legend,

Be as neutral as you can. Is there are risk for Tempe in the current proposal?

Based on what Mouser posted above the city is expected to spend approximately $200MM to "fund public improvements"

That is projected costs and will be paid for with 30 year bonds that will be paid back from revenues generated by the project, so if the city spends the $200MM and the project doesnt generate enough revenue to cover it there may be loss to the city for a portion of that $200MM.

It stands to reason regardless if TED is approved or not the city would have spent some funds on maintaining and improving that area over the next 30 years. So the actual potential loss would be $200MM less what the project generates less what they would have spent without TED. Of course this assumes TED generates less than $200MM in income to Tempe over 30 years.

That is solely the potential cash loss. The potential economic loss of TED being approved and not meeting revneue targets has many more variables and is close to impossible to accruately calcualte.

 

[mouser]

The major elements in the CFD appear to be:

Land remediation/improvement:
$73M - Site Remediation (capped at $93M for potential cost overrun)
$11M - Riverbank improvements
$15M - Levee shoring and de-watering.
$3M - Right of Way landscaping
$3M - Fill dirt

Subtotal $105M. I group these together because these are all costs Tempe would likely incur for any substantial development on the property if they chose a different major development project other than the arena.

Public Infrastructure costs:
$10M - relocate power transmission lines
$20M - local access areas/roadways


Misc costs:
$8M - relocate Tempe maintenance yard
$27M - contingency for potential hard/soft costs
$21M - costs related to bonds (underwriting, capitalized interest, reserve fund, etc)


Other comments:

- As noted earlier, the exact price Bluebird would pay for the land will be determined after remediation is complete. Both the developer and city of Tempe will select "independent" appraisers and use the average of the two appraisers to set the land price. Given the demand for land in Tempe and the current inflationary market I wouldn't be surprised if that causes the final price paid to Tempe by Bluebird to be higher than the original estimate.

- CFD bonds are only issued as the development phases progress, and there is no up front pre-payment of anything to the developer. The developer submits reimbursement amounts as the work is completed, and Tempe has the right to object to or adjust certain amounts.

- The DDA also includes protections for Tempe that if revenue generated by the project is not sufficient to cover the CFD bonds the %'s of revenue streams from the development assigned to pay off the CFD will be increased. These figures are evaluated on a annual basis.

- The projected Economic Impact numbers in the DDA are from Tempe's own consultant analysis, not Bluebird consultants.


There could obviously be details I'm missing, but overall Tempe appears to be relatively well protected against risk of loss. The question might be better framed as whether Tempe would benefit greater by choosing a different type of development project.

 

[Devils 3silverones]

Meeting on now.... I got in about 30 minutes late and they're already at the pubic comments.

Tempe Channel 11

Live and Recorded Public meetings of Tempe Channel 11 for City of Tempe

tempe.granicus.com

GPLET still there. 30-year for Phase 1, 8-year for all other phases.

This was more for the bond repayment. They're removing as much risk to Tempe as possible.

When the city posts the meeting to YouTube I can embed it and index Nick Wood' explaination.

The major elements in the CFD appear to be:

Land remediation/improvement:
$73M - Site Remediation (capped at $93M for potential cost overrun)
$11M - Riverbank improvements
$15M - Levee shoring and de-watering.
$3M - Right of Way landscaping
$3M - Fill dirt

Subtotal $105M. I group these together because these are all costs Tempe would likely occur for any substantial development on the property if they chose a different major development project other than the arena.

Public Infrastructure costs:
$10M - relocate power transmission lines
$20M - local access areas/roadways


Misc costs:
$8M - relocate Tempe maintenance yard
$27M - contingency for potential hard/soft costs
$21M - costs related to bonds (underwriting, capitalized interest, reserve fund, etc)


Other comments:

- As noted earlier, the exact price Bluebird would pay for the land will be determined after remediation is complete. Both the developer and city of Tempe will select "independent" appraisers and use the average of the two appraisers to set the land price. Given the demand for land in Tempe and the current inflationary market I wouldn't be surprised if that causes the final price paid to Tempe by Bluebird to be higher than the original estimate.

- CFD bonds are only issued as the development phases progress, and there is no up front pre-payment of anything to the developer. The developer submits reimbursement amounts as the work is completed, and Tempe has the right to object to or adjust certain amounts.

- The DDA also includes protections for Tempe that if revenue generated by the project is not sufficient to cover the CFD bonds the %'s of revenue streams assigned to pay off the CFD will be increased. These figures are evaluated on a annual basis.

- The projected Economic Impact numbers in the DDA are from Tempe's own consultant analysis, not Bluebird consultants.


There could obviously be details I'm missing, but overall Tempe appears to be relatively well protected against risk of loss. The question might be better framed as whether Tempe would benefit greater by choosing a different type of development project.

Very well laid out explanation.
Cost to the city, seams high, if the land stays "as is" with no taxes being waived. I dunno.

 

[TheLegend]

Legend,

Be as neutral as you can. Is there are risk for Tempe in the current proposal?

The way it’s structured, I don’t see any.

The project itself is going to be the collateral against the bonds (which Nick Wood said would mean a high interest rate). Bonds are being taken out incrementally as each phase is started.

 

[PredsHead]

There could obviously be details I'm missing, but overall Tempe appears to be relatively well protected against risk of loss. The question might be better framed as whether Tempe would benefit greater by choosing a different type of development project.

I would agree with this but would add there does seem to be some risk to Tempe in that the project ends up in some half-finished state because of doing it in multiple steps like this.

 

[mouser]

I would agree with this but would add there does seem to be some risk to Tempe in that the project ends up in some half-finished state because of doing it in multiple steps like this.

Yes, there is some risk with the phases. But at the same time the bonds are only issued as each successive phase is initiated and the reimbursable development is actually happening. Plus ownership of the land in each phase is only transferred to the developer after certain requirements are met. So if the Developer defaults mid project Tempe will still own some or all of the land it can then sell to a different developer. Some aspects of the phased approach reduce the city's risk if the project fails.

For perspective the estimated CFD bond requirements for each Phase:

Phase 1A: $50M
- 650,000 sqft Arena
- 1100+ parking spaces
- 54,000 sqft of Retail

Phase 1B: $77M
- Practice facility and operations HQ
- 68,000 sqft Event Plaza
- 50,000 sqft Music Venue (~3k seats)
- 200 room "boutique" hotel
- 160,000 sqft Class A commercial office space
- 80,000 sqft Retail
- up to 195 multi-family residential units

Phase 2A: $58M
- 177,000 sqft Class A commercial office space
- 300 room "Conference Hotel"
- up to 600 multi-family residential units
- 39,000 sqft Retail

Phase 2B: $33M
- up to 1200 multi-family residential units
- 143,000 sqft Retail ("mixed-used")


Estimated start/finish if project commences in 2022

Phase 1A: start 2022, complete 2025
Phase 1B: start 2024, complete 2027
Phase 2A: start 2027, complete 2029
Phase 2B: start 2029, complete 2031

 

[TheLegend]

Tempe City Council November 29th special meeting agenda:

https://tempe.hylandcloud.com/AgendaOnline/Documents/ViewDocument/City_Council_Special_Meeting_1460_Agenda_11_29_2022_6_00_00_PM.pdf?meetingId=1460&documentType=Agenda&itemId=undefined&publishId=undefined&isSection=false

Full packet (pdf, 294 pages)

https://tempe.hylandcloud.com/AgendaOnline/Documents/ViewDocument/City_Council_Special_Meeting_1460_Agenda_Packet_11_29_2022_6_00_00_PM.pdf?meetingId=1460&documentType=AgendaPacket&itemId=0&publishId=0&isSection=false

Edit: The new packet contains only a couple of minor revisions from the previous one. So if you have the first one you probably don’t need this one.

 

[Llama19]

Fine print shows: Coyotes’ privately funded arena could cost taxpayers over $500m

Source: www.fieldofschemes.com/2022/11/28/19409/fine-print-shows-coyotes-privately-funded-arena-could-cost-taxpayers-over-500m/