For the bullet summary, please go here.
Judge Baum, regardless of being an Arizona judge has a lot of thinking to do. He must primarily determine which creditors have rights to being paid, and if the lease is as big a financial object as it appears to be. The Jobing.com lease has become the albatross.
Perhaps in the many years Judge Baum has stood behind the bench, he has heard these types of stories before. With a City colluding with investors and developers to get what they want, sacrificing the current owner as but a fleeting consideration, an inconvenience that got in the way of their goals. Where financers figure they could squeeze the owner for all his worth, and devise a plan to take over. Where a league was helping the said above ‘players’ get their way, exercising control of their own with proxies to add insult to injury, and further stripping the owner of dignity. Shame, shame, shame.
No, Judge Baum has an opportunity to instill some schooling only a man of his stature could, and to drive a point home to remind us all that ‘old school’ values and ethics are still shared and important by some. Forget the greed and power quest that corrupts.
And, the taxpayers of Arizona, specifically Phoenix and Glendale have much thinking to do also.
In fact, I would have to say the taxpayers should be very interested to know the true facts about the plans of the Glendale City Hall to mortgage their futures.
The CityNorth case just shows when a City ‘sells out’ to corporate, private developers, how gouged they can truly get.
Right now, the promise of jobs, tax base increase, and sales tax revenue has not likely been what Glendale has expected. We could look at the City’s strategy at this point as ‘going for broke’. If the figure of 72% of taxpayers really aren’t that interested in hockey is true, this should be the indicator that the arena holding hockey, does not hold promise of huge economic stimulus. It would be wiser to put events that 72% of residents would be interested in, and willing to support with tax dollars if need be. But not hockey – the people have made that clear.
How would you like that parking spot you find in the shopping centre to have cost you and your taxpaying neighbours almost half a million dollars? For most of us, it takes many years to earn that much money, but for the wealthy with money, they get a large piece of your income, and your neighbours’ income that makes them richer, and richer. Sorry about your luck, their fortunes are more important than yours.
Forget a few hundred measly dollars, when you are in their ‘game’ the advantage is much greater. And why would you expect them all to flock to the taxpayer trough?
With the economy adjusting, and profit margins shrinking, corporate America is looking to hedge it’s risk, and buy into ventures that promise insanely large return and cannot lose because they are backed by government. That’s why. Glendale is desperate for growth, so desperate, that they have and will continue to look for these ‘corporate partners’ to provide promise of economic growth.
Now when Daryl Jones and Anthony LeBlanc want to keep the team in Glendale, they too are looking to dip their noses into the Glendale taxpayers trough too. New ideas? A new twist? I don’t think so! Welcome to the smile at our face, bury the hatchet and take that taxpayer money boys. You fit right in this ‘sports opera’.
The only true promise, is them getting paid large! And, ask yourself, ‘is it economical to have a parking spot built for $480,000? Well, that is the price of one at CityNorth, built by Related Companies, part owned by MSD Capital (your neighbour, Michael Dell). Living off the fat of the land in Arizona!
Well, the Jobing.com arena lease is the sticking point, and an opportunity to ‘just say NO to greed’. Who holds the sales tax related bond to the rink? If it happens to be one of the players in the game, and it can be proven the lack of negotation was to further choke off Jerry Moyes financially, and force him out as an owner, then ‘Houston, we have a problem!’
I would go as far as to say that any deals with any investors at this point to keep the team in Glendale has a ‘what are you telling us, and what is the real reason’ tainting to it, don’t you?
Makes you wonder how many rabbits can be pulled from the hat before August 5th. It has become a bit of a charade. That arena lease, and accompanying bond must have a big story to tell I would wager. A story many would seem to not want to become public.
And, so here we are, with the new offer for $150 million, freshly pulled from the hat, what is the real deal?
There is one thing that will always just not sit right with me. Why would the City of Glendale be willing to give new life to the Coyotes’ arena lease to everyone but the man who lost it all, Jerry Moyes? No matter what happens, they will have to live with themselves for that one.
Let’s hope in light of the circus and apparent collusion, Judge Baum looks at the lease with common sense, and uses the legal principles, based on specific formulas for a landlord to recoup losses. To quote a clip from Thompson Hine, in October 2007,
“section 502(b)(6) of the U.S. Bankruptcy Code on claims arising from a debtors lease termination does not limit a landlords claim for tort-related damages. Section 502(b)(6) sets limits on the damages that result from the termination of a lease of real property to the greater of one year, or 15 percent, not to exceed three years of the remaining term of such lease. The provision is designed to provide landlords with compensation for losses due to lease terminations, while preventing excessively large claims from long-term leases that would limit the recovery of other unsecured creditors.”
And, let’s hope Judge Baum holds a special place in his heart for the unsecured creditors, and a fellow ‘old schooler‘.
For Jerry Moyes, who wanted to help the team survive so badly, he was willing to lose it all. Shouldn’t Jerry Moyes be given the same consideration, and have a chance for a new lease on life too?