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Take a look at Wenatchee, WA - NOT GOOD!
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June 17, 2018, 07:51:03 AM
This is a post from Michael Mills on Facebook to our page.  I am pretty confident he won't mind me placing it here as well.   :)

From Michael:

"I'm originally from Wenatchee Wa. i grew up there and lived there for 47 years. i owned and managed three local businesses and one in Okanogan Wa before moving to Payson Az.

In 2005 a company called Global Entertainment approached the city leaders to do a public/private partnership to bring minor league Hockey to Wenatchee Wa, the event center was built in 2008. The city would have to build them a hockey venue to hold some 5000 fans at a cost of 52.8 million dollars. They sold the idea explaining it would revenue neutral to the citizens as the hockey as well as concerts ,home show, sponsorship and donations ect... would pay the bill.

in the end 6 cities signed on to do the public/private partnership. As a local business owner i was all for the deal as i was thinking of all the dollars and increased foot traffic it would bring to the city. in my mind there was no way it could go bad.I was a staunch supporter and had little time for anyone who was against the idea.

Now its 2018 and here i am in Payson AZ and I believe I'm having deja vu. I would beg anyone who thinks public/private deals are revenue neutral to taxpayers to dig deep and research Wenatchee's deal beginning to end.

This is what Wikipedia has to say about the default and subsequent Sec fines and eventual State of Washington involvement to help solve the fiasco caused by slick salesman and naive Mayor and local councilman. I believe the debt should be paid by 2042 ..........by local taxpayers.


* * *

WIKIPEDIA https://en.wikipedia.org/wiki/Town_Toyota_Center

In 2006, nine local cities and counties formed a municipal corporation then called the Greater Wenatchee Regional Events Center Public Facilities District to fund the Town Toyota Center.[8] The arena went into default on December 1, 2011 when the PFD missed a payment on short term bond anticipation notes. The district was later fined by the Securities and Exchange Commission for misleading investors. It was the first time that the SEC assessed a financial penalty against a municipal issuer. The district settled with the SEC for $20,000.[9][10] In 2012, legislation was passed and signed by Governor Gregoire to authorized a local sales tax increase to refinance the debt.[11] The default was the largest public default in Washington State since the WPPSS disaster of 1982 that defaulted on $2.25 billion in bonds.[12] In the fine the SEC also named the developer Global Entertainment and its then-president and CEO Richard Kozuback, the bankers, and a staff finance manager

Financial Statements Audit Report:

http://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?isFinding=false&arn=1019755

https://www.oregonlive.com/news/index.ssf/2012/02/washington_house_to_decide_whe.html

https://www.juniorhockey.com/news/news_detail.php?news_id=79014

https://arenadigest.com/201111023332/in-the-arena/miscellaneous/wenatchee-asking-state-for-42m-in-arena-bailout

https://www.nytimes.com/2011/05/17/sports/a-companys-small-town-arenas-leave-cities-with-big-problems.html

* * *

Thank you Michael! 

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June 17, 2018, 07:53:26 AM
#1
How about Rio Rancho?



https://www.nytimes.com/2011/05/17/sports/a-companys-small-town-arenas-leave-cities-with-big-problems.html

The arena has been controversial since its construction, given its light attendance and its failure to turn a profit, despite the claims of Global Entertainment, the company hired to build and manage the arena, prior to the arena's development. As of 2011, the City of Rio Rancho expected to pay $3.6 million in 2011 to keep the arena running and to pay for its bonds, nearly 7% of the city’s $53.8 million budget.[5] Sam Bregman, owner of the former New Mexico Thunderbirds, stated that he believed the venue was not a good fit for his team, saying "The Rio Rancho arena is beautiful, but it’s a long way out."[6]

https://en.wikipedia.org/wiki/Santa_Ana_Star_Center


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June 17, 2018, 08:15:06 AM
#2
Did anybody else notice Rio Rancho has a $53,000,000 (53m) budget?   Population?  90,000. 

Payson?  $60,000,000 (60m) budget.  Population?  15,000.

Something is not quite right?


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June 17, 2018, 01:18:09 PM
#3
Just a bump to the top.   8)

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June 17, 2018, 03:35:01 PM
#4
Cross post from the Hockey thread.  This one involving Global Entertainment.  They are listed in story above on Rio Rancho. 

http://www.260chat.com/town-government/hockey-in-payson/msg4095/#msg4095

Just found this with little digging> https://www.azcentral.com/story/money/business/2015/08/19/prescott-valley-events-center-files-bankruptcy/31957961/
Article briefly explains the "funding bond structure and who holds the bag now for the Bankruptcy of the facility> Sounds suspiciously similar to the projected Payson facility plan, minus the school private plans. You buyers of this Payson scheme should read and beware.

Wow.  The AZ Central Story is worth the read.  The kicker?  Global Entertainment was involved in both Rio Rancho and Prescott.  Something tells me we get to learn more?

Quote
Problems from start

But the facility struggled from the beginning, hurt by the recession and later by litigation from bondholders, whose financing allowed the arena to be built. The bonds were issued by the Industrial Development Authority of Yavapai County and backed by sales taxes collected in a downtown section of Prescott Valley and by the arena’s operating income
.

Don't know if there is a connection to the current efforts, but the funding, revenue hopes, etc all sound the same?

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