Phoenix Bond 101

Feb. 13, 2006

Transcript:

Michael Grant
Tonight on horizon, the upcoming bond election asking voters to consider a number of proposals. We'll break them down. The latest on Wayne Gretsky and the gambling allegations and the Wrigley mansion reflects a time when the style of the chewing gum magnate defined taste in the valley.

Announcer:
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Michael Grant
Good evening. Thanks for joining us for horizon. I'm Michael Grant. Tonight we begin a 4-part look at the 7 bond measures phoenix voters are going to be deciding march 14. We begin our series, phoenix bonds 101 with a look at how it was determined what would be included in the bonds. Mike Sauceda tells us more.

Michael Sauceda:
A fire truck pulls out of station 16 in south central phoenix. It's a relatively new station. If voters approve proposition 1 more fire stations like it will be built. The bond measure is one of 7 that will appear on the phoenix ballot totaling $878 million. The bonds will pay for everything from new fire and police facilities, cultural facilities, park -- phoenix mayor Phil Gordon says the money will be needed.

Phil Gordon:
It's a necessary part in order to keep the phoenix infrastructure strong and prosperous. A bond is like a mortgage. You take out a mortgage and pay it back through your income over 20 years. So you're able to acquire the necessary assets you need, a police station, fire station, library, seniors center and not have to wait 20 years before you get it. We all know if you wait 20 years or 10-years or a year beyond when it's needed, that's one year too long. That's something this city has never accepted and we continue to make sure we invest in the safety and the security of this city.

Michael Sauceda:
The process to get the bond measures on the ballot started last year when 14 subcommittees started meeting to hammer out what would be decided by voters. Two subcommittees first looked into what the city could afford.

Phil Gordon:
The fiscal subcommittee determined that the campaign could afford about $850 million. During the summer and then right before the city council up to the time the city council voted on referring it to the ballot, the city manager was able to recommend with the executive committee's approval the 878 million that is going to the ballot. The operational subcommittee determined how much we could actually afford to build and operate. What we didn't want to happen is what happened in other cities back east is some facilities would be built and then you couldn't afford to hire the firefighters or police officers. So we reviewed all these matters and in fact we also reviewed with the bonding agencies to make sure that our highest rating which is what the city of phoenix has with the bonding entities would not be affected. So everybody approved that. It then went to 12 citizen subcommittees made up of approximately 700 residents that determined within the fire subcommittee, within police subcommittee, within neighborhood subcommittees or arts, what projects and what priority should be recommended. That then went to an executive subcommittee comprised of the chairs of each of those committees and 4 or 5 individuals at large that then made a total recommendation to the city council which was adopted and referred to the ballot.

Michael Sauceda:
Involving citizens is a process that goes back almost 50 years in phoenix.

Phil Gordon:
Ever since 1957, this city has engaged in the phoenix method. That means involving residents and citizens in determining what is necessary, what they're willing to pay for and what projects should go on the ballot to have the residents of phoenix vote for. As a result of that process, unique and really unprecedented throughout the country, we've had a 95% passage rate over every bond campaign since we've started this process in the late 50's.

Michael Sauceda:
The bonds will be paid using 29-cent or of the revenue from 1 high pressure 82 property tax. 29 cents equals $29 per thousand of your home's assessed value. On a 387,000 home 87 -- would be used for the 2006 bond measures. The 29-cent tax rate doesn't mean a tax increase. Your overall phoenix property tax rate would stay at 1.28 if the propositions are approved. If all the bonds were to fail that doesn't necessarily mean the 29 cents would go away. It might be used to pay other bonds. Gordon says passing all 7 bond measures means no new taxes.

Phil Gordon:
You will not be paying when this passes any more because of the bond election success. Our tax rate is a combined primary and secondary at 1.82 before the election and will stay 1.82 after the election. In fact we haven't raised property taxes within the city of phoenix for over a decade. We're living within our budget. This is a fiscally conservative, prudent way of going about. It your value in your home has gone up because this has been a great city and community and state. And therefore because your value goes up and the state and county and city and school district tax rates are what they are, you have be paying more tax. I acknowledge that. I'll tell you. As mayor of the city of phoenix, a great city, a city that's desirable that people are coming into, people are making investments in, I make no apology that your value in this city is going up if you own a home or business.

Michael Sauceda:
Although the election is march 14, ballots were sent in mid-February to those requesting them for early voting.

Michael Grant:
And the first proposition on that phoenix ballot would build fire and police facilities. It would also help with homeland security. Here's a look at proposition 1.

Michael Sauceda:
Fire station number 16 near 14th street and Mohave in phoenix is a relatively new fire station with the latest communications equipment. If voters approve proposition 1 on the phoenix ballot march 14, $177 million will be spent on police and fire facilities, homeland security, police and fire communication upgrades, a crime lab and a new air fleet.

Phil Gordon:
Proposition 1 is about protecting our community. It's about building new police stations, fire stations. It's about strengthening our war against terrorism by strengthening those resources. We're building new fire stations whether it's in the Estrella -- one section to the other we are strengthening and rejuvenating a lot of these stations also. We're not building the crime lab to help solve crimes quicker and but put the last bad guys in jail from the last campaign. These are important to the city of phoenix. If you have a medical emergency, you want to make sure that ambulance or fire truck is at your door within minutes.

Michael Sauceda:
The city will also be able to buy new air fleet with money from prop 1.

Phil Gordon:
The day after this bond campaign passes we'll be acquiring three new helicopters. By the way, those helicopters are not only used by the police department in terming of finding and spotting those individuals that are trying to hurt our community but they're also being jointly used by the fire department for rescues in the event of a mountain rescue or sometimes in fighting fires to put out brush fires with our new twin engine helicopter.

Michael Grant:
Next we take a look at proposition 2. It focuses on police and fire protection through technology.

Michael Sauceda:
This is a 9-1-1 call center in phoenix responsible for calls throughout the valley. Under proposition 2 on the phoenix city ballot march 14, the call center would get addition at funding. Proposition 2 would spend $16.1 million to use technology to improve police and fire protection, to improve service to residents who access city services and to make voting more accessible.

Phil Gordon:
Proposition is about technology, the ability to dispatch 9-1-1 calls quicker, ability to upgrade the crime lab that is under construction to make sure that we have the best tools available for that. It's also about access for those that are physically disabled to be able to vote and access government services. And it's about serving our customers better and more efficiency. Serving our customers better and more efficiently without adding new personnel. It's acquiring technology that will be able to allow the current city employees to do their work quicker and allow customers to be more satisfied.

Michael Sauceda:
It will make it easier to get to those in need.

Phil Gordon:
One is traffic preemption signals so that fire trucks can in a safe manner change the lights so that they can efficiently flow through and get to your home quicker.

Michael Grant:
Phoenix Coyotes coach and part owner Wayne Gretsky has traveled to Italy to coach the Canadian Olympic hockey team. The question remains as to how intensely those sports gambling allegations made against his wife and assistant coach are going to follow him there. Joining me now to talk about the latest developments and the fallout, "east valley tribune" columnist Scott Bordow.

Michael Grant:
Team Canada and the international Olympics committee said they wanted Gretsky to come. But you wonder under these circumstances.

Scott Bordow:
Yeah. Privately they probably said, stay away. But it's Wayne Gretsky. He is an icon in Canada. He'll have to answer some tough questions they'd rather not talk about it but he'll get through it. They were not going to tell Wayne Gretsky not to come to the Olympics.

Michael Grant:
Now, Gretsky said that he learned very late about the gambling ring. There was a wiretap last week that called that into question. But over the weekend, it changed, seemed to be more supporting Gretsky's story. Lay that out for us.

Scott Bordow:
There was a story in the New York Star ledger on I think Saturday, maybe Friday that said his wiretap conversation, recorded conversation with Rick to check occurred three weeks before the probe was announced. Which would lead you to believe that he had prior knowledge of this alleged gambling ring because he was asking Rick Tocchet, how can my wife Janet not be implicated?

Scott Bordow:
She placed some bets. Over the weekend we found that took place on Monday, supporting his claim that he didn't know about it until authorities alerted him that Rick was about to be charged and everything with a was going to happen.

Michael Grant:
The issue remains, though, because apparently the -- do I have this right? The general manager of the Coyotes?

Scott Bordow:
Yes. Mike Barnett the G.M. it is reported made an one time bet with Rick Tocchet on the super bowl. Wayne Gretsky has steadfastly said, I have no prior knowledge of what's going on. No evidence to say he did. It's fair to wonder. His wife Janet has been implicated placing bets with Rick Tocchet, his associate coach and close friend. So it's hard for people to believe, could Wayne Gretsky not know about this? Maybe Wayne knew she was betting and didn't think Rick was doing anything illegal. But right now Wayne said I had no prior knowledge. The wiretap latest stories seem to support him. Right now we probably take him at his word.

Michael Grant:
Let's place the legal aspects of this to one side. A lot of people say, hey, it's hockey. They weren't betting on hockey. They were betting on football. What's the big deal?

Scott Bordow:
The big deal is bought New Jersey authorities have said there is some link to mob activity. And the big deal is, if these hockey players that are betting get too deep, say they lose 60,000, 150,000, we're not talking 10, $20 bets. We're talking thousands of dollars of bets. They took in 1.7 million over a 38 day span. Some heavy bets being made. If these guys get in too deep and they can't pay off the booky and all of a sudden some guy named Little Nicky comes to you and said, give me some inside information and your debt will be paid off. That's the concern for the NHL. I don't think anybody is going to throw their arms up and say -- it happens all across the sports landscape. That's not the big deal. The big deal, are there mob connections, is the mob financing this?

Scott Bordow:
And what could happen if players start to pass along information.

Michael Grant:
Do you know what you wonder is why in the world would guys get involved in this kind of thing with -- you've got the internet betting now, the offshore betting, obviously Vegas, Atlantic city. Why run the risk at all?

Michael Grant:
What's going on psychologically?

Scott Bordow:
First of all they are going to bet. They're young and have disposable income. They are going to bet like a lot of young men would do with disposable income. This is just a get. I wonder if Rick Tocchet was involved like the authorities say he was and here Rick Tocchet is a friend of yours and says, I have a safe way for you to bet in college basketball, you don't have to worry about offshore -- here's a friend. A guy you've known for years. Maybe these players thought here's a safe way to bet.

Michael Grant:
Let me cycle back to something you just said. I didn't realize it until we were talking about it. This is a fairly compressed time frame for this ring.

Scott Bordow:
It's the a compressed time frame that the authorities announced. Reportedly this has been going on since 2001. But I guess all the details they've released so far is over this 38 day span where they took in $1.7 million. Some people said this ring has been going on since 20001. There's a longer time frame than the authorities have led on so far.

Michael Grant:
The primary concern being some ties to possibly -- we should stress all this -- organized crime.

Scott Bordow:
They didn't say what the ties were. But they named Rick Tocchet as the guy who financed the ring. Rick Tocchet made some pretty good money in his lifetime as a NHL player. He doesn't have liquid assets to cover $1.7 million in a 38 day span so then the question is, who does?

Scott Bordow:
Then you start wondering about the mob.

Michael Grant:
We know that Gretsky is a part owner, depending upon how this thing goes. I mean, is his part ownership a substantial part ownership?

Scott Bordow:
He has a small stake in the team. I don't think it effects him. I don't think any of this effects Wayne Gretsky in the end unless there's evidence that he knew that Rick Tocchet was running an illegal gambling ring or that he bet on hockey. There's no evidence of that whatsoever in either case so far. If that's the case at the end, I don't think it effects Gretsky's ownership with the coyotes, I don't think it effects him coaching the team and I don't think it should. I think you can blame Rick Tocchet for not protecting Wayne Gretsky and Wayne's wife if she was betting and not protecting him. But if he didn't bet and he didn't know, I don't think it effects long-term or his reputation, either.

Michael Grant:
On the other hand, if he's sitting next to a guy he knows is doing that, that's a different scenario?

Scott Bordow:
If it's found out that he knew that Rick Tocchet was running an illegal gambling ring and did nothing about it, I think he should resign for the reason he'd be keeping on his bench as an associate coach somebody he knew was engaging in criminal activity. Again, that's only if he knew that Tocchet was running an illegal gambling ring. In that case I think Gretsky should resign. But there's no evidence so far, there may be no evidence. Short of that I don't think he should quit.

Michael Grant:
Indication from the New Jersey authorities which way they want to take this thing?

Michael Grant:
I assume that they're applying pressure on Tocchet to try to get him to role to the finance ears at a minimum.

Scott Bordow:
You would think when they allege mob ties and don't make the direct connection and trying to squeeze Rick Tocchet, that would be a general assumptions. Rick Tocchet will be arraigned on February 21. The grand jury will convene sometime after. That there'll be a parade of witnesses. You and I both know there'll be leaks in the media. This store isn't going to go away.

Michael Grant:
The New Jersey authorities have been criticized for so many leaks. I can only assume that this is an accident. Often times those leaks are strategic.

Michael Grant:
Yeah. They're leaking what they calculate information out there. I'm not sure why doing it. Maybe they think it looks better, puts more pressure on Rick Tocchet. But already one paper supposedly has gotten the leak wrong in terms of the wiretap conversations. We have to be very careful with what we're reporting with this story.

Michael Grant:
Scott Bordow, thanks very much. It's too bad for hockey and too bad for the coyotes.

Scott Bordow:
Thank you, Michael.

Michael Grant:
Geordie Hormel the heir to the Hormel meat packing company passed away over the weekend. They owned the Wrigley Mansion since 1982. He renovated much of it and tried to preserve owe recreate as much of the original Wrigley style as much as possible. A few months ago Hormel allowed us to include the Wrigley mansion in our Arizona stories. The mansion was built by the great depression by chewing gum magnate William Wrigley who also owned the Biltmore hotel in phoenix. Scot Olson and Richard Torruellas bring us tonight's story in honor of Geordie Hormel.

Larry Lemmons:
A relic of a belated era. A player piano manufactures the genius of Gershwin. A rhapsody lingers in the rooms. Today the mansion is a nightclub and restaurant, a site for weddings and intimate dinners. Yesterday it was a winter destination and a place that epitomized gracious living. The history of of the Wrigley mansion and the Biltmore are entwined. After gum magnate William Wrigley jr. bought out the MacArthur's interest in the Biltmore he built the house overlooking the hotel. Finished in 1931 it was intended as a 50th anniversary gift for his wife Ada.

Cynthia Parker:
They had five homes. This one was only a winter cottage and was the smallest of their five homes at 17,000 square feet. It was just a way station, a little place to stop over on their way to Catalena Island which they owned. So they would pass through here in the wintertime. And that meant that the furnishings that were here were intended to be comfortable and inviting but luxurious because many dignitaries and important people knew the Wrigleys and came to visit them here.

Larry Lemmons:
The mansion was called La Colina Solana, the sunny hill and provides dramatic views of the valley. Wrigley employed architect Eearl Heitsmitdt to design the house.

Cynthia Parker:
I think for the people who came west from back east they wanted to capture the southwest charm. The architecture here has been described as California mission revival, a bit of Mediterranean and Spanish all combined.

Larry Lemmons:
The Style of the mansion contrasts with the built more which bears an unmistakable bent to Frank Lloyd Wright. He was a friend of the Wrigleys but didn't have much respect for the mansion.

Vernon Swaback:
As you might know there's quite a bit of difference between the Arizona mansion and the Biltmore hotel. Wright never believed in building on the top of the hill. If you build on the top of the hill you destroy the hill and so forth. At one point he said to Phil I see you stuck your whole wad right on top of the hill.

Larry Lemmons:
Unfortunately William Wrigley died only a year after completing the house and left the business to his son Philip. Today efforts to restore the house to its original style are ongoing. The Wrigley's taste has been described as eclectic.

Cynthia Parker:
This is the bedroom of Mr. And Mrs. Wrigley, the room where he died. It has been restored as much as possible to its original appearance. We have antiqued the walls and restored the original chandelier. And you'll notice also in this room we have one of the unique fireplaces, each one in the house being different.

Larry Lemmons:
The house's interior displays a trove of various styles and motifs.

Cynthia Parker:
The ceiling was done by a very famous artist who also did the Regal Biltmore in downtown Los Angeles. And it is a somewhat Moroccan style with a star in the center radiating outward. And it was done with a combination of gold leaf and rich colors of red and black. The living room also had a fabulous ceiling done by the same artist. In particular it incorporates two motifs. Mr. Wrigley had English heritage so he has the lion. Mrs. Wrigley traced her lineage to the French, so there is the fleur de lis.

Larry Lemmons:
Although the Spanish mission style tends to dominate the art decco bathrooms surprise with tiles brought from Catalina island. Some of the former bedrooms have been converted to dining rooms.

Cynthia Parker:
Some of the furnishings are original. Others are reproductions. But we've worked very hard to try to capture the ambience that the Wrigleys would have had here. The chandelier is something that we found in the warehouse of the right vintage but maybe not original. Another key feature in this bedroom is the fireplace with Catalina tile and star motif so particular to the Wrigley mansion.

Larry Lemmons:
The star motif is pervasive inside and outside the house. It's fashioned into the railings.

Cynthia Parker:
The Biltmore has been called the star of the desert. And that spilled over to the Wrigley mansion.

Larry Lemmons:
The spilling overworked both ways. The Wrigleys would sometimes put up their guests in the Biltmore hotel. Later after the Wrigleys sold the properties to tally industries the reverse was true.

Mae Sue Talley:
when we had has overflow of guests we would put some up in the Wrigley house, because we owned that and kept it very much the same. We hadn't changed it. But we put some up in the bedrooms.

Larry Lemmons:
Geordie Hormel bought the house and set about restoring it.

Cynthia Parker:
Now all the rooms are open for wining, dining, entertaining. It's a wonderful place for weddings and banquets.

Larry Lemmons:
Hormel has been known to tickle the ivories as well. He occasionally plays this piano. This is a Steinway player piano complete with remote control.

Cynthia Parker:
It is said that Liberace wanted to buy this piano. And the story is that he left a blank check and told them to fill in the amount. They refused to do so.

Larry Lemmons:
The piano like the house is an artifact amid a city that has flourished around it. Where once the desert framed the sprawling winter cottage, now lush growth lines the pathways leading to well-kept gardens. Now the house appears almost hidden by nature. But it doesn't seem to be in the Wrigley's nature to hide. Atop its hill, drenched in the desert sun, the Wrigley mansion reflects a classic style that never really goes out of fashion.

Merry Lucero:
Tuesday on horizon, how proposition 200 has changed the way we vote in Arizona. Plus we'll look at the upcoming phoenix bond including a plan for a downtown ASU campus as we continue our 4-part series on the bond. Plus the state now has a plan in place in the event of a pandemic flu outbreak. Details Tuesday at 7 on horizon.

Michael Grant:
Wednesday we continue the phoenix bond 1301 series. Thursday the series will include with a pro-con debate. Friday please join us for the journalist roundtable . Thanks very much for joining us this evening. I'm Michael Grant. Have a great one. Good night. ¶¶[music]¶¶

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