HomeMy WebLinkAboutPackets - Council Packets (136) Bower, Julie
From:
Sent: Wednesday, December 17, 2014 2:00 PM
To: Bower, Julie
Subject: No...
No...To the purchase of the Hilton Golf and Tennis Club property.
No..to imposing 1/2 cent added sales tax to pay for it.
Art/Erica Wiese
OV residents
Sent from my iPhone
1
•
12/17/2014: A "WATERSHED MOMENT" FOR THE TOWN OF ORO VALLEY
Wednesday, the Mayor and City Council of the Town of Oro Valley have an opportunity
to demonstrate sound, business-based, fiscally responsible leadership that will benefit
the community at large - or, concurrently, will cause potential harm - driving away
possible new residents and businesses not desirous of further taxes.
Mr. Mayor and Council Members - I ask you NOT to go forward with the acquisition of
the Hilton EI Conquistador Golf and Country Club facilities.
The business case for this decision appears deeply flawed based on the limited
information provided and the TOV assumptions and projections that have little or no
"data driven" support in the reality of today's "real world" golf and country club
demographics. In fact, this proposal flies in the face of what has - and is happening -
with the golf business sector here in Oro Valley, Tucson and the country as a whole.
Justification for financial success of this project is based on an "as-of-yet"
undocumented resurgence in the golf industry. In fact, it is just the opposite. It is no
more than a hopeful "opinion."
Your current stated plan is to finance this acquisition with TOV contingency funds and
a permanent 2.5% sales tax (which represents a 25 70 increase from the current sales
tax of 2.0%). You estimate that it will be a number of years waiting for the golf
operations to possibly break even or show a profit. Your assumptions seem based on a
"Build It or Improve It and They Will Come" philosophy. This includes the assumption
that the greater community of Oro Valley does, indeed, desire a community center.
It is public knowledge that the golf courses at Rancho Vistoso, Stone Canyon, Oro
Valley Country Club, Sun City, and several in Tucson - in addition to the Golf Club at
The Ritz Carlton have been struggling to stay afloat let alone being profitable over
the past number of years. Why would costly, over-the-top spending on 3 old golf
courses in need of major repairs and improvements lead to revival of the industry and
be considered a good thing for the TOV??
Further, with regard to providing recreational facilities focused on physical fitness
opportunities, several very nice fitness clubs already exist in the TOV including
Anytime Fitness, Planet Fitness, LA Fitness, Gold's Gym and a specialized Pilates Studio
- just to name some that are available to Oro Valley residents at very affordable
prices. You often stated a "business friendly" attitude which you displayed in your
campaigning literature and comments. Would you now choose to adversely impact local
business by adding to their competition challenges??
Effective municipal governance should NOT be based on this type of high risk
speculation. It likely sets the stage for additional UNDENDING TAXES and resultant
negative impacts on all residents and businesses community-wide.
This action should NOT be taken without public input and broad support.
At the very least, if a community center is, indeed, an established citizen desire and
TOV priority, its use, location, capital and on-going costs must be fully defined - and
the plc►n to fund it must be presented to the public - who pay the taxes - for their
VOTE.
Potential funding considerations should include an analysis of all current TOV revenue
streams for possible "re-direction" of existing funds to a community center project if
it is determined to be of a higher priority than any current or proposed project or
operational expense.
A mix of the above revenue analysis and traditional new sources of revenue such as
bonds or additional "short-term" taxes specifically directed at this project could
improve the business case for this project. Public support is imperative for the success
of a project of this magnitude.
So, Mr. Mayor and Council Members, you have publicly stated that the choice is yours
to make. We do wonder, however, is it a sound, data-based, fiscally responsible
leadership decision, - or is it a self-serving, "bully pulpit-based decision" that will
define your leadership style going forward?
The community taxpayers await your decision. Thank you for your time.
Patrick Straney
Oro Valley Resident
Date: December 16, 2014
To: Oro Valley Leadership
Mayor, Satish I. Hiremath, D.D.S., shiremath@orovalleyaz.gov
Vice Mayor, Lou Waters,lwaters orovaheyaz.gov
Councilmember, Brendan Burns,bburns )orovalleyaz.gov
Councilmember,William Garner, wgarnerorovalleyaz.gov
Councilmember,Joe Hornat,jhornat@orovalleyaz.gov
Councilmember, Mary Snider, msnider@orovalleyaz.gov
Councilmember, Mike Zinkin, mz nki.n@oroval1eyaz.gov
Town Manager, Greg Caton,goat n@ urovaheya.z.gov
Parks and Recreation Director, Kristy Diaz-Trahan,
kdiaz-trahan@orovalleyaz.gov
From: El Conquistador Tennis Members
Re: Tennis program as part of the Town acquisition of the El Conquistador
County Club
This memo is in regards to the proposed Town acquisition of the El Conquistador
Country Club, in particular the tennis program and courts. We recommend that
the following provisions be included in Council decisions regarding purchase of
the property and any subsequent Town management of the tennis facilities and
its programs:
1. Maintain the high-quality tennis experience currently available to
membership. We feel this can only be achieved with Troon Golf
permanently managing the tennis program. Troon management along
with the professional tennis staff have the knowledge, skill, and experience
necessary to address the needs and concerns of the tennis membership.
They also understand the broader tennis community and will be able to
grow and enhance the current program as well as develop a vision for the
future. The current tennis membership is very committed to this program.
2. The vision should be that of not only maintaining the tennis program at
the level it is now,but providing the necessary support that will allow the
program to grow and thrive.
3. Identify specific funds in the 5 year capital improvement plan for
necessary maintenance, court resurfacing, operational upgrades, etc. in
the same level of detail as is outlined for the golf courses.
4. Include establishment of an ad hoc committee of tennis members to advise
Troon management and the Town on how best to move forward with
improving the tennis experience (e.g. leagues, tournaments,family events,
training, lessons,facilities).
We are confident that Troon management understands the development and
maintenance of tennis programs,through their experience at facilities around the
world.The tennis membership is eager to work with Troon and their professional
tennis staff,led by Jennifer Fuchs, in supporting junior development, USTA
leagues, USTA tournaments,and our tennis facilities, etc. We look forward to
working with Troon and Oro Valley to ensure that our program thrives and
represents our community well.
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This document identifies the responses to an email survey regarding the El Conquistador Tennis
program that was posted on December 16 and 17. The survey included the following memo and
asked individuals to identify themselves if they agreed to all of the proposed items. We are
requesting that this document be included in the Public Record.
December 16, 2014
To: Oro Valley Leadership
Mayor, Satish I. Hiremath,D.D.S., shireath( orovalley .gov
Vice Mayor,Lou Waters, lwaters@orovalleyaz.gov
Councilmember, Brendan Burns, bburns( orovalleyaz.gov
Councilmember, William Garner, wT garnergorovaileyaz.gov
Councilmember, Joe Horvat,jhornatorovalleyaz.gov
Councilmember, Mary Snider, msnideridiorovaileyaz.goy-
Councilmember,Mike Zinkin, mzinkin orovalleyaz.gov
Town Manager, Greg Caton, gcatonlivorovalleyaz.gov
Parks and Recreation Director, Kristy Diaz-Trahan,
kdiaz-trahangoroval leyaz.gov
From: El Conquistador Tennis Members
Re: Tennis program as part of the Town acquisition of the El Conquistador County Club
This memo is in regards to the proposed Town acquisition of the El Conquistador Country Club,
in particular the tennis program and courts. We recommend that the following provisions be
included in Council decisions regarding purchase of the property and any subsequent Town
management of the tennis facilities and its programs:
1. Maintain the high-quality tennis experience currently available to membership. We feel
this can only be achieved with Troon Golf permanently managing the tennis program.
Troon management along with the professional tennis staff have the knowledge, skill, and
experience necessary to address the needs and concerns of the tennis membership. They
also understand the broader tennis community and will be able to grow and enhance the
current program as well as develop a vision for the future. The current tennis membership
is very committed to this program.
2. The vision should be that of not only maintaining the tennis program at the level it is
now, but providing the necessary support that will allow the program to grow and thrive.
3. Identify specific funds in the 5 year capital improvement plan for necessary maintenance,
court resurfacing, operational upgrades, etc. in the same level of detail as is outlined for
the golf courses.
4. Include establishment of an ad hoc committee of tennis members to advise Troon
1
management and the Town on how best to move forward with improving the tennis
experience (e.g. leagues, tournaments, family events,training, lessons, facilities).
We are confident that Troon management understands the development and maintenance of
tennis programs,through their experience at facilities around the world. The tennis membership
is eager to work with Troon and their professional tennis staff, led by Jennifer Fuchs, in
supporting junior development, USTA leagues,USTA tournaments, and our tennis facilities, etc.
We look forward to working with Troon and Oro Valley to ensure that our program thrives and
represents our community well.
Members were asked the following questions:
1. Do you agree with all proposed items listed above?
• Response: 72 individuals stated, "I agree with all proposed items."
2. I am a current tennis member:
• Yes—67
• No - 5(not currently a member)
3. Names and Contact Information of Responders
I am a
Name: ZIP: Email Address: current
tennis
member.
1 Holly Polston 85704
Yes
2
22 Cindy Mordaunt 85755
Yes
3
� w
67 Michelle Heritage 85737
Yes
If there are any questions about the survey, contact Lynne Tomasa at iynn i masa( gmail.com
4
6,
ORO VALLEY
1565 E. Rancho Vistoso Blvd. • Oro Valley,Arizona 85755-9120
t(520)825-371 I • f(520)825-0432 • www.scovaz.com
December 17, 2014
Mayor and Council Members, my name is Steve Knapp. I am a resident of Oro Valley and I
represent the Board of Directors of Sun City Oro Valley.
The Town of Oro Valley has chosen to present the El Con purchase to the citizens with
unreasonably short notice, a lack of transparency and a vote in less than 15 days.
In our opinion the facilities being purchased will not meet the needs of the community without
major renovations and could be built with new construction at a far more reasonable price than
has been quoted.
Multiple and conflicting costs and unrealistic revenue estimates quoted by Town
representatives are contrary to Sun City Oro Valley's recent actual construction and golf course
operation experiences.
Golf courses are in over supply in the greater Tucson area. Oro Valley courses have changed
ownership and management recently due to financial deficits. The Views Golf Club, which is
open to the public, has run a deficit in recent years, being financially supported by SCOV's
homeowner's association dues.
This purchase and a sales tax increase will cause our residents to subsidize additional golf
courses that will be in direct competition with our own golf course.
Therefore,the Board of Directors of SCOV voted unanimously to oppose the purchase of the El
Conquistador property.
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December 16, 2014
Oro Valley Town Council
Town of Oro Valley
11000 N. La Canada Drive
Oro Valley,AZ 85737
Dear Honorable Mayor and Councilmembers,
As the lead economic development organization for Southern Arizona,we have been asked by many to
offer our opinion on your efforts to acquire the El Conquistador facilities.
TREO recognizes the strong relationship between the most livable communities and economic
competitiveness,as outlined in our Economic Blueprint. While we have not had the opportunity to
conduct a thorough fiscal and economic analysis to take a formal position on this acquisition,we
applaud Oro Valley for actively pursuing promising opportunities to offer high quality amenities such as
community/gathering places,outdoor recreation,and cultural events(to name a few),that will attract
and retain talented people.
Talent is always the number one driver in the site selection process,and maintaining&enhancing these
types of community assets that help attract and retain talent are important components of an overall
economic development strategy.
Regards,
'
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Joe Snell
President&CEO
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4 100 S.Church Ave. 520.625.1817
Tucson AZ 85701 800.638.8350
visitTucson.org f.520.884.7804
Dec. 16,2014
The Honorable Satish I. Hiremath, Mayor
Oro Valley Town Council Members
Town of Oro Valley
11000 N. La Canada Drive
Oro Valley,AZ 85737
Dear Mayor Hiremath&Town Council Members,
We at Visit Tucson see promise in the Town's plan to potentially purchase the El Conquistador Country
Club, including its tennis and golf assets,and to invest in upgrading these facilities for use by Oro Valley
residents and visitors. We understand that the facilities are being offered only as a package and for a
purchase price of$1 million. We also understand that,guided by citizen input,the Town has
contemplated constructing a community center,with estimates to construct such a facility ranging from
$15-$20 million.
Great places to live are great places to visit. Although we have not performed a cost/benefit analysis on
these projects and are unable to weigh in definitively on the financial viability of this proposal,we
believe investing in these assets could be a net benefit to both Oro Valley residents and to area visitors.
Purchasing the existing facilities for$1 million and renovating them for$5-$6 million during the next five
years could provide residents with outstanding amenities at a fraction of the cost of constructing them
from the ground up.
We feel that upgrading these facilities could provide venues capable of hosting future youth and
amateur tennis and golf events that could attract participants and associated travel parties from outside
southern Arizona. Our Visit Tucson Sports department would welcome the opportunity to provide
additional value to the Town by marketing these facilities to event organizers,who can stage activities
that attract sales-and bed-tax generating visitors to Oro Valley. We would do so in concert with the
entity you select to operate these facilities.
Oro Valley has a well-deserved reputation as an innovative municipality with the vision and resources to
build a world-class community. We see the potential to further that vision via your consideration of
acquiring and renovating the El Conquistador Country Club,along with its golf and tennis facilities.
Sincerely,
i, v)&-lh
Brent DeRaad
President&CEO
Visit Tucson
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Bower, Julie
From:
Sent: Tuesday, December 16, 2014 5:10 PM
To: Hiremath, Satish; Waters, Lou; jhornath@orovalleyaz.gov; Snider, Mary; Burns, Brendan
Cc: Bower, Julie
Dear Mayor and Council,
Everything about the El Conquistador deal smells of political payback. What city government plans to raise
taxes and put itself in hugh debt without public discussion?
Just the fact that you're letting HSL rush the deal should tip you off that it is very QUESTIONABLE. "If this was
a good deal, why would HSL want to sell? Sounds like a snake oil sales pitch.
I say NO.
Sarah Davis
Oro Valley
1
Bower, Julie
From:
Sent: Wednesday, December 17, 2014 1:37 PM
To: Hiremath, Satish; Caton, Greg; Snider, Mary; Waters, Lou; Hornat, Joe;
mxzinkin@orovalleyaz.gov; Garner, William; Burns, Brendan; Bower, Julie
Subject: golf courses purchase
I oppose the purchase of EI Conquistador Country Club, including golf courses & golf
facilities & the sales tax rate increase.
1
Bower, Julie
From:
Sent: Wednesday, December 17, 2014 11:07 AM
To: Jacobs, Amanda; Bower, Julie; Standish, Michael
Subject: letter re: Hilton acquisition, tax 121714
Hi Amanda, Julie and Mike,
Please find pasted in a letter from our Chamber regarding the El Conquistador purchase, and
the proposed sales tax increase. If you'd forward this to council and staff, I'd truly appreciate it.
Take good care, and happy holidays.
Dave
Dec. 17, 2014
Mayor Satish Hiremath
Members of the Oro Valley Town Council
Town staff
Ladies and gentlemen,
After much deliberation, public comment and conversation, the board of directors of the
Greater Oro Valley Chamber of Commerce has taken the position that Oro Valley should
purchase the Hilton El Conquistador Country Club building, golf courses, tennis courts
and related facilities for $1 million.
Our board has also concluded that a half-cent sales tax increase would be the most palatable
of the tax options available to the governing board to pay for the acquisition and needed
investments.
Our board had a lengthy presentation from town staff on the proposal last week, and engaged
in subsequent discussion, examining the deal and its ramifications for our membership and the
community alike.
The possibility of a community center on La Canada, providing fitness, recreation, youth and
senior services, would add to Oro Valley's ever-improving portfolio. It would aid in employer
recruitment and retention, and help the community continue its maturation into a full-service
place to live.
Most appealing about a community center is the chance for Oro Valley
to serve two age groups —young people, who need a place to go, and the elderly.
Our wonderful self-contained communities such as Sun City Oro Valley provide for complete
living with outstanding facilities and programming. That said, many Oro Valley seniors do
not have a place to gather, socialize, pursue activities and find what they need. This center
could fill that important niche, in a building that comes to the community at a reduced price
compared to new construction.
When government wades into services also offered through the private sector, it must be wary
of leveling the playing field (sorry for the pun). Several Chamber members are in the very
competitive fitness business. It's imperative that the town, as it offers fitness memberships and
classes at the community center, find an unserved niche within the fitness industry, and that the
1
revenue from gym memberships and classes pays for the cost of services. The government
should not subsidize fitness to the detriment of existing businesses.
Likewise, our Chamber has 3 other Oro Valley golf course members — the Golf
Club at Vistoso, The Views Golf Club in Sun City Oro Valley, and the
Oro Valley Country Club, 2 of which buy water from the town.
The town, and its contractors, must pay the same for water at the El Conquistador as it
charges other golf courses. Golf pricing cannot undercut the competition with the
expectation that the Town of Oro Valley will pay the difference. Over time, Oro Valley's
golf income must cover the costs.
While the golf industry is challenged, the Hilton golf properties have a chance to
succeed with the hiring of Troon Golf, coupled with the community's investment in the golf
courses' infrastructure.
It should be apparent that, if the golf industry was not struggling, this offer would not be in
front of us. Even with all this investment, years down the road, golf may not succeed at the El
Conquistador. The community may face very hard decisions about the use of this golf-dedicated
acreage. And that's the point— regardless of golf's future, Oro Valley would take control of
the destiny of 324 acres real estate, worth millions of dollars, in the community's heart.
If the El Conquistador stays in private hands, owners will eventually ask to convert at least
a portion of land now dedicated to golf to something else. Housing, most likely. And the
neighbors will raise their voices in protest.
Those 767 homeowners on golf holes paid premiums for their homes. What happens if golf
goes away? Their property values are likely to decline. In turn, if their property values decrease,
the Oro Valley residential real estate market would sustain a ripple-like effect. This acquisition
can protect residential property values.
It's never easy for a Chamber of Commerce to support a tax increase. Who likes a tax
increase?
In this instance, a half-cent sales tax increase is preferable to a renters' tax, a commercial
lease tax or a utilities tax increase. The sales tax is not applied to groceries. Oro Valley's sales
tax rate would be the same as our neighbors in Marana. According to the town's information,
about 1/3rd of all sales taxes collected in Oro Valley are paid by visitors. A half-cent tax
increase —with its revenues specifically dedicated to these purposes — would cost the average
Oro Valley resident about $2.60 a month.
The opportunities this acquisition presents will improve life in Oro Valley for decades to
come. That's why the Chamber board is recommending the town acquire the properties, invest
in them, and levy the half-cent sales tax as its best financing alternative.
Respectfully submitted,
Dave Perry
President/CEO
Greater Oro Valley Chamber of Commerce
on behalf of the Chamber's board of directors.
Dave Perry
President and CEO
2
Greater Oro Valley Chamber of Commerce
7435 North Oracle Road, Suite ]07
Oro Valley,Arizona 85704
(p)520.297.2]91
(f) 520.742.7960
dave@orovalleychamber.com
3
Bower, Julie
From:
Sent: Wednesday, December 10, 2014 3:40 PM
To: Bower, Julie
Cc: aesole@fedex.com
Subject: Proposed Financial Deal with HSL Properties
As an Oro Valley resident, let this e-mail serve as a notification of my strongest opposition to the proposed purchase of
El Conquistador properties or any financial dealings with HSL Properties. Please enter my opposition into the public
record. Thank You
Bower, Julie
From:
Sent: Wednesday, December 10, 2014 3:43 PM
To: Caton, Greg; Burns, Brendan; Hornat, Joe; Waters, Lou; shiremath@orovalleyaz.com;
Garner, William; Snider, Mary; Zinkin, Mike
Cc: Bower, Julie
Subject: El Conquistador's country club
I want this to be part of the Public Record:
My husband and I just returned from vacation and are trying to get through all the reading news regarding the
Town of Oro Valley wishing to purchase El Conquistador Country Club. Apparently they haven't visited the
facility lately as it is in need of lots of updating and repairs...and I believe they wish to spend about$lmillion
to do so. This is not a good use of our tax monies. Again, I haven't been able to collect all the details because
we just got home and didn't have access to the internet or papers.
SO...What is the hurry??? Has anyone on the Town Council read about the other golf communities in the area
which have gone underwater (Stone Canyon is one and if that beautiful golf course couldn't make it how on
earth is an old poorly maintained one ever going to make it??) This after the Town Council voted to shut
down the Rec Center which was small but very busy because it costs them around $30,000 a year. What do
you think this action...if taken...will cost the residents of Oro Valley?
I am totally against this action and wish that the Town Council put this up to the residents to vote for or
against.
Also, our sales tax is already one of the highest in the country. If I have a large purchase I usually go to the
Foothills or LaEncantada where the tax is lower. You will be pushing purchasing business OUT of Oro Valley if
you raise the tax any higher. People are living on fixed income and we need taxes to be lowered not raised.
Please do not spend our hard earned taxes on this. It will not turn out well.
Thank you,
Mona and Bill Gentz
1
Bower, Julie
From:
Sent: Thursday, December 11, 2014 4:07 AM
To: Bower, Julie
Subject: Fw: Purchase of El Conquistador property from HSL
Original Message
From: Larry and Brenda Ryan
To: gcaton orovalleyaz.gov ; shiremath@orovalleyaz.gov ; bburns@orovalleyaz.gov ; wgarner(a7orovalleyaz.gov ;
jhornat(c�orovalleyaz.gov ; msniderC orovalleyaz.gov ; Iwaters@orovalleyaz.gov ; mzinkin(a�orovalleyaz.gov
Sent: Tuesday, December 09, 2014 7:02 AM
Subject: Purchase of El Conquistador property from HSL
Dear Mayor and Council Members,
While we feel that many of you have already decided to make this purchase, we felt we should
register our opinions.
We DO NOT feel this is a wise choice because:
1. The Town of Oro Valley has striven to promote supporting business in Oro Valley, and raising the
sales tax will do just the opposite.
2. Raising taxes AGAIN is very painful for those of us on fixed incomes. We have expressed this before
and been ignored.
3. Getting into the golfing business is an obvious "Money Pit" with the current downtrends obvious in
that business, and foolish for our town.
4. The specter of HSL donating large amounts to some of your political campaigns and now expecting
their return is an obvious smear on some of your reputations.
5. The reputation of HSL is most questionable given their history and the obvious "ghetto" they have
built on Oracle. We DO NOT need more blight in our community.
6. While it would be nice to have a community center, the detractors that come with it do not portend
a favorable purchase. Even though the price for the building seems
appealing, parts of the acquisition outweigh the purchase in a very negative balance.
7. You have a fiduciary responsibility to the citizens of Oro Valley. This does have a strong effect on
community desirability. When your responsibility is not followed, many
residents feel a desire to leave. We have lost two very interested, educated, and supported families
in this past year that we know. We can only wonder how many will
follow.
PLEASE CONSIDER THE VOICE OF THE PEOPLE, AND THIS MESSAGE FROM TWO OF YOUR RESIDENTS
WHO HAVE BEEN HERE FOR 13 AND ONE-HALF YEARS.
Sincerely,
Larry and Brenda Ryan 13400 N Wide View Drive
1
Bower, Julie
From: Cates George <
Sent: Thursday, December 11, 2014 8:07 AM
To: Bower, Julie
Subject: Fwd: Proposed Country Club Purchase
Please place this email in the Council packet and enter into the public record.
Thanks,
George Cates
Begin forwarded message:
From: Cates George <
Subject: Proposed Country Club Purchase
Date: December 9, 2014 at 4:47:54 PM MST
Cc: gcaton@orovalleyaz.gov
To: "shiremath@ orovalleyaz.gov" <shiremath@orovalleyaz.gov>,
bburns@orovalleyaz.gov, wgarner@orovalleyaz.gov, jhornat@orovalleyaz.gov,
msnider@orovalleyaz.gov, Iwaters@orovalleyaz.gov, mzinkin orovalleyaz.gov
"SHOCK"and"Dismay"are the words which best describe my reaction on Thursday,December 4 to a radio news report and later to the
newspaper article stating that Oro Valley was in advanced discussion aimed at purchasing a golf course! With all available data
disclosing the decline in the number of golfers,and golf courses in financial ruin,how could our town leadership even seriously consider
such a transaction?Further,the proposed"bargain"purchase price of$1 million is far above the going rate at which financially distressed
golf facilities in the area have recently changed hands.
I attended two candidate forums leading up to the August election and heard the mayor and his endorsed candidates(incumbents)extol
their virtues and cite their financial prudence. This proposed transaction signifies a complete disregard for the taxpayers.and a lack of
any financial responsibility The proposed tax increase is ill-advised but,sadly,will in likelihood not defray the true costs or cover the
ongoing liability. The property is in a sad state of disrepair.Does the town have a cash reserves to rely on when the projected operating
deficit grows as it most assuredly will?
I can think of no reason to rush ahead without providing for taxpayer input on a transaction of this magnitude with such an enormous
potential for failure. In all campaign discussion I never heard any mention of the need for a town golf course or any proposed
"solution." Some mention was made of a"town center"(no doubt a planted question).Since the preliminary discussions were already
underway the campaign forums would have provided an ideal to debate the issue and inform town residents of the plan to make this
purchase.Instead,a last minute proposal was made at a Council meeting with no prior notice of intent.
I have found that any decision that needs to be rushed usually result in regrets.I implore the Council to postpone the decision to allow
citizens to review the detailed business plan and make comments.As a finance professional I stand ready for this assignment.Surely this
major decision can stand the light of day and can wait for due diligence.I regularly review business plans for prospective businesses.
You may be aware that banks will not grant financing without business plan.Why should the citizens who are being asked to provide
funds for this purchase not have the same opportunity?
Regards,
George Cates
12270 N.Copper Spring Trail
1
Bower, Julie
From: Paul Emmert<
Sent: Thursday, December 11, 2014 11:18 AM
To: Bower, Julie
Subject: Please add the Council Packet for December 17 Meeting
Hi Julie,
Please add the text of the following emailed message to Town Council, as part of the Council packet for the
December 17th meeting.
Thank you,
Paul
Text follows:
Members of Oro Valley Town Council:
I learned this week about the proposed, convoluted Town acquisition of select portions of the Hilton El
Conquistador. I was further shocked to learn, without soliciting the public via wide dissemination of this plan,
this hasty process will apparently conclude with a Council vote on December 17, 2014.
I stand opposed to this scheme, for several reasons:
• Increasing the local sales tax absent sufficient justification and a detailed explanation to the public in a
timely manner
• The potential for significant cost overruns over time
• Inadequate evaluation of the golfing market - overly ambitious assumptions regarding supply and
demand for the golf sport in Oro Valley
• Obligating the Town to significant additional expenditures based on questionable assumptions
• Losing tax revenue from current golfing operations - has that been factored in going forward?
I question the wisdom of embarking down this road - a path that is fraught with unknown financial factors,
while asking taxpayers to subsidize this plan.
While it seems tempting to do a deal that seems on its face "too good to walk away from," I urge the Council to
refrain from obligating this Town, and my tax dollars, to a business enterprise that is questionable and reliant on
assumptions that are clearly debatable. Does it make complete sense to buy more than you really need or want,
solely because it's a deal? That's bad judgment, frankly.
Have you conducted a risk analysis? Have you thoroughly surveyed the property's assets? Have you compared
the overall costs, over time, to other mechanisms available to finance a recreation center that people in this
Town actually desire? If you've done all these things, why don't I know about it?
This deal smacks of a rushed plan to acquire an older property where there is significant risk of buyer's remorse.
I urge you to step back, take a breath, slow down and think very hard about this. If you are planning on relying
on my tax dollars to make this happen, all the more reason to be completely transparent.
1
Respectfully,
Paul Emmert
P.11
D(..!.:;,gried with wisestamp Get yours
2
Bower, Julie
From:
Sent: Thursday, December 11, 2014 11:34 AM
To: Bower, Julie
Subject: Golf Course Purchase
Town of Oro Valley:
As a resident of Oro Valley, I don't understand the rush to purchase golf courses that have little
use. Do you expect them to be money makers? I live on one of the golf courses and can tell you that
over the years, we have seen the number of golfers dwindle.
Please add our names to the list of Oro Valley residents AGAINST the purchase.
Renee Montrachet
Ray Lindstrom
1011 E. Camino Corrida
Oro Valley, AZ 85704
Bower, Julie
From: Kenneth Abrahams <
Sent: Thursday, December 11, 2014 12:04 PM
To: Hiremath, Satish
Cc: Waters, Lou; Burns, Brendan; Garner, William; Snider, Mary; Zinkin, Mike; Caton, Greg;
Bower, Julie; Kelley Abrahams
Subject: Purchase of El Conquistador Golf/Tennis and Club Facilities and Related Sales Tax Increase
Attachments: Oro Valley- El Con.docx; ATT00001.txt
Satish:
Following up on our conversation Monday nite I have been in touch with your office to arrange a time to talk but have
not heard back on a date and time.
Please read the attached and give me a call to discuss its contents prior to the 17th, if you so wish.
The Town of Oro Valley needs sound governance in order to implement a host of long term plans and opportunities,
many of which you have been part of organizing. I do not think this"deal", no matter how enticing, is worth aborting
sound governance and jeopardizing the pubic trust and confidence over. If statements HSL Properties are true and they
are going to proceed with the hotel purchase regardless of the town's taking action,then there is ample time to engage
the community that you represent in an open and timely process to gain public input and support. If you believe in the
town taking action on this matter then you also must have confidence that the town residents will share in your vision
and support the town's investment after there is sufficient due process and public review.
Please give my regards to Anil and his family.
Best regards,
Ken and Kelley Abrahams
December 11, 2014
Honorable Mayor Satish I.Hiremath
Town of Oro Valley,Arizona
Re:Town of Oro Valley Purchase of El Conquistador Facilities and Sales Tax
Increase
My wife and I are long-term residents of the town. For the past 30 years I have been an
active real estate developer/investor and private equity investor in a host of operating
companies. Based upon our review of the available materials and attending community
meetings we respectfully submit the following recommendation and offer the following
input for your due consideration.
Recommendation
1.) Defer action on proceeding with the acquisition of the El Conquistador Facilities (golf,
tennis.clubhouse and related land and structures) (the Facilities).
2.) Defer action on implementing a sales tax increase to fund the acquisition and operation
of the Facilities.
3.) Establish and implement a process for meaningful public review and input that is both
fair and transparent allowing the residents of the Town of Oro Valley the opportunity to
understand the benefits and impacts of the proposed acquisition and operation of the
Facilities,as proposed.
Reason to Defer Action
HSL Properties indicated at the recent public meeting that it intends to purchase the Hotel
and related golf,tennis and club facilities regardless of the town's acquisition of the
Facilities and that other third party buyers are available in the event the town does not
acquire the Facilities. In addition,it was evident that many operational details cannot be
fully determined at this time (given the number of questions that could not be fully
answered when asked at the public meeting on 12/8/14). Therefore,it is apparent that the
Town of Oro Valley's approach is to move ahead with the purchase and figure out the
operational specifics and risks after taking ownership is not warranted. Again,more time
and a more deliberative and open approach to work through the details would serve the
public interest and reduce the risk to the public. Few business decisions are made in haste
turn out well.
In support of the above,we offer the following areas of concerns.
Experience and Competency
The Town of Oro Valley(OV) does not have the experience or expertise to directly and
indirectly operate club facilities. Likewise, HSL does not have the experience or expertise to
own and indirectly operate a resort property. As a private equity investor the first thing
one looks at is the experience and resumes of the people behind the business opportunity
who will be responsible for its execution,not the opportunity itself.
Public Facility vs Enterprise
The business concept driving OV's plans to acquire the Facilities is an enterprise plan
whereby OV would run, directly and indirectly,a business-a club and related activities.
The operation of such an enterprise is vastly different than operating municipal facilities
such as parks and recreation facilities. The proposed Club (while many of the details of the
membership and fee structure remain vague) represents a risk and challenge for OV and
one that could impact other OV core responsibilities and public services.
Pro forma and Projections
The revenue and expenditure projections presented to date have not been tested and do not
appear to be realistic. One general principal in private equity investing is: "things cost twice
as much and take twice as long." Since staff could not communicate the fee and
membership structure of the proposed club the revenue projections seem unfounded.
Based upon OV's figures,the club operation is a classic"turn around"business plan
whereby losses are incurred for the first 3-4 years with economic performance expected to
improve in later years. Successfully turning around a business typically needs a market
force that puts wind at your back. Clearly,there are no indicators that the golf industry has
wind at its back. Additionally,successful turn around efforts require keen and specialized
business management skills.
On what basis do we think OV staff has the required specialized business management skills
to execute a business turn around program as outlined by staff?
Third Party Management
Troon is a great third party,fee management company. But they are not magicians.
The management agreement with Troon does not require any capital investment on their
part and by definition it is a short term management agreement that can be cancelled at
anytime upon notice.
Troon may be incentivized to perform to projections but failure to meet projections will
result in OV needing to fund deficits and make the meaningful enterprise decisions as
owners.
As mentioned in the recent meeting, Indian Wells invested$50 million in capital
improvement in their courses in order to bring them up to standard. Knowledge of the
hotels (several resorts) the courses and the general community economic demography
indicate that Indian Wells is a poor analogue for OV.
Public Purpose and Use Rights
It is unclear what the hotel's future scope and priority of use rights would be in connection
with the golf and tennis facilities and how public members and the general public use rights
and access would fit together. It is difficult to foresee the hotel not remaining a"resort" and
thus by definition would require an established set of rights for the priority use of both or
portions of the golf and tennis facilities.
Until such details can be determined and communicated to the public the extent of the
public purpose associated with the proposal cannot be assessed or commented upon. It
should be recognized that much of the golf and tennis facilities currently are open to the
public on a fee play basis.
All efforts should be taken to avoid OV from becoming a"holding company" for the non-
performing assets of the hotel while the hotel retains significant use rights to use the
Facilities with no financial obligation to their economic performance.
Community Needs
The"statistically valid"survey completed by OV was oriented toward the Naranja Town Site
and thus implied new construction. It is therefore speculative to transfer the survey results
to the proposed Facilities. Familiarity with the existing clubhouse facility(we are
members) question if a 30 year old facility that was designed and built under an antiquated
commercial building code for a significantly different set of functions than proposed in the
OV's club proposal can be re-purposed on a cost effective basis. Clearly,the capital
expenditures shown at the recent public meeting are dubious.
Ultimately,do the residents of OV deserve,want and need a new/modern facility that has
been specifically designed for their needs? A significant chasm exists between price and
value. While a$1 million price may seem alluring and below replacement cost, other
considerations need to be fully vetted,including would OV ever build a golf complex and
club were it not for the current opportunity?
Taxation
A sales tax increase is a serious matter in light of current and projected future economic
conditions. County and state budgets are stretched with a high likelihood that other taxing
authorities will be increasing taxes over the next few years. In all fairness,taxation cannot
be looked at discreetly but should be viewed in the aggregate.
The tax impact of removing the Facilities from the public tax roll should not be minimized.
Amphitheater School District, Pima Community College and Golder Ranch Fire District and
other vital service providers will be directly and immediately financially impacted by the
removal of the Facilities from the tax roll.
The use of a sales tax to fund operating loses for a club as proposed raises a host of policy
questions that requires thorough community review and input. Projections provided in the
recent public meeting failed to provide the necessary scenarios to fully communicate the
downside risks to OV and its citizens.
While the existing hotel and club facilities compete with the private sector businesses in OV
and vicinity it is very different for a municipality to use public dollars to directly compete
against local businesses that provide like-kind service.
(By example, imagine if OV decided to use public funds to open an optometry center and set
pricing after a entrepreneur took the business risk to establish an optometry business in OV.)
Due Diligence
Based upon the presentations by OV staff and several follow up conversations I have had
with OV staff the due diligence process is still on-going and is not expected to be complete
before December 17th. Several critically important areas of investigation have not been
initiated and are not being considered at this time. Some of the gaps in the due diligence
may represent"fatal flaws" in the entire strategy and could saddle OV with significant
liabilities that are not accounted for the financial projections presented to date.
Successful due diligence required a high degree of objectivity and a level of indifference as
to the outcome of the due diligence exercise. Who inside OV has maintained the objectivity
and experience to accurately assess the due diligence findings?
OV staff may feel that sufficient internal due diligence has been completed or will be
completed by December 17th. However,as a public entity,the public has not been afforded
the opportunity to perform its own review and provide comment upon the due diligence.
We respectfully request a deferral of any action to acquire the Facilities and implement a
sales tax increase until and when a meaningfully expanded and transparent public review
and input process,as stated above,has been completed.
In closing we respectfully request this letter be made part of the public record of all
proceedings relating to the above matters.
Sincerely,
Ken and Kelly Abrahams
1207 Camino Diestro
CC:Vice Mayor
Lou.Waters
Councilmembers
Brendan Burns
William Garner
Joe Hornat
Mary Snider
Mike Zinkin
Greg Caton
Town Manager
Julie Bower
Town Clerk
Bower, Julie
From: Ursula Jarvis <
Sent: Thursday, December 11, 2014 1:39 PM
To: Bower, Julie
Subject: Golf/Community Center
For the public record and for inclusion in the Town Council's discussion package, I wish to state
that a purchase by the town such as is contemplated for the El Conquistador property ought to
be something that is discussed and publicized in depth and should be placed on the ballot for
the residents of Oro Valley to be voted on. It is a huge purchase of a commercial property that,
in my opinion, our town has no business operating. It is a private property and should remain a
private property.
Ursula Jarvis
Oro Valley Resident
Bower, Julie
From: Janet Ackerman <
Sent: Friday, December 12, 2014 9:11 AM
To: Caton, Greg; shiremath@orovalleyaz.com; Burns, Brendan; Garner, William; Hornat, Joe;
Snider, Mary; Waters, Lou; Zinkin, Mike
Cc: Bower, Julie
Subject: El Conquistador Purchase
Dear Julie Bower,
Please place a copy of our comments regarding the proposed El Conquistador purchase in the Council's
packets for the December 17th public hearing. We want our opposition to this proposal to be a part of the
Public Record.
Dear Mayor Hiremath, Council Members Burns, Garner, Hornat, Snider, Waters, and Zinkin, and Manager
Caton,
We wish to register our emphatic opposition to the proposed purchase of any of the El Conquistador
facilities and any involvement by the Town of Oro Valley with Mr. Lopez and HSL Properties. We won't re-
hash the case against this boondoggle because we whole-heartedly agree with all the arguments which
have been raised by it's opponents.
Don't raise our taxes and don't buy this property.
And, to the mayor and council members who took re-election money from HSL- shame on you. You all
should have been smart enough to see how and why voters would question your integrity. As it is, the
appearance of impropriety is inescapable.
Janet and Jerry Ackerman
Wildridge Neighborhood
Oro Valley, AZ
1
Bower, Julie
From: ROGER B WETLAUFER <
Sent: Friday, December 12, 2014 11:13 AM
To: Bower, Julie
Subject: Oro Valley& Golf Course project
Julie Bower:
I am very concerned about Oro Valley getting into the golf course project. I really do not think our city
should spend so much money on golf courses. Please let's have more studying on this project. I would like this
message in the Council Packet and to be part of the Public Record. Thank you.
Roger B. Wetlaufer
651 W. Silhouette Ridge PI.
Oro Valley, AZ 85755
Bower, Julie
From: Paul Or<
Sent: Friday, December 12, 2014 2:18 PM
To: Bower, Julie
Subject: Golf course purchase
Dear Ms. Bower:
I'm writing to express my concern over the proposed purchase of the El Conquistador golf and clubhouse
facilities.
My name is Paul Orzech. I am a property owning resident of Oro Valley. I live at 14460 N. Sun Spring Drive.
All that I know about the proposed transaction is what I have read in the newspaper. If what I have read is
somewhat accurate, I think that the Town Council and the residents of Oro Valley should be very concerned.
A transaction of this magnitude, along with the future financial commitments of funding the operation losses
and required capital expenditures, which is proposed to be funded with a 1/2% increase in the sales tax,
deserves serious consideration by the Town Council and Oro Valley residents.
Please inform the Council that I don't believe that it is appropriate to approve this transaction at the next
Council Meeting. This matter deserves substantial investigation and discussion before it is acted upon.
Please included a copy of this email in the official meeting packet for the next City Council meeting.
If needed, you may contact me at or by phone at
Thanks for your help in this matter.
Paul Orzech
1
Bower, Julie
From: Bob Helland <
Sent: Friday, December 12, 2014 2:53 PM
To: Bower, Julie
Subject: Regarding the Oro Valley proposed purchase of the golf course and the community center
We would like to voice our opinion that we do not think this would be a wise investment for the town of Oro Valley.
We do not feel that this building for the community center or the golf course are what is needed in Oro Valley. We
believe that the council was aware of this proposed purchase before the election and yet there was no mention of it
then. This should be put on a ballot for the people of Oro Valley to decide about the purchase and the tax increase of
another 1/2 percent. Please place our message in the Council Packet and we would like this message to be part of the
Public Record.
Robert and Lois Helland
12201 N Cloud Ridge Dr
Oro Valley,AZ 85755
Bower, Julie
From: Joe& Helen Robinson <
Sent: Friday, December 12, 2014 9:19 PM
To: Bower, Julie
Subject: Fwd: El Conquistador purchase
Please put this letter in the Council Packet and include it in the Public Records of Oro Valley.
Subject: EI Conquistador purchase
Date: December 11, 2014 3:23:14 PM MST
To: shiremath@orovalleyaz.com
Cc: wgarner@orovalleyaz.com, msnider@orovalleyaz.com,
mzinkin@orovalleyaz.com
Dear Mayor Hiremath and Council,
As a resident and taxpayer of Oro Valley, I am opposed to the purchase of the El
Conquistador Resort. While the purchase price sounds like a "bargain", I believe the renovation
and operating costs will be an economic burden to the town. I challenge you to find existing
town facilities to use as recreation centers. Providing basic services should be at the top of your
priority list not recreating our residents.
Thank you,
Helen Robinson
1
Regarding:
• December 17, 2014 Council Meeting
• Regular Agenda Item#1
o RESOLUTION NO. (R)14-66, APPROVING THE ACQUISITION OF THE EL
CONQUISTADOR COUNTRY CLUB, GOLF, AND TENNIS FACILITIES AND AUTHORIZING
THE TOWN MANAGER TO TAKE THE NECESSARY ACTIONS TO COMPLETE THE
ACQUISITION
Mayor Hiremath and Council Members,
After listening to December 3rd Council Meeting, I became very disillusioned by and
disappointed in those of you supporting the acquisition of the El Conquistador Country Club,
Golf, and Tennis facilities as presented.
Since that meeting, I have read many articles in the AZ Daily Star,the Explorer, and online at
Tucson.com. I have listened to local news coverage on television and radio. Friends, neighbors,
and acquaintances have approached me with their concerns. I have even discussed this with a
golf superintendent, a U of A graduate, who has managed several superior courses, and is well-
acquainted with El Conquistador facilities and Troon.
For these and the other numerous reasons, and I am certain you have been made aware of all of
them, I am writing to you today. You have requested public input, and I feel my citizen's voice
must be heard.
At the December 17, 2014 Council Meeting, the resolution regarding the acquisition of the El
Conquistador Country Club, Golf, and Tennis facilities as presented must be denied.
Thank you,
Diane Bristow
A very concerned Oro Valley resident
Mayor Hiremath, Council Members and Attendees
Please let me introduce myself to those of you that may not know me. My name is Tony
Giustina and like many of you, I own a home and pay taxes in Oro Valley. I have strong ties to
the community and for approximately 20 years I was the Club Manager with the El Conquistador
Country Club (ECCC). Over those years I met and worked closely with thousands of residents
and business leaders and thus feel that I have a unique sense regarding the "pulse"of the
community.
I have been following the potential acquisition of ECCC by the town of Oro Valley. I must first
congratulate those of you that have been instrumental at putting together the possible purchase.
I'm sure you have all done your homework and know the true value of this property, AND to
also include the 9 holes and the tennis operation at the resort BRAVO!!
As someone with strong ties to the health club and golf industry, I would offer that the decision
to bring Troon Golf on board to manage the Golf and F&B operation is also a wise move that
strongly positions this new enterprise in the community. I have absolutely no ties to Troon Golf
so I offer my opinion from strictly a professional standpoint. Their resume/portfolio is very
impressive as Troon brings to ECCC over two decades of experience in the golf management
business. This experience is not only in Arizona but also throughout the United States, and
includes several elite courses. While there are many potential avenues for revenue that a well-
managed golf operation can bring in, Troon adds one more to this potential list via the well
established and recognized Troon Card. As you have probably learned, the potential revenue
from the Troon Card could be quite significant. I also trust the negotiation of the management
fee between Oro Valley and Troon to manage ECCC will be a win-win.
While some may voice a concern that golf and golf tournament rounds are down in Tucson, that
perspective should be analyzed further. I could not make that statement without doing a
comprehensive survey on how many rounds of golf or tournament rounds were played in the past
five years and 2014 YTD, with that number compared to previous years. Also a competitive and
SWOT analysis would need to be conducted, to assure you were getting the market share, and if
not, why not? I would question those who are voicing their concerns negatively, that they have
taken the necessary steps to confirm this, or are they just playing the role of"naysayer"? One
thing I have learned over the years is that"everyone is an expert in this business" or they think
they are. Certainly competition is stiffer and there are more options, but unquestionably a well
managed golf operation is a thriving business in the State of Arizona, as witnessed by review of
operations in the Phoenix metropolitan area, Flagstaff and surrounding regions, including
Tucson. By"well managed" I am refering to ALL aspects of the business to include: Golf
maintenance, course conditions, golf shop operation, facility upkeep, customer service and a
strong marketing plan. Cont.
The inclusion of a Recreation Community Center(ECCC clubhouse) is a long overdue
investment for Oro Valley and I am pleased to see that as part of the negotiations. Having the El
Conquistador clubhouse, pools, fitness facilities, tennis and meeting space associated with the
purchase opens the door for even more diverse programming opportunities for the community.
While arguments for and against this purchase will be ongoing, I would offer that in my
profesional opinion, the pros on consummating this deal far outweighs the cons, provided all of
the necessary mangement pieces are in place. This can truly develop into a value added gem for
Oro Valley. History has demonstrated that proper management is really the key to assuring its
financial success. I am confident it will return to that status.
I currently live in Flagstaff Arizona where I am the managing partner of Summit Fitness and
Mountain Heart Wellness. Summit is a medical fitness facility with over 1,000 members.
Although I currently live in Flagstaff, I consider Oro Valley Arizona my home. For those of you
involved with this potential project, thank you all for adding value to Oro Valley and where I call
home.
Sincerely and respectfully to all,
Tony Giustina
Bower, Julie
Subject: FW: (no subject)
On Dec 15, 2014, at 2:07 PM, " wrote:
NO! to EI Conquistador purchase-Please put this response on the official
record.
Fred and Sandra Johnson
2233 E. Rio Vistoso Lane
Oro Valley, AZ 85755
(
1
FOR PUBLIC RECORD AND ORO VALLEY COUNCIL
Mayor Hiremath and Councilmembers Burns, Garner, Hornat, Snider, Waters, and Zinkin
Please do not approve a commitment to purchase any of the Hilton El Conquistador's golf
courses or associated buildings. With limited exceptions, golf courses generate negative cash
flow and profits. Ownership by governmental bodies or for-profit businesses does not result in
any measurable difference in the financial outcome.
The Town-identified proposed repairs, not improvements, for the golf courses will only result in,
at best, average courses. They will not make them a sports, tourist destination. Only several
million more of the citizens' dollars will result in courses that have the potential to attract golfers
to Oro Valley. Millions more dollars annually will be required for upkeep and operations. Thus,
this proposed acquisition is an on-going money pit, regardless of the initial purchase price.
Members of this council have also supported the philosophy that the Town should not be
involved in services the private sector can provide. Golf courses totally fit this philosophy. Stick
to subsidized services for the residents that private organizations cannot provide.
Hilton's La Canada club house has the potential for a Town community center, but only if it can
be purchased separately from all the other properties in the current proposal. Any claim that the
golf courses will be sold off for a profit at some unknown future date, and the Town will retain
the club house is an insupportable strategy. This approach is asking the citizens to pay an
additional '/z cent sales tax to allow the Town to speculate with their money. With the $1.00 and
$20.00 sales prices of nearby courses, which are far superior to the Hilton courses, the
message is clear that there is no current or foreseeable future market for golf courses in the Oro
Valley area even at an asking price of$1 million.
What is the cost for the Town to build a community center? In the last week, Mr. Caton has
given three different amounts. You cannot justify this purchase by estimating the cost of building
a new community center comparing it to the cost of Maricopa's Copper Sky Recreational
Complex.
One of the outcomes from the statically-valid survey regarding Naranja Park was that the
residents gave negligible support for financing any recreational developments and
improvements through an increase in sale taxes. You have a responsibility to respect the
wishes of the citizens, and not increase their sales taxes for a very detrimental acquisition.
The Hotel part of the Oro Valley Hilton is reported to be profitable, but all profits are offset and
more by loses from the golf course and tennis operations. It is not the Town's responsibility to
enter into a money-losing agreement to facilitate the purchase of the Oro Valley Hilton Hotel by
HSL Properties.
Respectively,
Donald Bristow
Oro Valley Resident
December 15, 2014
Bower, Julie
From: B Sigford <
Sent: Monday, December 15, 2014 9:25 PM
To: Bower, Julie; Caton, Greg; shiremath@orovalleyaz.com; Burns, Brendan; Garner, William;
Hornat, Joe; Snider, Mary; Waters, Lou; Zinkin, Mike
Subject: Potential Purchase of New Golf Course
I am writing to go on record in opposition to the proposed acquisition of the El Conquistador Country Club golf
facilities being proposed by the Town Council. This acquisition would add a substantial increased burden to tax
payers in Oro Valley without any potential for benefit in the foreseeable future. I therefore encourage you to
vote no at the upcoming meeting December 17, 2014.
Please place this letter in the Council Packet and make it part of the public record.
Barbara Sigford
14386 N Green Meadow Lane
Oro Valley, Az 85755
1
Bower, Julie gr- 111)1)5
From: Rolf Sigford < (y�
Sent: Monday, December 15, 2014 9:24 PM Ie,TTt' V��1
DJ' SeAt
To: shiremath@orovalleyaz.com _ �
Cc: Bower, Julie tO �,�t cJ". Y�'lP.YAIWGr
Subject: Golf Proposal
o-F U)tiOACii I
Dear Dr. Shiremath:
This proposed purchase of a golf course is not in the interest of the people of Oro Valley. The risks are great,
the first chance of any any profit will go to the management company. And the losses will go to we the people.
The consistently declining demographics of golf mitigate against this kind of venture.
Oro Valley has been a wonderful place to live. But excessive debt for a dubious project is not in the interest of
the average folks of our city.
This will increase our taxes for years and years to come with no real hope for future return. People already do to
the trouble of buying outside Oro Valley to avoid the sky high sales taxes.
I oppose the purchase of this new golf course and I oppose the increase of the sales tax.
Julie Bower: Please put this into the public record file so it is available at the city council meeting.
Thank you.
Rolf Sigford
14386 N. Green Meadow Lane
Oro Valley AZ 85755
1
From: Jerry Hoeft [
Sent: Thursday, December 04, 2014 11:18 AM
To: Snider, Mary
Subject: AGAINST Golf Course
Honorable Councilwoman Snider:
I have lived in Sun City Oro Valley for more than 15 years and am WHOLEHEARTEDLY AGAINST Oro Valley acquiring a golf
course!! Here in Sun City, we've had to subsidize our golf course for many years, even after we've opened it up to non residents. The
Tucson metro area has too many golf courses and most are in varying degrees of financial distress. New, "baby boomer," retirees are
not avid golfers. No matter how you may try to "spin" it, acquiring a golf course is a BAD INVESTMENT!!!
Sincerely,
Gerald G. Hoeft
13747 N. Batamote Wash Way
Oro Valley, AZ 85755-4707
From: Stan Winetrobe [
Sent: Thursday, December 04, 2014 12:23 PM
To: Snider, Mary
Subject: Potential Town Purchase of Hilton
Councilmember Snider-
I think this is a great idea, but I do have some questions.
1. The asking price is $1M. What is the fair market value of the property?
I would like to see aplan of how the property will be re-configured. What is the "is" condition today, and what is the "to be" condition in the
2. As a resident, P p
future? What "things" will be deleted, refurbished, upgraded, added? How much will that cost? Over what time frame?
3. Will any contingency funds be used for purchase, upgrade, or maintenance of the property?
4. What department(s) within the Town will manage the new Community Center? Will additional staff be required to manage the property?
5. If golf revenues fall short, how will the shortfall be covered?
6. Will Town residentsp ay use of the community center? What services/amenities will be free or discounted (if any) to town residents?
7. Can therenting
he Town realize revenue byout meeting rooms (for example)to groups, organizations, companies, etc.? What revenue streams does the town
expect from this property?
Thank you.
Stan Winetrobe
1
From:
Sent: Thursday, December 04, 2014 10:28 AM
To: Town Council
Subject: Purchase of El Conquistidor golf and hotel
Please take your time and do not jump into a 'money pit'with this acquisition. •
also understand the Ritz-Carlton in Maranaq The Hotel industry is down in this market, the Golf industry is down as well,
just sold for almost nothing...Oro Vallley C.C. memberships down and offeringspecials
Vistoso G.C. ..all 3 courses are in our North West vicinityand the Tucson, p s to increase, Problems at
Green valley area numbers go on and on.
I worked at Cape Cod National Golf course on Cape Cod for 5ears in them maintenance ntenance department. The costs to maintain a golf course is staggering;
equipment, maintaining the equipment, water, seeding, pesticides, maintenance
personnel, etc. is perhaps more than you have considered or understand. All this,
coupled with an article on AOL today by prominent golf consultingcompany
golfers are down an amazing25%....this doesn't p Y Pellucid stating that golf lost 1.1 million players in 2013 AND since 2002
esn t paint a rosy future for golf!
Please, as an Oro Valley resident, don't jump in and increase our taxes us J'
investors at the table? If not it robabl t because this purchase of 1 million looks too good to pass up, didyou seeprivate
p y isn t such a great purchase especially considering the facts mentioned above. y p
Thanks for your time and consideration.
Jim Cooper
2487 E Spring Valley Ln
Oro Valley, AZ 85755
Councilmember
From: John Spitler [
Sent: Thursday, December 04, 2014 12:33 PM
To: Town Council
Subject: Golf Course Decision by the Council
Dear Council members:
I am John Spitler, resident of Oro Valley, and wish to weigh in on any decision to purchase El Conquistador Golf facility. I have played golf for
over 50 years and have belonged to 3 private clubs and had been a member of El Conquistador for 7 years, up to last Christmas. In all of those
years, the only city that I am familiar with that ever made money on owning a golf course was Concord, Calif. The course was called Concord Muni,
or Diablo Creek depending on who you talked to. Concord made money on a very popular course, that had little competition. I think for the Cityof
p
Oro Valley to risk giving up all the work the council has done to keep us in the black in spite of some bad economic times, would be fool-hardy.
I know the most worrisome issues that golf courses face every year is the cost of water, and the longevity of the irrigation system. I think El
Conquistador has both those issues. I left El Con for Oro Valley CC, and Oro Valley has just been bought by a Golf Company. One of the attractions
that Oro Valley CC had was they have their own wells such that water becomes an asset rather than a liability.
My advice—Stick to parks and parks recreation. Don't tread on the golf business.
John Spitler, 11930 N Verch Way 85737
iviary nicier
Councilmember
From: Judy and Tom Charland [
Sent: Thursday, December 04, 2014 12:43 PM
To: Snider, Mary; Waters, Lou; Zinkin, Mike
Subject: El Conquistador Golf Course
Oro Valley Councilmembers:
I have just read an article regarding the possible purchase of the EI Conquistador Golf Course by the
Town of Oro Valley. My warning to you is "buyer beware." I am an Oro Valley resident and retired
internal auditor with the City of Tucson. I audited the City golf courses during my career and can
state that the City golf courses operated at a loss annually. A portion of my career was working with
Stacy Lemos prior to her accepting employment with the Town of Oro Valley.
Also, a 1/2 cent sales tax increase for golf course operations will likely be unacceptable to local
residents. The possibility of purchasing a golf course does not appear to be prudent for the Town of
Oro Valley. I may be contacted by email or telephone Please keep me informed
regarding this matter.
Thank you. Thomas Charland
r--'7',Itherfilleiferathadei On Behalf Of Bert Zaccaria [
Sent:Thursday, December 04, 2014 12:07 PM
To:Town Council
Subject: El Conquistador aquisition
If the pro forma financials and cash flow look manageable, I hope that you approve this acquisition. It would seem to me that there are many ways to finance this
venture that any good investment banker could suggest other than rising the sales tax.
This is an opportunity that will upgrade our town in a way that adding a smaller, newer facility elsewhere cannot.
Good luck,
Bert Zaccaria
1605 West Kitty Hawk Way
Oro Valley, AZ 85755
cell 650-464-5400
PS: Why is there a middle man in this deal?
From: John Barnett [
Sent: Thursday, December 04, 2014 8:46 PM
To: Snider, Mary
Subject: Oro Valley might raise taxes to buy El Conquistador's country club
Hi Mary
I just read about the consideration of the purchase of El Conquistador by Oro Valley. I'm not against the tax proposition to support this action. In fact, I think it is a
great deal. I contacted a good friend of mine who is a golf pro who teaches golf lessons at the Ritz, and who also works for Troon Golf. He read about it but did not
know it included the 9 hole golf course at the Hilton. We both have played at that 9 hole golf course and we both concur that the course has negative business
profit. If it were an 18 hold course, it might be considered worth considering. However, it was suggested to me that if Oro Valley purchased the 9 hole golf course,
they should re-zone it and build nice condos on the course. This would be a huge building tax advantage, be attractive to snow birds and would help pay for the
two 18 hole courses at El Conquistador. This would have very little impact on the homes in that area that are already built, plus the added community rec center to
the local public. Just a suggestion to consider before the Town Council.
Thanks
John
P.S., with our aquatic event going on and all the preparation, where do I find time to read and respond to this? I love OV.
ozu-'+O I-Lt I v kiviuulmi
From: John Scheuring [
Sent: Friday, December 05, 2014 8:00 AM
To: Hornat, Joe
Subject: Request to meet
Hi Joe
I would like to meet with you briefly any time convenientyou for next week. I am fully retired and have a pretty open and
flexible schedule.
I just read about the the TOV intention of purchasing partq sin of the Conquistador and golf operation. I would like to
discuss with you the cost implications thispurchase urchase well have on weed removal and control. The removal and
• significant Conquistador properties have allowed both buffelgrass and fountaingrass to
maintenance costs will be significant as the C q p p
run rampant over the years.
Thank you.
John Scheuring
Sent: Friday, December 05, 2014 11:23 AM
To: Hiremath, Satish
Cc:Waters, Lou; Caton, Greg
Subject: Possible purchase of El Conquistador CC by the City of Oro Valley
Dear Mr. Mayor,
I read in the news today about the possible purchase by the City of the El Conquistador CC for use as a community center. My wife and
I own a home in Oro Valley on the El Conquistador Pusch golf course at 1214 E. Camino Diestro. We enjoy Oro Valley very much! It is
a great town.
Regarding the possible purchase of the El Con CC and making it a community center, however, I have heard that if the sale goes thru,
the City might "re-format" the Pusch Ridge golf course and turn it into a non-traditional golf course or community park.
I appreciate the possible purchase and operation of the golf courses is still in the discussion phase, but by changing the format of the
course there is significant risk it will change the character of our community and more importantly negatively impact the value of our
homes.
Additionally, by re-formatting the course for non-traditional golf or more non-golf activities there will no doubt be an increase in noise,
nuisance, and security issues. Many folks who live in our community chose the neighborhood precisely because of the peaceful setting.
Rather than turning the course into a non-traditional course, I would kindly suggest the focus should be on making the Pusch Ridge
course a first class 9 hole golf course. The layout of the course and changes in elevation present an opportunity for the course to be the
finest 9 hole golf course in southern Arizona. This would be asset for Oro Valley. I suspect the folks at Troon Golf management would
appreciate such.
Please let me know your thoughts.
Thank you for your leadership and continued service to our community.
Best regards,
Guy R. Cook
Double Board Certified Trial Lawyer
H nd, Jessica
From: Snider, Mary
Sent: Friday, December 05, 2014 2:48 PM
To: Hynd, Jessica
Cc: Caton, Greg
Subject: FW: Purchase of Golf Course
From: Ronald - Sandy Knudson [
Sent: Friday, December 05, 2014 2:02 PM
To: Town Council
Subject: Purchase of Golf Course
I cannot believe Oro Valley wants to invest money in a golf course!!!!
The facts are golf courses are nothing but a bad money pit. Look around - the city of Tucson lost money, Vistoso went bankrupt, the views of Sun City has to be
subsidized by the residents.
Why should the residents of Oro Valley have an increase in Tax to buy a golf course and what is going to happen when it fails, another tax increase or take money
from education???
Keep government out of trying to own and run a business!!!
I think this is a very bad decision.
Ronald Knudson
14219 N Buckingham Dr
1
From: RON JANICKI
Sent: 12/8/2014 8:26 AM
To: Hiremath, Satish; Waters, Lou; Snider, Mary; Hornat,Joe; Zinkin, Mike; Garner, William; Burns, Brendan
Subject: El Conquestador Purchase
Mayor & Council Members,
I just wanted to send a quick note express my opinion on the purchase of the Hilton El Conquestador Tennis & Golf. This is a once in a
lifetime opportunity to bring a facility and services to our town. It could take many years to gather the funds and build a town community
center. HSL has provided an opportunity for the Town, and we must take advantage of this as soon as we can. Other organizations will
gladly pay more than one million dollars to obtain all of the facilities the 324 acres.
Oro Valley is the jewel of Southern Arizona, and this will increase our sparkle.
Debbie Janicki
Oro Valley Resident
1
From: Jack Evert [
Sent: Saturday, December 06, 2014 9:16 AM
To: Town Council
Subject: El Con project
I am strongly in opposition to the proposed purchase, primarily because I do not believe in the projections for the golf courses. The article on the front page of
the Star Saturday morning concerning the failure of Tucson city golf courses mirrors my expectations. How many times do we have to hear that after spending
millions of dollars to improve the courses and improving the marketing of same, then they will turn around. Every golf course in the Tucson metro has the same
story, yet they continue to fail.
It will be the same case here. These golf courses will not meet expectations and will be an ongoing financial drain on the town that I would hate to see. I agree
something. Lopez doesn't want ANYTHING to do with the albatross of money-losing golf courses, so of
that the price is very favorable; that ought to tell you g p
course he is going to sell them at a bargain.
other golf courses (includingours in Sun City) as well as the many private fitness centers I also wonder if
This purchase would put the town in competition with
there is any basis for thinking we can find users for 35 additional tennis courts.
to well defined public sentiment desiring a community center. And this is a good price. But the golf courses are
I very much appreciate your efforts to respond
suggestion; would it be possible to sell the golf courses if you go ahead with the purchase? I don't mean finding an
the kiss of death for me on this project. A
operator; I mean SELL. I don't want the town to touch the courses with a ten foot pole!
you have no objection to the tax. I have advocated to manyof to maintain our high quality of life in Oro Valley. And I am willing to pay for such quality. But I
don't want to squander the added tax dollars on the black hole this deal will become.
apparently proceedingwith this project. It is a big deal, and although I can imagine the complexities which are
My last point is the speed with which you are app y
likely causing the haste, the community needs time to digest and discuss the ramifications. I think you will incur a great deal of suspicion and hostility if such a
proceeds project as this with basically two weeks notice (I am presuming you plan to act at the your next meeting).
Thanks for your continued efforts on behalf of our great town. And vote this turkey down!
Jack Evert
H nd, Jessica
From:
Sent: Wednesday, December 10, 2014 6:04 PM
To: Hynd, Jessica
Subject: [Jessica Hynd] El Conquistador Purchase
Janice and Lauren Strassburg sent a message using the contact form at http://www.orovalleyaz.gov/. As residents of Oro Valley, we want to go on
record as opposed to the purchase that the city is so eager to do post haste. The community center portion is palatable but taking on 45 holes of golf
course seems a foolish venture at taxpayer expense. It also smacks of"good old boy" politics since HSL donated a good deal of money to Hiremath
and council members who recently ran for re-election. It seems that upping the sales tax for persons who shop in Oro Valley is counter productive. It
will make a person give pause to where they shop, esp. for bigger ticket items. Since the Mayor has already stated that residents will not be allowed
to speak at the next council meeting he once again looks like "I'm the boss and what I say goes"just as he did with the Zinkin power point
presentation regarding the police force overtime situation. I doubt the election would have the same outcome if all of this were known last November.
1
ri na, Jessica
From:
Sent: Monday, December 15, 2014 10:07 AM
To: Hynd, Jessica
Subject: Re: Purchase of Hilton golf course
Hi, Jessica,
After reading that 150 plus golf courses fold each year, I thinkerha s th
p p eland might better be used for soccer fields. But I support the purchase
as an opportunity.
Best,
Pam Farris
Oro Valley
From:
Sent: Monday, December 15, 2014 9:00 AM
To:Caton, Greg; Hiremath,Satish; Burns, Brendan; Garner, William; Hornat,Joe; Snider, Mary;Waters, Lou; Zinkin, Mike
Subject:Acquisition of El Conquistador
Dear Mayor Hiremath and Council Members:
I am strongly opposed toyour plans to purchase the Hilton Golf and Tennis Club and the associated increase in Oro Valley's
sales tax.
The economy is still struggling. Oro Valley continues to lose restaurants and businesses.
The increased tax will further burden those on low and fixed incomes, including those shoppers from Catalina and San
Manuel.
Theolfin industrycontinues to battle the challenge of fewer people playing golf and an oversupply of courses. Golf
g g
industry sales have declined in five of the six past calendar years.
The ongoing costs associated with golf courses would be a financial drain on the Town and its shoppers.
Please vote against this purchase and say NO to the sales tax increase.
Respectfully,
Mrs. Diane Gurr
12471 N. Granville Canyon Way
Oro Valley, Arizona
From:Joli Earhart [
Sent: Monday, December 15, 2014 8:21 AM
To:Town Council
Subject: SUPPORT
I live on the golf course of El Conquistador and we are members of the golf course.
WE STRONGLY SUPPORT the Town of Oro Valley's acquisition of buying El Con.
THANK YOU
Joli Earhart I District Administrator I Goldberg & Osborne
2323 N.Campbell i Tucson,AZ 857191520-
698 E.Wetmore,Suite 200,Tucson,AZ 85705
ION IS INTENDED ONLY FOR THE PERSONAL
INFORMATION CONTAINED IN THIS EMAIL COMMUNICAT AND CONFIDENTIAL USE OF THEed and confidential. If the reader of this messagerivile
DESIGNATED RECIPIENT NAMED ABOVE. This message may be an Attorney-Client communication,and as such is privileged
you have received this communication in error,and that your review,dissemination,distribution,or copying of the
is not the intended recipient,you are hereby notified that please destroy this transmission and notify us immediately by telephone and/or reply email.
message is strictly prohibited.If you have received this transmission in error�
1
From:
Sent: Monday, December 15, 2014 7:49 AM
To:Town Council
Subject: 12/17/2014 Agenda Resolution No. (R)14-66
I am writing to encourage the council to approve the resolution to acquire the El Conquistador Country Club facilities and the associated
resolutions on the agenda.
The property is well worth the initial and future costs and offers a very unique opportunity to get immediate gratification for a multitude
of uses. The fact that a community center with world class tennis courts can be of immediate use is far and beyond the timing and
scope of any proposed construction at the Naranja Town Site. The naysayers who object to the golf portion of the acquisition quite
probably do not know the extent that the facilities have been owned by REITs for investment only and minimal improvements have
been made yet the courses are in very good shape. The addition of a great golf course manager like Troon will only enhance this
property.
Roy Taylor
10950 N Honeybee PI
Oro Valley, AZ 85737
(
1
From: Bettie Manning [
Sent: Sunday, December 14, 2014 10:16 PM
To:Town Council
Subject: Community/Recreation Center
I support the
Town of Oro Valleyto acquire the Hilton Country Club, golf, tennis, aerobics and restaurant facilities
and for Troon to manageopportunity it. Great o ortunity for our community. I've only heard good things about Troon over the years.
years have lived
in Oro Valleyfor 25 and have been a member of El Conquistador from the time we moved here.
Bettie Manning
1
r-rom:
Sent:Sunday, December 14, 2014 1:58 PM
To:Town Council
Subject: Ova Valley acquisition of El Conquistador
As 10 yr. residents of Oro Valley (plus 6 yrs. as a snowbird), my wife and I would like to strongly encourage the Oro Valley town council
to approve the acquisition of the El Conquistador golf and tennis facility.
We feel the benefits to the town are many and the downside risks few.
Oro Valley needs a community center so here is one being offered at the ridiculously low price of only a million dollars. Yes, there are
some needed improvements required to bring the building up to code, but it is still a steal for the money.
31 top quality tennis courts, a fully outfitted fitness facility, locker rooms with sauna and hot tubs, pickle ball and basketball courts and
two swimming pools add value to the deal and would enhance the "livability" factor for the town of Oro Valley.
As for the golf course, I understand that there are needs that will require additional capitol expenditures over the next few years. But
without the town, the long term outlook for the viability of El Conquistador looks very poor. If it should go out of business, the
loss to property values would be significant.
Although I don't know the contractual arrangement between the golf course and the town for the reclaimed water usage, I understand
that it amounts to something like $1,000,000 per year. Can the water department really afford to lose a revenue source of this
magnitude and what would be done with all the reclaimed water if not used by the golf course at El Conquistador ?
In conclusion, we sincerely hope the council approves this acquisition. You have our support for this action.
Sincerely,
Bob and Jane Sterritt
10600 N Stargazer Dr.
From:Tricia Jones [
Sent:Sunday, December 14, 2014 1:13 PM
To:Town Council
Subject:Acquisition of El Conquistador by the Town of Oro Valley
Dear Council Members,
Please consider all the positives that obtaining the El Conquistador Country Club will have on the City of Oro Valley this week. As a
full-time member of the El Conquistador Country Club for the past 5 years, I have seen what a benefit this acquisition could be for the
City of Oro Valley.
El Conquistador Country Club is already set up to be a wonderful community center at a minimal cost to the city.
1. There is a wonderful health center filled with the latest health equipment including a new bike spinning room, dance studios, racquet
ball courts, two swimming pools and great locker rooms.
2. Multiple tennis courts that have been used for several national tournaments including the wheelchair tennis matches.
3. The Olympic size swimming pool is used for water aerobics, lap swims and a swim team and swim matches. The other pool is set
up for swimming lessons for younger kids and for families to enjoy.
4. Several tennis courts are marked for use by Pickle Ball matches which are very popular with our members.
5. The club house already is home to many groups for bridge, book clubs, mahjong, and other social gatherings which would only grow
due to city's involvement and management.
6. There are so many options for having a place for our city's youth to have a place to gather and learn skills and sports which I
consider a big plus.
7. El Conquistador is within walking and biking distance to the library and the Naranja Park where the city is already sponsoring a bow
and arrow area and a model plane area which only serves a small population of the city whereas a community center would appeal to
all our city residents.
These are just a few of the positive aspects of obtaining the El Conquistador property. Troon, a company that is well known for having
the best golf course management in the country, will be managing the golf course which will only improve the reputation of Oro Valley.
I can honestly say that the city will be getting a bargain in this purchase that will enhance Oro Valley for years to come. Again, I hope
that this purchase will go through.
Thank you for your time in reading this request and I will hope to hear good news at the meeting on Wednesday.
Patricia Jones
1426 W. Fairway Wood Ct.
Oro Valley AZ 85737
From:STEVE [
Sent:Sunday, December 14, 2014 1:10 PM
To:Town Council
Subject: Oro Valley Purchase Of El Conquistador Country Club Facilities
Dear Council Members,
I am writing this to ask for your Yes vote on December 17th to acquire the EI Conquistador recreational
facilities. After reading all the published information and opinions I can find, it is my opinion the pros far out weigh
the cons of this purchase. I believe the city's success during these tough times lends great credence to their
analysis and that Troon's reputation and experience provides the best available information on which to make this
decision. I believe that the acquisition will provide opportunities for all age groups and benefits all residents of Oro
Valley through increased property values putting Oro Valley in a select group of very desirable cities in which to live.
Please don't let this opportunity slip by.
Respectfully,
Steve Jones
1426 W. Fairway Wood Ct.
Horn: iviicnaei uarroii
Sent: Sunday, December 14, 2014 1:01 PM
To:Caton, Greg
Subject: No on El Con purchase
Dear Sir,
There is no documentation available to the residents of Oro Valley justifying the financial risk to be taken by the Town's purchasing the
golf courses and related properties from HSL. The slides available from the December 3 presentation contain figures that appear to
have been plucked from air: there is no justification given for any of them individually.
The Town appears to be purchasing a money-loser. The staff has not provided proof to the contrary (perhaps because there was too
little time.
This may seriously damage your record as Town Manager, if the proposal is approved.
Michael Carroll
14257 N Greenspun PI
Oro Valley, AZ
1
From: GILBERT MUNOZ [
Sent:Sunday, December 14, 2014 12:07 PM
To:Town Council •
Subject:ACQUISITION OF EL CONQUISTADOR
MY HUSBAND AND I HAVE BEEN MEMBERS OF EL CONQUISTADOR FOR 16 YEARS AND HAVE BEEN THROUGH A NUMBER OF OWNERS. WE WOULD
LIKE TO VOICE OUR SUPPORT OF THE TOWN BUYING AND OPERATING THE CLUB.
MR. & MRS. GILBERT MUNOZ
1
From:
Sent:Sunday, December 14, 2014 12:06 PM
To:Town Council
Subject:Support For Acquisition Of El Conquistador
To Honored City Council Members:
As an Oro Valley resident and ECCC Golf Club member, I strongly support your efforts to buy the
tennis courts, fitness facilities, pools and 45 holes of golf that the El Conquistador Country Club includes.
My membership is an obvious reason, but the economic reasons as a resident of Oro Valley are more
significant and may not be so apparent to non-golfers.
Property values of surrounding neighborhoods will be enhanced by improving the
facilities in this "centerpiece" in the Town of Oro Valley. The non-golfing residents of the Skyline CC became
acutely aware of the value of their centerpiece in the last 18 months. Troon Management is a nationally
renowned entity in the enhancement field.
Sincerely,
George Duncan
11305 N Scioto Ave
From: Kaaren
Sent: 12/13/2014 5:38 PM
To: MSNIDER@OROVALLEYAZ.GOV
Subject: FW: Purchase of Hilton Country Club Property
>
>
> Dear Mary,
>
> The purchase of this property for$ 1 million is a once-in-a-life-time opportunity! An opportunity of this magnitude will not come again. As a
resident of the town of Oro Valley, and being fully aware of the "legs" on this purchase, I am more than willing to approve a .5 of 1 percent sales tax
increase to allow Oro Valley to buy the Hilton Country Club building, golf, tennis and other facilities. How could anyone not see the overall value for
our community in this purchase?
>
> Kaaren Sullivan
> Town of Oro Valley Resident
From:
Sent: Sunday, December 14, 2014 10:11 AM
To: Caton, Greg
Subject:Taxes& Property Acquisition
'
' n o Hilton El Conquistador GOLF & Tennis Club
I am VERY opposed to purchase/acquisitio
and also increase in Oro Valley taxes that will occur.
Homeowner
12180 N. New Dawn Ave.
Oro Valley, AZ 85755
Marcia J. Larson
1
.. .................................... ...._....................
From:
Bert Zaccaria On Behalf Of Bert Zaccaria
.. . . ..
•
Sent:Saturday, December 13, 2014 5:51 PM
To:Town Council
Subject: El Conquistador
Oro Valley Council:
I strongly support the acquisition of the El Conquistadorgolf and tennis
q facilities. I believe that you have a competent team doingthe due
and hopefully you will negotiate an escrow reserve account to cover diligence
the errors in the representations and warranties that that will inevitabl
after the deal is closed. They always do. y come up
I applaud all of you for your forward thinking vision and hope that this venture is s a big success for all of us.
Thanks and good luck,
Bert Zaccaria
1605 West Kitty Hawk Way
Oro Valley, AZ 85755
1
.
From:
Sent:Saturday, December 13, 2014 5:49 PM
To:Town Council
Subject: purchasing tennis courts etc.
As Tucson, now Oro Valley, residents of 40 years, want you to know we totally agree with the purchase of the Conquistador facilities. It shows the
forward thinking of our Town Council!
Rose Farina
1
From:John Gorman [
Sent:Saturday, December 13, 2014 3:30 PM
To:Town Council
Subject:Acquisition of El Conquistador
I am fully supportive of the proposed purchase of the El Conquistador Golf and Tennis Club by the Town of Oro
Valley. The value of this property far exceeds the price being paid and it will benefit the residents of our town.
John Gorman
11134 N Sand Pointe Dr.
Oro Valley, AZ 85737
From: Lee Hessler [
Sent:Saturday, December 13, 2014 3:00 PM
To:Town Council
Subject: Proposed Purchase of El Conquistador Property is the Right Choice. Consider the Alternatives!
This is the right choice for OV citizens. Even non-golfers need to think of the alternatives. If a different party were to buy the facilities it might conclude
that the 45 golf holes would be best parceled off for development. Think of the many years of bitter battles over rezoning and changes to the city
plan. Proposed developments would be make-shift attempts to fit an awkward geographical profile that would please no one but the developers. A couple
dozen HOA's and many hundreds of home owners directly on or nearby the 3 golf courses would vehemently oppose virtually any development plan one
could conceive. How would the property be maintained in the meantime and what would that cost? Think of the impact on existing home values. Even
those not nearby could be adversely affected. The ultimate outcome would be one that dissatisfies almost everyone.
The council should go ahead with the plan. It is a one time opportunity otherwise lost forever.
Robert Lee Hessler
62 E Morning Ridge Place
Original Message
From:Jackie Schaefer [
Sent: Saturday, December 13, 2014 2:51 PM
To:Town Council
Subject:The El con Purchase
We are in favor of the purchase of the resort.we do not like the idea of being in the golf business!Other golf clubs are failing all over the country ! Every body
knows that.Do not get us in that business.figure a way to make money from the sale of that property..lt has to be worth several million. Maybe homes or
condos..Figure it out .there are other options. Richard and Jacqueline Schaefer Sun City Oro Valley
Sent from my iPad
1
From: PIUS MALSOM [
Sent: Saturday, December 13, 2014 2:37 PM
To:Town Council
Subject: Passage of the purchase of El Conquistador CC
My family being of a voting family, encourage ALL members of the Oro
Valley City Council to pass the purchase of El Conquistador CC 1111
Thanking you in advance.
P J Malsom
From: "
Date: December 13, 2014 at 10:24:48 AM MST
To: "Nowak, Misti" <mnowak@orovalleyaz.gov>
Subject: [Misti Nowak] buying a CC and golf course
Jane Peterson sent a message using the contact form at http://www.orovalleyaz.gov/. If the Town wants to provide a place for people
to gather, why don't they buy a Starbucks. Food and Beverage service would be part of the deal and Starbucks actually makes money.
1
H nd, Jessica
From: Robert <
Sent: Saturday, December 13, 2014 10:08 AM
To: Hynd,Jessica
Subject: RE: Resident Opinion
Dear MS Hynd
I appreciate your prompt response to my inquiry.
After reviewing the information you provided my opinion is still that the city should not get involved in the golf business. It is clear that the golf
industry is a declining industry and I believe it is foolish to think Oro Valley can be one of the very few that are able to operate at a profit for any
length of time.
I do have one question though, why is there not a citywide vote on the acquisition? There was a vote for the proposed improvements at the park,
which was voted down by the way, but why is a vote not necessary for this project? I believe that if there was a vote, the 51% popular support that
is quoted would not be there.
Anyway, thanks again for your prompt response.
Respectfully,
Bob Schultze
Reply to:
Standish, Michael
From: Bower, Julie
Sent: Tuesday, December 16, 2014 9:53 AM
To: Standish, Michael
Subject: FW: Email regarding El Conquistador CC &GC
Attachments: Email received by Town Clerk re El Conquistador CC &GC.pdf; Email received by
Constituent Services re El Conquistador CC &GC.pdf
Julie K. Bower, MMC
Oro Valley Town Clerk
11000 N. La Canada Dr.
Oro Valley, AZ 85737
520-229-4740
From: Bower,Julie
Sent:Tuesday, December 16, 2014 9:53 AM
To:Town Council
Cc:Caton, Greg; Sidles,Tobin; kschwab@cgsuslaw.com
Subject: Email regarding El Conquistador CC&GC
Council,
Attached are pdfs of email received by the Clerk's Office and Constituent Services. You may have seen many of them
already. All of these emails will be added to the public record.
Thanks,Julie
Julie K. Bower, MMC
Oro Valley Town Clerk
11000 N. La Canada Dr.
Oro Valley, AZ 85737
520-229-4740
From: Jerry Hoeft [
Sent: Thursday, December 04, 2014 11:18 AM
To: Snider, Mary
Subject: AGAINST Golf Course
Honorable Councilwoman Snider:
I have lived in Sun City Oro Valley for more than 15 years and am WHOLEHEARTEDLY AGAINST Oro Valley acquiring a golf
course!! Here in Sun City, we've had to subsidize our golf course for many years, even after we've opened it up to non residents. The
Tucson metro area has too many golf courses and most are in varying degrees of financial distress. New, "baby boomer," retirees are
not avid golfers. No matter how you may try to "spin" it, acquiring a golf course is a BAD INVESTMENT!!!
Sincerely,
Gerald G. Hoeft
13747 N. Batamote Wash Way
Oro Valley, AZ 85755-4707
From: Stan Winetrobe .
Sent: ThursdayDecember 04, 2014 12:23 PM
To: SniderMary
Subject: Potential Town Purchase of Hilton
Councilmember Snider-
I think this is a great idea, but I do have some questions.
1. The asWngphce \s $1M. VVhst�the fair rnarkeLvalue ofthe P'oPer�'7
2. and hat is the "to be" cond�ion |nthe
fuAsaresiden� Iwou|dUkeLose�mp|enofhovvtheproper�'vviUb� nc-con�gured� VVhmtisdhe "i�" oond(tionYoday, wture? What"things" will be deleted, refurbished, upgraded, added? How much will that cost? Over what time frame?
3. Will any contingency funds be used for purchase, upgrade, or maintenance of the property
4. What department(s) within the Town will manage the new Community Center? Will additional staff be required to manage the property?
5. If golf revenues fall short, how will the shortfall be covered?
6. Will Town residents pay use of the community center? What services/amenities will be free ordiscounhed (if any) to town residents?
7. Can the Town realize revenue by renting out meeting rooms(for example)to groups, organizations, companies, etc.? What revenue
streams does the town
expect from this property?
Thank you.
Stan Winetrobe
1
From:
Sent:Thursday, December 04, 2014 10:28 AM
To:Town Council
Subject: Purchase of El Conquistidor golf and hotel
Please take your time and do not jump into a'money pit'with this acquisition. The Hotel industry is down in this market, the Golf industry is down as well,
also understand the Ritz-Carlton in Marana just sold for almost nothing...Oro ValHey C.C. memberships down and offering specials to increase, Problems at
Vistoso G.C. ..all 3 courses are in our North West vicinity and the Tucson, Green valley area numbers go on and on.
I worked at Cape Cod National Golf course on Cape Cod for 5 years in the maintenance department.The costs to maintain a golf course is staggering;
equipment, maintaining the equipment, water, seeding, pesticides, maintenance personnel, etc. is perhaps more than you have considered or understand. All this,
coupled with an article on AOL today by prominent golf consulting company Pellucid stating that golf lost 1.1 million players in 2013 AND since 2002
golfers are down an amazing 25%....this doesn't paint a rosy future for golf!
Please, as an Oro Valley resident, don't jump in and increase our taxes just because this purchase of 1 million looks too good to pass up, did you see private
investors at the table? If not, it probably isn't such a great purchase especially considering the facts mentioned above.
Thanks for your time and consideration.
Jim Cooper
2487 E Spring Valley Ln
Oro Valley, AZ 85755
[ounci|mnernber
From: John Spitler
Sent: Thursday, December 04, 2014 12:33 PM
To:Town Council
Subject: Golf Course Decision by the Council
Dear Council members:
I am John Spitler, resident of Oro Valley, and wish to weigh in on any decision to purchase El Conquistador Golf facility. I have played ed go|f for
over 50 years and have belonged to 3 private clubs and had been a member of El Conquistador for 7 years, up to last Christmas. In all of those
years,the only city that I am familiar with that ever made money on owning a golf course was Concord,Calif. The course was called Concord Muni,
or Diablo Creek depending on who you talked to. Concord made money on a very popular course,that had little competition. I think for the City of
Oro Valley to risk giving up all the work the council has done to keep us in the black in spite of some bad economic times, would be fool-hardy.
I know the most worrisome issues that golf courses face every year is the cost of water, and the longevity of the irrigation system. I think El
Conquistador has both those issues. I left El Con for Oro Valley CC, and Oro Valley has just been bought by a Golf Company. One of the attractions
that Oro Valley CC had was they have their own wells such that water becomes an asset rather than a liability.
My advice—Stick to parks and parks recreation. Don't tread on the golf business.
John Spitler, 1193DNVerchWay 85737
nary naer
Councilmember
From: Judy and Tom Charland [
Sent: Thursday, December 04, 2014 12:43 PM
To: Snider, Mary; Waters, Lou; Zinkin, Mike
Subject: El Conquistador Golf Course
Oro Valley Councilmembers:
I have just read an article regarding the possible purchase of the El Conquistador Golf Course by the
Town of Oro Valley. My warning to you is "buyer beware." I am an Oro Valley resident and retired
internal auditor with the City of Tucson. I audited the City golf courses during my career and can
state that the City golf courses operated at a loss annually. A portion of my career was working with
Stacy Lemos prior to her accepting employment with the Town of Oro Valley.
Also, a 1/2 cent sales tax increase for golf course operations will likely be unacceptable to local
residents. The possibility of purchasing a golf course does not appear to be prudent for the Town of
Oro Valley. I may be contacted by email or telephone Please keep me informed
regarding this matter.
Thank you. Thomas Charland
..- :. ... ..:.,. ., :. ............:. .•:: ;:..,.,.: ,:.....+., ..•..... ,.. .. .... .-
em' u
Set tThursday, December 04, 2014 12:07 PM
n
sa
To:Town Council
Subject: El Conquistador aquisition
If the pro forma financials and cash flow look manageable, I hope that you approve this acquisition. It would seem to me that there are many ways to finance this
venture that any good investment banker could suggest other than rising the sales tax.
This is an opportunity that will upgrade our town in a way that adding a smaller, newer facility elsewhere cannot.
Good luck,
Bert Zaccaria
1605 West Kitty Hawk Way
Oro Valley, AZ 85755
PS: Why is there a middle man in this deal?
From: John Barnett [
Sent:Thursday, December 04, 2014 8:46 PM
To: Snider, Mary
Subject: Oro Valley might raise taxes to buy El Conquistador's country club
Hi Mary
I just read about the consideration of the purchase of El Conquistador by Oro Valley. I'm not against the tax proposition to support this action. In fact, I think it is a
great deal. I contacted a good friend of mine who is a golf pro who teaches golf lessons at the Ritz, and who also works for Troon Golf. He read about it but did not
know it included the 9 hole golf course at the Hilton.We both have played at that 9 hole golf course and we both concur that the course has negative business
profit. If it were an 18 hold course, it might be considered worth considering. However, it was suggested to me that if Oro Valley purchased the 9 hole golf course,
they should re-zone it and build nice condos on the course.This would be a huge building tax advantage, be attractive to snow birds and would help pay for the
two 18 hole courses at El Conquistador. This would have very little impact on the homes in that area that are already built, plus the added community rec center to
the local public. Just a suggestion to consider before the Town Council.
Thanks
John
P.S., with our aquatic event going on and all the preparation, where do i find time to read and respond to this? I love OV.
OU-'4J/ u kivioultui
From: John Scheuring
Sent: Friday, December 05, 2014 8:00 AM
To: Hornat, Joe
Subject: Request to meet
Hi Joe
I would like to meet with you briefly any time convenient for you next week. I am fully retired and have a pretty open and
flexible schedule.
I just read about the the TOV intention of purchasing part of the Conquistador facilities and golf operation. I would like to
discuss with you the cost implications this purchase well have on weed removal and control. The removal and
maintenance costs will be significant as the Conquistador properties have allowed both buffelgrass and fountaingrass to
run rampant over the years.
Thank you.
John Scheuring
Sent: Friday, December 05, 201411:23 AM
To: Hiremath, Satish
Cc:Waters, Lou;Caton,Greg
Subject: Possible purchase of El Conquistador CC by the City of Oro Valley
Dear Mr. Mayor,
I read in the news today about the possible purchase by the City of the El Conquistador CC for use as a community center. My wife and
I own a home in Oro Valley on the El Conquistador Pusch golf course at 1214 E. Camino Diestro. We enjoy Oro Valley very much! It is
a great town.
Regarding the possible purchase of the El Con CC and making it a community center, however, I have heard that if the sale goes thru,
the City might "re-format" the Pusch Ridge golf course and turn it into a non-traditional golf course or community park.
I appreciate the possible purchase and operation of the golf courses is still in the discussion phase, but by changing the format of the
course there is significant risk it will change the character of our community and more importantly negatively impact the value of our
homes.
Additionally, by re-formatting the course for non-traditional golf or more non-golf activities there will no doubt be an increase in noise,
nuisance, and security issues. Many folks who live in our community chose the neighborhood precisely because of the peaceful setting.
Rather than turning the course into a non-traditional course, I would kindly suggest the focus should be on making the Pusch Ridge
course a first class 9 hole golf course. The layout of the course and changes in elevation present an opportunity for the course to be the
finest 9 hole golf course in southern Arizona. This would be asset for Oro Valley. I suspect the folks at Troon Golf management would
appreciate such.
Please let me know your thoughts.
Thank you for your leadership and continued service to our community.
Best regards,
Guy R. Cook
Double Board Certified Trial Lawyer
H nd, Jessica
From: Snider, Mary
Sent: Friday, December 05, 2014 2:48 PM
To: Hynd,Jessica
Cc: Caton, Greg
Subject: FW: Purchase of Golf Course
From: Ronald Sandy Knudson [
Sent: Friday, December 05, 2014 2:02 PM
To: Town Council
Subject: Purchase of Golf Course
I cannot believe Oro Valley wants to invest money in a golf course!!!!
The facts are golf courses are nothing but a bad money pit. Look around -the city of Tucson lost money, Vistoso went bankrupt, the views of Sun City has to be
subsidized by the residents.
Why should the residents of Oro Valley have an increase in Tax to buy a golf course and what is going to happen when it fails, another tax increase or take money
from education???
Keep government out of trying to own and run a business!!!
I think this is a very bad decision.
Ronald Knudson
14219 N Buckingham Dr
1
From: RON JANICKI
Sent: 12/8/2014 8:26 AM
To: Hiremath,Satish; VVaters, Lou;Snider, Mary; Hornat,Joe;Zinkin, Mike;Garner,William; Burns, Brendan
Subject: El Conquestador Purchase
Mayor & Council Members,
I just wanted to send a quick note express my opinion on the purchase of the Hilton El Conquestador Tennis & Golf. This is a once in a
lifetime opportunity to bring a facility and services to our town. It could take many years to gather the funds and build a town community
center. HSL has provided an opportunity for the Town, and we must take advantage of this as soon as we can. Other organizations will
gladly pay more than one million dollars to obtain all of the facilities the 324 acres.
Oro Valley is the jewel of Southern Arizona, and this will increase our sparkle.
Debbie Janicki
Oro Valley Resident
From: Jack Evert [
Sent: Saturday, December 06, 2014 9:16 AM
To: Town Council
Subject: El Con project
I am strongly in opposition to the proposed purchase, primarily because I do not believe in the projections for the golf courses. The article on the front page of
the Star Saturday morning concerning the failure of Tucson city golf courses mirrors my expectations. How many times do we have to hear that after spending
millions of dollars to improve the courses and improving the marketing of same, then they will turn around. Every golf course in the Tucson metro has the same
story,yet they continue to fail.
will not meet expectations ectations and will be an ongoing financial drain on the town that I would hate to see. I agree
It will be the same case here. These golf courses p
that ought to tellyou something. Lopez doesn't want ANYTHING to do with the albatross of money-losing golf courses, so of
that the price is very favorable; g g
course he is going to sell them at a bargain.
Thisothergolf courses(includingours in Sun City) as well as the many private fitness centers I also wonder if
purchase would put the town in competition with
there is any basis for thinking we can find users for 35 additional tennis courts.
to well defined public sentiment desiring a community center. And this is a good price. But the golf courses are
I very much appreciate your efforts to respond
A suggestion;; would it be possible to sell the golf courses if you go ahead with the purchase? I don't mean finding an
the kiss of death for me on this project. s gg
operator; I mean SELL. I don't want the town to touch the courses with a ten foot pole!
youhigh have no objection to the tax. I have advocated to manyof to maintain our hi h quality of life in Oro Valley. And I am willing to pay for such quality. But I
don't want to squander the added tax dollars on the black hole this deal will become.
iare apparently proceedingwith this project. It is a big deal, and although I can imagine the complexities which are
My last point is the speed with which you pp Y
g
likely causing the haste, the community needs
time to digest and discuss the ramifications. I think you will incur a great deal of suspicion and hostility if such a
project as this proceeds with basically two weeks notice (I am presuming you plan to act at the your next meeting).
conjectural
Thanks for your continued efforts on behalf of our great town. And vote this turkey down!
Jack Evert
H nd, Jessica
From:
Sent: Wednesday, December 10, 2014 6:04 PM
To; Hynd,Jessica
Subject: [Jessica Hynd} El Conquistador Purchase
Janice and Lauren Strassburg sent a message using the contact form at http://www.orovalleyaz.gov/. As residents of Oro Valley, we want to go on
record as opposed to the•purchase that the city is so eager to do post haste. The community center portion is palatable but taking on 45 holes of golf
course seems a foolish venture at taxpayer expense. It also smacks of"good old boy" politics since HSL donated a good deal of money to Hiremath
and council members who recently ran for re-election. It seems that upping the sales tax for persons who shop in Oro Valley is counter productive. It
will make a person give pause to where they shop, esp. for bigger ticket items. Since the Mayor has already stated that residents will not be allowed
to speak at the next council meeting he once again looks like "I'm the boss and what I say goes"just as he did with the Zinkin power point
presentation regarding the police force overtime situation. I doubt the election would have the same outcome if all of this were known last November.
1
iesszca
From:
Sent: Monday, December 15, 2014 10:07 AM
To: Hynd, Jessica
Subject: Re: Purchase of Hilton golf course
Hi, Jessica,
After reading that 150 plus golf courses fold each year, I think perhaps the land might better be used for soccer fields. But I support the purchase
as an opportunity,
Best,
Pam Farris
Oro Valley
•
From:
Sent: Monday, December 15,2014 9:00 AM
To:Caton,Greg; Hiremath,Satish; Burns, Brendan;Garner, William; Hornat,Joe; Snider, Mary;Waters, Lou;Zinkin, Mike
Subject:Acquisition of El Conquistador
Dear Mayor Hiremath and Council Members:
I am strongly opposed to
our plans to purchase the Hilton Golf and Tennis Club and the associated increase in Oro Valley's
Y
sales tax.
The economy is still struggling. Oro Valley continues to lose restaurants and businesses.
The increased tax will further burden those on low and fixed incomes, including those shoppers from Catalina and San
Manuel.
Theolfin industrycontinues to battle the challenge of fewer people playing golf and an oversupply of courses. Golf
g g
industry sales have declined in five of the six past calendar years.
The ongoing costs associated with golf courses would be a financial drain on the Town and its shoppers.
Please vote against this purchase and say NO to the sales tax increase.
Respectfully,
Mrs. Diane Gurr
12471 N. Granville Canyon Way
Oro Valley, Arizona
From:Joli Earhart [
Sent:Monday, December 15, 2014 8:21 AM
To:Town Council
Subject:SUPPORT
I live on the golf course of El Conquistador and we are members of the golf course.
WE STRONGLY SUPPORT the Town of Oro Valley's acquisition of buying El Con.
THANK YOU
Joli Earhart I District Administrator I Goldberg& Osborne
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DESIGNATED RECIPIENT NAMED ABOVE.This message may be an Attorney-Client communication,and as such is privileged and confidential.If the reader of this message
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message is strictly prohibited.If you have received this transmission in error,please destroy this transmission and notify us immediately by telephone and/or reply email.
1
_ .
From:
Sent: Monday, December 15, 2014 7:49 AM
To:Town Council
Subject:12/17/2014 Agenda Resolution No. (R)14-66
I am writing to encourage the council to approve the resolution to acquire the El Conquistador Country Club facilities and the associated
resolutions on the agenda.
The property is well worth the initial and future costs and offers a very unique opportunity to get immediate gratification for a multitude
of uses. The fact that a community center with world class tennis courts can be of immediate use is far and beyond the timing and
scope of any proposed construction at the Naranja Town Site. The naysayers who object to the golf portion of the acquisition quite
probably do not know the extent that the facilities have been owned by REITs for investment only and minimal improvements have
been made yet the courses are in very good shape. The addition of a great golf course manager like Troon will only enhance this
property.
Roy Taylor
10950 N Honeybee P1
Oro Valley, AZ 85737
(
1
From: Bettie Manning[
Sent:Sunday, December 14, 2014 10:16 PM
To:Town Council
Subject:Community/Recreation Center
I support the Town of Oro Valley to acquire the Hilton Country Club, golf, tennis, aerobics and restaurant facilities
and for Troon to manage it. Great opportunity for our community. I've only heard good things about Troon over the years.
I have lived in Oro Valley for 25 years and have been a member of El Conquistador from the time we moved here.
Bettie Manning
1
rrorn:
Sent:Sunday, December 14, 2014 1:58 PM
To:Town Council
Subject:Ova Valley acquisition of El Conquistador
As 10 yr. residents of Oro Valley(plus 6 yrs. as a snowbird), my wife and I would like to strongly encourage the Oro Valley town council
to approve the acquisition of the El Conquistador golf and tennis facility.
We feel the benefits to the town are many and the downside risks few.
Oro Valley needs a community center so here is one being offered at the ridiculously low price of only a million dollars. Yes, there are
some needed improvements required to bring the building up to code, but it is still a steal for the money.
31 top quality tennis courts, a fully outfitted fitness facility, locker rooms with sauna and hot tubs, pickle ball and basketball courts and
two swimming pools add value to the deal and would enhance the "livability" factor for the town of Oro Valley.
As for the golf course, I understand that there are needs that will require additional capitol expenditures over the next few years. But
without the town, the long term outlook for the viability of El Conquistador looks very poor. If it should go out of business, the
loss to property values would be significant.
Although I don't know the contractual arrangement between the golf course and the town for the reclaimed water usage, I understand
that it amounts to something like $1,000,000 per year. Can the water department really afford to lose a revenue source of this
magnitude and what would be done with all the reclaimed water if not used by the golf course at El Conquistador?
In conclusion, we sincerely hope the council approves this acquisition. You have our support for this action.
Sincerely,
Bob and Jane Sterritt
10600 N Stargazer Dr.
From:Tricia Jones
Sent:Sunday, December 14, 2014 1:13 PM
To:Town Council
Subject:Acquisition of El Conquistador by the Town of Oro Valley
Dear Council Members,
Please consider all the positives that obtaining the El Conquistador Country Club will have on the City of Oro Valley this week. As a
full-time member of the El Conquistador Country Club for the past 5 years, I have seen what a benefit this acquisition could be for the
City of Oro Valley.
El Conquistador Country Club is already set up to be a wonderful community center at a minimal cost to the city.
1. There is a wonderful health center filled with the latest health equipment including a new bike spinning room, dance studios, racquet
ball courts, two swimming pools and great locker rooms.
2. Multiple tennis courts that have been used for several national tournaments including the wheelchair tennis matches.
3. The Olympic size swimming pool is used for water aerobics, lap swims and a swim team and swim matches. The other pool is set
up for swimming lessons for younger kids and for families to enjoy.
4. Several tennis courts are marked for use by Pickle Ball matches which are very popular with our members.
5. The club house already is home to many groups for bridge, book clubs, mahjong, and other social gatherings which would only grow
due to city's involvement and management.
6. There are so many options for having a place for our city's youth to have a place to gather and learn skills and sports which I
consider a big plus.
7. El Conquistador is within walking and biking distance to the library and the Naranja Park where the city is already sponsoring a bow
and arrow area and a model plane area which only serves a small population of the city whereas a community center would appeal to
all our city residents.
These are just a few of the positive aspects of obtaining the El Conquistador property. Troon, a company that is well known for having
the best golf course management in the country, will be managing the golf course which will only improve the reputation of Oro Valley.
I can honestly say that the city will be getting a bargain in this purchase that will enhance Oro Valley for years to come. Again, I hope
that this purchase will go through.
Thank you for your time in reading this request and I will hope to hear good news at the meeting on Wednesday.
Patricia Jones
1426 W. Fairway Wood Ct.
Oro Valley AZ 85737
From:STEVE [
Sent:Sunday, December 14, 2014 1:10 PM
To:Town Council
Subject:Oro Valley Purchase Of El Conquistador Country Club Facilities
Dear Council Members,
1 am writing this to ask for your Yes vote on December 17th to acquire the El Conquistador recreational
facilities. After reading all the published information and opinions I can find, it is my opinion the pros far out weigh
the cons of this purchase. I believe the city's success during these tough times lends great credence to their
analysis and that Troon's reputation and experience provides the best available information on which to make this
decision. I believe that the acquisition will provide opportunities for all age groups and benefits all residents of Oro
Valley through increased property values putting Oro Valley in a select group of very desirable cities in which to live.
Please don't let this opportunity slip by.
Respectfully,
Steve Jones
1426 W. Fairway Wood Ct.
i-rom: i\mcnael Larroit
Sent:Sunday, December 14, 2014 1:01 PM
To:Caton, Greg
Subject: No on El Con purchase
Dear Sir,
There is no documentation available to the residents of Oro Valley justifying the financial risk to be taken by the Town's purchasing the
golf courses and related properties from HSL. The slides available from the December 3 presentation contain figures that appear to
have been plucked from air: there is no justification given for any of them individually.
The Town appears to be purchasing a money-loser. The staff has not provided proof to the contrary (perhaps because there was too
little time.
This may seriously damage your record as Town Manager, if the proposal is approved.
Michael Carroll
14257 N Greenspun PI
Oro Valley, AZ
From:GILBERT MUNOZ[
Sent:Sunday, December 14, 2014 12:07 PM
To:Town Council
Subject:ACQUISITION OF EL CONQUISTADOR
MY HUSBAND AND I HAVE BEEN MEMBERS OF EL CONQUISTADOR FOR 16 YEARS AND HAVE BEEN THROUGH A NUMBER OF OWNERS. WE WOULD
LIKE TO VOICE OUR SUPPORT OF THE TOWN BUYING AND OPERATING THE CLUB.
MR. & MRS. GILBERT MUNOZ
1
From:
Sent:Sunday, December 14, 2014 12:06 PM
To:Town Council
Subject:Support For Acquisition Of El Conquistador
To Honored City Council Members:
As an Oro Valley resident and ECCC Golf Club member, I strongly support your efforts to buy the
tennis courts, fitness facilities, pools and 45 holes of golf that the El Conquistador Country Club includes.
My membership is an obvious reason, but the economic reasons as a resident of Oro Valley are more
significant and may not be so apparent to non-golfers.
Property values of surrounding neighborhoods will be enhanced by improving the
facilities in this "centerpiece" in the Town of Oro Valley. The non-golfing residents of the Skyline CC became
acutely aware of the value of their centerpiece in the last 18 months. Troon Management is a nationally
renowned entity in the enhancement field.
Sincerely,
George Duncan
11305 N Scioto Ave
From: Kaaren
Sent: 12/13/2014 5:38 PM
To: MSN1DER@OROVALLEYAZ.GOV
Subject: FW: Purchase of Hilton Country Club Property
> Dear Mary,
>The purchase of this property for$ I million is a once-in-a-life-time opportunity! An opportunity of this magnitude will not come again. As a
resident of the town of Oro Valley, and being fully aware of the "legs" on this purchase, I am more than willing to approve a.5 of 1 percent sales tax
increase to allow Oro Valley to buy the Hilton Country Club building, golf,tennis and other facilities. How could anyone not see the overall value for
our community in this purchase?
> Kaaren Sullivan
>Town of Oro Valley Resident
Ltk.i0L1,01 ,„_.,
From:
Sent:Sunday, December 14, 2014 10:11 AM
To:Caton,Greg
Subject:Taxes& Property Acquisition
I am VERY opposed to purchase/acquisition o Hilton El Conquistador GOLF &Tennis Club
and also increase in Oro Valley taxes that will occur.
Homeowner
12180 N. New Dawn Ave.
Oro Valley, AZ 85755
Marcia J. Larson
From: Bert Zaccaria [
Sent:Saturday, December 13,2014 5:51 PM
To:Town Council
Subject:El Conquistador
Oro Valley Council:
I strongly support the acquisition of the El Conquistador golf and tennis facilities. I believe that you have a competent team doing the due diligence
and hopefully you will negotiate an escrow reserve account to cover the errors in the representations and warranties that that will inevitably come up
after the deal is closed. They always do.
I applaud all of you for your forward thinking vision and hope that this venture is a big success for all of us.
Thanks and good luck,
Bert Zaccaria
1605 West Kitty Hawk Way
Oro Valley, AZ 85755
1
From:
Sent:Saturday, December 13,2014 5:49 PM
To:Town Council
Subject: purchasing tennis courts etc.
As Tucson, now Oro Valley, residents of 40 years, want you to know we totally agree with the purchase of the Conquistador facilities. It shows the
forward thinking of our Town Council!
Rose Farina
From:John Gorman [
Sent:Saturday, December 13, 2014 3:30 PM
To:Town Council
Subject:Acquisition of El Conquistador
I am fully supportive of the proposed purchase of the El conquistador Golf and Tennis Club by the Town of Oro
Valley. The value of this property far exceeds the price being paid and it will benefit the residents of our town.
John Gorman
11134 N Sand Pointe Dr.
Oro Valley, AZ 85737
From: Lee Hessler [
Sent:Saturday, December 13,2014 3:00 PM
To:Town Council
Subject: Proposed Purchase of El Conquistador Property is the Right Choice. Consider the Alternatives!
This is the right choice for OV citizens. Even non-golfers need to think of the alternatives. If a different party were to buy the facilities it might conclude
that the 45 golf holes would be best parceled off for development. Think of the many years of bitter battles over rezoning and changes to the city
plan. Proposed developments would be make-shift attemptto fit an awkward geographical profile that would please no one but the developers. A couple
dozen HOA's and many hundreds of home owners directly on or nearby the 3 golf courses would vehemently oppose virtually any development plan one
could conceive. How would the property be maintained in the meantime and what would that cost? Think of the impact on existing home values. Even
those not nearby could be adversely affected. The ultimate outcome would be one that dissatisfies almost everyone.
The council should go ahead with the plan. It is a one time opportunity otherwise lost forever.
Robert Lee Hessler
62 E Morning Ridge Place
Original Message
From:Jackie Schaefer [
Sent: Saturday, December 13,2014 2:51 PM
To:Town Council
Subject:The El con Purchase
We are in favor of thep urchase of the resort.we do not like the idea of being in the golf businesslOther golf clubs are failing all over the country ! Every body
knows that.Do not get us in that business.figure a way to make money from the sale of that property..lt has to be worth several million. Maybe homes or
condos..Figure it out.there are other options. Richard and Jacqueline Schaefer......Sun City Oro Valley
Sent from my iPad
1
From: PIUS MALSOM [
Sent:Saturday, December 13,2014 2:37 PM
To:Town Council
Subject: Passage of the purchase of El Conquistador CC
My family being of a voting family, encourage ALL members of the Oro
Valley City Council to pass the purchase of El Conquistador CC.1!!!
Thanking you in advance.
Pi Malsom
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•
From: "
Date: December 13, 2014 at 10:24:48 AM MST
To: "Nowak, Misti" <mnowak@orovalleyaz.gov>
Subject: [Misti Nowak] buying a CC and golf course
Jane Peterson sent a message using the contact form at http://www.orovalleyaz.govi. If the Town wants to provide a place for people
to gather,why don't they buy a Starbucks. Food and Beverage service would be part of the deal and Starbucks actually makes money.
•
H nd, Jessica
From: Robert <
Sent: Saturday, December 13, 2014 10:08 AM
To: Hynd,Jessica
Subject: RE: Resident Opinion
Dear MS Hynd
I appreciate your prompt response to my inquiry.
After reviewing the information you provided my opinion is still that the city should not get involved in the golf business. It is clear that the golf
industry is a declining industry and I believe it is foolish to think Oro Valley can be one of the very few that are able to operate at a profit for any
length of time.
I do have one question though, why is there not a citywide vote on the acquisition? There was a vote for the proposed improvements at the park,
which was voted down by the way, but why is a vote not necessary for this project? I believe that if there was a vote, the 51%popular support that
is quoted would not be there.
Anyway, thanks again for your prompt response.
Respectfully,
Bob Schultze
Bower, Julie
From: Frank Sole<
Sent: Wednesday, December 10, 2014 3:40 PM
To: Bower, Julie
Cc:
Subject: Proposed Financial Deal with HSL Properties
As an Oro Valley resident, let this e-mail serve as a notification of my strongest opposition to the proposed purchase of
El Conquistador properties or any financial dealings with HSL Properties.Please enter my opposition into the public
record. Thank You
Bower, Julie
From: William Gentz<
Sent: Wednesday, December 10, 2014 3:43 PM
To: Caton, Greg; Burns, Brendan; Hornat, Joe; Waters, Lou; shiremath@orovalleyaz.com;
Garner, William; Snider, Mary; Zinkin, Mike
Cc: Bower, Julie
Subject: El Conquistador's country club
I want this to be part of the Public Record:
My husband and I just returned from vacation and are trying to get through all the reading news regarding the
Town of Oro Valley wishing to purchase El Conquistador Country Club. Apparently they haven't visited the
facility lately as it is in need of lots of updating and repairs...and I believe they wish to spend about SimiIlion
to do so. This is not a good use of our tax monies. Again, I haven't been able to collect all the details because
we just got home and didn't have access to the Internet or papers.
SO...What is the hurry??? Has anyone on the Town Council read about the other golf communities in the area
which have gone underwater(Stone Canyon is one and if that beautiful golf course couldn't make it how on
earth is an old poorly maintained one ever going to make it??) This after the Town Council voted to shut
down the Rec Center which was small but very busy because it costs them around $30,000 a year. What do
you think this action...if taken...will cost the residents of Oro Valley?
I am totally against this action and wish that the Town Council put this up to the residents to vote for or
against.
Also,our sales tax is already one of the highest in the country. If I have a large purchase I usually go to the
Foothills or LaEncantada where the tax is lower. You will be pushing purchasing business OUT of Oro Valley if
you raise the tax any higher. People are living on fixed income and we need taxes to be lowered not raised.
Please do not spend our hard earned taxes on this. It will not turn out well.
Thank you,
Mona and Bill Gentz
Bower, Julie
From: Larry and Brenda Ryan<
Sent: Thursday, December 11, 2014 4:07 AM
To: Bower, Julie
Subject: Fw: Purchase of El Conquistador property from HSL
Original Message
From: Larry and Brenda Ryan
To:gcaton&orovalleyaz.gov; shirerle az. ov ; bburnsgorovalleyaz.gov ; wgarner@orovalleyaLgov;
jhornat@orovalleyaz.gov msniderporovalleyaz.gov ; lwatersorovalleyaz.gov ; mzinkinporovalleyaz.gov
Sent: Tuesday, December 09, 2014 7:02 AM
Subject: Purchase of El Conquistador property from HSL
Dear Mayor and Council Members,
While we feel that many of you have already decided to make this purchase, we felt we should
register our opinions.
We DO NOT feel this is a wise choice Oecause:
1. The Town of Oro Valley has striven to promote supporting business in Oro Valley, and raising the
sales tax will do just the opposite.
2. Raising taxes AGAIN is very painful for those of us on fixed incomes. We have expressed this before
and been ignored.
3. Getting into the golfing business is an obvious "Money Pit" with the current downtrends obvious in
that business, and foolish for our town.
4. The specter of HSL donating large amounts to some of your political campaigns and now expecting
their return is an obvious smear on some of your reputations.
5. The reputation of HSL is most questionable given their history and the obvious "ghetto" they have
built on Oracle. We DO NOT need more blight in our community.
6. While it would be nice to have a community center, the detractors that come with it do not portend
a favorable purchase. Even though the price for the building seems
appealing, parts of the acquisition outweigh the purchase in a very negative balance.
7. You have a fiduciary responsibility to the citizens of Oro Valley. This does have a strong effect on
community desirability. When your responsibility is not followed, many
residents feel a desire to leave. We have lost two very interested, educated, and supported families
in this past year that we know. We can only wonder how many will
follow.
PLEASE CONSIDER THE VOICE OF THE PEOPLE, AND THIS MESSAGE FROM TWO OF YOUR RESIDENTS
WHO HAVE BEEN HERE FOR 13 AND ONE-HALF YEARS.
Sincerely,
Larry and Brenda Ryan 13400 N Wide View Drive
Bower, Julie
From: Cates George<
Sent: Thursday, December 11, 2014 8:07 AM
To: Bower, Julie
Subject: Fwd: Proposed Country Club Purchase
Please place this email in the Council packet and enter into the public record.
Thanks,
George Cates
Begin forwarded message:
From: Cates George <
Subject: Proposed Country Club Purchase
Date: December 9, 2014 at 4:47:54 PM MST
Cc: gcaton@orovalleyaz.gov
To: "shiremathorovalleyaz.gov" <shiremathaorovalleyaz.gov>,
bburnsaorovalleyaz.gov, wgarner@orovaileyaz.gov, ihornat@orovalleyaz.gov,
msnider@orovalleyaz.gov, lwatersorovalleyaz.gov, mzinkinorovalleyaz.gov
"SHOCK-and"Dismay"are the words which best describe my reaction on Thursday,December 4 to a radio news report and later to the
newspaper article stating that Oro Valley was in advanced discussion aimed at purchasing a golf course! With all available data
disclosing the decline in the number of golfers.and golf courses in financial ruin,how could our town leadership even seriously consider
such a transaction?Further,the proposed"bargain"purchase price of$1million is far above the going rate at which financially distressed
golf facilities in the area have recently changed hands.
I attended two candidate forums leading up to the August election and heard the mayor and his endorsed candidates(incumbents)extol
their virtues and cite their financial prudence. This proposed transaction signifies a complete disregard for the taxpayers.and a lack of
any financial responsibility The proposed tax increase is ill-advised but,sadly,will in likelihood not defray the true costs or cover the
ongoing liability. The property is in a sad state of disrepair.Does the town have a cash reserves to rely on when the projected operating
deficit grows as it most assuredly will?
I can think of no reason to rush ahead without providing for taxpayer input on a transaction of this magnitude with such an enormous
potential for failure. In all campaign discussion I never heard any mention of the need for a town golf course or any proposed
"solution.- Some mention was made of a"town center"(no doubt a planted question).Since the preliminary discussions were already
underway the campaign forums would have provided an ideal to debate the issue and inform town residents of the plan to make this
purchase.Instead,a last minute proposal was made at a Council meeting with no prior notice of intent.
1 have found that any decision that needs to be rushed usually result in regrets.I implore the Council to postpone the decision to allow
citizens to review the detailed business plan and make comments.As a finance professional I stand ready for this assignment.Surely this
major decision can stand the light of day and can wait for due diligence.I regularly review business plans for prospective businesses.
You may be aware that banks will not grant financing without business plan.Why should the citizens who are being asked to provide
funds for this purchase not have the same opportunity?
Regards,
George Cates
12270 N.Copper Spring Trail
Bower, Julie
From: Paul Emmert<
Sent: Thursday, December 11, 2014 11:18 AM
To: Bower, Julie
Subject: Please add the Council Packet for December 17 Meeting
Hi Julie,
Please add the text of the following emailed message to Town Council.as part of the Council packet for the
December 17th meeting.
Thank you,
Paul
Text follows:
Members of Oro Valley Town Council:
I learned this week about the proposed, convoluted Town acquisition of select portions of the Hilton El
Conquistador. I was further shocked to learn,without soliciting the public via wide dissemination of this plan,
this hasty process will apparently conclude with a Council vote on December 17, 2014.
I stand opposed to this scheme, for several reasons:
• Increasing the local sales tax absent sufficient justification and a detailed explanation to the public in a
timely manner
• The potential for significant cost overruns over time
• Inadequate evaluation of the golfing market - overly ambitious assumptions regarding supply and
demand for the golf sport in Oro Valley
• Obligating the Town to significant additional expenditures based on questionable assumptions
• Losing tax revenue from current golfing operations -has that been factored in going forward?
I question the wisdom of embarking down this road-a path that is fraught with unknown financial factors,
while asking taxpayers to subsidize this plan.
While it seems tempting to do a deal that seems on its face "too good to walk away from," I urge the Council to
refrain from obligating this Town,and my tax dollars,to a business enterprise that is questionable and reliant on
assumptions that are clearly debatable. Does it make complete sense to buy more than you really need or want,
solely because it's a deal?That's bad judgment, frankly.
Have you conducted a risk analysis?Have you thoroughly surveyed the property's assets? Have you compared
the overall costs, over time, to other mechanisms available to finance a recreation center that people in this
Town actually desire? If you've done all these things,why don't I know about it?
This deal smacks of a rushed plan to acquire an older property where there is significant risk of buyer's remorse.
I urge you to step back,take a breath, slow down and think very hard about this. If you are planning on relying
on my tax dollars to make this happen,all the more reason to be completely transparent.
1
Respectfully.
Paul Emmert
E, Paid Ernmvrt
C:411]I
2
Bower, Julie
From:
Sent: Thursday, December 11, 2014 11:34 AM
To: Bower, Julie
Subject: Golf Course Purchase
Town of Oro Valley:
As a resident of Oro Valley, I don't understand the rush to purchase golf courses that have little
use. Do you expect them to be money makers? I live on one of the golf courses and can tell you that
over the years, we have seen the number of golfers dwindle.
Please add our names to the list of Oro Valley residents AGAINST the purchase.
Renee Montrachet
Ray Lindstrom
1011 E. Camino Corrida
Oro Valley, AZ 85704
1
Bower, Julie
From: Kenneth Abrahams<
Sent: Thursday, December 11, 2014 12:04 PM
To: Hiremath, Satish
Cc: Waters, Lou; Burns, Brendan; Garner,William; Snider, Mary; Zinkin, Mike; Caton, Greg;
Bower, Julie; Kelley Abrahams
Subject: Purchase of El Conquistador Golf/Tennis and Club Facilities and Related Sales Tax Increase
Attachments: Oro Valley-El Con.docx;ATT00001.txt
Satish:
Following up on our conversation Monday nite I have been in touch with your office to arrange a time to talk but have
not heard back on a date and time.
Please read the attached and give me a call to discuss its contents prior to the 17th, if you so wish.
The Town of Oro Valley needs sound governance in order to implement a host of long term plans and opportunities,
many of which you have been part of organizing. I do not think this"deal", no matter how enticing, is worth aborting
sound governance and jeopardizing the pubic trust and confidence over. If statements HSL Properties are true and they
are going to proceed with the hotel purchase regardless of the town's taking action,then there is ample time to engage
the community that you represent in an open and timely process to gain public input and support. If you believe in the
town taking action on this matter then you also must have confidence that the town residents will share in your vision
and support the.town's investment after there is sufficient due process and public review.
Please give my regards to Anil and his family.
Best regards,
Ken and Kelley Abrahams
1
December 11,2014
Honorable Mayor Satish 1.Hiremath
Town of Oro Valley,Arizona
Re:Town of Oro Valley Purchase of El Conquistador Facilities and Sales Tax
Increase
My wife and I are long-term residents of the town. For the past 30 years I have been an
active real estate developer/investor and private equity investor in a host of operating
companies. Based upon our review of the available materials and attending community
meetings we respectfully submit the following recommendation and offer the following
input for your due consideration.
Recommendation
1.) Defer action on proceeding with the acquisition of the El Conquistador Facilities(golf,
tennis.clubhouse and related land and structures) (the Facilities).
2.) Defer action on implementing a sales tax increase to fund the acquisition and operation
of the Facilities.
3.) Establish and implement a process for meaningful public review and input that is both
fair and transparent allowing the residents of the Town of Oro Valley the opportunity to
understand the benefits and impacts of the proposed acquisition and operation of the
Facilities,as proposed.
Reason to Defer Action
HSL Properties indicated at the recent public meeting that it intends to purchase the Hotel
and related golf,tennis and club facilities regardless of the town's acquisition of the
Facilities and that other third party buyers are available in the event the town does not
acquire the Facilities. In addition,it was evident that many operational details cannot be
fully determined at this time(given the number of questions that could not be fully
answered when asked at the public meeting on 12/8/14). Therefore,it is apparent that the
Town of Oro Valley's approach is to move ahead with the purchase and figure out the
operational specifics and risks after taking ownership is not warranted. Again,more time
and a more deliberative and open approach to work through the details would serve the
public interest and reduce the risk to the public. Few business decisions are made in haste
turn out well.
In support of the above,we offer the following areas of concerns.
Experience and Competency
The Town of Oro Valley(OV) does not have the experience or expertise to directly and
indirectly operate club facilities. Likewise,HSL does not have the experience or expertise to
own and indirectly operate a resort property. As a private equity investor the first thing
one looks at is the experience and resumes of the people behind the business opportunity
who will be responsible for its execution,not the opportunity itself.
Public Facility vs Enterprise
The business concept driving OV's plans to acquire the Facilities is an enterprise plan
whereby OV would run,directly and indirectly,a business-a club and related activities.
The operation of such an enterprise is vastly different than operating municipal facilities
such as parks and recreation facilities. The proposed Club(while many of the details of the
membership and fee structure remain vague) represents a risk and challenge for OV and
one that could impact other OV core responsibilities and public services.
Pro forma and Projections
The revenue and expenditure projections presented to date have not been tested and do not
appear to be realistic. One general principal in private equity investing is:"things cost twice
as much and take twice as long." Since staff could not communicate the fee and
membership structure of the proposed club the revenue projections seem unfounded.
Based upon OV's figures,the club operation is a classic"turn around"business plan
whereby losses are incurred for the first 3-4 years with economic performance expected to
improve in later years. Successfully turning around a business typically needs a market
force that puts wind at your back. Clearly,there are no indicators that the golf industry has
wind at its back. Additionally,successful turn around efforts require keen and specialized
business management skills.
On what basis do we think OV staff has the required specialized business management skills
to execute a business turn around program as outlined by staff?
Third Party Management
Troon is a great third party,fee management company. But they are not magicians.
The management agreement with Troon does not require any capital investment on their
part and by definition it is a short term management agreement that can be cancelled at
anytime upon notice.
Troon may be incentivized to perform to projections but failure to meet projections will
result in OV needing to fund deficits and make the meaningful enterprise decisions as
owners.
As mentioned in the recent meeting,Indian Wells invested$50 million in capital
improvement in their courses in order to bring them up to standard. Knowledge of the
hotels(several resorts)the courses and the general community economic demography
indicate that Indian Wells is a poor analogue for OV.
Public Purpose and Use Rights
It is unclear what the hotel's future scope and priority of use rights would be in connection
with the golf and tennis facilities and how public members and the general public use rights
and access would fit together. It is difficult to foresee the hotel not remaining a"resort"and
thus by definition would require an established set of rights for the priority use of both or
portions of the golf and tennis facilities.
Until such details can be determined and communicated to the public the extent of the
public purpose associated with the proposal cannot be assessed or commented upon. It
should be recognized that much of the golf and tennis facilities currently are open to the
public on a fee play basis.
All efforts should be taken to avoid OV from becoming a"holding company"for the non-
performing assets of the hotel while the hotel retains significant use rights to use the
Facilities with no financial obligation to their economic performance.
Community Needs
The"statistically valid"survey completed by OV was oriented toward the Naranja Town Site
and thus implied new construction. It is therefore speculative to transfer the survey results
to the proposed Facilities. Familiarity with the existing clubhouse facility(we are
members) question if a 30 year old facility that was designed and built under an antiquated
commercial building code for a significantly different set of functions than proposed in the
OV's club proposal can be re-purposed on a cost effective basis. Clearly,the capital
expenditures shown at the recent public meeting are dubious.
Ultimately,do the residents of OV deserve,want and need a new/modern facility that has
been specifically designed for their needs? A significant chasm exists between price and
value. While a$1 million price may seem alluring and below replacement cost, other
considerations need to be fully vetted,including would OV ever build a golf complex and
club were it not for the current opportunity?
Taxation
A sales tax increase is a serious matter in light of current and projected future economic
conditions. County and state budgets are stretched with a high likelihood that other taxing
authorities will be increasing taxes over the next few years. In all fairness,taxation cannot
be looked at discreetly but should be viewed in the aggregate.
The tax impact of removing the Facilities from the public tax roll should not be minimized.
Amphitheater School District,Pima Community College and Golder Ranch Fire District and
other vital service providers will be directly and immediately financially impacted by the
removal of the Facilities from the tax roll.
The use of a sales tax to fund operating loses for a club as proposed raises a host of policy
questions that requires thorough community review and input. Projections provided in the
recent public meeting failed to provide the necessary scenarios to fully communicate the
downside risks to OV and its citizens.
While the existing hotel and club facilities compete with the private sector businesses in OV
and vicinity it is very different for a municipality to use public dollars to directly compete
against local businesses that provide like-kind service.
(By example,imagine if OV decided to use public funds to open an optometry center and set
pricing after a entrepreneur took the business risk to establish an optometry business in OV.)
Due Diligence
Based upon the presentations by OV staff and several follow up conversations I have had
with OV staff the due diligence process is still on-going and is not expected to be complete
before December 17th. Several critically important areas of investigation have not been
initiated and are not being considered at this time. Some of the gaps in the due diligence
may represent"fatal flaws"in the entire strategy and could saddle OV with significant
liabilities that are not accounted for the financial projections presented to date.
Successful due diligence required a high degree of objectivity and a level of indifference as
to the outcome of the due diligence exercise. Who inside OV has maintained the objectivity
and experience to accurately assess the due diligence findings?
OV staff may feel that sufficient internal due diligence has been completed or will be
completed by December 17th.However,as a public entity,the public has not been afforded
the opportunity to perform its own review and provide comment upon the due diligence.
We respectfully request a deferral of any action to acquire the Facilities and implement a
sales tax increase until and when a meaningfully expanded and transparent public review
and input process,as stated above,has been completed.
In closing we respectfully request this letter be made part of the public record of all
proceedings relating to the above matters.
Sincerely,
Ken and Kelly Abrahams
1207 Camino Diestro
CC:Vice Mayor
Lou Waters
Councilmembers
Brendan Burns
William Garner
Joe Hornat
Mary Snider
Mike Zinkin
Greg Caton
Town Manager
Julie Bower
Town Clerk
Bower, Julie
From: Ursula Jarvis<
Sent: Thursday, December 11,2014 1:39 PM
To: Bower, Julie
Subject: Golf/Community Center
For the public record and for inclusion in the Town Council's discussion package, I wish to state
that a purchase by the town such as is contemplated for the El Conquistador property ought to
be something that is discussed and publicized in depth and should be placed on the ballot for
the residents of Oro Valley to be voted on. It is a huge purchase of a commercial property that,
in my opinion, our town has no business operating. It is a private property and should remain a
private property.
Ursula Jarvis
Oro Valley Resident
1
Bower, Julie
From: Janet Ackerman <
Sent: Friday, December 12, 2014 9:11 AM
To: Caton, Greg; shiremath@orovalleyaz.com; Burns, Brendan; Garner, William; Hornat, Joe;
Snider, Mary; Waters, Lou; Zinkin, Mike
Cc: Bower, Julie
Subject: El Conquistador Purchase
Dear Julie Bower,
Please place a copy of our comments regarding the proposed El Conquistador purchase in the Council's
packets for the December 17th public hearing. We want our opposition to this proposal to be a part of the
Public Record.
Dear Mayor Hiremath, Council Members Burns, Garner, Hornat, Snider, Waters, and Zinkin, and Manager
Caton,
We wish to register our emphatic opposition to the proposed purchase of any of the El Conquistador
facilities and any involvement by the Town of Oro Valley with Mr. Lopez and HSL Properties. We won't re-
hash the case against this boondoggle because we whole-heartedly agree with all the arguments which
have been raised by it's opponents.
Don't raise our taxes and don't buy this property.
And, to the mayor and council members who took re-election money from HSL- shame on you. You all
should have been smart enough to see how and why voters would question your integrity. As it is, the
appearance of impropriety is inescapable.
Janet and Jerry Ackerman
Wildridge Neighborhood
Oro Valley, AZ
1
Bower, Julie
From: ROGER B WETLAUFER <
Sent: Friday, December 12, 2014 11:13 AM
To: Bower, Julie
Subject: Oro Valley& Golf Course project
Julie Bower:
I am very concerned about Oro Valley getting into the golf course project. I realty do not think our city
should spend so much money on golf courses. Please let's have more studying on this project. I would like this
message in the Council Packet and to be part of the Public Record. Thank you.
Roger B. Wetlaufer
651 W. Silhouette Ridge Pl.
Oro Valley, AZ 85755
Bower, Julie
From: Paul Or<
Sent: Friday, December 12, 2014 2:18 PM
To: Bower, Julie
Subject: Golf course purchase
Dear Ms. Bower:
I'm writing to express my concern over the proposed purchase of the El Conquistador golf and clubhouse
facilities.
My name is Paul Orzech. I am a property owning resident of Oro Valley. I live at 14460 N. Sun Spring Drive.
All that I know about the proposed transaction is what I have read in the newspaper. If what I have read ia
somewhat accurate, I think that the Town Council and the residents of Oro Valley should be very concerned.
A transaction of this magnitude, along with the future financial commitments of funding the operation losses
and required capital expenditures,which is proposed to be funded with a 1/2% increase in the sales tax,
deserves serious consideration by the Town Council and Oro Valley residents.
Please inform the Council that I don't believe that it is appropriate to approve this transaction at the next
Council Meeting. This matter deserves substantial investigation and discussion before it is acted upon.
Please included a copy of this email in the official meeting packet for the next City Council meeting.
If needed, you may contact me atauIoTp :z1, thkeLusr or by phone at 520-780-7723.
Thanks for your help in this matter.
Paul Orzech
Bower, Julie
From: Bob Helland <
Sent: Friday, December 12, 2014 2:53 PM
To: Bower, Julie
Subject: Regarding the Oro Valley proposed purchase of the golf course and the community center
We would like to voice our opinion that we do not think this would be a wise investment for the town of Oro Valley.
We do not feel that this building for the community center or the golf course are what is needed in Oro Valley. We
believe that the council was aware of this proposed purchase before the election and yet there was no mention of it
then. This should be put on a ballot for the people of Oro Valley to decide about the purchase and the tax increase of
another 1/2 percent. Please place our message in the Council Packet and we would like this message to be part of the
Public Record.
Robert and Lois Helland
12201 N Cloud Ridge Dr
Oro Valley,AZ 85755
1
Bower, Julie
From: Joe& Helen Robinson
Sent: Friday, December 12, 2014 9:19 PM
To: Bower, Julie
Subject: Fwd: El Conquistador purchase
Please put this letter in the Council Packet and include it in the Public Records of Oro Valley.
Subject: El Conquistador purchase
Date: December 11, 2014 3:23:14 PM MST
To: shiremath@orovalleyaz.com
Cc: wgarner@orovalieyaz.com, msnider@orovalleyaz.com,
mzinkin@orovaileyaz.corn
Dear Mayor Hiremath and Council,
As a resident and taxpayer of Oro Valley, I am opposed to the purchase of the El
Conquistador Resort. While the purchase price sounds like a"bargain",I believe the renovation
and operating costs will be an economic burden to the town. I challenge you to find existing
town facilities to use as recreation centers. Providing basic services should be at the top of your
priority list not recreating our residents.
Thank you,
Helen Robinson
1
Regarding:
• December 17, 2014 Council Meeting
• Regular Agenda Item#1
o RESOLUTION NO. (R)14-66, APPROVING THE ACQUISITION OF THE EL
CONQUISTADOR COUNTRY CLUB, GOLF,AND TENNIS FACILITIES AND AUTHORIZING
THE TOWN MANAGER TO TAKE THE NECESSARY ACTIONS TO COMPLETE THE
ACQUISITION
Mayor Hiremath and Council Members,
After listening to December 3rd Council Meeting, I became very disillusioned by and
disappointed in those of you supporting the acquisition of the El Conquistador Country Club,
Golf, and Tennis facilities as presented.
Since that meeting, 1 have read many articles in the AZ Daily Star,the Explorer,and online at
Tucson.com. I have listened to local news coverage on television and radio. Friends, neighbors,
and acquaintances have approached me with their concerns. I have even discussed this with a
golf superintendent, a U of A graduate,who has managed several superior courses,and is well-
acquainted with El Conquistador facilities and Troon.
For these and the other numerous reasons, and I am certain you have been made aware of all of
them, I am writing to you today. You have requested public input, and I feel my citizen's voice
must he heard.
At the December 17, 2014 Council Meeting, the resolution regarding the acquisition of the El
Conquistador Country Club, Golf, and Tennis facilities as presented must be denied.
Thank you,
Diane Bristow
A very concerned Oro Valley resident
Mayor Hiremath, Council Members and Attendees
Please let me introduce myself to those of you that may not know me. My name is Tony
Giustina and like many of you, I own a home and pay taxes in Oro Valley. I have strong ties to
the community and for approximately 20 years I was the Club Manager with the El Conquistador
Country Club(ECCC). Over those years I met and worked closely with thousands of residents
and business leaders and thus feel that I have a unique sense regarding the"pulse"of the
community.
I have been following the potential acquisition of ECCC by the town of Oro Valley. I must first
congratulate those of you that have been instrumental at putting together the possible purchase.
I'm sure you have all done your homework and know the true value of this property, AND to
also include the 9 holes and the tennis operation at the resort.... BRAVO!!
As someone with strong ties to the health club and golf industry, I would offer that the decision
to bring Troon Golf on board to manage the Golf and F&B operation is also a wise move that
strongly positions this new enterprise in the community. I have absolutely no ties to Troon Golf
so I offer my opinion from strictly a professional standpoint. Their resume/portfolio is very
impressive as Troon brings to ECCC over two decades of experience in the golf management
business. This experience is not only in Arizona but also throughout the United States, and
includes several elite courses. While there are many potential avenues for revenue that a well-
managed golf operation can bring in, Troon adds one more to this potential list via the well
established and recognized Troon Card. As you have probably learned,the potential revenue
from the Troon Card could be quite significant. I also trust the negotiation of the management
fee between Oro Valley and Troon to manage ECCC will be a win-win.
While some may voice a concern that golf and golf tournament rounds are down in Tucson,that
perspective should be analyzed further. I could not make that statement without doing a
comprehensive survey on how many rounds of golf or tournament rounds were played in the past
five years and 2014 YTD, with that number compared to previous years. Also a competitive and
SWOT analysis would need to be conducted,to assure you were getting the market share, and if
not,why not? 1 would question those who are voicing their concerns negatively, that they have
taken the necessary steps to confirm this, or are they just playing the role of"naysayer"? One
thing I have learned over the years is that"everyone is an expert in this business"or they think
they are. Certainly competition is stiffer and there are more options,but unquestionably a well
managed golf operation is a thriving business in the State of Arizona, as witnessed by review of
operations in the Phoenix metropolitan area, Flagstaff and surrounding regions, including
Tucson. By"well managed" I am refering to ALL aspects of the business to include: Golf
maintenance, course conditions, golf shop operation, facility upkeep, customer service and a
strong marketing plan. Cont.
The inclusion of a Recreation Community Center(ECCC clubhouse)is a long overdue
investment for Oro Valley and I am pleased to see that as part of the negotiations. Having the El
Conquistador clubhouse,pools,fitness facilities, tennis and meeting space associated with the
purchase opens the door for even more diverse programming opportunities for the community.
While arguments for and against this purchase will be ongoing, I would offer that in my
profesional opinion,the pros on consummating this deal far outweighs the cons, provided all of
the necessary mangement pieces are in place. This can truly develop into a value added gem for
Oro Valley. History has demonstrated that proper management is really the key to assuring its
financial success. I am confident it will return to that status.
I currently live in Flagstaff Arizona where I am the managing partner of Summit Fitness and
Mountain Heart Wellness. Summit is a medical fitness facility with over 1,000 members.
Although I currently live in Flagstaff, I consider Oro Valley Arizona my home. For those of you
involved with this potential project, thank you all for adding value to Oro Valley and where I call
home.
Sincerely and respectfully to all,
Tony Giustina
Bower, Julie
Subject: FW: (no subject)
On Dec 15, 2014, at 2:07 PM, " wrote:
NO to El Conquistador purchase-Please put this response on the official
record.
Fred and Sandra Johnson
2233 E. Rio Vistoso Lane
Oro Valley, AZ 85755
(
1
FOR PUBLIC RECORD AND ORO VALLEY COUNCIL
Mayor Hiremath and Councilmembers Burns, Garner, Hornat, Snider, Waters, and Zinkin
Please do not approve a commitment to purchase any of the Hilton El Conquistador's golf
courses or associated buildings. With limited exceptions, golf courses generate negative cash
flow and profits. Ownership by governmental bodies or for-profit businesses does not result in
any measurable difference in the financial outcome.
The Town-identified proposed repairs, not improvements, for the golf courses will only result in,
at best, average courses. They will not make them a sports, tourist destination. Only several
million more of the citizens'dollars will result in courses that have the potential to attract golfers
to Oro Valley. Millions more dollars annually will be required for upkeep and operations. Thus,
this proposed acquisition is an on-going money pit, regardless of the initial purchase price.
Members of this council have also supported the philosophy that the Town should not be
involved in services the private sector can provide. Golf courses totally fit this philosophy. Stick
to subsidized services for the residents that private organizations cannot provide.
Hilton's La Canada club house has the potential for a Town community center, but only if it can
be purchased separately from all the other properties in the current proposal. Any claim that the
golf courses will be sold off for a profit at some unknown future date, and the Town will retain
the club house is an insupportable strategy. This approach is asking the citizens to pay an
additional %cent sales tax to allow the Town to speculate with their money. With the $1.00 and
$20.00 sales prices of nearby courses, which are far superior to the Hilton courses, the
message is clear that there is no current or foreseeable future market for golf courses in the Oro
Valley area even at an asking price of$1 million.
What is the cost for the Town to build a community center? In the last week, Mr. Caton has
given three different amounts. You cannot justify this purchase by estimating the cost of building
a new community center comparing it to the cost of Maricopa's Copper Sky Recreational
Complex.
One of the outcomes from the statically-valid survey regarding Naranja Park was that the
residents gave negligible support for financing any recreational developments and
improvements through an increase in sale taxes. You have a responsibility to respect the
wishes of the citizens, and not increase their sales taxes for a very detrimental acquisition.
The Hotel part of the Oro Valley Hilton is reported to be profitable, but all profits are offset and
more by loses from the golf course and tennis operations. It is not the Town's responsibility to
enter into a money-losing agreement to facilitate the purchase of the Oro Valley Hilton Hotel by
HSL Properties.
Respectively,
Donald Bristow
Oro Valley Resident
December 15, 2014
Bower, Julie
From: B Sigford <
Sent: Monday, December 15, 2014 9:25 PM
To: Bower, Julie; Caton, Greg; shiremath@orovalleyaz.com; Burns, Brendan; Garner,William;
Hornat, Joe; Snider, Mary; Waters, Lou; Zinkin, Mike
Subject: Potential Purchase of New Golf Course
I am writing to go on record in opposition to the proposed acquisition of the El Conquistador Country Club golf
facilities being proposed by the Town Council. This acquisition would add a substantial increased burden to tax
payers in Oro Valley without any potential for benefit in the foreseeable future. I therefore encourage you to
vote no at the upcoming meeting December 17, 2014.
Please place this letter in the Council Packet and make it part of the public record.
Barbara Sigford
14386 N Green Meadow Lane
Oro Valley, Az 85755
Bower, Julie rt
From:From: Rolf Sigford <
Sent: Monday, December 15, 2014 9:24 PM 1 efier tAirts se"
To: shiremath@orovalleyaz.com
Cc: Bower, JuliertiOtr
it) eCt rve
Subject: Golf Proposal
44.Y6
Dear Dr. Shiremath:
This proposed purchase of a golf course is not in the interest of the people of Oro Valley. The risks are great,
the first chance of any any profit will go to the management company. And the losses will go to we the people.
The consistently declining demographics of golf mitigate against this kind of venture.
Oro Valley has been a wonderful place to live. But excessive debt for a dubious project is not in the interest of
the average folks of our city.
This will increase our taxes for years and years to come with no real hope for future return. People already do to
the trouble of buying outside Oro Valley to avoid the sky high sales taxes.
I oppose the purchase of this new golf course and I oppose the increase of the sales tax.
Julie Bower: Please put this into the public record file so it is available at the city council meeting.
Thank you.
Rolf Sigford
14386 N. Green Meadow Lane
Oro Valley AZ 85755
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