Last week, in response to a sworn affidavit filed with the Arizona Court of Appeals, Oro Valley Town Council member Mike Zinkin accused Town Manager Greg Caton of misrepresenting material facts about the purchase of the El Conquistador Country Club. Caton’s affidavit was filed in opposition to a stay sought by residents Debra Arrett, and Shirley Lamonna.
In early February, Pima County Superior Court Judge Gus Aragon ruled in favor of the Town of Oro Valley in the matter of a request for an “Order to Show Cause” by residents led by Debra Arrett, and Shirley Lamonna, who sought to put the purchase of the El Conquistador Country Club before the voters.
Arrett, and Lamonna filed for Statutory Special Action, through their attorney Bill Risner. The defendant Julie K Bower, Oro Valley Town Clerk, rejected over 3000 signatures due to a small clerical error. In his ruling, the judge found that the plaintiffs failed to put a serial number generated by the Town in the bottom corner of each petition.
Judge Aragon did not grant a stay during the initial proceeding because he assumed the litigation would be complete prior to the Town’s anticipated date for completion of the purchase. This allowed the Town Manager to continue to negotiate on behalf of the Town and to issue a request for quote for design services to convert the El Conquistador Country Club clubhouse (touted as a turn-key operation by the Town) which could include site design, ADA and code compliance, civil, mechanical, structural, electrical, communications, landscape, planning, energy and water efficiency, cost estimating and administration of the construction contract. The Sales Tax increase associated with the purchase will be effective March 1st, prior to the actual acquisition.
In his letter to Caton, Zinkin writes:
You state that since the mid-1990’s the Town has had the development of a recreation center in its long term plans. There is NO mention of the desire for a community center in the 2013 Strategic Plan. According to the “Plan”, its purpose is to “guide Town decision making and resource management in pursuit of organizational goals.” So, having a community center has NOT been part of the Town’s long range, nor short term plans. Since becoming active in the “politics” of the Town, the first time a community center was ever mentioned was during the most recent election campaign when the current Mayor announced that a community center was one of his primary goals. It is interesting to note that this announcement parallels your statement that “in the summer of 2014, an opportunity to purchase land for a recreation center came to the attention of Town leaders”. As a Town Councilman there was NO opportunity to purchase land for a recreation center, rather, an opportunity to purchase a 45 holes of golf, a vintage 1980 clubhouse, and fitness center.
In June 2014 the Town conducted a statistically valid survey to establish the amenities its Citizens desired in a community center. Additional swimming pools, racquetball courts, golf courses, and restaurants were NOT even in the top 10. As Town Manager, how can you justify recommending this facility for purchase?
You mention that this property will require approximately $5.5 million in renovations to fulfill the Town’s needs. On 12/17/14 we asked you if you had checked the facility for mold. You answered in the negative. Now it has come to your attention that there is mold present in the facility, and you have no idea to what extent. Does this $5.5 million estimate include the elimination of mold? I doubt it, because this number has not changed from the onset of this project. This project was forced on the Council, and the Oro Valley Citizens, without due diligence, planning, or reason.
Your $20 million estimate to build a community center, with the amenities the People desire, has limited factual basis.. In your presentation to the Council, you provided cost comparisons to other community centers. Unfortunately, it was not “apples to apples”. Many of those community centers included amenities not high on the list from the June 2014 survey. To swear to the Court that your estimate is accurate is something, I believe, you need to reconsider.
There is one VERY important item missing from your statement and the Town’s argument. If we were just acquiring a community center, no matter if it meets the needs of the residents or not, with its associated monetary requirements, the issue might not have been elevated to this level. The real truth of the matter, and something that you and your Legal Department have not addressed, is the fact that there is an associated purchase of 45 holes of golf.
By your, rather optimistic estimates, the Town will not even break even on the golf portion until the fifth year of ownership. To get to the five year point the Town will invest:
$1 million in the purchase
$5 million in water ($1 million/yr – an estimate given by the Water Utility Director)
$12 million (approximately) in needed upgrades
$720,000 in golf management contracts
Mr. Caton, I have not included equipment leases, and, to be fair, I have also not included any potential revenue we might expect. However, it is safe to say over the next 5 years, the Town will invest more than $15 million. THIS is why the People are upset and desire a voice in this matter.
Bottom line: Your sworn affidavit is filled with assumptions and is without fact. You have misrepresented the proposed purchase by neglecting to include the projected operating losses, cost of improvements to bring the golf courses to appropriate standards, as well as the needed repairs to the unneeded swimming pools and numerous tennis courts. You have failed to mention that the existing buildings do not meet the needs the Citizens desire. In addition, your $20 million figure to build a new community center is nowhere near reality because your Director of Development and Infrastructure Services stated, at a meeting with the Sun City Oro Valley personnel on 12/23/14, that a new community center could be built for $250/sq. ft. which amounts to $2,500,000 per 10,000 sq. ft.
The only way this purchase can be funded is with an increase in the Town’s sales tax. This also upsets the Citizens. The People deserve a voice in this purchase. It will be extremely unfortunate if the will of the People is not allowed to be heard because of a clerical error.
I hope that the Court does not allow this purchase, one that was accomplished without due diligence, to go forward without allowing the People to have their say.
The Town’s Mayor Satish Hiremath, has pushed the deal claiming that opposition to the scheme consisted of only a “few people, who were engaging in hype and rhetoric.” However after the Town Clerk notified residents that she would reject their petitions due to a clerical error, residents circulated corrected petitions and were able to gather over 1000 in only a few hours.
During the 2012/13 budget process, Town Manager Caton recommended eliminating funding for the small Oro Valley recreation center located on La Canada to save the town approximately $58,000 annually. The proposal did not consider the impact of the closing of the Recreation Center on the special exercise program offered there for those with Parkinson’s Disease. Ultimately Oro Valley Hospital offered to provide space for the Parkinson’s exercise program with the Town offering to continue to sponsor and advertise the program.
At that time, Councilmember Hornat noted that private activities of individuals should be funded by those individuals and not funded by the Town. Doing such on the part of the Town results in subsidizing private enterprise which the Town should not do, claimed Hornat.
Related articles:
Residents appeal Oro Valley El Conquistador purchase referendum decision
Judge rules on Oro Valley El Conquistador purchase referendum
Residents appeal Oro Valley El Conquistador purchase referendum decision