Mesa City Council Study Session Thu 15 March 2018

The next regular council meeting on Monday, March 19th gets some opening attention after Vice-Mayor skims through the first few items on the agenda, liquor licenses and ordinances.
PLEASE NOTE: Follow the discussion starting with the mention of Item 5-e

The entire agenda for this Monday's regular meeting is available in a separate post
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AGENDA FOR STUDY SESSION
Source:

Meeting Name:

City Council Study Session

Agenda status:

Final

Meeting date/time:

3/15/2018 7:30 AM

Minutes status:

Draft

Meeting location:

Council Chambers - Lower Level

Published agenda:

Agenda

Published minutes:

Not available

Meeting video:

Not available

Attachments:

• Meeting Items (8)

8 records Group Clear sorting Clear grouping Group by Type Group by Result Export Export to Excel Export to PDF Export to Word Show: Legislation only Legislation only All agenda items

File # Agenda # Type Title Action Result Action Details 18-0359 2-a Minutes Audit, Finance and Enterprise Committee meeting held on February 21, 2018.     Not available 18-0358 2-b Minutes Judicial Advisory Board meeting held on February 5, 2018.     Not available 18-0360 2-c Minutes Community and Cultural Development Committee meeting held on March 5, 2018.     Not available 18-0331 2-d Minutes Housing and Community Development Advisory Board special meetings held on February 6 and February 7, 2018.     Not available 18-0111 2-e Minutes Transportation Advisory Board meeting held on November 21, 2017.     Not available 18-0104 2-f Minutes Parks and Recreation Advisory Board meeting held on November 8, 2017.     Not available 18-0254 2-g Minutes Economic Development Advisory Board meetings held on January 9 and February 13, 2018.     Not available 18-0351 2-h Minutes Historic Preservation Board meeting held on February 6, 2018.     Not available

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STREAMING VIDEO Mesa Channel 11 upload to YouTube

The Mayor is 'excused' by Vice-Mayor David Luna in another thrilling and exciting session of your elected government in this study session that lasts a grand total of 11 minutes - it's the usual 'Don't ask any questions', or if you do - like D1 Councilmember Mark Freeman asking about Item 5-e [toxic substances] saying jokingly his question is way-over-his-pay-grade when it's important about discharges into the toxic waste discharge system in response to ADEQ - turns out ADEQ can contest it since it's not in the city's code
Item 6 No questions
Item 7 No questions
Item 8 Utility Rate Increases [Jeremy Whittaker]
           Item 8-a requires a 60-day Notice
Kevin Thompson has a question for City Manager Chris Brady: 5-Year Revenue Forecast of Financial Cost-Flows No adjustment last year FOR 'ECONOMIC DOWNTURN' ??? [fielded by Cannistraro]   
National League of Cities __________________________________________________________________________________

Mad/Mad World | Pie Is Hot Today > This New Cold War is Hotting Up!

Published on Mar 16, 2018

Views: 84,838

Another MAD week of news for Pie to attempt to digest.

This Was Premature Euphoria > Sale Held Up for National Security Reasons

Trump Advisor Anthony Scaramucci Pockets $100MM
From Sale Of SkyBridge To Chinese Conglomerate
It has been a good day for Trump advisor Anthony Scaramucci. . . .
by Tyler Durden  Tue, 01/17/2017 - 14:48
Source: https://www.zerohedge.com/news/2017-01-17
Reporter Tyler Durden  asks, So who are the lucky buyers?
This is where questions are likely to emerge.
When looking at RON Transatlantic, a holding company with interests in financial services, logistics, energy and brewing, the most interesting thing about this particular group is that Obama's "body man", Reggie Love works there as a Partner and VP:

First, he was named by Bloomberg as this year's surprise Davos star (recall that he is the only member of the Trump team participating unofficially at the Swiss boondoggle.  “I brought a food taster,” Scaramucci joked in an interview on Bloomberg Television when asked about his solo mission).  As a reminder, Scaramucci was recently named an assistant to the president and further told Bloomberg Television Tuesday that he will serve as a liaison between the White House and the business community, and work with local, state and foreign governments and trade associations.
Which brings us to the second reason why Anthony is smiling.
Today, as part of his shedding of potential conflict of interest, Scaramucci sold a majority stake in his SkyBridge Capital fund of funds, which has had prominent cameos in such movies as Wall Street 2, to HNA Capital U.S., which is controlled by Chinese billionaire Chen Feng, and RON Transatlantic EG. While terms of the deal were not disclosed, the deal, which includes the SkyBridge Alternatives Conference, or SALT, is said to be valued at about $200 million according to Bloomberg, and could increase to about $230 million if certain conditions are met. SkyBridge’s senior management and investment teams will remain intact while Scaramucci will step down.
And since Scaramucci owns about 45% of SkyBridge, he is about to pocket $100 million. He will no longer be affiliated with the firm or SALT, according to the transaction press release. Australian investment firm Challenger Ltd. also owns a stake, according to a filing, as does SkyBridge’s Chief Investment Officer Raymond Nolte. 
"SkyBridge and SALT are in great hands and will continue to thrive," Scaramucci said in a statement.

Scaramucci, who started his fund-of-hedge funds firm in 2005, made the deal as the industry bleeds assets and he prepares to work for President-elect Donald Trump. HNA Capital is the New York-based investment arm of Chinese conglomerate HNA Group, which has been on an acquisition spree for U.S. assets under Chen’s leadership. RON Transatlantic is a holding company with interests in financial services, logistics, energy and brewing, according to the statement.

 . . . As of last January, SkyBridge managed $9.2 billion in assets. As a fund of funds, SkyBridge has handed out client money to hedge funds including Marathon Asset Management and York. Confirming that today's deal was a major victory for the "Mooch" is that firms like SkyBridge have largely lost their luster since the global financial crisis as investors bypassed them to invest directly in hedge funds, assuming they invest in hedge funds: 2016 was the year of greatest outflows from the 2 and 20 community since the financial crisis. The fund-of-funds industry manages about $636 billion in assets, down from its 2007 peak of $799 billion, according to Hedge Fund Research Inc. They returned about 0.48 percent last year.
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As for HNA Group, it is among the most active players in what’s shaping up to be a record year for overseas acquisitions by Chinese companies. HNA’s $30 billion in investments announced and completed last year included multi-billion-dollar deals for Hilton Worldwide Holdings Inc., CIT Group Inc.’s aircraft leasing business and Ingram Micro Inc. Now it will own a fund of funds. HNA owner Chen, 63, who two decades ago used to push refreshment trolleys up and down the aisle of the lone Boeing 737 that comprised his startup airline, the SkyBridge acquisition is part of his ambition to make HNA one of the world’s top 100 companies by the end of this decade. In 1995, Chen flew to New York and persuaded George Soros to invest $25 million in his fledgling Hainan Airlines Co. That at least is the stated reason; the less palatable one is simply laundering of hot money through foreign M&A, a practice the PBOC warned it would crack down on in 2017.
It was also not clear as of this writing whether Scaramucci will be exempt from paying capital gains tax on the sale, considering he is joining the Trump administration after the deal

Sounds Way Too Good To Be True? 17,000 Jobs, SkyBridge Arizona + Scaramucci?

Just an immediate reaction to a questionable statement made in a post on the Editor's blog of https://businessfacilities.com today about SkyBridge Arizona: ". . . The project is expected to create 17,000 direct and indirect jobs and increase cargo flights out of Phoenix-Mesa Gateway Airport by 2,000 a year, eventually reaching 10,000 by 2036. . ."
Please don't get your MesaZona blogger wrong - he's all for more transnational initiatives between the United States of America and the United States of Mexico - that engagement started back in 1994 in New York City working with the Mexican Consul's office to promote Mexican culture and commerce there and visits to Mexico City and Monterrey. 

Perhaps your MesaZona blogger is having the same reaction about believe-ability here in Arizona that Anne Galloway, founder of https://vtdigger.org  another small independent news source in Vermont, had in this report published in August 2017

The Breakthrough: How a Small News Outlet Brought Down the State Hero  

Anne Galloway was suspicious the moment she heard about a too-good-to-be-true development. She didn’t know how right she was.

by Jessica Huseman Aug. 11, 2017, 8 a.m. EDT   

"Bill Stenger was a local hero. One of Vermont’s most important businessmen, he had created hundreds of jobs with mega-developments across the state. In 2011, the Vermont Chamber of Commerce named him “citizen of the year" . . .But not all of Stenger’s businesses were what they seemed, a small nonprofit news organization revealed . . . When the multimillion-dollar development was announced in 2012, it immediately smelled fishy to Galloway. It was to be built in a region known as the Northeast Kingdom — an impoverished area of the state near the Canadian border, mostly known for dairy and Christmas tree farms — and it promised 10,000 jobs.“It just seemed too good to be true,” she said. “It seemed too big.”
She was right.
Galloway and her team dug deep, . . They chronicled complaints that this development was starting to feel like a scam, and reported on the cozy relationship Stenger had with state oversight authorities. . .
It was a “Ponzi-like” operation, in which they collected millions of dollars from foreign investors, pocketed some and paid for past projects with the rest, according to the complaint. Newer projects were left incomplete, and investors were left bilked. Galloway and her team knew about almost all of this — they just couldn’t get anyone to go on the record. . ."
Hear how it all began on The Breakthrough, the ProPublica podcast where investigative reporters reveal how they nailed their biggest stories > https://www.propublica.org/podcast

Other news sources also expressed doubts:

Is this job-creating foreign investment project too good to be true? - PBS 

https://www.pbs.org/.../is-this-job-creating-foreign-investment-project-too-good-to-b

Dec 10, 2015 - And that's a real concern, says journalist Anne Galloway. ANNE GALLOWAY, Vermont Journalism Trust: If people in other countries are investing in something that they have put faith in, and that faith is lost, that has a ripple effect across all EB-5 projects. And I know that our stories have had kind of a chilling ...

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HERE IS WHY is your MesaZona blogger having some reasonable doubts about this Arizona SkyBridge
Reason #1:

Scaramucci Says SkyBridge Sale Poses No National Security Threat

Bloomberg · 1 day ago

Reasons #2 + #3

Scaramucci Defends Skybridge Deal After Buyer HNA Faces Fire ...

https://www.bloomberg.com/.../scaramucci-defends-skybridge-deal-after-buyer-hn

Dec 13, 2017 - Scaramucci discusses the pending sale of his SkyBridge stake to HNA Group. Anthony Scaramucci, the former White House aide who's selling his stake in SkyBridge Capital to China's HNA Group Co., said he still believes the deal will close days after another acquisition target made accusations that HNA ...

Scaramucci Considers Return to SkyBridge, Scraps Vegas SALT ...

https://www.bloomberg.com/.../scaramucci-says-salt-las-vegas-conference-won-t-happ...

Jan 24, 2018 - Anthony Scaramucci said he'd like to have a role again in the future of SkyBridge Capital

 the fund-of-hedge-funds firm he founded, and scrapped plans to hold his flagship SALT conference

in Las Vegas this year. “If the sale goes through I would like to -- and I've talked to the HNA people

about -- retaining ...

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Higher Ground

As President Trump visits his border wall prototypes, Arizona is busy setting up a sky bridge to Mexico.

March 16, 2018

"

In the competition between a SkyBridge and a border wall, Arizona has seized the high ground. It’s a good bet that one of these projects will be completed soon—and be a boon to prosperity on both sides of the border—while the other may never be built.
We’ll let you guess which is which. . . .
Blogger Note: 
the report in Business Facilities  makes a point about transborder collaboration 
Cross-border commerce between Arizona and Mexico also is getting a boost this week from the inaugural Arizona-Sonora Business Expo, held March 14-15 in Hermosillo, Mexico.
The Expo is designed to facilitate new connections, increase cross-border collaboration and strengthen an already prosperous relationship between two trading partners.
The Expo is a joint undertaking of the Arizona Commerce Authority and the Secretaría de Economía de Sonora, in partnership with the Arizona-Mexico Commission and the Comisión Sonora-Arizona. It represents the continuation of an alliance between two governors in a region recognized as a national model for cross-border collaboration.
“Arizona’s relationship with Mexico—our number one trading partner—can serve as a model for other states to follow,” said Gov. Ducey. The Arizona-Sonora region presents a competitive platform for growth, a robust supply chain, modern transportation infrastructure, top-ranked higher education institutions and a talented workforce.”
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Mesa Mayor John Giles  is  also quoted in the article. Unfortunately, he says things that don't always that get built 

“Consumers in Latin America want the ability to purchase goods online and receive them the next day—SkyBridge Arizona will make that a reality,” said Mesa Mayor John Giles. “This project will transform Mesa into an international e-commerce hub, benefiting not only our city but also our state and the Arizona-Mexico region as a whole.”

 

 

Transformation You Can Believe In: Cultivating Cannabis

Take a deep breath and inhale some good news: What used to be a home-grown hobby for some and grass-roots start-ups for small-scale innovative creative entrepreneurs back in the 1960's has morphed into a scientific-based industry on a global and hyper-local scale.
Even right here in the 21st Century in Mesa, Arizona the most conservative city in America. No doubt it's another fertile pathway to bring Mesa into the 21st Century - an innovation of a different kind for sure! One recent operational impact to support the growing industry is the news that conservative Mormon-founded law firm Udall Shumway, where both Mayor John Giles and Mesa City Councilmember Chris Glover had internships early in their careers, has entered into 12 Practice Areas of Cannabis Law.

Back in May 2015 your MesaZona blogger was thrilled and excited to have the opportunity to attend this educational event at the invitation of the organizers, speaking during a session break with Zac Hildebrand, President of C4 Laboratories located in Gilbert. 
Canna Magazine publicized the event like this:
An Educational Exploration Into the World of Cannabis
8 of the Brightest Minds in Cannabis Sharing Their Knowledge & Passion in a Series of Short-form Lectures
Learn about what’s happening in the rapidly growing world of cannabis from industry specialists, medical professionals, growers, scientists, and families involved in it every day. Whether you are new to cannabis or a long time veteran, these short-form lectures are designed to expose you to the personal experiences and advances in the understanding of this wonderful plant.
Link > Science of Cannabis Summit

May 17, 2015 | Piper Theater @ The Mesa Arts Center | Mesa, AZ

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> You can find updates from C4 Laboratories with this link > 

https://www.facebook.com/pg/c4labsaz/posts/
> You can likewise find a good number of follow-up posts on this blog since May 2015 by using the SEARCH BOX in the upper left hand top on this site, including a recent zoning change for medical cannabis dispensaries here in Mesa approved by the city council.
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Here's the most recent Nitty Gritty mainstream news published in AZ Big Media 16 hours ago about 'Adaptive Re-Use' commercial real estate investments in the growing cannabis industry   
" . . . The adaptive reuse transformation of the Revlon building into the largest indoor cannabis cultivation facility in Arizona by True Harvest is just one example of the state’s cannabis-related real estate activity and the industry’s growth overall, which continues to attract investor interest while also creating jobs and real estate opportunities.
Marijuana isn’t a new topic by any means but it’s evolution into a legally regulated multi-billion-dollar industry for medical and recreational use is relatively new. And experts predict the cannabis industry is only expected to grow in Arizona, nationally and globally, as the industry evolves and more places consider legalizing medical and/or recreational marijuana. . . ."

How is Arizona’s growing cannabis industry impacting CRE?

Above: CASH CROPS: Bill Brothers currently owns Encanto Green Cross Dispensary in Central Phoenix, and operates one of the largest marijuana cultivation sites in the state, which serves 13,000 local patients each year. Real Estate | 16 hours ago | David McGlothlin

The former Revlon cosmetics and fragrance manufacturing plant, located in a South Phoenix industrial park, was originally built in the late 1960s and employed more than 900 people at its peak before eventually closing in 2001.
For more than 14 years, the 880,000-square-foot big box space sat vacant and shuttered. Today, it is home to a new tenant with new employees that are all part of a budding industry in Arizona – cannabis. . . .
READ MORE using the link to AZ Big Media above

 

2 Mesa Success Stories: Home-Grown Talent

Here's a couple of quick flashes about how creative home-grown talent can get:
one a twin-pair of fiddlers finding their mission in Hollywood pest control and one more a gay coming-of-age memoir.
Both have music in their backgrounds.
Both are about guys who have turned their talents in music performance using different venues to success springing onto the stage of national attention, using The Gong Show in one case and one writing and performing songs.

First up: Jake Shears who got some attention writing 'Boys Keep Swinging', reviewed by Jim Piechota on 15 March 2018 in East Bay Area Reporter 
Shears spills the details about his gay coming-of-age in Mesa, Arizona, . . . there's a generous amount of juicy material about the kaleidoscopic life of this creative founding member of the glam pop group Scissor Sisters. The book is written very much in the way Shears has led his life: brashly honest, well-honed, bubbly, dazzled by celebrity, and infused with plenty of eyebrow-raising tidbits. . . These anecdotes form the perfect lead-in to his more formative musical years in New York City. . . With a swirling cast of supporting characters, the anecdotes and sordid stories flow like lava. Once Shears began writing songs and embracing his place on stage and in front of a crowd, he had truly found his calling . . .The stories alone are enough to keep readers up at night. For an update on Shears and his performance career, he has joined the cast of the Tony-winning musical "Kinky Boots," . . .
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Your MesaZona blogger had the pleasure of seeing local stage performances of the two fiddle-playing twin Lindorf Brothers at a Celebration of Mesa Festival in Pioneer Park a couple of years ago and again during the 1st Mesa MusicFest performing inside Milano Music on Main Street . . . since then they've morphed into "The Hollywood Bug Guys".
You can find out more about their success in these two reports:

The Hollywood Bug Guys

Nearbynews-Mar 8, 2018

Identical twin brothers Jeffrey and Jason Linford never gave up on their dreams. Now, with their company and music duo, The Hollywood Bug Guys, it's paying off. “It's finally starting to get traction. It's just super exciting,” Jason said. “We're on a mission to revolutionize the music industry through pest control.” The brothers ...

Mesa brothers aren't fiddling around with pests or music

East Valley Tribune-Mar 3, 2018

Now, with their company and music duo, the Hollywood Bug Guys, it's paying off.

“It's finally starting to get traction. It's just super-exciting,” Jason said.

“We're on a mission to revolutionize the music industry through pest control.” The brothers have always played music. Growing up in Mesa, their mother taught them to sing ...

 


















    











 

Loose Threads: The Intersection of Sex, Money, Power & Politics

Whoever said Mesa is boring was trying to sell you an urban myth.
Perhaps politics used to be boring, but it sure ain't no more. It's a potentially combustible combination producing all kinds of reactions and consequences - some that blow-up big time, some that fizzle-out and fade-away, and some that might cause people to pay attention.
Let's focus on two: CD 18 in Pennsylvania and CD8 here in Arizona
PENNSYLVANIA:
Pennsylvania Special Election Results: 18th Congressional District

By NATE COHN, JOSH KATZ, SARAH ALMUKHTAR and MATTHEW BLOCH.

March 14, 2018, 11:11 AM ET

"The Democrat and Republican in a special House election in the heart of Pennsylvania’s Trump country were divided by a few hundred votes in a race that was too close to call early Wednesday — an ominous sign for Republicans in a district that Donald J. Trump won by nearly 20 percentage points. Read more here.

In 2016, Mr. Trump won the district by double digits, but the race between Conor Lamb, a moderate Democrat, and Rick Saccone, a Republican, had become unexpectedly competitive.

Whoever wins will have to decide soon which district to run in this year. The State Supreme Court threw out Pennsylvania’s current congressional map and recently issued a new map with redrawn boundaries. Tim Murphy, a Republican, resigned from the seat last year after reports that he encouraged a woman, with whom he had an affair, to have an abortion. . . " 

Source: https://www.nytimes.com/interactive/2018/03/13

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ARIZONA: Here in Arizona it was the primary election in CD8 that got some attention last week when AZ State Senator Bob Worsley's cultivated squeaky-clean-conservative-and-religious family-man image got tarnished in the media when - Worst Case Scenario or is it? - public-elected office-holder Worsley and his political campaign manager Kent Lyons (who's his business partner in a for-profit risky real estate speculation here in downtown Mesa, the $130-Million-Dollar Habit Metro development) got caught in an alleged Montenegro Revenge Porn Sex/TXT . . . more details in related content below  

Before 'getting a call' from a close cohort of friends in 2012 to rescue the State Congressional seat lost by fellow conservative-religious good friend Jerry Lewis, Mesa Mega-Millionaire Bob Worsley who lives in a 5900+ Sq. Ft. McMansion on Presidio Circle in The Groves in northeast Mesa, Worsley managed to amass a personal fortune. . . once in office he became a proponent of personal corporate welfare for himself and his friends.

Reports go back for years (see below).      

A stranger to most people here in Mesa, Worsley came out publicly last week as a State Senator to promote his own self-reportedly $20 million-gamble in real estate speculation for private profit in a swarm of low-ball sell-offs and buy-ins on more than ten downtown Mesa properties. . .

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This story has a LOT going on 12news.com/article/news/l…

 

Arizona candidate got topless selfie from legislative staffer, messages reveal A legislative staffer sent Steve Montenegro a topless photo via text message, according to a series of messages between Montenegro and the staffer that were reviewed by 12 News.

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OK that's just one way to do a story - there's so much more when you look into the closet of what else State Senator has done while in public office. No doubt some of it is good, but there's also no doubt that some other things for this public servant deserve the public's attention for things that might be conflicts-of-interest.  

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Some related content on Worsley's other deals:

2 shuttered Snowflake power plants purchased by Senator Worsley

By Bob Christie Associated Press July 30, 2013 , 3:38 pm
Two shuttered power plants near the small eastern Arizona town of Snowflake have been purchased by a company controlled by Arizona state Sen. Bob Worsley, . . .

The connected 80-megawatt coal-fired plant will either be converted to natural gas or get new low-emission technology before restarting.
Blogger Note: See below for Worsley's actions to get tax credits for conversion to renewables - the bill establishes an individual and corporate income tax credit for investments of at least $300 million in a three-year period, . . .credit is $1 million per year for five years for each renewable energy facility, and the maximum credit allowed per taxpayer per year is $5 million.
“It will not be restarted in its current configuration,” Worsley said.
Worsley’s Nova Power LLC also bought 7,000 acres around the plants that include a landfill for plant ashes.
He and local investors put up $12 million to restart the plants.
Worsley developed the biomass plant 10 miles west of Snowflake in 2008 and sold it in 2010. . .  
Worsley, a Republican who founded the advertising magazine SkyMall, said he has 10-year agreements to sell power to Arizona Public Service and Salt River Project.
That revenue stream will help the plants turn a profit.

Source: https://azcapitoltimes.com/news/2013/07/30 

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Here's State Senator Bob Worsley pushing a bill in the AZ State House that could directly benefit him personally:

Committee adopts renewable energy tax incentives, adds nuclear to renewables

Posted by Staff  /  February 19, 2014 

By Phil Riske, managing editor | Rose Law Group Reporter
STATE CAPITOL — Its sponsor saying renewable energy is the best source of economic development in Arizona, a bill providing tax incentives for renewable energy facilities was unanimously adopted Wednesday by the Senate Commerce, Energy & Military Committee on a 5-0 vote.
SB 1484 establishes an individual and corporate income tax credit for investments of at least $300 million in a three-year period in new renewable energy facilities that produce energy for self-consumption using renewable energy resources if the power would be used primarily for manufacturing.

Sen. Bob Worsley

“These industries are most potent” in driving state’s economy,” said the bill’s sponsor, Sen. Bob Worsley, R-Mesa. “This is a way to attract a different breed of clientele.”
The credit is $1 million per year for five years for each renewable energy facility, and the maximum credit allowed per taxpayer per year is $5 million.
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