44 Pages of glorious detail on how Oro Valley Town Council let by Mayor Hiremath is managing this of a deal that has cost taxpayers millions of dollars to date and promises to lose more!
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44 Pages of glorious detail on how Oro Valley Town Council let by Mayor Hiremath is managing this of a deal that has cost taxpayers millions of dollars to date and promises to lose more!
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44 Pages of glorious detail on how Oro Valley Town Council let by Mayor Hiremath is managing this of a deal that has cost taxpayers millions of dollars to date and promises to lose more!
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585 Pages of glorious detail on how Oro Valley Town Council let by Mayor Hiremath snatched up this whopper of a deal that has cost taxpayers millions of dollars to date and promises to lose more!
585 Pages of glorious detail on how Oro Valley Town Council let by Mayor Hiremath snatched up this whopper of a deal that has cost taxpayers millions of dollars to date and promises to lose more!
585 Pages of glorious detail on how Oro Valley Town Council led by Mayor Hiremath snatched up this whopper of a deal that has cost taxpayers millions of dollars to date and promises to lose more!
Golf & Clubhouse -
The Purchase and Sale Agreement and the Troon Management Agreement
585 Pages of glorious detail (see actual photo above right), including a 44 page Management Agreement with Troon Golf, on how Oro Valley Town Council led by Mayor Hiremath snatched up this whopper of a deal that has cost taxpayers millions of dollars to date and promises to lose more! Hang on and read on!
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Troon gets paid $144,000 per year to manage the golf course and resort (now called the Community Center) - collectively called "The facility". That contract runs through June 30, 2019. Source: Troon Management Agreement page 19, Article 7.01a.
That's a lot of taxpayers' money being paid for the privilege of losing $6.9 million of our money just from May 2015 through March 2018. Source: Town of Oro Valley Financials. See below.
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It gets worse: Unless Oro Valley specifically cancels the contract within 90 days of June 30, 2019, that management contract automatically renews for 15 years! (Exact wording is "three (3) consecutive five (5) year periods") Has anyone out there ever had a 15 year contract in which you were paid to lose someone else's money? Source: Troon Management Agreement page 17, Article 6.02.
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But wait! It gets even worse: even if Oro Valley tries to cancel the Troon Management contract, HSL El Conquistador Golf (the sellers of this money pit) have veto power over that cancellation. Source: Troon Management Agreement page 17, Article 6.02.
Want more? Under the terms of the contract, guests of the Hilton (HSL El Conquistador Golf) can book priority times on both the golf course and tennis courts up to five years in advance. Source: Purchase and Sale Agreement, Schedule 2.4, Covenants and Agreements, page 3, Section 1.
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Think about that: You have friends and/or family coming to visit this winter, or maybe next winter, or the winter after that. You want to take them out for a round of golf, but you can't get the tee time you want because a guest of HSL El Conquistador booked that tee time 2-5 years ago! Just for reference, the J.W. Marriott guests, the Omni Tucson National guests, and the Ritz Carlton all have the same advance booking policy: hotel guests can book tee times only 60 days in advance. But your tax dollars are subsidizing the town-owned golf course, yet the guests at HSL El Conquistador have a 5-year priority over you!
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Who signs that kind of contract? And then tries to tell the voters that the developers - in this case HSL - aren't buying influence with their campaign donations?
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More yet? If Oro Valley ceases to operate the La Canada golf course as a golf course or the tennis courts as tennis courts, HSL has the option to lease the entire golf course for $10,000/year ($833.33/month) for 50 years. And if Oro Valley ceases to use the tennis courts as tennis courts, HSL has the option to lease the tennis courts for $15,000/year ($1250.00/month) for 50 years. And if there are any real property taxes, Oro Valley has to pay them! Source: Purchase and Sale Agreement, Schedule 2.4, Covenants and Agreements, pages 5-6, Section 5.2, Section 5.2b, Section 5.2d.
We hear from the incumbents that the golf course will meet budget by next June. Yet, there is money in the Town budget directed to that facility. At both of the candidate debates, more than one incumbent chided the challengers for making a big deal out of the golf course losses, stating that those losses were only budgeted to be about 3% of next year's budget. Next year's budget is approximately $140 million.
This brings up several questions:
1. 3% of $140 million is $4.2 million. If the facility is going to meet budget, why is that $4 million plus in the budget to shore it up?
2. If the facility is going to make budget by next year, why did the town produce a document that shows that the forecast loss for FY 17/18 is $1.9 million, and the forecast loss for FY 18/19 is another $1.9 million, and that the forecast losses are at least $1.5 million per year through FY 24/25 for a total loss of $18.7 million? Source: Town of Oro Valley Financials - see copy below. So which end of City Hall are we supposed to believe?
3. Why did it take a FOIA request to get Oro Valley to release those forecast losses? Source: Information released by challengers.
