WTF Brewer?! Apollo Group threatens move after veto ... (Phoenix, Parker: home, schools)

[nickw252]

It's an empty threat. They aren't leaving. Moving would be more costly, they are just trying to throw their weight around.

[Finger Laker]

exactly - and it will probably be overriden anyhow

they've received their fair share of sweatheart deals .... the budget just gets to the point of being balanced and now we're supposed to find an extra $32M for the apollo group?!

it's not like they can offload all their infrastructure here and the cost of doing business is going to be as much (if not more) elsewhere

sometimes you have to make the hard decisions on both ends of the spectrum

what would you propose cutting to get to that $32M to appease apollo?

or are tax hikes back on the table?

[HX_Guy]

They wouldn't be getting $32M...the state just wouldn't be getting $32M. It's a tax break for them, not a tax check.

That's what I'm saying here. Say in a year they pay $100M to the state in tax/whatever. With the bill, they would have gotten a break and paid only $68M...but that's still a $68M benefit to Arizona. If they leave, you now get a whopping $0M. Brewer is saying she wants all of the hypothetical $100M but is risking getting nothing if they leave.

At least that's how I understand it.

[Finger Laker]

Originally Posted by HX_Guy

They wouldn't be getting $32M...the state just wouldn't be getting $32M. It's a tax break for them, not a tax check.

If you are running a budget it doesn't matter if it's a drop in revenue or increase in expenditure .... it still creates a gap

if you are budgeted to $100 and have the option of either taking in $80 or spending an additional $20 the net effect is still the same .... you're short and will need to re-balance

and again - these crooks aren't going anywhere

you have to play firm sometimes when it comes to negotiations - when you have leverage, use it and this is a rare case where AZ does

[greendesert]

i'm surprised so many people have a problem with Brewer but not with Apollo group. I mean excuse me, but what kind of behavior is that to make threats when you don't get what you want? oh right... it's called bullying. Screw them. I agree that Brewer may not be the best of the best, but she has done some good things and you liberals fail to see that. I have a problem with that.
And please tell me where the hell we're supposed to come up with the money for all these bullies? wtf? the money does not exist, stop borrowing our kids futures to serve some fat ass bullies.

[Ponderosa]

Originally Posted by Finger Laker

If you are running a budget it doesn't matter if it's a drop in revenue or increase in expenditure .... it still creates a gap

if you are budgeted to $100 and have the option of either taking in $80 or spending an additional $20 the net effect is still the same .... you're short and will need to re-balance

and again - these crooks aren't going anywhere

you have to play firm sometimes when it comes to negotiations - when you have leverage, use it and this is a rare case where AZ does

So you would play tough with one of the largest employers in the state and thousands of jobs and yet hand millions of taxpayer dollars to a billionaire from out of state to guarantee his profit in operating a losing, unpopular sports franchise? Yeah, I know, it's different. You are a hockey fan.

[EnicAZ]

Originally Posted by nickw252

they are just trying to throw their weight around.

I hope you are right. The problem is it is what U.S. Airways was saying too, and they just left. First Solar was going to leave, until we gave them $50 million of our tax dollars to stay. Now we are closing schools because we are out of tax money.

[Finger Laker]

If you can't state my position accurately - please don't even attempt it

Both instance are an example of leverage .... the state has provided plenty of benefit for apollo .... the call center laws/regulations here are very favorable, the commercial real estate is very affordable and they received breaks when the aquired it .... it's a right to work state and call center employees are abundant and very good here

it would be like me asking for $50 and when I don't get it stating that I'm going to spend $100 and move a place where I can't operate as profitably

I'm sure their shareholders would love that (not like their shareholders are a happy bunch as it is for the most part)

In this case the state has leverage .... apollo isn't going anywhere - they really can't ... there aren't that many options for them given their structure, their business model, their requirements and their capital interests that they cannot divest from

use your leverage

moving away from a state budget issue towards a municipal issue - the CoG is already sitting on a large expense and a debt that must be serviced - they have a whole entertainment complex that provides a lot of tax revenues - they have an entertainment center that provides a lot of tax revenue - they have a swath of vacant land where they will get development fees from both commercial & residential builders (look at the type of builders who came into that part of glendale once the arenas were built - much higher cost to develop the land to the benefit of the city when it has a higher perceived value - not to mention you can draw more entities that will draw revenue)

by pretty much every account it's much more damaging to the city if they lose their anchor tennant ... what that tennant is doesn't really matter when it comes to this discussion

in this instance their leverage is very poor and they'll have to spend some money in an effort to not cement losing much more than any additional investment .... not to mention most studies show that it would still be a long term winner to retain the franchise

far from ideal - but you need to pick and choose to a degree .... it's all a part of business/governance

don't let your emotions cloud judgement and look at the situation, analyze it and make the most appropriate decision

[Finger Laker]

Originally Posted by EnicAZ

I hope you are right. The problem is it is what U.S. Airways was saying too, and they just left..

?!?!?!?!?

[observer53]

Originally Posted by EnicAZ

I hope you are right. The problem is it is what U.S. Airways was saying too, and they just left. First Solar was going to leave, until we gave them $50 million of our tax dollars to stay. Now we are closing schools because we are out of tax money.

US Airways has not GONE ANYWHERE. What ARE you talking about? Tax incentives for businesses are not limited to Arizona.

Schools are closing in large part due to declining enrollment.