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>>> Coming up next on "Arizona
Horizon" -- the latest on the
Phoenix Coyotes' ownership saga
includes questions on the true
costs of operating jobbing.com
arena.
Why some are concerned housing
prices in the valley are
increasing too much to fast.
And meet a valley man who opened
up a home in Africa for children
orphaned by aids.
>>> "Arizona Horizon" is made
possible by contributions from
the friends of 8, members of
your Arizona PBS station.
Thank you.
>>> Good evening.
Welcome to "Arizona Horizon."
I'm Ted Simons.
The true cost of operating
Glendale's jobbing.com arena is
a significant point of
contention in efforts to keep
the coyotes in town.
The Arizona Republic's Paul
Giblin joins us now.
Thanks for joining us.
>> Nice to see you.
>>> Disconnect on how much it
costs to operate that arena.
Talk to us.
>> Something of a mythical
figure that no one could get
their hands on.
No one in the city at least.
But I found it on the city's
website.
The city right now is soliciting
a new manager for the arena, and
as part of the solicitation
package they put the profit and
loss statements from the current
company that's operating the
arena, operated by a subsidiary
of the NHL, so there they were.
Profit and loss statements for
the past three years.
>> It sounds as though the true
costs are, what, five, $6
million?
>> 5.1 million one year, 5.5
million another year.
It costs more than that to
operate the arena, but the
manager gets some money back.
When you dot math it comes out
to 5.5 million and 5.1 million.
>> Glendale has been paying how
much?
>> That's an interesting
question.
They agreed to pay the NHL 25
million.
Now you can make a lot of
arguments that the money could
attract business to that
development out there, come back
through taxes and that sort of
thing, but if you go the
videotape of their city council
meetings, look at the old tapes,
they say specifically this is
strictly for management of the
arena, not to sub dies the team.
They agreed to that twice.
Their last dealings with a
potential buyer they agreed to
pay him $15 million a year.
>> Who figured out that 5.1, 5.5
makes sense and 2025 was a good
deal?
>> These are the profit an loss
payments from the NHL subsidiary
running it.
If the NHL says this is our
profit and loss statement, this
is what it costs, that's tough
to argue with.
The decisions to pay more than
that, the 25 million and the 15
million, which didn't happen,
those were decisions by the city
council.
>> again, variation here is
huge.
What's going on?
How did it get this way?
What's happening?
>> That's a good question.
If you listen to what the people
are saying they say strictly for
management of the arena, but
when you look at the profit and
loss states it's much more.
You can throw in other things.
If you want to say there's
maintenance involved in a huge
building like that.
If it included maintenance that
might push up the number but
that's not what anyone ever said
leading up to the decision.
>> what reaction are you getting
from city officials on this?
>> I took the profit and loss
statements available on the
website and I showed it to the
mayor and to several of the city
council members.
I said, what do you think of
this?
She said, what is that?
I said this is the NHL's figures
on what it costs to run.
They said I was completely
unaware of that.
Without exception that's what
they said.
I floated it around to other
people who would be in the know
and they said that's it.
Yep.
>> It sounds as though and you
reported for the fiscal year '14
budget Glendale is penciling in
$6 million for the operating
budget. That has gone through a
lot of public hearings and
meetings.
They are arguing about whether
they can pay a deficit that the
fire department is supposed to
have.
The fire department says we have
a deficit.
We don't have money for fuel for
the trucks and for maintenance
because the call volume has gone
through the roof.
City council said we don't have
money to cover.
That the fire chief said I'm
probably going to close a fire
station unless you cover this.
They said we still don't have
the money for it.
That's how tight the numbers are
right now.
>> With 6 million -- you've had
all these offers of 15 to 20 and
who knows what up there, how
does that impact negotiations
now to keep the coyotes in
Glendale?
>> That's a good question too.
Now, keep in mind that the city
had a deal with a guy named Greg
Jameson, CEO of the San Jose
Sharks.
He had until December 31 of
their you to buy the team to get
a management deal with the city.
The city was going to pay him
$15 million.
Shortly after he didn't come up
with the money he went away,
then a bunch of other potential
buyers started showing up.
One guy named Anthony LeBlanc
appears to be the frontrunner
now.
Back then I spoke to him he said
he was interested but would need
a deal similar to the one
Jameson had for 15 million.
Now months later he's in the
front with another rich guy
named George Gosby, both
Canadians, a few other invest
you, presumably he has not
changed.
I tried talking to him recently.
He's not speaking now.
>> is there any likelihood
someone would buy the team but
not operate the arena because
that seems highly unlikely from
a distance.
It sounds like all this extra
money was thrown in there to
attract buyers and even if you
couldn't -- if hotels highser
couldn't get folks to join his
team with that kind of money
thrown in, six million bucks,
eight million, good luck, fella.
>> Their finances are outside my
earshot.
I don't know, perhaps these
investors think 6 million is
enough.
We'll have to see how it shapes
up.
>> Do you think, though, someone
would buy the team but not
operate the arena?
>> I would think not.
In fact I'll tell you no.
I have spoken to all the
frontrunners in this thing, not
just LeBlanc's group the other
groups.
They all said the management
component is vital to their
interest in buying the team.
Without that I don't see it
happening.
>> LeBlanc is this renaissance
force in entertainment.
A first line, though, but first
line in what?
It doesn't sound good to be
quite honest.
We report on this all the time,
Paul.
How many stories have we done
are they staying, are they
going, it sures seems like they
are starting to skate away.
>> I'm not sure.
I will tell you that group
renaissance sports and
entertainment, these are guys
with deep pockets.
Deep pockets and a high interest
in hockey.
The two leading guys are
Canadians.
They see that market could work
because the new alignment with
the NHL will put the coyotes in
a division where they would
expect to get a lot of Canadian
hockey fans coming down from
Canada to watch the game and get
hot weather, get out of the
snow.
They think it can work.
I don't know if it will work.
We'll have to see.
>> sounds like with potential
bids in late May, the Glendale
budget early June, it's coming
up.
>> There's three weeks from when
the bids are due until city
council is supposed approve the
budget.
>> great work.
Good to have you here.
>> great to be here again.
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>>> A new ASU report shows that
the median price for a single
family home in the Phoenix area
was at $175,000, up 30% year
over year and it's got some
housing analysts concerned.
Joining us is Arizona Republic
real estate reporter Catherine
Reager and economist Jim rounds
of Elliott D. *** and
company.
Thanks for coming in.
Now we have ASU, 30%.
Prices are skyrocketing.
>> Well, it's only up I think
almost 4% from march, so we have
had a steady 4% every month.
Over the year 30% is nice.
We have had some slow-down,
months where it was faster.
It's nice to see a median price
of 175 instead of 119 if you're
a homeowner but not a buyer.
>> what's going on?
Why are these prices doing this?
>> Keep in mind prices fell
significantly, so we had this
really low base to work off of.
When your looking -- working off
a low number we're realizing
growth in population and
employment but the real estate
market has to work through some
unusual things that happened
also.
We expected a decent rate of
growth this last year, maybe
into the next year, but it's not
sustainable over a five-or
six-year period.
>> The idea we hear oversupply,
year after year.
Now we're starting to have too
few homes available?
>> I'm surprised particularly
150,000 or less, very tight
market.
Then so we're seeing fewer
investors but investors are
still out there, like 30% of the
deals were cash deals with
investors, but they are mostly
buying $250,000 and below.
So really to balance the market
we need morsellers.
The more home homeowners feel
like they are not under water.
>> That's a lot -- it seems like
is it sustaining or dipping?
>> It's going to slow some.
We were around 45% of sales to
investors a year, year and a
half ago.
The question is what are
investors going to do with their
homes.
We did overbuild.
There's a temporary shortage.
Prices are set based on what's
available today, not necessarily
what's going to be available in
two or three years.
If the investors put these homes
back on the market over a short
time frame we have a problem.
So far they are talking about
putting them back on the market
over six or seven years and some
are going to keep renting the
product.
We're not going to see much of a
blip in the economic data if
they do this slowly enough.
>> There's smart money behind
this.
This is Wall Street money, big
money.
The really big buyers,
Blackstone.
They say they are going to hold
on and I still see them buying a
few homes but have not seen them
putting things on the market.
It's the first generation
investors who bout in 2009, 2010
who can now sell and make money.
>> Even so, it seems as though,
we were all here back in 2006
and 2007 when things went topsy
turvy.
Compare and contrast what's
happening now with what happened
then.
>> we overbuilt by a lot of
units.
Greater Phoenix bought 80,000
units.
There were lots of problems in
the mortgage market.
We troughed.
Then slowly we started getting
back to more normal conditions.
We had the investors come in.
That helped stabilize prices and
then pushed prices up over the
last couple of years.
That's part of the reason for
that 30% increase.
What you'll see is that 30% is
going to give way to maybe 15%
this next year and then I think
we'll get back to 10%.
Compared to 30 that doesn't
sound like a lot but compared to
the long perm average of 3 to 4%
that's not bad.
You have to get those rates of
growth to get back to normal by
the end of this decade.
>> You're saying 4% per month
but that will ease here.
>> Yes.
We're in prime home buying here
from January to June.
We could see that ease in
August.
Buyers, it's tough for regular
buyers to get a loan.
The lending guidelines are
really tough.
>> Is that still going on?
>> Home buyers have a little
better shot because of the
programs out there but I'm
talking about the documentation
needed.
It's 10 to 15% down.
That's not bad for the market.
>> what about the impact of
those who walked away from their
homes?
Those folks are still probably
having some trouble us where
link up the cash.
>> Fortunately the investors
step in.
Unfortunately some say, but it
was needed to stop the bleeding.
It's good to have the home in
your neighborhood rented rather
than vacant with weeds in the
yard.
It was a good thing over all.
It depends how we work our way
out of the investors.
22% of the market is for rent.
Normally it's around 12.
Normal conditions will probably
be around 15.
>> What is that doing to the
rental market?
>> The rental market has become
more competitive on the housing
market except now I'm hearing on
the apartment side it's
flattening out, that we have so
many rental homes it's hurting
on the apartment side.
Last summer is when it really
picked up.
There were people last August
standing in line at rental
homes.
Six contracts coming in.
Because there are more rentals
out there, but with population
growth and more people coming
here we'll see.
I'm also hearing some of these
investors are looking at selling
to the renters.
So we have seen that trend come
out.
>> a large percentage of those
renting homes want to buy them.
That's why to some extent those
homes are absorbed.
They are being rented but it's
really a paperwork issue.
We're not in as bad a situation
as initially thought but I still
think it comes down to the
investors.
The plan for them is not to dump
the product and run.
They were originally talking
about a two-year hold and
exiting the market.
You're seeing improvement in
other economic data too.
Last year some of the nonnormal
type resales was about a third
of the market.
Not the bank owned properties or
foreclosures.
Now it's two-thirds of the
market.
>> Housing reflects economy,
economy reflects housing.
Which is chicken, which is egg?
>> In Arizona it's a little bit
of both.
We're moving in the right
direction.
Housing is moving in the right
direction too.
But if we see a 30% increase
again for another year, then
there's some stuff going on that
will cause some imbalances.
You see 10, 15% we're going to
be okay.
>> Foreclosures, what's the
situation?
>> Down.
900 last month, 900 the month
before.
Hasn't been at that level since
Don't you love now that we are
talking about regular home sales
we have to call them normal home
sales because we have been doing
foreclosures and short sales for
so long.
We're back.
Pretty soon we won't have to say
normal resale.
Just sales.
>> It's nice to have a
discussion on this and not be
doom and gloom.
Good to see you both.
Thanks for joining us.
>>> Every month on "Arizona
Horizon" our giving and leading
segment looks at folks doing
good things in the world.
Tonight we learn about a local
family that used their life's
savings to open a home in Africa
to children orphaned by aids.
Bob Solis, thank you for joining
us.
>> Great to be here.
>> congratulations on this.
Give us a better definition of
open arms home.
>> It's a residential facility,
Ted, for children who have lost
their parents to aids in South
Africa, which is a particularly
bad problem.
Most of these children come to
us with the shirts on their
backs and end up we will raise
them to adulthood.
It's a residential home.
>> you're based here, you live
here.
How did this start?
>> My wife and I have five
children of our own.
About ten years ago we took our
family on a mission trip of our
own.
We worked in an orphanage in
South Africa so our kids could
see how the other half of the
world lived.
We saw so many children in need
from this aids problem we came
home, thought, prayed about it.
We had been saving up to pay off
our house for many years.
We said, what the heck, that's
why they invented 30-year
mortgages and we took a trip and
bought the farm.
>> was there a moment when
everything went, this is what we
should be thinking about?
>> Yes.
It was when we went out to the
community, townships, we would
call slums, you saw so many
children wandering around.
You would ask, what is this
child's story and the next door
neighbor be weighing care of the
child.
They weren't related.
You saw this over and over.
It tugged on our hearts and
we're blessed to be a part of
it.
>> What response did you get
from folks in the community, the
kids obviously are having a
great time.
They look good.
What about folks in the
community?
>> We were welcomed with open
arms.
There was such a need for
children's homes there.
There's an overwhelming need.
People really stepped up.
Local farmers gave us meat and
dairy and people knitted
sweaters.
They have been very, very kind
to us.
>> what about here?
What about your family, your
friends?
It's one thing to say I'm going
to take a motorcycle trip or
have a mid life crisis.
I'm going to open a home for
orphaned kids in South Africa.
What did you hear?
>> Well, psychological
counseling was a suggestion.
But we have a very supportive
family.
So a big extended family in
Arizona.
They were all very supportive
although scratching their heads
a little bit.
We started small.
Got the first child in 2006.
We have been adding 10 to 12
children a year ever since.
>> as far as challenges, what
are some of the things you ran
into that maybe you didn't
expect?
>> The distance, of course, is
the number one challenge.
When you're trying to run an
organization on the other side
of the world and living in
Arizona that becomes very
problematic.
We have American executive
directors, a couple from
Virginia, that runs it for us.
They are doing a great job.
We're pleased about that.
Devote best we can to stay in
touch but the distance is
probably the hardest thing.
Probably the most unexpected
pleasing of the thing has been
giving people jobs.
The unemployment rate around
there is about 50%.
We have 43 paid staff members at
this point and so it's been gait
giving them jobs.
>> when we saw the kids they
were obviously happy, having
fun, playing, dancing and being
kids.
There has to be some emotional
need going on there, physical
needs.
What have you run into?
>> No question.
We have a master's level play
therapist that comes every
Thursday and Friday to work
through some of the issues.
Obviously our children have
issues with separation.
With wondering about where their
family is, et cetera.
So we work through those issues
as best we can.
Then we have a consume children
themselves that are ***
positive.
So we have to attend to their
needs.
But they are doing great.
On medication, doing super.
>> The first child,
how is he seeing the world?
>> His name is Sephundo.
In his local language that means
a lesson.
He's taught us about resiliency
and how to keep moving forward
in your life.
All our kids are so resilient
it's inspirational to know them.
>> how big a problem is aids in
Africa in general, South Africa
in particular?
>> It's a big problem in
sub-saharan Africa.
Some countries are further ahead
in the fight than others.
South Africa was one of the last
to join the fight.
So as a result 18 to 20% of the
adult population is ***
positive.
In a country 45 million you can
imagine toll that takes.
Because most of the people
passing away are 20 to 40 years
old they have a lot of kids and
there's a lot of kids with no
place to go.
>> They have a place to go now.
Expansion plans?
>> We have beds now for 70 with
53 kids, so we'll get to 70.
At that point we'll catch our
breath and see what's going on.
We hope if we expand beyond that
we build ought campus.
We want to maintain a family
atmosphere.
It's very important that it not
get too large so it doesn't
become an institution.
>> a question for you.
You work full-time.
>> I do.
>> Doing something else.
>> Yes.
>> how do you find the time for
this?
>> It's turned into my golf
hobby.
Which is fine because I'm
terrible at golf.
It's nights and weekend and
whatever we can do, speaking at
churches and rotary clubs.
It's a great privilege,
actually.
I don't look at it as work.
It's one of those things you are
doing what you feel like you're
supposed to be doing.
>> it sounds like you walked
across a major part of South
Africa to raise money?
>> Yes.
Next time I'll take the bus.
In 2008 we were out of space and
funds on a personal basis, so we
had a fund-raiser where I walked
720 miles across the country.
It was great adventure.
We raised about a quarter
million dollars to build more
cottages.
>> Last question.
Do you ever sit back, I was
joking before saying you must
sleep awfully well doing this
kind of work, do you ever sit
back and look at the ceiling,
look outside and just marvel or
wonder at what you've done?
>> I will tell you my favorite
thing at open arms without
exception is to sit inside even
though I love playing with kids
and watch the children playing.
Because what happens with
children who have suffered like
this is they lose their
childhood.
They lose their sense of joy and
play.
They are begging to stay alive.
My favorite thing is to sit and
watch them play.
I think open arms has given them
their childhood back.
>> that must be a blessing and a
half for you and certainly for
them.
Continued good work and
congratulations.
This is a fantastic story.
>> thank you.
>> good to have you.
>>> tomorrow on "Arizona
Horizon," we will take a look at
how the sequester is affecting
Arizona and learn about an
effort to cut down on radiated
heat for Phoenix rooftops.
That's Tuesday evening here on
"Arizona Horizon."
>>> That is it for now.
I'm Ted Simons.
Thank you so much for joining
us.
You have a great evening.
>>> "Arizona Horizon" is made
possible by contributions from
the friends of 8, members of
your Arizona PBS station.
Thank you.
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>>> later on 8H.D. --
>> Antiques road show is on the
hunt for America's Treasures in
Rapid City, South Dakota.
>> when I bring it out of the
safety deposit box and my
husband looks at it he starts
mentioning he needs a new
pickup.
>> oh, my goodness.
>> Wow!
>> Awesome!
>> Don't miss our discoveries
from Rapid City next time on
antiques road show.
on 8H.D.
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PBS is that it makes art
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We need music, we need dance, we
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>> coming soon to 8H.D.
>>> in' nova, there are -- they
are more lethal than a chemical
weapon.
>> one sting from this and you
will be dead.
>> more toxic Thane Cyanide.
>> more material than enough to
kill several individuals.
>> largest venomous snake in the
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Venom on no V.A. have a
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