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South Tucson's Federal cuts fray city's lifeline EI Independiente I ('\MP.IGN PAYS OFF - Arizona Food Bank Week is ignited by a ceremony at EI Con shopping center. More than By MARK G0EIIRIN(; Legal manuevering escalated this week as attorneys for the city of South Tucson and Julian Roy Garcia sought a solution to the $4 million judgment, but no immediate end appears in sight in the drawn-out nd often bitter dispute. Garcias attorney seemed poised to reject the city's proposed $1.9 million compromise offer to the wheelchair-bound former Tucson police officer, leaving a decision in the hands of Superior Court Judge Robert O. Roylston who is hearing the special action suit filed to force the city to pay the judgment. The next step is for Roylston to decide whether to require South Tucson to pay the judgment or whether to conduct a hearing on the citys ability to pay t.)i mounting debt. Roylston is presiding over a jury trial which may last a week or longer, making it likely a decision on the case could be at least a week away. Garcia's attorneys told Roylston on April 20 they want payment of the 2-year-old debt to be made by levying a tax over a five-year period. Who's responsibility is it to come up with a plan for paying the $4 million debt? "I say it's theirs - they say it's ours," said William G. Walker, one attorney for the city. Recent developments in the struggle over the aging judgment look like this: In a stab at an out-of-court set-tiement, the city has made its first written offer to Garcia - 30 yearly payments of $50,000, and three parcels of land, "which are not presently being used," and valued by the City Council at about $400,000. City Manager Richard E. Kaf-fenberger told the council the city is unable to pay the full judgment, but that it is ' 'willing and committed to providing a reasonable form of compensation for (Garcia) and his family." Attorney William G. Walker, who is defending the city in the special action suit, submitted ,a memorandum asking for a pretrial hearing where testimony could be heard on the feasibility of the proposed taxation solution. and so residents and property owners could testify on the hardships of increased taxes. South Tucson businessmen have organized a five-member council and are By MARK GOEHRING In painting a gloomy picture of South Tucson's economic condition, John E. Buehler, a University of Arizona economics professor, said it would be "impossible' ' for the city to pay the $4 million Garcia debt in the five-year time limit set by Garcia's attorneys. Buehler's affidavit was filed with the court in support of a pretrial hearing where testimony could be given on the hardships increased taxes would place on the city and its residents. In a memorandum to the Pima County Superior Court, attorney William G. Walker asked for a hearing to consider the feasibility of increasing taxes to raise money to pay the debt, and to challenge the court's jurisdiction to force new taxes on a municipality. '(),000 food items were accrued by the food bank during collection drive. Photo 1h' EMIL 'ENERF: considering retaining an attorney to represent business interests during the upcoming legal onslaught. Looking out for their own interests, sorne residents of South Tucson are consulting with an attorney who has been watching the case from the beginning. The City Council, on advice of at-torney Lowell E. Rothschild, voted unanimously Monday to rescind its decision to file a petition for financial reorganization in Federal Bankruptcy Court. All the City Council members have now given testimony on what they know about the city's financial situation and . (Continued on Page 5) Debt may be impossible fopoy, economistsays "Any attempt to raise the revenue needed through either of the available taxing mechanisms (property and sales taxes) would have serious, detrimental effects to the 6,500 residents of the City of South Tucson, " Buehler said in the af-fadavit. In five years, the judgment with in-terest will ring up at $5.5 million - making the five ànnual payments to Garcia about $1.1 million each. Buehler said, ". . . attempts to raise $5.5 million over five years with a limited tax base will create an economic depression and generate additional social costs for the community at large." Buehler noted that the economy of South Tucson is in "severe receion." He pointed out that taxablesales in South Tucson dropped 7.3 percent from $38.4 million in 1980 to $35.6 million in 1981. He also pointed out that the unem (Continued on Page 5) Indians could build own homes Page 4 Passage of state legislation ht would enable the Tucson Greyheur&' Park to move from South Tucson coud cost the city $75,000 in tax revenues. countless dollars in tourism and hundreds of jobs. The possibility of the track moving adds to the bleak economic picture for South Tucson already trying to cope with ways to pay a mounting $4 million court judgment. Park officials said they need room to expand and the current 15-acre site in South Tucson fails to meet its needs for increased parking. The 30-year-old racing park, at 2601 S. Third Ave., has a 2,750 person capacity. City officials are looking for a 35-acre site in the city for the new track, ac-cording to Ronald A. Sultemeier. president of Gillett Greyhound Racing Inc. Atbeugh the city has offered some acreage for the park, he said, they were too small. ' ' They are trying to put together. something larger, ' ' he said., The legislation increases the takeout - the track's portion of the handle - from 15 to 18 percent and enable the track to start planning an $8 million to $10 million facility that could be completed in three years. The new track will be designed to handle 8,700 patrons and could include a horse track as well. Pima County has hired a Boston research firm to study the cost and design possibilities for a dog and horse track at the new county fairgrounds on south Houghton Road. Those results will be available in two weeks, Sultemeier said. The county plans to sell the Rillito horse track arid build a park with a portion of the land, so horse racing fans would be without a track, he said. "We spent $8,000 last year to find out what the people of Tucson would like to see in a new facility, " he said. One of the results showed half of the people now attending the South Tucson track would not go the extra distance to the fairgrounds, he said. "We certainly would have to consider that if the (fairground) study gave us the green light, " he said. If the site study looks questionable, he said, the track will hire another firm to study other locations. Should f!'' track move to the county, it would no l er have to pay the 2 percent city sales 'x. South Tucson received about $75J._ in sales taxes from the track last year, Sultemeier said. But, he said, there would be a county rental fee. About 350 people who work at the South Tucson track would be diverted to the Continued on Page 12) No end in sîghtfor G rda debt Vol. VI No. 14 Published by the Journalism 1)epartment of the University of Arizona Apri! :oe.i!s2 Dog track looks into new site Iy ('OH\ 'SILV.
Object Description
Title | South Tucson's El Independiente, 1982-04-30 |
Description | Published in Tucson, AZ. Published monthly during fall and spring semesters. Later title: El Independiente |
Publisher | University of Arizona, Department of Journalism |
Date | 1982-04-30 |
Type | Newspaper |
Source | Newspaper |
Language | Spanish & English |
Relation | Historic Mexican and Mexican-American Press |
Coverage | 1967-1984 |
Rights | The contents of this collection are available to the public for use in research, teaching, and private study. U.S. Copyright and intellectual property laws may apply to the resources made available through this site. |
Description
Title | Page 1 |
Description | Published in Tucson, AZ. Published monthly during fall and spring semesters. Later title: El Independiente |
Publisher | University of Arizona, Department of Journalism |
Type | Newspaper |
Source | Newspaper |
Language | Spanish & English |
Coverage | 1967-1984 |
Rights | The contents of this collection are available to the public for use in research, teaching, and private study. U.S. Copyright and intellectual property laws may apply to the resources made available through this site. |
Full-text | South Tucson's Federal cuts fray city's lifeline EI Independiente I ('\MP.IGN PAYS OFF - Arizona Food Bank Week is ignited by a ceremony at EI Con shopping center. More than By MARK G0EIIRIN(; Legal manuevering escalated this week as attorneys for the city of South Tucson and Julian Roy Garcia sought a solution to the $4 million judgment, but no immediate end appears in sight in the drawn-out nd often bitter dispute. Garcias attorney seemed poised to reject the city's proposed $1.9 million compromise offer to the wheelchair-bound former Tucson police officer, leaving a decision in the hands of Superior Court Judge Robert O. Roylston who is hearing the special action suit filed to force the city to pay the judgment. The next step is for Roylston to decide whether to require South Tucson to pay the judgment or whether to conduct a hearing on the citys ability to pay t.)i mounting debt. Roylston is presiding over a jury trial which may last a week or longer, making it likely a decision on the case could be at least a week away. Garcia's attorneys told Roylston on April 20 they want payment of the 2-year-old debt to be made by levying a tax over a five-year period. Who's responsibility is it to come up with a plan for paying the $4 million debt? "I say it's theirs - they say it's ours," said William G. Walker, one attorney for the city. Recent developments in the struggle over the aging judgment look like this: In a stab at an out-of-court set-tiement, the city has made its first written offer to Garcia - 30 yearly payments of $50,000, and three parcels of land, "which are not presently being used," and valued by the City Council at about $400,000. City Manager Richard E. Kaf-fenberger told the council the city is unable to pay the full judgment, but that it is ' 'willing and committed to providing a reasonable form of compensation for (Garcia) and his family." Attorney William G. Walker, who is defending the city in the special action suit, submitted ,a memorandum asking for a pretrial hearing where testimony could be heard on the feasibility of the proposed taxation solution. and so residents and property owners could testify on the hardships of increased taxes. South Tucson businessmen have organized a five-member council and are By MARK GOEHRING In painting a gloomy picture of South Tucson's economic condition, John E. Buehler, a University of Arizona economics professor, said it would be "impossible' ' for the city to pay the $4 million Garcia debt in the five-year time limit set by Garcia's attorneys. Buehler's affidavit was filed with the court in support of a pretrial hearing where testimony could be given on the hardships increased taxes would place on the city and its residents. In a memorandum to the Pima County Superior Court, attorney William G. Walker asked for a hearing to consider the feasibility of increasing taxes to raise money to pay the debt, and to challenge the court's jurisdiction to force new taxes on a municipality. '(),000 food items were accrued by the food bank during collection drive. Photo 1h' EMIL 'ENERF: considering retaining an attorney to represent business interests during the upcoming legal onslaught. Looking out for their own interests, sorne residents of South Tucson are consulting with an attorney who has been watching the case from the beginning. The City Council, on advice of at-torney Lowell E. Rothschild, voted unanimously Monday to rescind its decision to file a petition for financial reorganization in Federal Bankruptcy Court. All the City Council members have now given testimony on what they know about the city's financial situation and . (Continued on Page 5) Debt may be impossible fopoy, economistsays "Any attempt to raise the revenue needed through either of the available taxing mechanisms (property and sales taxes) would have serious, detrimental effects to the 6,500 residents of the City of South Tucson, " Buehler said in the af-fadavit. In five years, the judgment with in-terest will ring up at $5.5 million - making the five ànnual payments to Garcia about $1.1 million each. Buehler said, ". . . attempts to raise $5.5 million over five years with a limited tax base will create an economic depression and generate additional social costs for the community at large." Buehler noted that the economy of South Tucson is in "severe receion." He pointed out that taxablesales in South Tucson dropped 7.3 percent from $38.4 million in 1980 to $35.6 million in 1981. He also pointed out that the unem (Continued on Page 5) Indians could build own homes Page 4 Passage of state legislation ht would enable the Tucson Greyheur&' Park to move from South Tucson coud cost the city $75,000 in tax revenues. countless dollars in tourism and hundreds of jobs. The possibility of the track moving adds to the bleak economic picture for South Tucson already trying to cope with ways to pay a mounting $4 million court judgment. Park officials said they need room to expand and the current 15-acre site in South Tucson fails to meet its needs for increased parking. The 30-year-old racing park, at 2601 S. Third Ave., has a 2,750 person capacity. City officials are looking for a 35-acre site in the city for the new track, ac-cording to Ronald A. Sultemeier. president of Gillett Greyhound Racing Inc. Atbeugh the city has offered some acreage for the park, he said, they were too small. ' ' They are trying to put together. something larger, ' ' he said., The legislation increases the takeout - the track's portion of the handle - from 15 to 18 percent and enable the track to start planning an $8 million to $10 million facility that could be completed in three years. The new track will be designed to handle 8,700 patrons and could include a horse track as well. Pima County has hired a Boston research firm to study the cost and design possibilities for a dog and horse track at the new county fairgrounds on south Houghton Road. Those results will be available in two weeks, Sultemeier said. The county plans to sell the Rillito horse track arid build a park with a portion of the land, so horse racing fans would be without a track, he said. "We spent $8,000 last year to find out what the people of Tucson would like to see in a new facility, " he said. One of the results showed half of the people now attending the South Tucson track would not go the extra distance to the fairgrounds, he said. "We certainly would have to consider that if the (fairground) study gave us the green light, " he said. If the site study looks questionable, he said, the track will hire another firm to study other locations. Should f!'' track move to the county, it would no l er have to pay the 2 percent city sales 'x. South Tucson received about $75J._ in sales taxes from the track last year, Sultemeier said. But, he said, there would be a county rental fee. About 350 people who work at the South Tucson track would be diverted to the Continued on Page 12) No end in sîghtfor G rda debt Vol. VI No. 14 Published by the Journalism 1)epartment of the University of Arizona Apri! :oe.i!s2 Dog track looks into new site Iy ('OH\ 'SILV. |