South Tucson's El Independiente, 1982-04-30

              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.