Posts tagged ‘Phoenix’

Grass Roots Efforts to Impose Socialism

At first, I thought this was an interesting article in the battle of urban planners against suburban "sprawl."  Here is the voice of the often silent majority, who like suburbs and don't want a bunch of high-density mini-Manhattans :

Jones and his neighbors moved to Laveen's low-scale subdivisions in
hopes of finding a suburban life near the heart of the Valley, where
they could enjoy large, affordable homes a few miles southwest of
downtown Phoenix.

"We had the opportunity to buy a brand-new home we could afford, and
we had a view of downtown," Pacey says. "The potential to make this as
wonderful as other areas of Phoenix is huge."

The story has the typical highly-connected former politician turned developer (is there another kind?) using his unique access to his old zoning cronies to manipulate regulation for personal profit:

Then Paul Johnson, a former Phoenix mayor, proposed taking a mostly
vacant 27-acre parcel a few blocks east of Jones' home and building 517
apartments and townhouses on it.

The property was zoned for one house to the acre. It abuts a
two-lane road where the speed limit, when two nearby schools are in
session, is 15 mph. And the nearby intersection of 27th and Southern
avenues, which provides access to downtown Phoenix, is still controlled
by stop signs.

Schools in the neighborhood already were overcrowded, and residents
were concerned about the police's ability to keep up with calls for
service. Where were all these new people going to go?

"They've done so much building in Laveen that the infrastructure has
not kept up," says Jones, an auditor who had no previous involvement in
civic affairs.

Despite a resident outcry and opposition from Michael Nowakowski,
the councilman who had just been elected to represent the district, the
council approved the rezoning 7-1 on Dec. 19.

Johnson gets extra bonus points as the urban-chic villain, expressing the superiority of sitting in cafes to, say, having a back yard.

As a former mayor, Paul Johnson is familiar with residents' arguments against high-density developments.

"They feel that any time you have additional density, that it means
a lower quality," he says one morning over coffee at Biltmore Fashion
Park. "The counter to that is this."

Johnson gestures across Camelback Road to the high-rise apartments and townhomes near 24th Street.

"I look out across the street, and there's a lot of density there,"
he says. "But I'm also sitting in a pretty nice cafe. I have a nice
place to sit. And there's a lot of other people here who think it's a
nice place."

But it turns out that there are no good guys in this story, as is often the case for your poor libertarian correspondent.  Because, the opponents of such development are turning to the ballot box, converting property decisions from individual ones made by the property owner to group decisions made on election day.  What can be built on this particular property may well be decided at the ballot box, just as I discussed another parcel of land whose fate will be decided not by its owner, but at town elections in November.

Sometimes, the reaction to government control is a bid for de-regulation.  But more often, it merely results in a scrap for power, as parties ignore the question of whether the government power should exist at all, and instead fight over who gets to wield it.

For the most part, it has been up to city councils to decide how
much density one neighborhood can tolerate. If Jones is successful,
they could lose some of that power.

"It speaks to the age-old dilemma of representative democracy versus
direct democracy," said Paul Lewis, an assistant professor of political
science at ASU. "There's always an issue with land use because what
might be in the overall interest of the city might still be seen as a
detriment to its immediate neighborhood."

This is all very depressing.  No mention of any age-old question between individual rights and government power.  For these guys, the "city" and the "neighborhood" are somehow real entities with more rights than actual people. 

For centuries we have had a perfectly serviceable approach for determining who gets to decide what gets built on a piece of land:  ownership.  If one wanted to control a property, she/he bought it.  But the desire to control property without really owning it is a strong one, and a driving force for much of government regulation.

Why Phoenix Light Rail is Doomed in One Chart

The Arizona Republic had another of its cheerleading articles on light rail this morning.  In it was a chart that, contrary to the intent of the article, summarized exactly why Phoenix light rail is doomed.  Below is a chart of the employment density (top chart) and population density (bottom chart) at each stop along the first rail route.  Note that this line goes through what passes for the central business district of Phoenix and the oldest parts of town, so it was chosen to run through the highest density areas - all future extensions will likely have lower numbers.  Unfortunately, they do not reproduce this chart online so here is a scan:

Lightrail

Take the population density chart.  As a benchmark, lets take Boston.  The average density for all of the city of Boston is 12,199 people per square mile.  Phoenix's light rail line cut through the highest density areas of town has only one stop where density reaches this level, and most stops are less than half this density.  And this is against Boston's average, not against the density along its rail routes which are likely much higher than the average.

Rail makes zero sense in a city like Phoenix.  All this will do is create a financial black hole into which we shift all of our bus money, so the city will inevitably end up with a worse transportation system, not a better one.  Cities that build light rail almost always experience a reduction in total transit use (even the great God of planners Portland) for just this reason - budgets are limited, so since rail costs so much more per passenger, other transit is cut back.   But the pictures of the train will look pretty in the visitor's guide.

Postscript: Phoenix's overall average density is around 2,500 per square mile.  Assuming that the 12,000 in the chart above is one of the densest areas of Phoenix, this gives a ratio of about 5:1 between peak and average density.  This same ratio in Boston would imply peak density areas of 60,000 per square mile.  This may be high, but indicates how much higher route densities on Boston rail should be.  Oh, and by the way, Boston rail is losing a ton of money.

Other city densities here from 1990.  People think of LA as spread out, but LA has a density over three times higher than Phoenix!

More Great Moments in Government Spending

Apparently, 3-1/2 miles of new border wall near San Diego will cost at least $57 million, or $16.3 million a mile (or a bit over $3000 per foot).  For comparison, the 350 mile long Maginot line cost France about $150 million in the 1930s, or about $2.3 Billion in today's dollars.  This puts the cost of the Maginot line, underground tunnels, bunkers, gun emplacements, and all, at $6.5 million current dollars per mile.  Of course, the Maginot line was not built as a continuous wall to catch individual infiltrators, but on the other hand the San Diego wall is (presumably) not being built  30 kilometers deep with layered emplacements to handle massed tank and artillery attacks.

It could be worse for taxpayers - they could be laying railroad track instead of building a wall, since that costs about $96 million per mile here in Phoenix.

I can't wait for those huge administration cost savings that are promised from nationalizing health care.

Update: I just thought of one other comparison- like the Maginot line, at least one end of this San Diego wall hangs in the air, meaning it just ends hundreds of miles before the border does, allowing it to be easily flanked.

Buying Dollars for $45.50 each

Our light rail cheerleader in chief, the Arizona Republic, laments that if Proposition 203 does not make it to the ballot this November, "light rail [in Phoenix & Maricopa County] will lose a chance to win hundreds of millions of dollars for the system's expansion".

Well, let's think about that.  The proposition would raise $42.6 billion statewide through a 1% point increase in the state sales tax rate.  But here's the rub:  Phoenix and Maricopa County constitute a huge part of the state's population, and presumably, retail spending.  In fact, checking the most recent Arizona state tax facts (for May, 2008), we find that Maricopa County pays about 64% of the state sales tax.  That means that approximately $27.3 Billion of that $42.6 billion in new taxes will be paid right here in the Phoenix metropolitan area. 

Good grief.  So, with a tax increase of $27.3 billion in Phoenix, we can get $0.6 billion back from the state for our light rail boondoggle.  Gee, thanks.  That hardly sounds like my definition of "winning" money.

By the way, this was hilarious:

Ziemba believes that Proposition 203 would have an "extremely significant" impact on light rail expansion if it becomes law.

"This would be the funding to really take our light rail system to
the next level, to expand it to more roots, to connect it to more of
the county," he said. "It will provide the resources to connect the
light rail system in a meaningful way throughout Maricopa County."

Why is that so funny?  Well, because the next $306 million in light rail spending is expected to get us 3.2 whole miles of track.  So at this rate, this $27.3 billion tax increase would net us $600 million which would, before inevitable cost overruns, get us at most 6.5 miles of track.  Wow, that sure sounds meaninful to me.

Light Rail and CO2

The other day, I posted an update to my light rail bet saying that not only was light rail incredibly expensive for the amount of transportation it provides, it is not even clear that it provides any "green" benefits  (with "green" today meaning only the potential to reduce CO2, since the global warming hysteria has sucked all of the oxygen out of other environmental goals).

The Antiplanner has more information, this time from the transportation planners in Denver.  Normally, transportation planners grossly exaggerate the benefits of their proposed systems, so it is interesting that even they so no net CO2 savings from their proposed rail lines:

The Antiplanner's review
of rail transit and greenhouse gases found that Denver's light-rail
lines produce more greenhouse gases per passenger mile than a typical
SUV. The Gold Line DEIS agrees, admitting that the rail alternative
will result in a regional CO2 increase of 0.034% (see page 3.7-10).

By the way, the Denver system does not do so great on the financial part either:

Now, RTD says the line will cost more than $600 million, which is a
lot for a mere 11 route miles. Moreover, RTD has changed the proposed
technology to something it calls "electric multiple-unit commuter
rail," which sounds something like the Chicago Electroliners or some of
the Philadelphia commuter trains.

For this high price, the DEIS reports incredibly trivial benefits.
The proposed rail line is projected to take 0.0085 percent of cars off
the road. Of course, that's for the region as a whole, but in the
corridor it will take a whopping 0.227 percent of cars off the road. A
handful of buses could do as well.

While that might seem terrible, it actually outdistances our guys here in Phoenix, who are projecting that the next 3.2 mile line here will cost $306 million.  While the Denver line is projected to cost $10,300 per foot, the Phoenix line will cost at least $18,000 per foot.

Rated Capacity

One needs to be a careful consumer of information when reading about the "rated capacity" of certain alternative energy plants. 

Take a 1MW nuclear plant, run it for 24 hours, and you get 24 MW-hours, or something fairly close to that, of electricity.

Leave 1MW worth of solar panels out in the sun for 24 hours, you get much less total electricity, depending on where you put it.  On an average day in New York City, you will get about 4 MW-hours.  In one of the best solar sites in the word, my home of Phoenix, you get about 6.5 MW-hours per day.  The key metric is peak sun-hours per day, and some example figures are here.  So, even in the best solar sites in the world, solar panels run at only about 25-30% of capacity.

It turns out, not surprisingly, that the same relationship holds for wind.

It's not like it's a secret that wind turbines are an unreliable source of electrical power. Bryce points out that, "In
July 2006, for example, wind turbines in California produced power at
only about 10 percent of their capacity; in Texas, one of the most
promising states for wind energy, the windmills produced electricity at
about 17 percent of their rated capacity."

That means
that there has to be nuclear, coal-fired or natural gas power plants
functioning fulltime as a backup to the pathetically unreliable and
inefficient wind farms. Moreover, what electricity they do generate
is lost to some degree in the process of transmitting it over long
distances to distribution facilities.

Now, this should not outright dissuade us from these technologies, but since no one has really licked the night-time / not-windy storage proble, it's certainly an issue.   I have looked at solar for my house a number of times, and the numbers just are not there (even with up to 50% government subsidies!) without a 2-5x decrease in panel costs.  Low yields can potentially be tolerated, but capital costs are going to have to be a lot lower before they make a ton of sense.

Water and Pricing

I while back, I wrote that I could fix our Arizona water "shortage" in about 5 minutes.  I pointed out that we in Phoenix have some of the cheapest water in the country, and if water is really in short supply, it is nuts to send consumers a pricing signal that says it is plentiful. 

David Zetland (via Lynne Keisling) follows up on the same theme:

The real problem is that the price of water in California, as in most
of America, has virtually nothing to do with supply and demand.
Although water is distributed by public and private monopolies that
could easily charge high prices, municipalities and regulators set
prices that are as low as possible. Underpriced water sends the wrong
signal to the people using it: It tells them not to worry about how
much they use.

Unfortunately, water is one of those political pandering commodities.  Municipal and state authorities like to ingratiate themselves with the public by keeping water prices low.  At the same time, their political power is enhanced if shortages are handled through government rationing rather than market forces, since politicians get to make the rationing decision -- just think of all those constituencies who will pour in campaign donations to try to get special rights to water from the water rationers.

$100 Million a Mile

I don't really understand the various issues in this article on the next phase of Phoenix light rail expansion, but this certainly caught my eye:

It will add another $9 million to the $297 million project. But by
acting quickly to make these changes, there aren't expected to be
delays in rail construction. Work is scheduled to start in early 2009
and be completed by 2012.

Opposition to the rail plan arose last fall in the last half mile of
the 3.2-mile light rail line that extends from just south of Bethany
Home Road to Dunlap Ave.

Let's see -- $306 million divided by 3.2 miles is very close to $100 million a mile, and that is even before the inevitable cost overruns cut in (as a rule of thumb, I tend to double estimates of light rail construction costs to estimate the actual final total, and even then I am often low).   It also does not include inevitable operating losses.

Nearly a third of a billion dollars to run a rail line a distance most people could walk in 45 minutes.  For three freaking miles.  As a comparison, three buses could provide service on this same route running at 5 minute intervals for perhaps 1% of this capital cost and a substantially lower operating cost.  And better service, since the frequency would be 3 times higher.  Absolutely absurd. 

More on Phoenix light rail here, and more on light rail in general here.

Postscript: Some of you may be familiar with my light rail bet.  I often bet that a light rail line will cost more to build than it would have cost to buy every  regular daily rider a Prius, and more to operate in a year than it would require to gas up all of these Prius's for a year.  For reference, with a $22,500 cost for a Prius and $306 million (and counting) capital cost, that is enough to buy 13,600 Prius's.  Anyone want to bet that the number of incremental users attracted to the line by this 3 mile extension don't exceed 13,600?

Update:  TJIC does the math -- $1500 per inch!  Fixed link, thanks to commenters.

This is Just So Short-Sighted

OK, here is the story to date:  Paradise Valley is a small, very wealthy town within the boundaries of Phoenix.  There is no commercial development allowed in the town except for a series of golf resorts, of which there are a number.  The town had one last large tract of unbuilt land, owned by the Wrigley heirs, I believe, that has for years been zoned for a resort.  There was an auction several years ago in which the land was sold for some figure north of $70 million to a group who wants to build a Ritz-Carlton resort, a hotel chain notorious for bringing riff-raff into communities ;=).  The Ritz group unanimously obtained all the town council and planning board approvals it needed to build.

Except now a ballot initiative will be voted on by the town residents in November as to whether to allow them to build a resort on their own land that is zoned for a resort (my previous report, complete with Zillow maps).  This action is consistent with the absolute resistence that every resident's attempt to do a major remodel of their house encounters from various community groups and zoning bodies.

One lesson, of course, is that local participative democracy can be just as much a threat to individual rights as the worst dictatorship  (though this is not a new lesson -- it was in fact learned in Athens when it was first tried).  But a second lesson is just how short-sighted this is.  I am sure residents convince themselves in each such individual effort that they are somehow protecting their property values.  But in sum, the effect of multiple such efforts is to make people reluctant to invest in property in the town, fearful that some citizens group or zoning body will take control of what they can do with their land. 

I live about 4 houses away from the Town of Paradise Valley in the city of Phoenix, though most of my neighbors and even the US Postal Service think I live in PV.  It used to be, about 10 years ago when I moved in, that living outside the PV boundary was considered a negative.  There was a big enormous value gradient between the nearest PV home and mine, based as much on snob appeal of the address as anything else.  Now, however, the gradient is reversing (hurray for my home equity!)  Real estate agents in my neighborhood who used to hide the fact that the homes are not actually in tony PV (shame on them) now use it as a selling point.  My remodel contractor breathed an enormous sigh of relief when he found out that I was, in fact, not in the town of PV.

Help me out, readers.  I seem to remember there was a name for an economic game where the profit maximizing strategy when playing once was different than if one were playing multiple times in sequence.

PS - If you are confused why a town would consider a Ritz to be bringing down the neighborhood, see here, complete with Zillow maps where not a single surrounding home is going for less than $1.8 million. 

Who the Hell Cares?

Apparently another interest group is claiming that Arizona is "missing out" on jobs in some critical growth industry, and therefore (wait for it) that industry must be subsidized to come to Arizona.

Arizona is getting its "clock cleaned" in the competition among
Western states to land solar-panel manufacturing companies within their
borders, according to the economic-development group that is losing the
fight.

At least nine companies that make solar equipment have passed up the
Valley of the Sun in the last year in favor of neighboring states,
according to the Greater Phoenix Economic Council.

From those nine projects alone, Arizona is missing out on more than 3,800 jobs, $2.3 billion in investment and $732 million in state and local revenues during the next decade, GPEC President and CEO Barry Broome said.

I am too tired to do my usual fact-checking on "incremental" state revenue numbers, but suffice it to say that $732 million in state and local tax revenues is a pipe dream.  There are three or four million people in Phoenix -- why is it we need the government to focus on someone employing 3,800 people?

The article's main "logic" is that our sunny climate should attract solar panel manufacturers.  Why?  I know they're customers may be here, but since most panels today come to Arizona from Japan or Germany, I don't think shipping costs are a big deal for panels.

The proposal is for a transferable income tax credit and property tax relief.  The author says the group is opposed to straight cash handouts, though.  Uh, OK.  And explain to me why a "transferable income tax credit" that the author says can be sold to other companies for cash is different than a cash handout?

I sometimes find it hard to identify the consistent element of what makes for a "desirable business"  (ie deserving of such subsidies) vs. one that is not so deserving.  The only consistent element I can find is that my business is always in the latter group, paying our taxes so that someone else's business and job can be subsidized.  It is for this reason that I generally barf when some group cries that they are not recieving equal proection (ala the 14th ammendment).  Take on tax and subsidy policy that takes from one group to fund another more politically connected group, and then talk to me about equal protection.

Postscript:  Here are the favored industries I can remember in the news of late in Arizona for getting special tax treatment:

Rock and Roll themed amusement park
Solar panel manufacturing
Neutriceutical production
New shopping mall parking lot
Spring training baseball parks

Readers are encouraged to add others in the comments.

Another Thought: I would dearly love to see a solar panel technology that can be rolled out of the factory cheaply in sheets like carpet out of Dalton, Georgia.  However, while I am increasingly convinced that someone is going to invent that technology soon, that technology will not be related to traditional silicon fabrication methods.  Therefore, nearly all of the plants that Arizona is desperately trying to subsidize to move here are likely using dead-end technologies, driven in part by bubble economics and subsidies that are not sustainable as the market grows (see ethanol).  Current silicon and germanium panels make no economic sense anywhere, and survive only due to massive (50% subsidies) and a desire to make a token green statement.

I am sure our local paper was cheerleading for ethanol plants in years past, and it is good we did not subsidize many here, because they are failing all over.  And I can't prove it, but I wouldn't be a bit surprised that one of the reasons our local semiconductor manufacturing operations have shrunk is because of this same effect, with subsidies attracting the least, not the most, viable enterprises.

The Rail Transit Debacle

The Anti-Planner links an absolutely scathing article in the Miami Herald on the absolute disaster they have made of their mass transit system.  This is a great summary:

Miami is just one more example of the points the Antiplanner keeps making about rail transit:

1. Transit agencies might run excellent bus systems. But when they
start building rail, they quickly get in over their heads by optimistic
forecasts, unforeseen costs, and the sheer humongous expense of
building dedicated transit lines.

2. Though all rail systems require periodic expensive maintenance,
few transit agencies set aside any money for this because it is easier
to spend the money now and let future managers worry about the future.

3. Though the rail systems are usually built to serve downtown
white-collar workers, in the end it is the transit-dependent people who
rely on buses who pay the cost.

4. There is only one thing rails can do that buses can't do better,
faster, and more flexibly, and that is spend a lot of your money.

I would like to observe one other thing at work in the Miami example that looks to be exactly what we are facing here in Phoenix in the next election.  Miami offered up a transit tax referendum for something like $800 million.  They promised a mix of highway improvements and rail.  In several cases, including the upcoming referendum in Phoenix, I have tried to warn people that the people who put these referendums together are rail-ophiles.  They have learned, however, that rail alone won't sell a bond issue or tax, so they throw in a bunch of highway improvement promises, which people really will pay for, as window dressing.  Often, however, these improvements never get done, as they are empty promises to sell the tax.  We see exactly this in Miami:

But five years and more than $800 million later, the county has spent more
than half the new money on routine Transit operations and maintenance while adding 1,000
jobs to the payroll.

   There were initial achievements. The county added 11 million miles of bus service, gave
free rides to seniors, and briefly experimented with 24-hour rail. It spent $40 million on
hundreds of tiny public-works projects....

   For example, here is the cost estimate that was attached to the 44 road projects that
county commissioners asked for: $0. The projects have since been estimated to cost
$428.2 million.

   Nor was any money earmarked for an unspecified number of flyover intersections on the
list of promised improvements. Such projects, which involve raising an existing road to
pass over another, cost as much as $18 million apiece today. None have been built.

So this tax was sold in part as a highway improvement tax, but $0 was actually budgeted.  The highway piece was a lie to sell the tax.  Beware Phoenicians.

Is That A Gun, Or Are Your Just Happy To See Me?

I say a sign the other day at the airport that full-body millimeter-wave imaging was coming soon to the Phoenix airport.  I guess this was pretty inevitable, and has certainly been predicted in many movies, including Total Recall:
Totalrecallxrayscene

I can't really decide if this is any more invasive and humiliating than what we already do, ie get undressed, put our medications and creams in clear plastic bags for all to inspect, and subject ourselves to full-body pat downs.  For my part, based on this and numerous other humiliations, I am working as hard as I can to minimize how often I fly.  JD Tuccille has more, and observes that body cavity searches aren't just for airplanes any more:

If you think that air travel is starting to resemble a very-expensive
East Germany-nostalgia tour and you'd prefer a less-intrusive
alternative, you might consider traveling by train. Well, except, not
on Amtrak, which implemented random bag searches, armed guards and bomb-sniffing dogs earlier this year.

Even local travel is iffy, since New York City has been subjecting subway passengers to annoying searches for the past three years. Los Angeles's MetroLink implemented a similar policy this week, apparently just so officials there wouldn't feel left out. Metrolink spokeswoman Denise Tyrrell told the Los Angeles Times

As a postscript, I had a meeting the other day with the National Park Service in Denver.  To get inside - remember this is the park service, no other agency shares this building - I had to give up my driver's license, have all my bags searched, and go through an X-ray machine.  Does anyone think that maybe we have lost some perspective when I have to go through full-on invasive security to discuss merchandising at a gift shop?

Where? In Freaking Eloy?

JD Tuccille has a roundup on the state boondoggle that won't die, the proposed 3/4 of a Billion dollar state subsidy for an amusement park. 

Now, this seems like an awful lot for an amusement park, particularly considering that the Arizona desert has been the death of many theme parks.  The reason is that no one wants to be outside for extended periods of time in June-Sept in the Phoenix or Tucson areas.  Because it is freaking hot.  The average daily forecasts is generally for 108-112F for these summer months.  But theme parks live and die in the summer, when kids are out of school.  Even though they have milder weather and a large population base at Magic Mountain in LA, they still only open for weekends and holidays during the non-summer months.  My guess, from running a similar seasonal business, Magic Mountain loses money most of the year and make 100%+ of their profit in the summer.

So spending $750 million of taxpayer money on a theme park in the Arizona heat would be a bad idea if located in Phoenix.  But what happens when we put it in Eloy, Arizona?  Eloy is just as hot, but is in the middle of nowhere, as shown below at the point of the "A" balloon.

Eloy

People will come here, from where?  Tucson folks in the summer will want to go someplace even hotter than Tucson?  Phoenix folks will want to drive 2 hours to spend their time in the hot sun, when the same distance north puts them in the cool mountains?  And here is beautiful downtown Eloy, brimming with wealth enough to repay over a billion dollars of principal and interest.

Eloy2_2

This project is absolutely guanteed to fail, leaving the bill with taxpayers.  I mean, seriously.  Never have I seen such a lock.  I wish there was a way to short this.

This is only the most eggregious of a laundry list of proposed government pork being pushed under the banner of "job creation" at a time when the state budget is over a billion dollars in deficit.

Far Be It For Me To Disagree, But...

I love Arizona and the Phoenix area.  However, I thought the NY Times listing of Scottsdale as one of the #9 place to visit this summer to be a bit odd.  Next up will be the suggestion to visit Buffalo in February.  Yes, there are a lot of screaming deals at luxury hotels with great spas, so if want two days of spa treatments and proximity to lots of good restaurants, go for it.  But expect to find something like Paris in August (but with better attitudes).  You may be here but we'll all be gone, if we can afford it.  Typical summer temperatures every day are 108-112F, with occasional excursions higher into territory that is stupid-hot.  Yeah, its dry heat, and that is exactly what we tell our turkey every Thanksgiving.  And yeah, the wind blows a bit -- feels just like a hair dryer. 

Because, You Know, People Are All Exactly the Same and Need the Exact Same Things

The Arizona Republic the other day had this headline which certainly caught me attention:

Report: 35% of Arizona jobs  'bad'

I can sympathize.  I have had jobs that were boring and unrewarding.  My last couple of Fortune 50 corporate jobs, while nominally cool on paper, were hugely frustrating.  But it seems this particular "report" had different criteria for "bad" jobs:

The new report calls 35 percent of jobs "bad" because they pay less
than $17 an hour, or $34,000 a year, and offer no insurance or
retirement plans. In a typical state, only 30 percent of the jobs are
considered "bad."

Here is the heart of these studies:  A bunch of middle class people sit around and try to decide what jobs they would be willing to accept and which ones they would not.  Any job that they would not accept is a "bad" job, despite the fact that $12 or $14 an hour might be very good pay for someone with no skills, despite the fact that it makes no consideration of a person's circumstances (e.g. single, married, 2nd job, teenager, etc), and despite the fact that $34,000 would probably put a person in the top 20th  percentile of global wages.  I made a similar point vis a vis jobs in the third world.

Just so I can't be accused of cherry-picking, I will use my own company as an example.  We have a about 80 employees in Arizona, about 70 of which are paid less than $10 an hour and none of whom have a retirement plan or insurance.  All of my jobs in Arizona are included in their count of "bad jobs."  And you know what?  We have a waiting list of over 200 names of people who would take another of these jobs tomorrow if I had one to offer.  That's because my employees are not middle-class academics.   Most are older people who already have a health plan, who don't need a retirement plan (because they have already retired) and who just want a fun job in a nice location where they can live in their RV. 

This has to be one of the most utterly pointless studies of all time.  Sure, $14 an hour would probably suck as a 45-year-old college grad with 2 kids.  But it would be a windfall to a 16-year-old new immigrant with few skills and no English.  The only thing that would be more pointless would be to try to compare states - which they also do:

About 22 percent of Arizona jobs are considered "good" because they pay
at least $17 and offer benefits. That is less than the typical state,
which has 25 percent "good" jobs. The rest of the jobs are in between
because they offer some benefits.

Since cost of living is totally comparable between Phoenix and Manhattan, then using a fixed wage rate to compare states makes complete sense.  By the way, by the study's definition, my job, which is usually awesome, is not "good" because I have no health plan.  In fact, in this study, a $40,000 job with a health plan is ranked as good while a $400,000 job with no health plan is not good.  Yeah, that makes sense.

Comparing Phoenix to Seattle and Austin

Chad Graham of the Arizona Republic writes an article this week that begins with this headline:

Phoenix can learn economically from robust Seattle and Austin

Already, my BS antenna are deployed.  Why?  I don't know anything about Mr. Graham, but nearly every 20- or 30-something journalist would like all the world to be hip and freaky and trendy and cool like Seattle or Austin (or Boulder or San Francisco).  So they have a natural predisposition to writing a story and interpreting facts to say that Phoenix (or whatever uncool city they hail from) should do everything it can to emulate Seattle or Portland or whatever is the hip city of the moment. 

I have lived in Phoenix and Seattle and Boulder, and have done business in Portland and Austin.  And if you want to find a really great music club, Austin would be your place.  And if you are a really rich guy who wants a unique lake front home and a dock for his floatplane, Seattle would be the pick.  But if you were a middle class family trying to get the most home for your money, you would take Phoenix all the way.  And if you wanted to start a real business that makes stuff, you would be insane to do it in any of these cities except Phoenix (and perhaps Austin).  Portland and Seattle and Boulder and (more recently) Austin are what one might call rich snob - poor snob towns.  They appeal to the millionaire with the fractional ownership jet and the pierced and tattooed slacker club goer.  Which is fine, but does every city really need to be like them?

Unlike the Valley, some parts of the U.S. such as Seattle and Austin
have been only slightly affected by the national economic slowdown.

Neither area has experienced the Valley's level of falling home prices, increased foreclosure rates nor its slowed job growth.

Those regions are places that Phoenix could learn from as it charts
a future based less on housing and growth and more on competing in the
global economy.

OK, lets start with the home thing, since the article focuses A LOT on housing.  I am willing to concede that in some recent period Austin and Seattle had less of a home price drop than Phoenix.  Ignoring for a moment the absurdity of extrapolating 30 year trends from 6-12 months of data, we should look structurally at these housing markets.  It turns out that Seattle, for example, has MUCH higher median home prices than Phoenix, in large part due to structural regulatory factors that I would presume the author would like Phoenix to emulate. 

As a result, the median home price in Seattle is about $450,000 while the median in Phoenix is closer to $275,000.  In fact, the Seattle median is very close to the Phoenix 75th percentile.  [note figures do not match those in article - I could not find any two median home price numbers that were the same for a market] One comment on Seattle housing was this:

The pattern is very strong: In Seattle you have affluent, largely
single people chasing a small supply of urban housing. The result is
small household size, an exodus of families to the suburbs, and very
high housing prices in the city.

Is this really what Phoenix should emulate, just because our home prices dropped more over a 6 month period?

One year ago, the Valley's job growth ranked No. 7 among
metropolitan markets with more than 1 million workers, according to the
latest Blue Chip Job Growth Update released by the W.P. Carey School of
Business at Arizona State University.

It now ranks No. 20, while Seattle is  No. 2.

In job markets with less than 1 million workers, Austin ranks  No. 14.

So, until recently, Phoenix led both cities in job growth.  In the last year, we have fallen behind.  Can anyone on the planet tell me why the last year of data is more relevant than the previous five, or ten, when Phoenix dusted these markets?  One year of downturn and suddenly Phoenix's economy needs to be restructured by some massive government 5-year plan?

But here is the really funny part.  Let's take Seattle, the economic juggernaut with which the author is so enamored.  In 1960, Seattle had a population of about 550,000 people.  In 2000, Seattle had a population of about.... 550,000.  In the same time period Phoenix grew from 726,000 to 3.2 million.  Wow, that Seattle is a growth juggernaut.  But it is hard to get apples and oranges on MSA's and such, so here is data from a single source:  From 1990-2000, the Austin MSA added 400,000 people, Seattle MSA added 382,000 people and Phoenix added 1.01 million, more than the other two combined.  Presumably, most of these folks found work, so where are all the jobs being added?

In Phoenix, "housing-related employment is falling fast, and the
impact on the economy is extreme since the industry comprises over 15
percent of total employment . . . compared to 10 percent nationwide,"
an April Moody's Economy.com report said.

This is hilarious.  We happen to be in a housing market downturn, so Phoenix is doomed because it is overweighted towards home construction.  But did anyone visit Seattle or Austin in 2001/2002 after the tech bubble crash?  It was a bloodbath, far worse than what Phoenix is experiencing today.  This kind of analysis is so short-sighted as to be absurd. 

Maricopa County's average weekly wages increased 3.8 percent to $822
in the third quarter of 2007, according to the latest numbers available
from the U.S. Department of Labor.

Weekly wages in King County, home to Seattle, rose 8 percent to
$1,129. Wages in Travis County, home to Austin, rose to $911, a 2.7
percent jump.

Meanwhile, Arizona's average per person income ($33,029) grew by the
smallest percentage among states in 2007, according to the U.S. Bureau
of Economic Analysis.

One word for you:  immigration.  Arizona has gotten hundreds of thousands of new immigrants with relatively low skills, so they come in at the bottom of the income scale and drive median wages down.  Seattle and Austin immigration, to the extent they have it, are high-skilled and highly paid.  Does every city have to be a high-income yuppie white-Asian enclave like Seattle?  I like Arizona and its Hispanic influences, even if this immigration means the governor can't puff her chest out at the governors' conference over average wages.

The two cities have a greater percentage of employment in tech jobs,
with 9.2 percent in Austin and 8.8 in Seattle compared with 4.6 percent
in Phoenix.

Sorry, but I have never thought it a goal of government to subsidize and maximize "tech jobs."  The other 95.4% of us in Phoenix without a job statistically categorized by the government as a tech job are happy not to be subsidizing the other 4.6%.  This is the kind of effort that does nothing to help the average person, who will never have a tech job, but makes government officials feel really good about themselves.  Another way of putting it:  The author is suggesting the government single-mindedly focus on subsidizing a class of jobs that 90+% of the people in all three cities do not hold.

Postscript: For those of you who want to laugh yourself silly, you really need to read the "vision" in the sidebar of this article.  It is the most incredible collection of politically correct notions without any relationship to real value creation that I have ever seen.  I can't really do it justice, but here are some highlights:

2010

The latest housing bust finally convinces the Arizona Legislature to
fund an aggressive international-economic-development program that
invests in science, engineering, technology and higher education.

Incentives draw nutraceutical firms, which use food substances to make
products that provide health benefits, such as lycopene.
Green-technology firms partner with universities to launch companies
that turn a profit...

2035

High-paying technology jobs are clustered in three major areas from
Prescott to Phoenix to Tucson. The economy boasts an $800 billion
nutraceutical industry and the world's largest solar facility with
10,000 acres of sun power.

I bet they include no offset in their study for lost growth due to higher taxes to fund this.  And our city of 5-10 million people is going to build its economy on nutraceuticals?  We're going to have a vitamin water business that, at $800 billion, is 6% the current size of the entire US economy?  I sure hope some of the business school students who wrote this either wise up or go into academics, because if they try to walk in to a real corporate board room with this stuff they are going to get skewered.

Taking A Peak Inside the Sausage Factory

Our governor is pushing for a one percentage point increase in the state sales tax as well as increased developer impact fees to fund a series of transportation projects.  Like most modern transportation bills, they are sold as a way to improve state road and highway capacity (something most people support), but it turns out that these projects are but window-dressing. Much of the money in the proposed bill goes to a series of dubious mass transit projects, including the oft-discussed mythical passenger rail line between Tucson and Phoenix.  None of these projects make sense in spread out, low density cities like Phoenix or Tucson that have no real city core, which is why they face a lot of opposition.

Well, our governor has cut a deal to try to get more support for her pet projects, and boy does it look ugly:

Some Republican
state lawmakers on Monday blasted a "backroom deal" between Gov. Janet
Napolitano and a Valley home-builders group that would exempt
residential developers from sharing a portion of the costs of a major
transportation initiative in exchange for a $100,000 contribution to
boost the signature-gathering campaign.

Under the agreement, the Home Builders Association of Central Arizona
agreed to withdraw their opposition to a state trust-land initiative
backed by Napolitano. In return, developer impact fees would no longer
be part of the transportation initiative's approach to raising money.

Just When You Thought the DMV Couldn't Get Any Worse

Arizona required emissions inspections of vehicles, but only for vehicles in the cities of Phoenix or Tucson.  So, as you can imagine, they only have testing stations in Phoenix and Tucson.

Our company is headquartered in Phoenix.  That is our legal address and the address on all our titles and registrations and licenses and such.  Because all of our vehicle registrations show the company headquartered in Phoenix, then the state of Arizona treats all our trucks as being located in Phoenix.  As a result, we are required to get emissions tests each year on about 20 vehicles.

But wait.  None of our vehicles are actually in Phoenix.  In fact, none have ever even crossed into this county.  They are all in places like Flagstaff and Sedona and Payson that have no emissions requirements, and therefore, no testing locations.  As a result, I am apparently required to, once a year, have all of our trucks driven to Phoenix for an emissions test that they are not actually required to have based on where they operate.  In additions to the cost of the test itself, and any repairs mandated by the test, it costs us 400 miles x $0.55 per mile gas and depreciation plus 8 hours x $12 hour labor for the driver or $316 per vehicle to get them to the test site and back.  A sort of annual pilgrimage to worship at the alter of mindless bureaucracy.

Recognize that none of this was obvious to me at 8AM this morning.  I spent my entire morning not worrying about my 500 employees and not improving productivity and not pursuing some projects we are considering for expanded customer services, but trying to figure this situation out.  All because some state legislators didn't realize that maybe corporate vehicle fleets are not necessarily registered in the location in which they are used.

I still think there must be a legal way to show my vehicle domiciled at one physical address but have the mailing address be my corporate office in Phoenix.  But if there is, I have not found anyone who will admit it.

Subsidizing Real Estate Developers Ruled to be Clearly in the Public Interest

The city of Phoenix's $97 million subsidy for the developers of a new Phoenix shopping mall has been ruled by a local judge as being "'undoubtedly' in the public interest."  Even weirder, the developers lawyers are so mad at having their largess questioned that they are demanding the Goldwater Institute pay them $600,000 in attorneys fees as punishment for even questioning whether funding private mall parking lots that would have been built anyway is really in the public interest.

The subsidy, which I described in more detail here, provides $97 million for the construction of a parking garage at a new mall in North Phoenix, with the only condition being that the mall owners provide free parking in the garage to the public.  I can think of only three reasons this would be in the public interest:

1.  Without the subsidy, the mall might not provide enough parking
2.  Without the subsidy, the mall might charge for parking
3.  The parking garage could serve other surrounding businesses or homes within walking distance

Now, some of you on the coasts may be confused about this, so let me give you one other piece of background.  There are hundreds of shopping malls in the Phoenix area, from local strip malls to huge mega-malls of the type in this case.  At least 99.9% of the parking at all of these malls has been paid for with private funds.   Every one of these has plenty of parking.  This might not be the case in Boston, where land costs are high, but here in Phoenix, land is relatively cheap and malls are plentiful -- If I can't find a parking space, I would just go to a different place to shop.

Further, do you know the total number of these spaces at mall in Phoenix that are not free?  Zero.  OK, there may be one mall downtown that charges money to park, but for any mall in the area in which this one is being constructed, it would be insane to charge to park.  There are just too many competitor malls with free parking.

Finally, as to #3, look at the satellite view here.  Enough said. 

So the city paid $97 million in return for nothing of value, or at least nothing of value that the mall owners would not have provided on their own out of their own self-interest.  The only thing that I can identify the $97 million bought was possibly influencing the decision of one store (Nordstrom's) to locate in this particular development rather than 1 mile away, over the city line in another development planned in the City of Scottsdale.

About the numbers:   I really can't get away without taking on this statement in the same article:

According to its developers, CityNorth is expected to generate $1.9 billion in annual economic activity

In 2005, the metro Phoenix area had a GDP of $160 billion dollar.  The retail component of this is about $12 billion.  So this one mall / real estate project in one small part of Phoenix, one of hundreds just like it all over town, will increase our city's GDP by over 1% and in particular increase the city's retail output by 16%.  Sure.  I really wish our local paper would be just a tiny bit more credulous about printing these numbers from promoter's press releases.

The Wussification of America

From the Arizona Republic, presented without comment:

Phoenix fire vehicles, including some hazardous-materials units,
responded to a small mercury spill at Mountain Pointe High School
Tuesday afternoon. No one "complained of medical problems" or was
transported to a hospital, said Mark Faulkner, Phoenix Fire Department
division chief for the public affairs.

At about 1:30 p.m. a call came to the Fire Department about a
"dime-size spill of mercury" on the campus at 4201 E. Knox Road in
Ahwatukee Foothills, Faulkner said.

The mercury was in a science laboratory but how it spilled is unknown.
It could have been part of an experiment or possibly a thermometer
cracked, Faulkner said.

I Was Right -- Superbowl Economic Contribution Numbers Completely Bogus

In this post, I called bullsh*t on this economic contribution number:

A study released today by the Arizona Super Bowl Host Committee
estimates professional football's championship game at University of
Phoenix Stadium in Glendale generated an economic impact of $500.6
million for the state.

I used some quick reality checks to show that the likelihood that this was a truly incremental economic contribution number was zero.  Now, Arizona has released its February sales tax numbers (the data I suggested was the best way to try to do this analysis).  As I suspected the numbers are not even close.  Let's start with this report from the Arizona Republic:

Sales-tax collections at hotels and motels showed the strongest gains
among tourism-related businesses as thousands of out-of-town visitors
booked rooms for the National Football League's Feb. 3 championship
game at University of Phoenix Stadium in Glendale.

The Arizona Department of Revenue said February sales-tax collections
jumped 12.4 percent at hotels and motels. It was the lodging industry's
best showing, as measured by sales-tax collections, since January 2007.

Bars and restaurants also rebounded from two consecutive monthly declines to post a 4 percent gain in tax collections.

Despite the improved showing in those tourism-related categories,
the state's overall collections continued a downward trend, punctuated
by slumping retail sales and the real-estate industry's decline.
Arizona's total tax collections for the month checked in at $444.1
million, a decline of nearly 1.2 percent from the month before.

Well, that sure doesn't sound like $500 millions worth.  Let's look at the hotel number.  From this Arizona DOR source document (Feb 2008 Tax Facts), the taxable hotel/motel sales in February were about $215 million.  A 12.4% jump, if you attributed it all to the Superbowl, would thus be $27 million.  Similarly, a 4% jump in restaurant would be $33 million.  As I predicted, these don't even add up to $50 million and it is unlikely all of this is due to the Superbowl. 

[The above is still substantially correct.  What follows is corrected in the update] But wait, there's more!  I then I started looking closer at the February tax report.  I don't know what copy the reporter was using [probably one "specially annotated" by the Sports Authority], but my copy shows hotel/motel revenues in Arizona going down by 9% in February 2008 vs. Feb 2007.  It shows restaurants and bars going down by 2%. I checked the Feb 2007 report, just to make sure, and sure enough the 2007 numbers were much higher, despite one more day in February in 2008!  One can find ZERO incremental impact from the Superbowl.

Now these are statewide numbers, and it is possible the author of the article mixed in Maricopa County numbers and that is where the increases were seen.  If true, though, this means the dollar increase was much less, because we are using a smaller base (ie just one county, though a very large one).  And it means that the County numbers may be misleading, because the Phoenix area just cannibalized sales from the rest of Arizona, which was way down.  Either way, it means the $500 million number the Republic keeps pushing is total BS  (incredibly, the author reprints the $500 million number in his article, as if it were consistent with the sales tax data he is quoting.)

Update:  OK, I was right and wrong.  Apparently, when the state of Arizona says "February 2008 Taxable Sales" they mean Taxable sales on reports that they receive in February.  Because reports come in after the tax month is closed, by February 2008 taxable sales they actually mean sales that occurred in January, 2008.  Many apologies to Arizona Republic writer Ken Alltucker who was kind enough to set me straight.  The Arizona DOR report for March 2008 sales, which we now know is actually February 2008 sales, has not been posted online but I am willing to take his word on it.  This is not the first time, alas, that I have been fooled by the fact that the government uses cash rather than accrual accounting.

The wasted effort I expended on the February report which is actually January is not wasted:  From it, we do know that from studying what is actually the sales for January, the Superbowl had no discernible effect on hotel or restaurant revenues in the weeks leading up to the game, since these numbers were down substantially.  I am sure that you will find a few people singing the praises of the Superbowl.  I have not doubt that a few exclusive Scottsdale clubs benefited from having a series of celebrity parties during the run-up to the Superbowl, but overall the impact is low for exactly the reason I already stated:  Superbowl week, due to the nice weather and the Phoenix Open golf tournament, is already a big one for Phoenix area hotels and restaurants.

The point still stands.  I got diverted off on the report discrepancy, but using what I now understand to be correct numbers in the article shows that the ASU B-school study seems to have exaggerated the Superbowl's financial impact by as much as an order of magnitude.

So maybe in the future I will show more respect for reporters who make dumb numerical errors.  Or maybe I won't, since I don't get paid to do this nor do I have 2 or 3 layers of editors looking over my shoulder.

Phoenix Lights Return

Apparently, the Phoenix Lights may have returned last night:

Arizona Republic reporter Anne Ryman, who lives in Deer Valley,
reported seeing four lights in a square shape that eventually became a
triangular shape. The lights were moving to the east and they
disappeared one by one. She said the lights were visible for about 13
minutes at about 8 p.m...

Ian Gregor, a spokesman for the Federal Aviation Administration said
that air traffic controllers at Sky Harbor Airport also witnessed the
lights, but they do not know the cause.

The incident is similar to the "Phoenix Lights" seen on March 13, 1997.
Thousands of residents reported seeing a mile-wide, v-shaped formation
of lights over the Valley. In that case the lights appeared about 7:30
p.m. and lasted until 10:30 p.m.

My friend Brink helpfully sent me an email this morning saying, "The UFOnauts are coming.  Watch out for anal probes."   Always good advice, I guess.

City Branding

This is the kind of local government silliness that really drives me up a tree.  The town of Peoria, Arizona (Peoria is basically a suburb of Glendale which in turn is a suburb of Phoenix) apparently has paid $81,000 for a new town logo:

Peoria's new tagline, "Naturally Connected," came under attack this week.

The city is working on establishing a brand name to better market itself.

"Naturally connected?" resident Dolores Ceballos said at Tuesday's City
Council meeting. "I'm still trying to feel it here. I can't find it.

"Nine years ago, I moved here, not because of a logo. I came for the downtown and for the schools."

Ceballos questioned the city's expenditure of taxpayer dollars for such an endeavor.

Peoria has paid $81,000 to North Star Destinations Strategies in
Tennessee, which developed the tagline and new logo that features the
city's name with swirling lines and Southwestern colors of blue, green and brown.

But what the Republic misses, but those of us with any business experience understand, the logo development, overpriced as it may be, is only a fraction of the branding effort.  The town is going to have to spend 10x this amount to start pushing the logo and the craptacular "naturally connected" tagline into peoples' faces. 

Corsette said that because the tagline and logo are not in use yet, it's hard for people to feel a connection.

"It's not surprising people don't get it," he said. "Once we start
using it in context of everything the city does, it will resonate with
people and take on some meaning and it will be a positive thing for us."

An important component to the draft manual is the education of the public and city employees, he said.

Can't wait to see the time and effort on the manual and training effort that will go into educating public employees on how to use the logo.

Big Flashing Red Bullsh*t Alarm Going Off

Huge alarm bells are going off as I read this headline in the Arizona Republic, whose motto should be "Happy to credulously print any crazy number your lobbying group puts in a press release."  In this case, the headline reads:

Ariz. economy reaped $500M from Super Bowl

Uh, sure.  Right.  Bet that is a quality number.  Lets first vet the source.  Who provided the paper with this number?

A study released today by the Arizona Super Bowl Host Committee
estimates professional football's championship game at University of
Phoenix Stadium in Glendale generated an economic impact of $500.6
million for the state.

Oh, I see.  Certainly a disinterested party.  And how was this number arrived at?

Arizona State University's W.P. Carey School of Business
completed the economic-impact report based on surveys of more than
1,500 visitors who came to the Valley to attend the game or take part
in festivities.

The survey revealed that visitors stayed in Arizona for an average of
3.9 nights and spent an average of $617 each day on hotels, food,
alcohol, transportation, recreation, shopping and other categories. The
report also calculated the amount that organizations dropped during
Super Bowl week.

Well, its good to see the business school at America's #1 party college on the case.  I would have thought this would be a very challenging study to conduct.  In my naiveté, I might have assumed that these Superbowl visitors might have displaced other potential visitors who would have been there anyway.  I would have fixated on the fact that Superbowl week is also Phoenix Open week and, given the beautiful winter weather here, one of the prime tourist weeks of the year even without the Superbowl.  I might have wondered how hotel stays during a week when most local resort hotels are full anyway could have been credited to the Superbowl, particularly when many locals left town to avoid the scene.   I might have been worried that I was not counting truly incremental revenues, but the folks in the business school at the university with Americas hottest coeds must be smarter than I am.

So apparently, these geniuses have found a way to assume that 100% of this $617 per day times 3.9 days is incremental and that there is no substitution effect.  However, they have also managed to somehow assume that University of Phoenix Stadium is even larger than I thought.  Because using these numbers, the only way to get to $500 million is if there were nearly 210,000 visitors.  Wow.  This does not even include the thousands of us from Phoenix who were also in the stadium. 

Look, the way to do this study is simple.  You look at sales tax receipts in Maricopa county over the period of January 2007-February 2008.  You calculate an underlying growth rate.  Then you compare the sales tax receipts for the Superbowl months (Jan-Feb 2008) with the same months a year previously, and see how much growth there is, if any, above the underlying growth rate.  I will tell you the answer right now:  It ain't anywhere close to $500 million.  I will eat my hat if its over $50 million.

Here is a reality check:  In 2004 the entire retail trade, from restaurants to stores to hotels, was $16.4 billion for all of Arizona.  This is $315 million per week.  Basically the study is saying that the entire retail trade for the whole state of Arizona was more than doubled in Superbowl week. 

Bullshit.

America's Worst Sheriff

I am working on a longer post on Sheriff Joe Arpaio's sweeps through Hispanic neighborhoods to round up the usual suspects (Mayor Phil Gordon has asked the feds to investigate these practices, which I hope they will do).

But this one is just weird.  Apparently Phoenix tax money is being used by Arpaio to train Honduran police, in a program that makes sense (from a Phoenix point of view) to no one.  Sheriff Joe watchers will enjoy his numerous nonsensical explanations, though the last one probably is the correct one.  For those outside of Phoenix, sit back and enjoy the weirdness -- its the only consolation we here in Arizona get for having the worst and most abusive sheriff in the country.

Explanation One:  Arpaio looks to small Latin American countries as models for his police force

Sheriff's officials told the county Board of Supervisors that the
Honduran National Police possess the "intelligence data, knowledge and
cultural experiences to benefit the Maricopa County Sheriff's Office."

Explanation Two:  We can't tell you, because it would endanger Sheriffs' lives (this is an Arpaio oldie but goodie):

discussing efforts in Honduras could endanger the lives of law-enforcement officers in both countries....revealing details could put lives at risk

Explanation Three:  Honduras supplied millions of photos for Arpaio's facial recognition software (yeah, I know non-Phoenicians, this is weird)

The sheriff's facial-recognition software program is supposed to be among the biggest beneficiaries of the Honduras engagement....When Arpaio was first confronted about the department's trips to
Honduras, he said the agency had received "millions" of photos from
Honduran officials.

Explanation Four:  Its a RICO thing, so we can't tell you (at least, it uses RICO funds)

The agency has spent more than $120,000 on Sheriff's Office employee
salaries in Honduras, and an additional $30,000 in RICO funds seized
from criminals. And some of the trips occurred during a time period
where the Sheriff's Office overspent its overtime budget by nearly $1
million.

Explanation Five:  We can't talk about it, because that would open up public officials to scrutiny for their actions:

The Sheriff's Office will not grant interviews to explain how and why
the program was started and what the benefits are to Maricopa County,
because officials say discussing the program fuels criticism