Posted inPhoenix

A familiar problem still haunts downtown Phoenix

I saw a curious headline recently in the Arizona Republic: "Event Center could add life to downtown." Curious, because downtown is brimming with "event centers," from the convention center to hotel ballrooms to (I guess) what’s left of the star-crossed and badly located Bentley Projects. The story was actually sad and illustrative.

If I read it correctly (and one never knows, now that editors have become graphics clerks), the owners of relatively historic buildings at Madison and Fifth Avenue lost the business leasing their space. Now, they "are working to make the Fifth Avenue and Madison Event Center one of downtown Phoenix’s premier spots." (Editors used to prevent reporters from using embarrassing hyperbole; also, is the address in the story correct?). The "center" can be used for "weddings, bar mitzvahs, business corporate outings…" Surely, the next McCormick Place.

At least the owners aren’t tearing the buildings down, an act of city-encouraged vandalism that has devastated downtown Phoenix. But here’s a small but telling example of what holds back the center city: lack of private investment. I hate to sun on ASU’s parade of finishing one dorm tower — heavy lifting in an education-hating state, to be sure. But until a simple older set of buildings such as these on Madison are used by businesses doing daily commerce, downtown will remain an underachiever.

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Posted inPhoenix

The Coles affair: Unsustainability is now

Once again, the Wall Street Journal goes to Phoenix to report on the most pathological aspects of our economic troubles. It does the in-depth, sophisticated and contextual story on the suicide of Scott Coles and the collapse of his Mortgages Ltd. that the local press will not allow its reporters the time and expertise to do. And remember, the Republic’s in-house diktat is, "say something positive about the community" (and use streaming video!!).

The personal story of Coles is the stuff of a tragic novel, albeit for our tawdry era. He was 48 when he wrote a goodbye note, donned a tuxedo, climbed into bed, and apparently committed suicide. His company was in trouble, and with it some of the highest-profile projects in "the Valley." His 20-year-younger second wife, whom he had met in Las Vegas, wanted a trial separation. The darkness he must have felt merits our compassion and prayers.

But the business story must also be told, for it illustrates not only how Phoenix got into its worst downturn in perhaps decades, but also the peril of Ponzi Scheme Nation.

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