'State of the City:' it's not cheap

Jan. 22—Admission to Gilbert and Chandler mayors' annual addresses: free.

Admission to Scottsdale Mayor David Ortega's "State of the City" address at 8 a.m. Thursday, Jan. 25: $100.

The ticket price — which includes breakfast — hit a nerve for people like David Smith, a former city councilman during Mayor Jim Lane's tenure.

"It is inexcusable that citizens have to pay to have their elected representatives tell them the state of their city," Smith griped.

This year's admission fee is up 33% from the $75 to hear Ortega's state of the city speech last year.

Though tickets to Lane's 2018 lunch-and-breakfast were $50, Smith noted those who did not want to pay for breakfast could listen to the address without paying admission.

Ortega stressed the money for ticket sales does not go to him or his campaign fund. Ortega last week announced he is running for reelection.

Indeed, though the City of Scottsdale's promotional email sent out last week does not make it clear, the Scottsdale Area Chamber of Commerce handles the sales and receives the ticket revenue.

The Chamber in turn donates a portion of the revenue to a charity.

Nothing wrong or out of the ordinary about this relationship, Ortega insists, noting Tempe and Mesa chambers of commerce both host their city's state of the city event.

Admission to hear Mayor John Giles and have breakfast at Mesa's Feb. 13 "State of the City" is $60.

The Tempe Chamber of Commerce charged $90 for members and $120 for non-members for a Dec. 8 event featuring Mayor Corey Woods.

Ortega defended Scottsdale's $100 ticket price.

"Covering costs associated with any event may seem high, but food, service, audio visual are also expensive," Ortega said.

And, he said, the event will be "available live-stream for a wider audience."

Some have raised eyebrows over the corporate sponsors of this year's "State of Scottsdale."

Several are connected to controversial projects that have come before Ortega and Scottsdale City Council.

The "gold sponsor" list includes:

—Axon, which is asking the city for a rezoning to build 2,000 apartments and a hotel;

—Riot Hospitality Group, which has several projects in the works and successfully opposed a rezoning request by business rival Swags;

—Berry Riddell, which represents the Parque, a recently-approved transformation of former amusement park Crackerjax into a live-work-play development;

—Withey Morris, which represents the Mack Innovation Park trucking facility that is infuriating North Scottsdale neighbors;

—DMB, which is requesting permission to build more apartments on its One Scottsdale complex.

Several who commented to the Progress on the sponsors list did so on the condition of not being named — for fear of retribution.

"Why does this event need commercial sponsorship?" one said.

"More proof (developers) are deep in the mayor's pockets," another sneered.

"Money talks," a third said with disgust.

But Ortega vigorously shot down any connection between "State of Scottsdale" sponsorship and city action.

"Sponsors may have business before the City Council, but to suggest that the Office of Mayor place some restriction on the Chamber members or business which can sponsor a chamber event is inappropriate," Ortega said.

And the "pay to play" accusation made the mayor irate.

"This accusation plays into the rhetoric of election cycle politics," Ortega said.

"I assure you that no City Council member makes decisions based on who sponsors a Scottsdale Area Chamber of Commerce event."

On Jan. 9, Ortega sided with Riot Hospitality Group representatives in voting against a request by Swags' for rezoning that would have added a third floor to the planned restaurant in the Entertainment District.

The next day, Ortega and Councilwoman Tammy Caputi — who voted for the Swags request — took part in a check-presentation ceremony by Riot Hospitality Group.

Riot House's Dec. 1 "Rock The Rooftop" event raised $40,000 for Riot Gives Back (Riot Hospitality Group's foundation) and Make-a-Wish Arizona.

Ortega was asked to comment on the appropriateness and "optics" of the Riot Hospitality Group event, which included a photo.

"I have supported personally Make-a-Wish for decades," Ortega responded. "They were founded in Scottsdale and have 500-plus affiliates now.

"RIOT Gives Back is very new — is also Scottsdale based," Ortega added. "When asked, I was glad to stand for a presentation benefiting Make a Wish and first responders."

He stressed the event had nothing to do with his Swags vote.

"I see no reason to upzone the property," Ortega said, regarding the Swags request, "and then disregard/void the standards with amended standards."

Recent history

Proceeds from Lane's state of the city events went to Operation Fix It, a city-sponsored program that "helps qualified applicants with code enforcement referrals and issues related to health and safety on the property."

(For more information, visit scottsdaleaz.gov/operation-fix-it.)

According to a city release for the 2016 event, "The Mayor's State of the City address benefits Operation Fix It.

"Thanks to volunteer labor and donated money and materials, 197 residents benefited from Operation Fix It in 2015. The State of the City luncheon is the largest source of funding for the program, providing 9 out of every $10 last year."

In 2018, a city press release boasted the 2017 event raised $21,000 for Operation Fix It.

"That was about the usual donation" from his annual addresses, Lane said.

Mark Stanton, president of the Scottsdale Area Chamber of Commerce, said the chamber donated $1,000 to Partners for Paiute from proceeds generated by the State of the City 2023 event.

Stanton said the same charity will be the recipient after this year's address, though the amount is to be determined.

According to a 2008 East Valley Tribune story, "The State of the City Address has almost always been given in the City Hall Kiva where the City Council meets.

"Yet there are a few precedents to taking this speech on the road.

"Herb Drinkwater, who served as mayor from 1980 to 1996, rather famously gave his last State of the City speech in 1996 to a packed Brett's Barn at WestWorld, where attendees were able to view what's no longer there open desert all the way to the McDowell Mountains."

Lane's last "State of the City" and Ortega's address last year were held at Scottsdale Stadium.

At last year's event, Honor Health was the "presenting sponsor," with "gold sponsors" including Riot House, Withey Morris, Berry Riddell, ASU and the City of Scottsdale.

This year's event is at the Fairmont Princess.

In 2022, Ortega's annual address had no live audience but was streamed.

"Council enacted tighter restrictions on short-term rentals and we expect push back from the short-term rental industry," Ortega said on Jan. 18, 2022.

The topic was still on his mind a year later.

In early 2023, according to a Progress story, "Mayor David Ortega used his annual State of the City address Jan. 18 to call for a new zoning category for short-term rentals."

In a promotional email for this year's event sent by the city hints at the content, Ortega promises his annual address "brings us together as a community and celebrates our achievements.

"It's also an opportunity to address the challenges we face and look ahead to the future. Everyone is invited to learn why Scottsdale is truly remarkable."