“Have it your way” is a famous ad slogan that memorably delivers the benefit of getting what you want, the way you want it. In their moves on The Borgata and Scottsdale, AV Homes has clearly shown it expects and wants nothing less than their way.
AV Homes’ Insolent Foregone Conclusion
Wander back in time to September, 2012 when the Arizona Republic broke the news that AV Homes had purchased The Borgata, and would be tearing it down to construct a “luxury condominium community” or “some type of high-density housing development”. The Republic’s article was published on September 28th. Borgata tenants who were still in the center were reportedly notified of its sale on, or just after September 11th.
The Republic article also noted “… just 13 of (The Borgata’s) 40 retail spaces are occupied”. And, it went on to quote a spokesman for AV Homes as saying, “…recent owners have been unable to turn around the venue. It simply hasn’t been a profitable venture.”
“Know Of What You Speak”
Nevermind the fact The Borgata’s most recent owner, Red Development, had only owned the property for about 4 months or less before they flipped it to Civila of Arizona, LLC, a subsidiary of AV Homes. In 30-plus years, The Borgata has really only had two owners. Before Red Development, The Borgata’s owner was Westcor, Inc of Phoenix, which was purchased along with all of its properties by Macerich, Inc. of Santa Monica, CA. Together, these two companies hardly promoted or advertised The Borgata so that it was noticeable, and actually did very little… almost nothing at all… to make the property all it could be as a shopping and dining destination. In the last decade, especially under Macerich, The Borgata was severely neglected.
The Tuscan-styled Borgata simply didn’t fit into the “cookie cutter” fold of other Macerich-owned regional shopping mall properties where large, well-known anchor tenants assume the brunt of marketing and sales promotion to the benefit of the entire mall. Macerich had neither the marketing talent or the interest to manage a unique, specialty center like The Borgata. So, while competition and Scottsdale grew there had been no honest attempt for nearly 10 years “to turn around the venue”. If a venue is going to be turned around, it helps to at least make the effort. A knowledgeable, well-informed observer would recognize and understand the consequences of this dilemma. However, credibility and integrity are qualities spokesmen for AV Homes seemingly lack. While, insolence appears to be something they have in surplus.
Changing The Face of The Borgata
At some point, probably before their purchase of The Borgata, AV Homes hired Arizona Partners to manage and maintain The Borgata. On the same day AV Homes claimed ownership of The Borgata, they also sold and flipped to Arizona Partners the pads on which the Borgata restaurants, Blanco and J. Alexander’s reside for approximately $3 million. Both of these restaurants facing Scottsdale Road were considered to be a part of The Borgata before this transaction.
Not long after these same-day property closings, Borgata tenants were told they would be able to stay in the center through the Fall/Winter 2012 tourist season with a deadline of being out of the center by April, 2013. This included those tenants who had leases that went through 2014 and 2015, and who were told there was no hope of staying beyond Spring 2013. AV Homes unshakeable plan to demolish The Borgata was supposed to have occurred in May 2013.
First Things First?
But, as time passed, it was almost 3-1/2 months… December 31, 2012 to be exact… before AV Homes would submit its redevelopment plans to the city of Scottsdale for its approval. Now… thoughtful, considerate and logically-driven people might say that AV Homes’ approach to their Borgata plan was a classic example of “putting the cart before the horse”. What was AV Homes doing chasing tenants out of The Borgata before they even had anything on paper the city could review to obtain approval and permission to carry out their ill-conceived plan. Of paramount importance, wouldn’t first knowing their demolition plans might be acceptable at all… be the proper and appropriate manner in which to pursue such a traumatic transition? Wouldn’t knowing whether their plans were palatable to the community before established retail businesses were forcibly relocated or closed be the considerate and reasonable solution for dealing with dispossessed Borgata tenants? How is it that any other outcome other than The Borgata being closed and torn down was regarded as having no chance at all of happening?
It’s All About Attitude
AV Homes’ foregone conclusion their plan would be approved by Scottsdale city government was the height of insolence. They looked at the commissions, review boards and members of City Council as mere obstacles they could easily overcome and get around. Otherwise, how could recklessly emptying The Borgata to the tune of their foregone conclusion signal anything other than contempt for the process, and that city approval was simply not a problem worth any worry or consideration in their march to get what they want.
No one wants, or appreciates their position, role or expected contributions in a process to be taken for granted. It’s not likely any member of Scottsdale City Council would be happy to admit, or proud to acknowledge, their position on The Borgata’s future has been taken for granted since this plan had been conceived. But, there’s no other reasonable way… which is all that obvious… in viewing AV Homes’ foregone conclusion that council approval has been “in the bag” since the very beginning. It seems to be pure attitude.
It’s quite likely and possible this same, grand arrogance is central to the charges that are the basis of the class action lawsuit brought against AV Homes on behalf of stockholders and investors. There’s good reason to expect this investigation will be expanded and grown in the days ahead. And, it’s only one of a couple or more issues they may be facing. Be assured, Borgata fans, Scottsdale City Council members will be updated.
And, due to the fact this protest website ranks high for key search words pertaining to AV Homes, there are more and more internet users coming to this site to find or post comments, reviews or complaints, and generally seek information about AV Homes, Vitalia Homes or Joseph Carl Homes. There have been many, many people who have submitted complaints about their specific and general impressions with AV Homes and their various properties in Florida and Arizona… enough complaints that extreme caution would be highly advisable before purchasing any AV Homes products. Afterall, AV Homes has had not one, but TWO class action lawsuits filed against them. (Lawsuit #1 and Lawsuit #2)These are lawsuits filed on behalf of their stockholders and investors… people with whom they have an important fiduciary relationship. If their own stockholders and investors can not trust them, how can you or anyone else?
For nearly 11 months, the emerging picture illustrates… it’s always been all about AV Homes and what’s best for them at the expense and loss of just about everyone else. Without permission or the slightest, thoughtful consideration, it could be reasonably stated the destruction of The Borgata actually started in September 2012. However, the finished picture AV Homes has arrogantly assumed would be completed… might not be the picture that’s suitable for framing… their way.