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Ortega: Scottsdale will overcome crisis by short-term innovation, hold to our vision

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On Friday, March 13, the Fifth Avenue sidewalks were brimming with Spring Training fans sporting gear. It was game time but they weren’t near Scottsdale Stadium.

Business was brisk at Earthen Rare as visitors purchased Arizona handcrafted jewelry. I heard customers calling to change their reservations. COVID-19 had canceled Spring Training, so travelers enjoying Old Town would soon scramble to Sky Harbor to depart.

I was seated at The Herb Box restaurant, my lunch partner was running late, as the entire world transformed. He arrived, we talked about the city budget and revenue depletion at peak season.

Priorities are public safety, first responders and city employees’ well-being.

Fifth Avenue was packed and the restaurant abuzz. This scheduled introduction meeting with the city manager (courtesy to mayoral candidates) was about the game plan, closure of city buildings, flood damage at the McDowell Sonoran Preserve, bulk sanitation precautions and human resources.

COVID-19 has reshaped the world economy and tests us at home, in our neighborhoods and workplace.

Scottsdale businesses must innovate to survive short-term and reposition for future resilience. Also, all city services must align with declining tax revenues and fees. The pandemic shock has surged through Scottsdale businesses, schools, county and state governments.

One thing is for sure, city government resources will lag behind the private sector’s recovery.

Today, city government and private sector ask, “When can we reopen, normalize?”

Speculation about “reopening” or “partial reopening” runs from mid-May to mid-August, depending on the governor’s advisors. Federal rescue, the payroll protection program, will expire in September for key sectors, such as airlines.

Another obstacle is commercial liability insurance related to possible claims, if filed against businesses by customers and employees. Congress is considering COVID-19 legislation, which would indemnify insurers, but would cover businesses, with terms and conditions.

The compelling response I have heard from restaurant, bar and retail business owners, is: “We do not want a false start. If reopening is premature, what are operations and training guidelines.”

We have encountered crisis before. I will never forget the morning of Sept. 11, 2001, getting a call from council secretary Mrs. Kehoe, asking “Councilman, are you still having the 10 a.m. meeting this morning, or should I cancel?”

Weeks earlier, a group of seniors in the McDowell Road area had agreed to discuss senior housing near the proposed Granite Reef Senior Center.

Without hesitation, I said, “Do not cancel, it is too important to them.” Eight of us met, tearfully, at City Hall to begin the outreach. Sept. 11 shocked our nation, halted aviation, crippled tourism and forced all city departments to reduce costs.

The city must take zero-based-action to reduce all costs, immediately. Public safety and essential services are protected, but should also reduce costs. It will take discipline and comprehensive analysis for city management to prepare a granular plan.

Worst case revenue scenario, debt service obligations, suspension of programs, frontline capacity, resident demand, employee pay grade reductions and furlough variables must be considered.

We will know more in May, when city and state revenue numbers report. City Council must consider business and resident needs first and trigger points for stages of reduction measures, as necessary.

When the COVID-19 pandemic subsides, Scottsdale will recover as one of the most desirable cities in the world. Some will say Scottsdale is too visitor dependent. I disagree.

Scottsdale excels at visitor hospitality, entertainment venues and exceptional quality of life. Scottsdale is citizen-driven, business-friendly and hospitality-centered. Our resourcefulness can weather the storm and we will reclaim our market share, and more.

Editor’s Note: David Ortega is a Scottsdale resident and is running for mayor in the 2020 election.