Speaker 1:
Well, welcome back to the podcast. We are thrilled to have you here today. Going back, a little bit of history, our first podcast for this series was with Mayor Kate Gallego, who's with us today. And I'm really proud to say, we're in the brand new studios. For the first podcast in the new studios, we have Mayor Kate Gallego joining us again.
Mayor, thank you for being here.
Kate Gallego:
I'm honored to twice make podcast history with the Phoenix Chamber.
Speaker 1:
Well, we're going to stick with what works. We're really thrilled to have you, coming off the heels of a fantastic State of the City address. I want to start with, some people who weren't able to be there, I always love to ask about family. Want to ask, what's happening with Michael? I think we're nearing the end of first grade?
Kate Gallego:
We are about to graduate from first grade, amazing milestones, and he could not be more excited. He tells me he wants to be a scientist when he grows up, but obsessed with video games.
Speaker 1:
Okay.
Kate Gallego:
He'll just go off on this stream of conscious, and I won't be able to follow, but he's creating a video game in his head, and getting my feedback on what the levels and the big bosses should be.
Speaker 1:
At least your input is welcome.
Kate Gallego:
That is good. Yes, I got to provide feedback on what type of a boss should end one of the levels. That was a really big compliment, that my opinion would matter-
Speaker 1:
Good to know.
Kate Gallego:
Because I don't share his expertise.
Speaker 1:
Mayor of the fifth-largest city of the country, but he's letting you in on this. Of course, we have a dinosaur that we're loving right now.
Kate Gallego:
Still very much into dinosaurs. I shared with you the stress over the dinosaur project.
Speaker 1:
Yes.
Kate Gallego:
Because he picked the ugliest dinosaur known to man, the heteropentosan, which has quills, and is super complicated. No one makes a plastic version of that dinosaur because everyone likes the triceratops and the T-Rex.
Speaker 1:
Yes, they're kind of the mainstay. Well, good for him.
Kate Gallego:
Yes.
Speaker 1:
He's being different.
Kate Gallego:
He marches to his own drummer.
Speaker 1:
I love that. That's confidence. Well, obviously a lot of is going on, a lot has happened this year. You mentioned some of those things. But maybe, talk about some of the big initiatives from this year and some of the things you're really proud of, in terms of what's going on with the city.
Kate Gallego:
We are very proud of our bond campaign, thank you for supporting that. It should be transformational for the city of Phoenix.
For folks who haven't followed our bonds, they've been really important in terms of things like bringing the universities to our downtown, or building iconic buildings such as Burton Barr. The 2023 bond will help us bring ASU Health to downtown Phoenix, including a sorely needed medical school. We need so many more doctors and nurses than we have and this will help deliver. But also, really build on area of expertise we have with medical devices and semiconductors. It'll be a medical school focused on engineering and partnerships.
Speaker 1:
Great marriage there, right?
Kate Gallego:
Well, I love that we're taking two things we're very good at and bringing them together. We have already been a leader in advanced technology. This is a very unique model of a medical school. There are a few in the country, but none that'll have the focus on advanced devices and semiconductors we'll have here. All that great expertise we have from TSMC on semiconductor, Intel, and just generally in microelectronics can be used to help save lives. That will put us on the map for the type of innovation we want to be known for. Where we are listening to people's medical needs and making sure you can have the very best cutting-edge treatment in the Valley.
You and I have talked about how hard it was for me when my mom was diagnosed with cancer and she was told to go to Houston for the best care.
Speaker 1:
Yes.
Kate Gallego:
It's so much my goal that we have the very best care in Phoenix. It creates great jobs and opportunities, but also no one wants to be traveling when they're facing one of the most difficult medical diagnosis of your life. You want to be with doctors and professionals who are in your community who can treat you.
Speaker 1:
Absolutely.
Kate Gallego:
If you have a rough chemo treatment, you won't be able to go home to your own bed and feel better, be with the people you care about. This bond will help move forward in that area. But also address a wide variety of other needs, including the things growing cities need from libraries to fire stations, as well as a big transformation in public safety. Where social workers will have facilities, and can go out and address challenges, like homelessness and addiction, that today fall to police officers.
Speaker 1:
Well, kudos I think, in terms of the vision of you and the city council, to looking ahead but also think about how we think about today. And to your point, we have some of these strengths that we can bring together. We talked about this during the State of the City. Looking back to 2019, and bringing TSMC here, and what a revolution. Now, we're marrying that with the medical side. Kudos on that.
We recently, earlier in the week, we saw some inflation numbers. They're still not where we want them to be. It's that last mile that seems to be so stubborn. Are you seeing some of these effects that are impacting our citizens? Is there anything the city's doing to help folks that are feeling the effect of inflation?
Kate Gallego:
We are on the forefront of the challenges with affordable housing. Having been such a fast-growing city, people have moved here at rates higher than our supply has followed. We've seen incredible inflation in house rate numbers.
Affordable housing has two components. There's the how much income you make and how much the housing costs. We're trying to address both of those. We're doing a major push on increasing supply. That involves everything from taking city land that is available and putting it out to the market for affordable housing. We're about to celebrate 40 partials that became or are becoming affordable housing projects, which is a very significant contribution. Particularly they are in the urban core and areas people really want to live. We're hiring, in the planning department, to move more quickly, trying to automate more and really get those projects approved.
We are also funding more. Yesterday, my city council colleagues and I approved $9 million to create or preserve 400 units in Phoenix. That type of investment is pretty common for us at the City of Phoenix. We have invested in all eight of our council districts, really bringing forward great projects. Yesterday I was near TSMC to cut the ribbon on the Reserve at Thunderbird, which is an affordable housing project not far from that semiconductor epicenter.
Think of what it means if you can get housing you can afford and be close to a job that's paying $80,000. That-
Speaker 1:
Which is a reality.
Kate Gallego:
Addresses the affordable ... Right.
Speaker 1:
Yeah. In Arizona now, those jobs are there.
Kate Gallego:
Absolutely. 40% of the TSMC jobs do not require a college degree. We are so proud of the training programs we're putting in place. The heaviest award I have ever won as mayor was won for our semiconductor apprenticeship program. It's a first-of-a-kind program that trains the folks who will be technicians inside the fab. You got to meet, at State of the City, a young man, Ray, from South side of Phoenix, who is part of that program.
Speaker 1:
Love it.
Kate Gallego:
It's going to be transformational. For so many of the people who work in semiconductors, it's not just helpful to them but their whole family.
I met a woman who is able not to support just herself, but also her sister. They partner on things like childcare. A whole family is benefiting from these incredible wages.
Speaker 1:
I think, to your point, we're not just talking about that person, we're looking at generational change.
Kate Gallego:
Right.
Speaker 1:
Which, when you think about Phoenix 10 years from now, that will really start to have another impact as we move forward.
I will say, on the housing side, a lot of credit. I was just at a meeting of leaders from around the country. One of the metros, I won't mention them, but they approved two residential permits in the last year. To think about where we're going to day, thinking about it strategically and in terms of where the job centers are, that's really going to make a difference for Phoenix and for our region.
It's been a few weeks since we had the State of the City. Anything that you want to expand on or update us on since that time?
Kate Gallego:
The biggest enthusiasm seemed to be around airport investments.
Speaker 1:
It's great.
Kate Gallego:
We celebrated that Phoenix will be building a new terminal at Sky Harbor International Airport. Really, a lot of excitement.
Top of my bucket list as mayor would be nonstop service to Asia.
Speaker 1:
Yes. We've been talking about that for a while.
Kate Gallego:
I think I'm at something like 30 different meetings with airlines. The airline executives see me and they know what I'm going to ask before I open my mouth. But with all these incredible investments from Taiwan, Japan, South Korea, we are building the market to fill those seats. Another thing we can do to be competitive is a terminal built for the larger planes that might be flying ultra long haul routes. A purpose built international terminal is really exciting.
It's not a competition with Los Angeles. But people really rather, arriving in our customs than LA, where you have to wait-
Speaker 1:
Oh, absolutely.
Kate Gallego:
Often hours longer. You may not even be able to fly directly to a terminal, and have to board or disembark from your flight at a remote gate where you then get on a bus.
Speaker 1:
Then walk from another terminal, yeah.
Kate Gallego:
We can deliver a much better customer experience at Sky Harbor. The new terminal, which we call the West Terminal at the moment, will really be a leader in that area, of a great customs facility that'll be purpose built with the modern technology. If you haven't been through customs at Sky Harbor recently, sign up for things like Global Entry and you don't even have to talk to a human. They just have technology that you can opt into, to make it a great reentry because we know you want to get home and see your family after a long flight. But we're not resting with that great experience. We're going to try and build a new terminal that is even better. I want to keep that designation as the Wall Street Journal Top Airport.
We will begin to talk about who should be the namesake of the new terminal.
Speaker 1:
Right.
Kate Gallego:
We have the John McCain and the Barry Goldwater Terminal. We're getting a lot of different feedback about whose name should be on that terminal, so it'll be interesting to see who the community wants to honor.
Speaker 1:
Absolutely. I don't want to go on without congratulating you on the nonstop to Paris.
Kate Gallego:
For many people, it may be a vacation destination. But in areas from transportation to advanced technology, we have billions of dollars of partnerships with France today.
We're also going to take advantage of the prosperity that goes with these bi-national investments. The French government has long prioritized the relationship with Phoenix. When they had the presidency of the European Union, one of the communities they chose to focus on was Phoenix, Arizona. There's been a lot of behind-the-scenes work to make sure this air service is possible and we will meet the moment.
But they do want me to also remind everyone that there's champaign in every class of service.
Speaker 1:
It is going to be tremendous. We're going to have that inaugural flight coming into Phoenix. I think what they're also going to see, when people are coming in, is the intentionality around how we run the airport. I think about what used to be a scrum to get through security. Now, you can make a reservation and get through security at a pace that's going to get you to your flight. That's not without buying into any extra service, which I think really speaks to us doing things well. Along with the fact that it's [inaudible 00:12:25] friendly airport. We have navigators. Both our families have experienced that. I just love that about our airport and it speaks to our community.
Kate Gallego:
Absolutely. We keep working to become more inclusive. We have new technology now, if you use a hearing aid, where you can sync up with the audio announcements at the airport to be able to hear it more quickly. We have tools to help people who are visually impaired navigate through the airport. We want it to be an airport for everyone. We understand travel can be stressful for the best of us, but particularly if you have additional challenges. We want to keep learning and supporting people. You'll see more of the navigators, those folks in the purple vests who help you get around. But also the navigator dog program has been-
Speaker 1:
Love those.
Kate Gallego:
Enormously popular.
Speaker 1:
It's always good, when you have a stressful day, and you get just a few seconds. Well, that's great. I'm glad to hear that. There is a lot of excitement there.
Obviously, in other news, we have a new member of the City Council District 7. What are some of the plans going forward?
Kate Gallego:
We welcomed Council Member Carlos Galindo-Elvira. He may be familiar to many folks involved in our community. He has been a leader at Valle del Sol, the Anti-Defamation League, and now CPLC. He is filling an interim position, perhaps until the election. He has really shown an interest in supporting those who are most vulnerable. We have real challenges around heat and people who struggle with their power bill, or who are experiencing homelessness, and it's a real point of pride that that was one of the areas he said would be a focus for him. I suspect, in his year on the council, he is going to get a lot done. He has said he will not run for the four-year term.
Speaker 1:
Okay.
Kate Gallego:
He's got the incentive there, to get as much done as possible in the time that he has.
Speaker 1:
Well, it's a true servant leader that wants to get things done, and then give someone else a chance.
One of the other things that I know that I I've been focused on, as a member of the committee, is Home Rule. Can you speak to that a little bit? And perhaps, maybe give folks a sense of what it is and why it's important?
Kate Gallego:
Absolutely. I'm dreaming people will start at the bottom of the ballot.
Speaker 1:
Yeah. Me, too.
Kate Gallego:
Because there's such essential votes down there and they don't always get the attention. After all the statewide and county wide ballot initiatives, you'll get to the City of Phoenix section. Every four years, we need to go to our voters to ask them to let us have budget authority to set our budget. If it fails to pass, we would revert to a budget formula that was set decades ago and does not account for the incredible growth that we have here in the Valley. If it were to fail to pass, it would be a magnitude of cut ... The investment at Sky Harbor Airport, so huge amount of money involved in this budget authority.
Sky Harbor is a perfect example of something that has grown more quickly than inflation. The formula doesn't account for the fact that Phoenix provides regional assets, like Sky Harbor, where everyone uses it even if you're not a legal resident of the City of Phoenix. We welcome people from Mesa, from Paradise Valley, from Glendale, and all over.
The formula also doesn't account for some of the challenges where we provide regional service. If you live in Paradise Valley, there are some services the City of Phoenix provides on your behalf that are in our budget, reimbursed by residents of Paradise Valley. But again, as we have stepped up and been willing to help our neighbors in a way that we recover our costs, we need the authority to continue to do so. But it would be pretty rough costs and pretty devastating, should it not pass.
I'm just a little nervous. I suspect this will be the longest ballot in our state history and probably frustrating for people.
Speaker 1:
Yes.
Kate Gallego:
There's going to be some very hot button issues and elections. People have very strong opinions. My ask is stick with us. There are really important things at the bottom of the ballot that have always passed with strong support. But this election is unprecedented and the top of the ballot is going to get the most attention. But please, the Regional Transportation Plan, Home Rule, they make a big difference to your daily life.
Speaker 1:
100%, it's so much of a difference. I couldn't agree more. I think important for people to note, unlike the Federal government, when you're passing a budget, it has to be balanced. You're not spending more than you have. You're just getting the authority to spend up to where the revenues that we have, is that correct?
Kate Gallego:
Right. We don't have the ability of the Federal government to borrow or print. It is dollars that we have in our budget. We're very lucky, in the City of Phoenix, our city manager was once our budget director. He really understands the numbers and works very hard on the estimates. We've won awards for how well we budget, and also how accurately we budget. We're committed to being responsible. We went to the voters with a bond election that didn't raise property taxes, even though the needs were ... We could have done so much more and our community asked for so many more, but we tried to be fiscally conservative. We've lowered the rate several times, during my time as an elected official. Again, trying to understand that folks have a lot of costs and expenses to deal with, and we want to be partners who help by being fiscally responsible.
Speaker 1:
Absolutely. I think people see that and they appreciate it, and they're voting with their feet. That's why we're seeing so many people moving to Arizona, and to Phoenix specifically.
Thinking about city council, once again. Clearly, we'll have the summer recess. Coming back, what are some of the areas you think the council's going to be tackling?
Kate Gallego:
Up on the list would be the codes around downtown. We are really excited for the growth and development we've had. It's been about a decade since we developed our downtown code. We're going to try to be more flexible and allow cool building products that are really diverse. Maybe the ground floor is totally different than what is in the building higher up. We also see huge demand for more active streets. People loved the outdoor dining and some of the innovations that we've done on a pilot basis. We'll be making those changes, to allow downtown to be even more vibrant.
We will continue to make out water system a huge priority. Not sexy. But honestly, if I were remembered for one thing, I might want it to be responsible water investment. We are doing partnerships with communities across Arizona. Really respecting our Tribal partners as essential to a strong water supply. And then, two new very significant water reuse investments, which means we effectively create a new supply from our existing resources. That is going to be a huge focus. Colorado River negotiations could not be more essential to the future of Phoenix. I'm going to be spending a lot of time on trying to make sure we protect our water supply.
Speaker 1:
Well, I love that that's something that you want to have as a central tenet of your time as a mayor. Because you're right, it's not sexy, but incredibly important. We'll be talking about that for decades.
Getting to some of the exciting things you get to do, clearly we have been home to some pretty significant events like the Super Bowl, we just had the Final Four. Talk to us about the impact, the financial impact of those events, and whether you think we're going to continue to be in the mix. I know Vegas just got in. But where do you think we are on that?
Kate Gallego:
Well look, for winter events, it's hard to see a market that does it better. I always joke with folks that we'll do a No Snow Guarantee for them, and I think that's part of the reason we're so successful. But it's the infrastructure, the people who do event after event and come together, our public safety folks, our convention center. They're real pros and they've done some of the most complex events over and over. We have events like Super Bowl and Final Four, where we plan extensively, often for years ahead of time. Then we have good surprises, like the World Series had $107 million financial impact.
Speaker 1:
That was a great surprise.
Kate Gallego:
The team that had just delivered Super Bowl stayed and kept going, and were able to come together to deliver great events. This summer, we will welcome the WNBA All Star Game. Then 2027, the NBA All Star. We're also going to have the Women's Final Four, so maybe the next Caitlin Clark will be showcased in Phoenix, Arizona in 2026.
A priority of mine though is it shouldn't just be sports events. As we had these incredible investments from South Korean, Taiwan, and Japan, I would love to see some of the big convenings of Asia Pacific leaders be here in Phoenix. They have traditionally been in San Francisco or LA when they're in the United States. But a lot of the really dynamic investment is happening in Phoenix, and not in those cities.
We are going to try to take advantage of really exciting global investments. This is our first year welcoming the Phoenix Global Forum, with the International Economic Forum of the Americas. So a very important conference, where typically international companies have made major announcements. We're going to try to grow the Phoenix Global Forum into a key event, particularly in some of the sectors from semiconductors, electric vehicles, and aviation, where we're real areas of excellence. We hope that this conference will be key for South and Central American investments, particularly Mexico, as well as some of the Asia and Canada work at NC. High profile excitement in that area.
Speaker 1:
Certainly, more on major events coming to Arizona. To your point, not just sports, but major economic, cultural events that we can have here as we take our place among the world capitals. When you think about the globe, Phoenix is now starting to be one of those cities that people are talking about, which makes me so incredibly proud of everything that's going on here.
Mayor, thank you for spending so much time with us. Thank you for coming back. I appreciate the partnership. We can't let you go without a Lightning Round, I know it's your favorite.
Kate Gallego:
Absolutely.
Speaker 1:
One of the things that I think is really telling about a person is let's hear about your first job. What was your first job?
Kate Gallego:
I began my worklife as a file clerk.
Speaker 1:
Okay.
Kate Gallego:
Not particularly glamorous and I have terrible handwriting, so it's amazing I was able to progress in economic opportunity with my slow start.
Speaker 1:
What did you learn from that job?
Kate Gallego:
Communication with your boss, setting exceptions, and sometimes you just got to buckle down and do work, even if it is not glamorous or important.
Speaker 1:
Well, an interesting analogy to the work you do today.
Kate Gallego:
Right.
Speaker 1:
You communicate, you make sure people understand what you're doing. You get the feedback, and then you buckle down and do the hard work, like you're doing on economic development, and water, and everything else that's going on.
Okay, final question. First concert?
Kate Gallego:
I saw Bush, the band.
Speaker 1:
Okay.
Kate Gallego:
Yeah.
Speaker 1:
And? Was it good? Did it stick in your mind? Does it still resonate with you? Do you still listen to them?
Kate Gallego:
I do not still listen to them. It was a great experience. At the time, the lead singer of Bush, Gavin Rossdale, was dating Gwen Stefani. I went with someone who brought two-dozen roses, she was there. We got to meet Gwen Stefani.
Speaker 1:
Really?
Kate Gallego:
That was maybe more memorable for me than the actual concert. But a very cool experience.
Speaker 1:
I like that.
Kate Gallego:
When she was here for Super Bowl, I had this real debate about whether to be like, "I saw you the first time I went to a conference." But when you're mayor, you try to be a little bit cool. We did not.
Speaker 1:
We think you're cool. Well, Mayor, thank you again.
Kate Gallego:
Yeah.
Speaker 1:
Appreciate it. Certainly look forward to having you back and continuing the partnership with you.
Kate Gallego:
Wonderful. Thanks for having me back and making more podcast history.
Speaker 1:
All right. Good deal.