july 26, 2007 arizona city/county management association proposition 207 how are you handling it?

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July 26, 2007 Arizona City/County Management Association Propositio n 207 How Are You Handling It?

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Page 1: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

Proposition

207

How Are You

Handling It?

Page 2: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

PROPOSITION 207Arizona City/County Management Association

Proposition 207 Basics Alan Stephenson Arizona Planning Association

Current Prop 207 Claim Activity

Debra Stark, AICP City of Phoenix Planning Director

Procedural Issues Frank Cassidy Marana Town Attorney

Page 3: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

PROPOSITION 207Arizona City/County Management Association

What is Proposition 207?Regulatory Takings- When a government deprives a person of the use of property by the application of regulations without compensating the owner.

Eminent Domain- Fifth Amendment allows forthe taking of private property for a public useso long as just compensation is paid.

Page 4: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

Eminent Domain Impacts

Property can only be physically taken for Government projects Literal safety issues

Courts will no longer be able to weigh public benefits

against private controls in determining a public use in

slum and blight areas.

Page 5: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

Regulatory Takings Impacts

“if the existing rights to use, divide, sell or possess property are reduced by the enactment or applicability of any land use law and such action reduces the fair market value of the property the owner is entitled to just compensation from this state or political subdivision that enacted the land use law”

Page 6: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

"land use law" means any statute, rule, ordinance, resolution or law enacted by this state or a political subdivision of this state that regulates the use or division of land or any interest in land or that regulates accepted farming or forestry practices.

Regulatory Takings Impacts

Page 7: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

EXCEPTIONS-• Health and safety • Public nuisances• Federal laws• Utility facilities • Enacted before Proposition 207 • Limit or prohibit housing sex offenders, selling illegal drugs, liquor control, or adult oriented businesses• Do not directly regulate an owner’s land

Regulatory Takings Impacts

Page 8: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

Community Impacts

• Freeze existing development standards;

• Regulation becomes a one-way ratchet where taxpayers can decrease regulations but increased regulations need to be evaluated for potential diminution in value impacts;

• Potential to limit local control over development approvals

Page 9: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

Current Prop 207 Claims

Page 10: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

City Of Phoenix

• Initiated By City Council Prior to Prop 207

• Property Owner wanted to Develop 4 stories

• Neighborhood Mixed Reaction

Historic Preservation Case

Page 11: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

City Of Tucson

• Neighborhood Preservation Overlay• Property Owners Attempting to Protect

Neighborhoods Around U of A from “mini-dorms”

• Overlay First, then various neighborhoods could apply

• Council has formed a “study” group in attempt to prevent Prop 207 claims

Page 12: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

City of Flagstaff

Page 13: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

City of Flagstaff

• Downtown Historic District Overlay

• Preserving the existing structures from “growing” and imposed design guidelines

• Council approved 5-2

• Property Owners filed claim

Page 14: July 26, 2007 Arizona City/County Management Association Proposition 207 How Are You Handling It?

July 26, 2007 Arizona City/County Management Association

Procedural Issues