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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
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.
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.
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”
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
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
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
July 26, 2007 Arizona City/County Management Association
Current Prop 207 Claims
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
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
July 26, 2007 Arizona City/County Management Association
City of Flagstaff
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
July 26, 2007 Arizona City/County Management Association
Procedural Issues