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Title:	Prop 207 Realities Come to Light, Historic Districts Threatened
Source:	Arizona Republic
Author:	Jahna Berry
Date:	July 5, 2007

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Prop 207 Realities Come to Light


PHOENIX– Pushed as ''a property rights safeguard,'' Proposition 207 exploited fears of municipal use of eminent domain for new development and got 65 percent of the votes last November, reports Arizona Republic writer Jahna Berry, but now the legal and administrative burden of its real purpose, to reimburse owners for any property value loss due to zoning and other land use changes made without their consent, is hurting efforts both to improve neighborhoods and to preserve their character.

Apprehensive of lawsuits, cities prefer to delay or deny mixed-use zoning or special-district designation requests until or unless they obtain Proposition 207 legal waivers from each local property owner, even if thousands are involved, who also must file county paperwork and pay a $9 fee.

Owners who oppose rezoning and refuse to sign legal waivers can scuttle an improvement project or make a ''hole'' in an area designation, both contrary to public interest.

Historic Districts Repealed to Avoid Lawsuits
Phoenix repealed a historic district in April to avert a $40 million suit by an apartment complex owner. Grand Avenue business owners have been working for two years to boost the street with new galleries, cafes, beauty shops and other services possible under the Arts, Culture and Small Business Overlay, but now the city wants their help to get notarized legal waivers from each of the 1,300 local property owners, some of whom feel the waiver language may give the city takings rights.

The city's Urban Form project, which cost $900,000 so far to plan a tree canopy, miniparks and sidewalk cafes downtown, also faces delay because officials need waivers from about 2,000 local property owners.

In Tempe, with several eminent domain clashes in recent years, the writer continues, a city panel advised against a historic district in the old Maple-Ash neighborhood, with one owner afraid the designation would devalue his property by 30 to 50 percent, and the City Council likely to cast its vote later this month.

Cities Are Cautious
''Until a test case hits the courts, cities will continue to be exceedingly cautious,'' the writer predicts, expecting such a case from Flagstaff, where the City Council is ready to disregard opposition and approve historic designation for an area with more than 200 homes, some dating back to the 1800s.

In the first step toward a lawsuit, the conservative Sacramento, California-based Pacific Legal Foundation has already sent the city a claim on behalf of four owners who object to the restrictions and want almost $400,000 in compensation for their potential property value loss.


Click here to see the PBS investigative story: "Taking The Initiative"

Click here for Nov. 2006 Partner's Message: "Good Prop, Bad Prop"

Click here to view the original article