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

2. July 26, 2007 Arizona City/County Management Association PROPOSITION 207 Arizona 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

3. July 26, 2007 Arizona City/County Management Association PROPOSITION 207 Arizona 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 for the taking of private property for a public use so long as just compensation is paid.

4. 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.

5. 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”

6. 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

7. 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

8. 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

9. July 26, 2007 Arizona City/County Management Association Current Prop 207 Claims

10. 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

11. 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

12. July 26, 2007 Arizona City/County Management Association City of Flagstaff

13. 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

14. July 26, 2007 Arizona City/County Management Association Procedural Issues