No Big Surprise: Phx City Council Votes To Challenge CityNorth Appeals Court Decision

I'm sure The Goldwater attorneys were not surprised by the Phoenix City Council voting 8-1 to appeal the CityNorth (Turkin vs. Gordon) Appeals Court unanimous decision against the almost $100 million subsidy to the out of state developer Thomas J. Klutznick Co.

As reported in the Feb. 18 Phoenix Business Journal, Phoenix Mayor Phil Gordon said legal action is necessary because the appeals court decision cast a shadow over every incentive that cities have offered in the state — past, current and future.

Gordon is quoted as saying:

“Most of us on the council are appealing not the structure of the agreement (with CityNorth), but we’re looking for clear instruction for future projects. We want to know if this ruling is retroactive to prior agreements like Glendale (Westgate) and Tempe (Marketplace).This is an issue much larger than just Phoenix.”

From our prospective, Mayor Gordon could have included the Oro Valley giveaways as being applicable. The OV Council recently voted to put all subsidy monies (approved by a previous council) in an escrow account.

Now we'll have to wait and see if the Arizona Supreme Court will take any action, or let the Appeals Court decision stand.

Read the article here.
http://phoenix.bizjournals.com/phoenix/stories/2009/02/16/daily35.html?surround=etf

Development Impact Fees---- Tucson vs. Oro Valley

We don't know Tucson Councilman Rodney Glassman, but we question a couple of his comments in The Explorer's Feb. 18 article concerning development impact fees.

Mr Glassman, rightfully points out that if Tucson suspends these fees, it would probably lead to more homes being built, and more people working on having new homes built.

That's one side on the equation. However, has Mr. Glassman considered the fact that Pima County, and Tucson in particular is loaded with foreclosures. If there's one thing that's not needed now, it's more homes on the market with "for sale" signs.

Glassman is quoted as saying:
“This proposal (suspending the fees) would make Tucson the jurisdiction of choice for Southern Arizona."

Well, it appears our mayor Mr. Loomis agrees. In a recent OV Council vote Loomis cast the sole vote against the increased fees, citing the bad economy as the reason.

“By having high impact fees, Oro Valley is driving the development somewhere else,” Loomis said.

To Glassman & Loomis, we say; "Let those that wish to move to Tucson do so." People will come to Oro Valley that want to come to Oro Valley.

And let's not forget, we don't have one thing to offer that Tucson has----- A Property Tax!.

Here's The Explorer article.
http://www.explorernews.com/articles/2009/02/18/news/doc499b517063ca3047029434.txt