Prop. 207 results in a trickle of lawsuits -- not a wave - Phoenix Business Journal:

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Despite those concerns, there have been few lega actions stemming from the referendum sincse it went into effect in Januaryh as the Arizona Privatew Property RightsProtection Act. But more litigationj could be onthe horizon. The law limits localk governments' eminent domain powers and allows propertt owners to seek compensation if local zoning changes devaluwetheir land. Officials in Scottsdale, Gilbert, Peoria and Glendale repor no lawsuits brought againsgt them so far underthe act. The city of however, was sued earlier this year over land it rezonef near McDowell Road andSeventh Avenue. The city reversed its decision after developer Scott Haskinsfiled suit.
Haskins' lawsuit asked the city to reimburserhim $44 million under the new law becausew the rezoning made part of his property a historic site, whichu would have stunted redevelopment of the Cynthia Seelhammer, Phoenix assistant city manager, said Haskins' suit involvecd aspects other than the new law. She notecd that particular rezoning occurredbefors Prop. 207 was approved. The city of Flagstafc also has been sued underthe act, and a preliminar y claims letter has been sent to the city of Tucson regardingh possible legal action there.
Clint Bolick, an attorneyh for the and the Scottsdale-based , said property owners first file claimws letters if they are upset witha land-usd change, and some of those could result in lawsuitzs down the road. Bolick recently sent a letter to the city of Tucson regarding new rules related tobuilding demolitions, sayint the changes would devalue propertiees owned by businessman Michael Goodman. Bolick said that claim coulcd result in litigation because the demolitionn rules reduce the values of 23 properties ownedby Goodman. They are asking Tucsonm for $12.
6 million or subsequent rule changes, becauswe the new demolition rules require preliminaruy studies of whether the structures are historicf as well as the impact their demolitiom would have on neighboring The League of ArizonaCitieds & Towns, Valley , International Council of Shopping Centers, and Glendale Mayort Elaine Scruggs were amonh those opposed to Prop. 207, contending it would bite into locall planning powers and result in Supporters say the law protectas property holders from overreachingmunicipal land-use A number of Valley cities began having developers and propertt owners sign legal waivers related to the new law when they soughyt zoning approvals or changes.
Under the property owners agreed not to sue citiesz for zoningor land-use adjustments that affectes their property values. Tempe, Scottsdale, Phoenix, Peoria, Mesa and Glendale are among the Arizona cities usintgsuch waivers. Bolick, who specializes in propertyu rights cases, said the Goldwater Institutre is ready to challengew waivers it believes go beyond the scops of thenew law. "Prop. 207 allowsd cities to ask property owners to waivw potential claims relating to a particulard permit thatthey request. What some cities were doing was to pry that smalol loophole into agaping one, asking property ownerds applying for a permit to waived all Prop.
207 claims forever," Bolick Bolick said Mesa, Scottsdale and Peoria changed theidr waivers after Goldwater raised objections and threatenedlegakl action. Scottsdale spokesman Mike Phillips confirmed his city has adjustedx its waiver language a numberof times. Peoriaz spokesman Kelly Corsette said the West Valley suburbg has adjusted the wording ofits waivers, and has establishedc different waivers and indemnity clauses for different zoning and land-usd requests. "The language of the waivers has been changede over time to improve clarity for those involvede inthe process," Corsette said.
Goldwater