By Kristena Hansen
Phoenix Business Journal
If you’d like to discuss real estate matters, contact Rose Law Group Founder Jordan Rose, jrose@roselawgroup.com
A private property protection law passed in 2006 has been center stage in the fiery controversy surrounding the Frank Lloyd Wright-designed home in Phoenix.
Under Arizona law, private property owners are entitled to reimbursement when the government imposes new zoning or land uses that cause a drop in their property’s value. That stems from the passage of Proposition 207, or the “Private Property Rights Protection Act.”
During a Camelback East Village Planning Committee early last month, the owner of the Wright property, local developer 8081 Meridian LLC, threatened to sue the city under Prop. 207, saying the home couldn’t be designated as a historic landmark without its permission, and doing so would diminish the property value.
In response to outrage from historic and architecture preservationists, Meridian’s focus has since shifted from demolishing the home and developing two new houses on the nearly 2.5-acre property to selling it to a preservation-minded buyer.
On Dec. 5, however, the Prop. 207 debate could be reignited when Phoenix City Council is slated to decide whether to move forward or postpone — again — its vote on the landmark designation.
Jordan Rose, land use attorney and president of Rose Law Group, says Prop 207 certainly applies to a city that rezones property contrary to the property owners wishes, but “the courts will have to decide if designating the home historic is considered a ‘land use act’ subject to the protection of the Prop 207. That has not been considered in Arizona and each side has some pretty decent arguments.”
