The Dealmaker: 7/21/2017

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The Dealmaker is a daily note of the day’s top real estate stories served just in time for lunch. Bon Appetit! Subscribe here to receive the Dealmaker to your inbox




Neighbors furious after rehab group home opens next door; Jordan Rose, founder and president Rose Law Group, interviewed by CBS 5(Disclosure: Rose Law Group represents neighbors fighting to protect the residential character of their neighborhood.) “It is a close community and many of the neighbors [‘near 36th Street and Cholla in Phoenix’] have come together hiring the Rose Law Group to try and get what they say is essentially a commercial business [Advanced Sober Living, LLC] out of their residential area.” Jordan Rose: “This operator is attempting to do something that the deed restrictions just don’t allow.” WATCH/read the full report at azfamily

Dirt lot dreams: Developers seek opportunities in dense West Valley.“Some patches of dirt sit unturned next to dense residential neighborhoods built decades ago. One may stand on the verge of transformation. Yet another remains hopelessly landlocked by market forces or unfortunate geography. While dozens of infill opportunities remain untapped, this article  [in YourWestValley] examine[s] four such properties across the Northwest Valley.” –>

Lofts landing in downtown Gilbert near popular restaurants. “Whiteboard Development Co. is building the District Lofts, a 172-unit multifamily rental project on Cullumber Avenue east of Gilbert Road… just west of Gilbert’s water tower.” Tap to Phoenix Business Journal for further project details — what Whiteboard’s principal Colin Brown refers to as District Lofts’ “forward-thinking design.”

Sonnen signs a deal to put storage in new Arizona housing developments. “This has long been a goal for the [Germany-based] company, which aims to create a community of homeowners who produce and exchange clean energy, while performing distributed grid services. The sonnenCommunity in Germany has grown to 8,000 members and functions like its own utility.” While Sonnen is playing coy with regard to the homebuilder’s identity, this report in GreenTechMedia informs us that it is “a progressive builder that typically constructs 200 homes a year and aims for 300 in 2018.”

Eloy considers savings on groundwater designation. “[Eloy City Councilmembers] took the time to get educated on some of the legal ins and outs of water issues in Arizona at a Monday work session.” Subjects studied included the “Central Arizona Groundwater Replenishment District” and it’s “ability to legally charge member water suppliers, which Eloy is, fees for the amount of water on the books.” PinalCentral has a recap of the lessons learned.

IT’S NO PLAY –Wing Mountain ends snowplay operations. “The operator and manager of… the popular snowplay area northwest of Flagstaff… has decided to discontinue its operations there… The Forest Service said it plans to begin public outreach in 2018 to gather feedback on what recreational experiences the public desires for the Wing Mountain Snowplay Area…” In the meantime it’s KEEP OUT, as Arizona Daily Sun reports that “parking will not be allowed [on the site], nor along the forest road that accesses it.”

AN ARCADIA McMAKEOVER –McDonald’s has a new design, and it will debut in Phoenix. “The massive fast-food chain is unveiling a new interior design, the first of which will appear at the Arcadia location… off 32nd Street and Indian School… The new location and look will open Friday, July 28, with a grand opening slated for Aug. 12.” Photo and “design scheme” details in PBJ.

Construction company builds second chances for former inmates. When homebuilders association prez Connie Wilhelm discovered that ‘a lot of [state prison] inmates had former experience in the construction fields,” she “got a handful of Phoenix-area construction industry contractors, including Austin Electric, to participate in job fairs inside the prisons.” AZCentral has what happened next.

Rules that make it hard to build. “[R]ules, regulation, and protectionism have both suppressed housing development and fostered environments that price more people out of a market.” In this Builder article, John McManus emphasizes “the ability to partner, truly collaborate, and sustain relationships with localities,” calling it “a skill that will only rise in importance as organizations try to expand the universe of demand by kickstarting social and economic mobility in the United States once more.”

Coalition forms to support Pinal road plan, excise tax. (Disclosure: Rose Law Group represents a coalition of property and business owners throughout Pinal County working to bring new transportation infrastructure to the county.) This is a PinalCentral update on news we brought to your attention earlier this week regarding the group “New Roads and Freeways Before It’s Too Late: Yes on Propositions 416 and 417.” These propositions are “intended to ‘solve Pinal County’s current transportation problems and to keep traffic moving well into the future.’”

I-11 study progressing as planned.PinalCentral brings us the latest I-11 happenings (including an informative four-minute ADOT video) concerning the proposed corridor, noting that “while the project remains a distant dream, it’s important to put the time and effort in studies now so that when state and federal money is allocated, the legwork will be complete.”

Dealmaker BONUS:Technology forges the road for Scottsdale traffic as population growth appears imminent. “The Traffic Management Center… can shift its focus on any area of Scottsdale at a moment’s notice and the control room’s floor-to-ceiling-wall of screens serves as the epicenter of traffic flow within city limits.” (BTW, CTU command center from the FOX television series “24” has nothin’on this place!) Scottsdale Independent looks at how “traffic engineers are utilizing new technology and updating traffic light timing to offer the best experience for motorists.”

Dealmaker BONUS:East Valley Dairy Queen king sees no future in malls. “The 65-year Mesa resident and Dairy Queen franchisee [Steve Cowgur] has bought new standalone restaurants in Chandler because he said the food-service industry is shifting away from shopping malls… ‘More malls are being closed… people are doing more online shopping — so it was either a case of just trying to keep as many stores open as we could over the next 10 years or reinvent ourselves to freestanding locations.’” For the whole scoop on this shopping mall ice-cream headache, tap to East Valley Tribune.

Peoria Planning Commission last night got heated as the State Treasurer (?!) came out to protest our client, BASIS (ranked the number one school on the nation honored to represent them). BASIS won.

As a supplement to the Dealmaker, we thought you might enjoy these articles!


[VIDEO] Tillerson to shut cyber office in state department reorganization; Rose Law Group litigation attorney Lauren Reynolds, who focuses on privacy and data breach issues, says ‘international cooperation’ vital. Bloomberg: “Secretary of State Rex Tillerson is shutting down an office that coordinates cyber issues with other countries… according to… people… who asked not to be identified…” (But who now could very well be outed, their names going viral thanks to hackers and no cyber office to prevent it!) Here’s Lauren Reynolds take: “International cooperation with regards to cyber security is particularly important… Cyber security must remain a focus of not only individuals and businesses, but of the federal government, no matter what office or department is responsible for it.” For Lauren’s full comment and more on the cyber closing, tap it:

SPEAKING OF OUTING PEOPLE..Judge orders informant’s name be disclosed in Pinal racetrack case. “The identity of an informant who leaked knowledge of an unsanctioned racetrack in Pinal County has been ordered disclosed by a judge… The Arizona Attorney General’s Office filed an indictment last year, accusing defendants of charges ranging from money laundering to the promotion of gambling.” Pinal Central.

Study: Senate bill could give 1.8 million DREAMers path to citizenship.“Sens. Lindsey Graham, R-South Carolina, and Dick Durbin, D-Illinois, said the Dream Act 2017 they introduced Thursday would give [DREAMers] a chance at permanent residence and a possible path to citizenship. The Migration Policy Institute estimates that the bill could affect as many 1.8 million undocumented immigrants in this country, if passed — but passage is far from assured.” Cronkite News.

Kirkpatrick joins the list of Democrats running for McSally’s congressional seat. “Former congresswoman Ann Kirkpatrick is entering the Democratic race to challenge U.S. Rep. Martha McSally, setting up what could be among the nation’s fiercest House fights next year… She joins an already-crowded field of Democrats, suggesting early energy on the left to face off with McSally, a Republican who easily won a second term in November only to see her approval rating sink after tying herself to the unpopular GOP health-care plan.” AZCentral.

As California’s labor shortage grows, farmers race to replace workers with robots. “[T]the $47-billion agriculture industry is trying to bring technological innovation up to warp speed before it runs out of low-wage immigrant workers. California will have to remake its fields like it did its factories, with more machines and better-educated workers to labor beside them, or risk losing entire crops, economists say.” Los Angeles Times.

Newsmaker BONUS: Rose Law Group Reporter Top 10 Possible New Jobs for Sean Spicer. In the wake today’s resignation of White House Press Secretary Sean Spicer, Senior Reporter/Writer Phil Riske once again shows off his satirical side. Good stuff!

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