The Dealmaker: 7/26/2017

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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

 

 

 

 

Senator John McCain delivers emotional speech after Senate votes to advance healthcare bill [VIDEO]; full transcript here. In Rose Law Group Reporter. http://bit.ly/2uZKifj

THE SIMPLOT THICKENS – Former Phoenix Councilman Tom Simplot takes job with Trump arts appointee. AZCentral is reporting that “former City Councilman Tom Simplot has… started a new gig as senior adviser to Mary Anne Carter, senior deputy chairwoman at the National Endowment for the Arts…” And the mayoral race in Phoenix has just narrowed! http://bit.ly/2uY9YJL

Bungalows developer appeals to downsized lifestyles. “The Bungalows on Pine Cliff are the first Flagstaff development for Cavan Companies, a Phoenix-based developer owned by David Cavan.” Designed with “Millennials and Baby Boomers in mind,” Cavan says they were “created to look like houses, but smaller. They are about the size of an apartment, and cost about the same, sometimes a little more.” Arizona Daily Sun. http://bit.ly/2tZHt9Z

Flood study shows many problems, no money to fix them. “After nearly two years of studying flood risks in Ahwatukee that could cause more than $5 million in damage to 492 homes, apartments, commercial buildings [as well as cause damage to] 21 intersections, 15 streets and segments of major arterials, two hillsides and a channel entrance behind Lomas Elementary school… county and city officials have one piece of advice for owners and renters in harm’s way. Get flood insurance.” Ahwatukee Foothills News. http://bit.ly/2uCa5YZ

Mining Camp Restaurant in Apache Junction destroyed in fire. “Superstition Fire & Medical District got a call [Tuesday] at 3:03 a.m. from a neighbor who spotted the flames. The restaurant is a total loss, with an estimated value up to $950,000… The 56-year-old restaurant was known for its hearty Western fare.” Owner Vinton Fugate: “‘This restaurant was built in 1961, when I was 13,’ he recalled, between puffs from a wood-tipped cigar. ‘I started as a dishwasher.’” More on Fugate’s loss and the support he’s been getting, at AZCentral. http://bit.ly/2w0xFxV

$12.5M hotel coming to Westgate. “HCW Development… is building an Aloft Hotel on the corner of 93rd and Glendale avenues… The four-story, 100-room hotel will… take up roughly 68,000 square feet on 2.4 acres of land.” KEY FEATURE: “The Aloft brand is also testing robot delivery services, which may possibly come to the Glendale space… ‘It will be the first hotel to send a towel or deliver food to your room (via robot)…’” The only question is how much to tip. More on Aloft in this “EXCLUSIVE” from Phoenix Business Journal. http://bit.ly/2h3MqNI

Aldi no-frills grocery chain plans Goodyear distribution center — could Arizona stores follow? “[The] discount grocery chain that is popular throughout the Midwest and eastern U.S… is in the process of buying city-owned and private land [close to 70 aces in all]  on Indian School Road and Cotton Lane, a lot commonly known as the Duncan Farms.” Just how “no-frills” is Aldi? AZCentralreports that not only do customers “bag their own groceries,” but to “get a cart” they have to “insert a quarter.” However, they “get it back when they return the cart to the corral.” http://bit.ly/2eO8hIu

Only a handful participate in Cave Creek general plan update. “[The] input session, which drew approximately four times the number of attendees than the previous meeting, which drew only three people, was scheduled to gather input on four sections of the general plan: Our Vision, Introduction, Public Involvement and Context… While more people attended this input session, only a handful participated.” And one of those who did participate tossed out this incredible idea as a way of increasing future attendance: “[The town] should be announcing meetings way in advance.” Much more on the input session in Sonoran News. http://bit.ly/2vJq2wt

Gilbert mayor to become chairman of Phoenix Mesa Gateway Airport board. “Gilbert Mayor Jenn Daniels will become chairman of the board of directors of the Phoenix Mesa Gateway Airport Authority, the body responsible for maintaining and operating the airport. Daniels succeeds Mesa Mayor John Giles in the position. Giles will now serve as a director, along with Phoenix Councilwoman Thelda Williams.” East Valley Tribune. http://bit.ly/2tKk7Kb

SRP gets 1st approval for proposed Price Road Corridor project. “[The Arizona Power Plant and Transmission Line Siting Committee] approval is the first step of the application submitted by Salt River Project to the Arizona Corporation Commission that proposes using Price Road as the route for a double-circuit, 230-kilovolt power line to be constructed from the existing Knox Substation to the RS-27 substation… [It is a] project that will help support economic development in the Chandler area known as the Price Road Corridor.” AzBigMedia. http://bit.ly/2w0veLU

Pinal supervisors to hear case for controversial energy plant. “Pinal Central Energy Center, a subsidiary of Florida’s NextEra Energy Resources, is slated for construction on a 257-acre site at State Route 287 and Sunshine Boulevard… if a zone change and planned area development are approved…” As for the ‘controversy,’ PinalCentral reports that “as it turns out… there may not be a battle to the end from at least a few of the longtime opponents of the venture.” http://bit.ly/2uZJkjl

Housing starts, permits jump in June. “Housing starts in June came in 8.3% ahead of May at a seasonally adjusted annual rate of 1,215,000, 2.1% above the June 2016 rate of 1,190,000… Building permits in June were up sharply as well, posting a 7.4% gain to a seasonally adjusted annual rate of 1,254,000, 5.1% above the June 2016 rate of 1,193,000.” Builder. http://bit.ly/2uxOsdP

June construction starts stumbled. “ConstructConnect announced that June construction starts, EXCLUDING RESIDENTIAL ACTIVITY [emphasis ours], fell -13.7 percent versus May. The usual May-to-June change, due to seasonality, is +4.5 percent.”  But as AZBEX notes: “ConstructConnect’s nonresidential construction starts series… has a history of being more volatile than many other leading indicators for the economy.” http://bit.ly/2uCEE0o

Why design and build multigenerational? “Houses designed intentionally to be multigenerational… may still be considered a fringe segment of new residential construction. But for how long?” Builder’s John McManus looks into reasons why “builders should put intentionally designed multigenerational living floorplans into the mix of almost every subdivision project.” http://bit.ly/2tZoUTj

Here’s what it looks like when the foreclosure ‘pig’ moves through the housing-crisis ‘python.’ “The government auctions promised a risk-sharing solution… [but a] new Attom Data analysis for MarketWatch shows increasing foreclosures in the mortgages auctioned by the government…. Analysts call the current crop of foreclosures ‘the last of the pig moving through the python’… [T]he numbers are a reminder that ‘big chunks of the market are still struggling, and no one seems to care about them anymore.” http://bit.ly/2w0G7NG



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

[OPINION] The United States Senate: Don’t hold your breath. With Senator John McCain’s Tuesday speech serving as inspiration, Senior Reporter/Writer Phil Riske longs for the “days when statesmanship, not fruitless partisanship, existed.” As Phil puts in his piece for Rose Law Group Reporter: “We’re not so foolish as to think McCain’s speech will turn things around, although it should. But we can hope.” http://bit.ly/2uZBdDr

Committee approves ASU bonding request for additional electrical generation. “After tabling it last month, the Joint Committee on Capital Review on Tuesday gave a ‘favorable review’ to a proposed $21M bonding request for an additional natural gas turbine for electrical generation on the ASU campus.” For further details, including why ASU needs the gas turbine, how much extra power it’s expected to generate, and how lawmakers responded to the bonding request, tap to Senior Reporter/Writer Phil Riske’s report in Rose Law Group Reporterhttp://bit.ly/2uZMIL8

Experts say Arizona legislation a model for implementing 5G technology.“5G has the potential to be the ‘first truly terrestrial, high-speed, high-capacity, fully-seamless, wireless internet experience.’… [A] panel of industry and government officials said [Tuesday that] Arizona could become one of the first states with 5G technology, and they credited measures like the state’s HB 2365, which streamlines the permitting process for the faster networks.” Cronkite News. http://bit.ly/2tDpDKz 

RUSSIAN IN WHERE FEDS FEAR TO TREAD? – Why are local governments using a Russian software the feds won’t? The Washington Post revealed this week that several local governments across the U.S. are using a Russian brand of security software that the federal government fears could be leveraged by the foreign country for cyberespionage.” Governing looks into what’s behind local governments using the Russian software, noting that the “reasons spotlight cities’ funding and workforce struggles that cybersecurity experts have warned about for years.” http://bit.ly/2tKqjC9

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