The Dealmaker: 8/16/2017

Phoenix Children’s Hospital, Dignity Health join forces to open new Gilbert hospital tower. “[The] five-story hospital tower [‘on the campus of Mercy Gilbert Medical Center’] will include two dozen labor and delivery rooms and an emergency department for pregnant women. Construction of the planned tower… is expected to begin in late 2018 and be [dare we say ‘delivered’?] by 2020.” This report in AZCentral states that the “hospitals would not disclose how much the new tower is expected to cost.” However, a report in AZBEX puts it at “$200M.” http://bit.ly/2fL9SPN

A baseball comeback? Pima County reaches out to Milwaukee Brewers to bring spring training back to Kino Stadium. “Gilbert Mayor Jenn Daniels balked at the idea of spending [$90M] on [a new Brewers’ spring training] facility, saying the city could never recoup its investment. ‘The math doesn’t work…” she tweeted last week.” Now, Pima County has stepped up to take a swing at bringing the team to Tucson. Arizona Daily Star reports that county officials “sent a 17-page package to the Milwaukee Brewers last week, touting Kino Sports Complex and Kino Stadium.” http://bit.ly/2i6548h

Coyotes forward Derek Stepan pays $3M for north Scottsdale home. A couple of weeks ago we mentioned the sale of LA Dodgers outfielder Andre Ethier’s home in Gilbert. In the interest of equal coverage of noteworthy sports real estate deals, Dealmaker now brings you this from AZCentral: “Arizona Coyotes center Derek Stepan has paid $3 million for a new [6,000-square-foot Mediterranean-style home] in the posh Silverleaf neighborhood of north Scottsdale’s DC Ranch.” More here: http://bit.ly/2vIxVml

Scottsdale Resort at McCormick Ranch continuing renovations with $325K worth of projects. “The AAA Four Diamond resort completed an expansive $11 million makeover last year, which took roughly eight months.The resort has now added a new touch for its business travelers, called The General Store & Trading Post… The cost of the space was $200,000.” What about the remaining $125,000? What sort of sprucing up was that spent on? Find out in PBJ. http://bit.ly/2uJNfC5

Sale for Prescott Unified School Dstrict office falls through, again. “[T]he September closing on a sale of the district’s downtown office building on South Granite Street is off…. The prospective buyer — SteepleRock Ventures LLC in Paradise Valley — pulled its escrow after determining the renovation costs were going to exceed expectations amid other complications.” And it is a “setback” that has [PUSD] Superintendent Joe Howard “a bit down in the dumps.” The Daily Courier. http://bit.ly/2waTmzI

U.S. housing starts dropped in July. “The Wall Street Journal reports housing starts decreased 4.8% in July from the prior month to a seasonally adjusted annual rate of 1.155 million… Residential building permits, which can signal how much construction is in the pipeline, fell 4.1% to an annual pace of 1.223 million.” http://bit.ly/2uJ608L

THAT WAS JULY ^ THIS IS AUGUST > Homebuilder sentiment soars on strong sales. “[S]entiment rose 4 points [in August] to the highest level since May. The [NAHB]/Wells Fargo Housing Market Index now stands at 68.” But what about the impact of Trump’s “tariff on Canadian lumber”? It now “appears builders are less concerned with policy and more enthused about the economy.” NAHB’s MacDonald and Dietz both weigh in on the latest index, plus get component and regional breakdowns, all at CNBC. http://bit.ly/2w282jT

Homebuyers willing to sacrifice square footage for bigger yard. “More than half (56 percent) of homebuyers surveyed would be willing to sacrifice a larger house to obtain a bigger yard. The [‘survey conducted by Wakefield Research on behalf of Taylor Morrison’] also found the most important exterior feature of a home [‘beating other curb appeal elements such as siding, driveway styles, exterior paint color and roofing finishes’] is distance from neighboring homes.” Read on at AzBigMedia. http://bit.ly/2w1B6rU

58% of homeowners think the housing market is set for a correction — are bubble fears founded? “Of 1,079 adults surveyed by ValueInsured… 58% agreed with the notion there will be a ‘housing bubble and price correction’ in the next two years. That’s up from 46% last quarter.” But Trulia chief economist Ralph McLaughlin explains in Forbes that a “correction does not necessarily equal a bubble.” http://bit.ly/2w1Tf8N 

Cameron’s $5M + deals of the day – http://bit.ly/2wQihFL

Corporation Commission approves APS rate hike. The approval will allow “APS to collect another $95 million a year” — “an average $6-a-month increase for its more than 1 million residential customers.” A Capitol Media Services/Howard Fischer report. http://bit.ly/2i5N8e5

LEMON/BREWER – Former Arizona Gov. Brewer on CNN defends President Trump’s Charlottesville remarks [VIDEO].  “[Gov. Jan] Brewer… was asked by CNN host Don Lemon whether she was ashamed by the president’s comments [in which] he doubled down on his initial remarks suggesting that counter-protesters who stood up to the racist groups were equally responsible for the violence that unfolded. “No. Absolutely not… I think he took the bull by the horns, he spoke from his heart,’’ she said.” Tap through for more of AZCentral coverage of the Lemon/Brewer exchange along with the related item “A question about Sen. John McCain sets off President Donald Trump.” And if those don’t give you enough Trump for one day, there’s also this: “Trump to hold rally in Phoenix.” http://bit.ly/2x5cviV

Snowy year in the Rockies helps Southwest avoid Colorado River water shortage for at least a year. “The river’s reservoirs combined have gained 5 percent of their capacity in the last year, and now sit at 57 percent full. It means customers using Central Arizona Project water in the Phoenix and Tucson areas won’t lose deliveries next year and have just a 31 percent chance of losing some water in 2019…” AZCentral. http://bit.ly/2wb2CDO

Arizona edges to front of states eyeing anti-hacking technology. “Arizona State Rep. Jeff Weninger, R-Chandler… sponsored a bill that makes Arizona one of a handful of states to accept electronic signatures on contracts, a law that is made possible through the use of blockchain.” Supporters of the “new and often misunderstood technology” say it “could ultimately lead to more-secure voting, money handling, identification and more,” while lawmakers have called blockchain “bulletproof.” But what exactly is blockchain? Will you be able to wrap “your head around” it? Cronkite News. http://bit.ly/2uJnQIA

Expert testimony on behavior of domestic violence victims permitted, court rules; court ‘got this right’ says Kaine Fisher, partner and director of Family Law at Rose Law Group. “Juries are entitled to hear from experts who can explain why domestic violence victims often forgive their attackers, the Arizona Supreme Court ruled Tuesday. The justices rejected arguments by Mark Haskie Jr. that he did not get a fair trial because jurors heard from an expert witness who described the general behavioral tendencies of adult victims of domestic abuse.” By Howard Fischer in Arizona Capitol Times. And here’s a snippet from Kaine Fisher’s comment: “The cycle of abuse is real. Recanting allegations of abuse is part of that cycle and the psychology behind this behavior should be heard by a jury. Justice Brutinel and his colleagues got this right as far as I’m concerned.” http://bit.ly/2i4VbYu

Arizona attorneys ask U.S. Supreme Court to review state death-penalty statute. “Arizona defense attorneys on Monday asked the U.S. Supreme Court to consider whether state statutes give too much discretion to prosecutors to determine which murders deserve to be punished by a death penalty, and whether the inability of certain counties to fund capital trials violates the due process clause of the Constitution… In March, the Arizona Supreme Court knocked it down, ruling that the state statutes were sufficient.” AZCentral. http://bit.ly/2i6gNnl

FBI agents went undercover in Florida’s capital for the ‘biggest investigation in years.’ This USA TODAY piece examines how “three agents posing as businessmen (a ‘hot-shot’ real estate developer, an ‘aspiring medical marijuana magnate,’ and a ‘leader of an energy efficiency company’) rattled Tallahassee’s power center and shook up the race for Florida governor.” http://bit.ly/2wb5O2j

What opioid emergency means for states and cities? “[S]ix states declared the opioid epidemic an emergency… President Donald Trump declared it a ‘national emergency’… But what does that mean for governors and mayors who have been grappling with opioid abuse for years?… There are several different kinds of emergency declarations. While they accomplish similar things, they serve different purposes.” Governing. http://bit.ly/2vEjXDP