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Old Posted Nov 12, 2008, 7:36 PM
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Classical in Phoenix Classical in Phoenix is offline
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Join Date: Mar 2008
Location: A place with bigger haboobs than yours
Posts: 537
"My gripe with the city (and state of Arizona) of Phoenix and their relationship with developers has always been that they just let the developer do whatever they want. We still have no construction on the Aloft Hotel after the city "required" them to have started in October. The city doesn't force the development of dirt lots. They don't force anyone to actually do what they say they are going to do. I have emailed Gordon multiple times about this issue. I've encouraged him to tax developers who own dirt lots in the downtown area for not using their land. I've encouraged him to tax Sarver and the rest of the JSED people if they are not going to open their warehouses up for art/retail space. I myself would gladly occupy one of those warehouses with multiple businesses if they were available for cheap rent. It seems to me that, when faced with a 30% land value tax increase vs renting your space for $1-$5 sqft to artists and businesses (even if it is only till the market turns), you would gladly take the rent over the tax."

While I am in agreement that undeveloped lots are counterproductive to a vibrant downtown, I do not feel that penalizing the owners of these properties is the answer. Someone may purchase a property with the full intention of developing something, and then, before they are able to get plans and pull permits, get caught in a market similar to the one we are in today. Currently the credit market is VERY tight, getting development money is almost impossible. The owner would be penalized for something that has negatively affected him and is totally out of his control.
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