ARIZONA DAILY STAR: Weds., Oct. 3, 2007
Flagstaff restrictions cut property values, suit claims
By Howard Fischer; Capitol Media Services
A new lawsuit Wednesday challenging a Flagstaff ordinance ultimately could determine the future of zoning regulations across the state.
The Pacific Legal Foundation is asking a Coconino County Superior Court judge to force the city to compensate three landowners for what it says is the reduced value of their properties. The organization, which represents property owners in legal fights across the nation, contends the restrictions for construction in Flagstaff's new historic-preservation district effectively prevent the individuals from developing their lots as planned.
Landowners are suing under Proposition 207, approved by Arizona voters last November.
That measure was designed to prevent government from using its right of "eminent domain" to take private property from one person and give it to another, often a developer. But the measure, approved by a 65-35% margin, also requires "just compensation" if any new law governing property use is enacted that "reduces the fair market value of the property."
The outcome will be watched with interest statewide. Just the threat of lawsuits already forced Phoenix to repeal a newly created historic district, for instance.
FULL STORY: http://www.azstarnet.com/allheadlines/204559