At Get Your PHX, we believe that all aspects of public policy can impact the real estate market. As such, we think it is worth some time to reflect on a couple little-known propositions on this November ballot, which could have an impact on Arizona’s future, and yours.

First, have a look at Proposition 126. This is an initiative that adds a clause to our state constitution to prohibit taxes on any kind of services. While collecting the 224,000 (minimum) signatures required to put this on the ballot, the backers of this measure told signers that this would prohibit sales taxes on things like haircuts. The backers, the Arizona Association of Realtors (AAR), really only told a small part the story.

The biggest beneficiaries of this initiative would be individuals who make most of their money on services, such as accountants, lawyers and, well, realtors like us. The pitch that this initiative was somehow built around the needs of the little guy was belied by the millions of dollars dedicated to this cause by the realtors.

Further, what they did not tell you was that it is already almost impossible for the legislature to raise taxes. Based on 1992’s Prop 108, the legislature must have a 3/4 vote of both chambers AND the governor’s signature to raise taxes. That has very seldom happened since 1992, and even then only on very marginal tax clarification issues. It certainly won’t happen as long at the AAR has as much control at the Legislature as it does now.

So, why the expense? Proponents claim that the proposition is in reaction to a bill in 2016 that would have instituted some services taxes. However, that bill –sponsored by a group of Republican who wanted to add a few service taxes so that they could lower over-all taxes on income– did not stand a chance of passage.

But, there’s a much bigger problem with this proposition. To illustrate, pick up your smart phone and look at the screen. See all of those apps that you use to make your life easier or fun?

Are those apps services or products? I don’t know, and neither does our current tax code.

It is estimated that, because Arizona has not clarified the difference between products and services in the on-line marketplace, we give up about $200 million per year in revenue to our state budget. To put that in perspective the Red for Ed movement was seeking about $680 million per year in new revenue.

So, what happens if we add this to our constitution? Simple. It would be nearly impossible to update and refine our tax code and we will miss out on even more funding for schools and infrastructure. This can have an impact on our local economy and economic growth and, therefore, the real estate market.

Our goal in presenting this information is to present information that most folks may not see in the press. Obviously we (mostly Ken, since he’s a policy nerd) have a bias. We all do. So, we encourage you to see both sides of the argument in the publicity pamphlet at this link.

Next month: Proposition 306, a Trojan Horse?

We are realtors. And, in the space of this newsletter, we do our best to drive just in that lane. We try not to get too political.

We leave other times for that. We are citizens of our country, after all.

However, we would be remiss if we did not encourage you to sign the Outlaw Dirty Money petition. This ballot initiative would require basic disclosure of what we commonly know of as “dark money.”

No level of government can work properly — from the legislature to the Department of Real Estate, unless we have basic disclosure of the money –often laundered– that is being spent to influence our government.

Please take a moment to learn more at this website and find a location to sign the petition in person.

Donna Reiner, a local historian and a good friend of Get Your PHX, has written many articles over the years for the Arizona Republic and others about what came before us. We use her services when we list properties of historic significance to help us tell the stories behind the homes.

We are happy that Donna is allowing us to re-publish some of her articles on a monthly basis. If you or your business ever needs a historian, let Donna know at laydeescholar@hotmail.com.

In late fall of 1906, Adam Diller and his large family left their home in Bluffton, OH for Phoenix, AZ taking household items and farm equipment on the train that they would need to start a new life in territorial Arizona. The Dillers, along with other Mennonite families from Ohio and Indiana, were drawn to the Phoenix area because of its fertile farm land.

The Dillers first purchased 40 acres on what was then the outskirts of Phoenix along 16^th Street between the Phoenix Ditch and what is now Roosevelt Street.  A dairy was there initially and the Diller family sold the milk to Phoenix residents. A resourceful family, the Dillers began making textured cement building blocks using water from the canal which were used to build their two-story home near 16^th Street and Fillmore. Unfortunately, the house has long since disappeared from this busy intersection.

Before the sale of the 16^th Street property (these forty acres were later sold in 5 and 10 acre parcels), the Dillers purchased 60 acres of citrus on 7^th Avenue between what is now Butler Drive and Dunlap. This area of north Phoenix was our “citrus belt” due to the vast acreage of citrus groves and small citrus growers nestled between the Arizona and Grand Canals.

Once again, the Dillers built their home with cement blocks that they had made near their former 16^th Street home. The design of this house was different from the 16^th Street home.

Dan Diller purchased property south and adjoining his parent’s land. It was on this property that an unusual sweet orange tree was discovered. What made this orange different from others in the grove was its size, lack of seeds, and extraordinary juiciness.

Careful propagation of buds from the “mother” tree sometime around 1920, led to the creation of what is now known as the Diller Orange. Lewis Diller, the son of Adam, planted and sold many groves of this orange during the 1920s. This Arizona sweet orange was shipped to market and ads in the local papers offered them for sale. The Diller orange tree is still available for purchase at some select nurseries in the valley.

Today the home on the west side of 7^th Avenue is listed on the Phoenix Historic Property Register and the National Register of Historic Places. Those textured cement blocks are a testament to the soundness of the home and the love the Diller family gave to this place.

If you read this blog much, you know we are big fans of materials recovery in Phoenix. Remember how the City of Phoenix found a way to divert 36,000 tons of previously-considered useless palm fronds in to animal feed?

So, its nice to see Local First Arizona hosting tours of the Phoenix Materials Recovery program. It is worth a tour.

One plug from us, though. Think of all of the thousands of new gadgets that have batteries in them now, from pens to cars. All of those small batteries have precious metals in them –some worth more than gold. All of which require invasive and polluting mining to develop. What would it look like if we could divert those metals away from our land fills and back in to our circular economy?

That’s a net win for Arizona, as all of those metals originate from outside of Arizona.

It would take an investment from our cities in educating the public and coordination with businesses to help collect those items.

That said, now back to the news about the Local First tour:

At this event, you will meet Local First Arizona’s Green Team at Phoenix’s Material Recovery Facility (aka the MRF) where you will see how recycling is sorted and processed. This eye-opening tour is free and you’ll walk away with a new appreciation for recycling.

Thanks to our friends at Recyclebank for supporting this event! Attendees will receive bonus points from Recyclebank for attending. The North Gateway Transfer Station is located at 30205 N. Black Canyon Hwy, Phoenix and we will meet there. RSVP via email to Carrie@localfirstaz.com.

We were pretty excited to learn about the new working urban gardens and restaurant concept for Los Olivos Park at 28th and Indian School: The Farm at Los Olivos.

This is a public-private partnership with Greenbelt Hospitality, who’s owners are well known for their work in the community. Matthew Moore’s family has farmed in the valley since the 1920s and he currently lectures on art and agriculture across the country. Aric Mei is most known for The Parlor Pizzeria, proclaimed by The Food Network as the best pizza in Arizona.

Have a listen to this KJZZ news story on the possible development.

The project will take the western 30% of Los Olivos park to create working urban gardens and community space, along with dining. It will consist of beautifully designed organic produce gardens, an art and education center, and healthy concessions that will provide a unique and delicious food and recreation experience for its visitors.

The ultimate goal is to build a stronger and more resilient food culture in our community while providing an educational experience for visitors.

The City of Phoenix issued an Request for Proposal (solicitation) for the creation of a new Park amenity with agriculture, education, and concessions as the core requirements. The Greenbelt team responded along with other proposers.

After a independent review process, Greenbelt was selected as the highest scoring applicant. Through this new public/private partnership, the new amenity will be financed and operated by the Greenbelt team and will require no taxpayer dollars.

Additionally, the land itself will continue to be owned by the City of Phoenix Parks and Recreation Department, and most importantly, no park land will be sold.

Now, here’s the most important thing to know. There will be a city council meeting for final approval on March 22nd. Be sure to attend if this issue is important to you!

Learn more at their Facebook Page.

There will be a public charrette on March 10th to consider ideas of what could be done with the State Fairgounds.

What is a charrette? Well, first, a little background.

About every ten years, we begin to hear rumors that the State of Arizona wants to relocate the State Fairgrounds from its current location at 19th Ave and McDowell to some unknown location.

Thus far, the move has never come to pass.

This time, there seems to be a stronger push for a relocation. The Governor’s office issued a request for information (RFI) last March to get ideas of what the public would like to see happen. Some folks wanted to keep the fair where it is. Some wanted to move it and build homes. Some wanted a public park. One of the tribes even offered to take the fair to their land.

There are many ideas, plus most of us want to be 100% certain to preserve the historic buildings on the fairgrounds.

So, what can you do when there are so many competing interests? Well, you get them all in to a room with some smarty-pants architects and city planners for a day and share as many ideas as you can come up with. At the end, the architects and planners lock themselves in a room and come up with some ideas, which the present to the public.

That’s basically what a charrette is.

I have my idea of what should happen, but your ideas are just as important.

So, you can learn more on the State Historic Preservation Office’s Facebook page. Better yet, you can join us on March 10th.

Donna Reiner, a local historian and a good friend of Get Your PHX, has written many articles over the years for the Arizona Republic and others about what came before us. We use her services when we list properties of historic significance to help us tell the stories behind the homes.

We are happy that Donna is allowing us to re-publish some of her articles on a monthly basis. If you or your business ever needs a historian, let Donna know at laydeescholar@hotmail.com.

The old Ellis Building (photo courtesy of the McCulloch Brothers Collection, ASU).

Are you the type who buys new clothes each year to keep up with that year’s changing styles? For buildings, changes to a “new” style may be as simple as applying stucco over bare brick or removing parapets. Change is something we all encounter or recognize. Or do we?

Whether you are a long time resident of Phoenix or not, you may not realize that a number of fairly well-known buildings have a new outer shell. Yes, over time, upgrades were made to “modernize” their exteriors rather than starting from the ground up and you may be surprised by which ones.

The Ellis Building with its “new” clothes (photo by Donna Reiner)

The Ellis Building dates from 1923. Considered modern with its four stories and elevator, two additional floors were added in 1928 to meet the demand for local office space. By the 1950s though, the interior desperately needed upgrades with office and lobby space configurations and new elevator equipment. Still the exterior remained the same. However, the Ellis Building’s owners did something dramatic in 1962 before its fancy tall sleek new neighbor, the Arizona Title Building at 111 W. Monroe, opened in 1964.  But check for yourself when you drive by the former City of Phoenix Human Resources Building at 135 N. 2^nd Ave.

The original Korricks. (photo courtesy of the Phoenix Public Library)

Korricks “new” covering (photo by Donna Reiner)

Korricks Store at 106 E. Washington was one of the leading shopping places for Phoenicians to frequent in downtown Phoenix along with Goldwater’s, Hanny’s, and Switzer’s. Like the Ellis Building, its interior had been upgraded to keep up with the times and there had been some changes to the exterior. But the major changes would come later after it had served as the home for Maricopa Technical Community College for a number of years.  The new owner gave it a contemporary exterior and a new function: an office building.

In 1960, Fred Guirey, a local architect designed the Coronet Hotel at 1001 N. Central (the northeast corner of Roosevelt and Central). Later it was converted into office space. But in 1984, the building was stripped to its bare steel bones and concrete, received an entire new skin of glass which is the way you see it today. More square footage was added along with a parking garage.

The Coronet Hotel with a modern face. (photo by Donna Reiner)

If you are anxiously awaiting the opening of Cornish Pasty Company at 3 W. Monroe, try to imagine how the building once looked with its exposed red brick.

Sometimes we love the new clothes and other times we wonder what were we thinking. The same goes with alterations to buildings. Do you like the new look or prefer the old?

Have you seen these donation meters on the streets in any cities you’ve traveled in recently?

Evidently, Tucson has a program in place. Here’s an article about that.

The idea is to allow people to donate to combat homelessness by putting change (or using a card) at these refurbished meters, rather than giving money to the homeless directly.

There is an organization, called Real Change, which has been working on this issue, and placing meters around on street corners.

Homeless advocates are responding to these donation meters, on both sides. Here’s an interesting, but too brief, article about concerns that some folks have about donation meters.

Homelessness is a growing problem in downtown Phoenix. Since the Central Arizona Shelter Services (CASS) had to close down a building that housed hundreds of people downtown, we have seen an increase of people on the streets.

To be fair, despite all of the good work that CASS does, they can’t fully address homelessness with the conditions they are working under now. The Arizona legislature has for years cut the dollars that used to go to helping people who are in severe need to get houses.

Advocates will tell you that we need a completely different approach. Rather than warehousing people in poor conditions, many of whom are in need of behavioral health services, drug rehab services, healthcare and job location services, we need to give them affordable housing options where they as individuals are integrated in to stable neighborhoods.

This costs money in the short term, but pays for itself in the long-run.

As realtors, out goal is to make certain people have a roof over their heads, where they want to live. However, the massive build-out of apartments has not resulted in more affordable housing –even for moderate-wealth individuals.

Through 2018, we will focus on this issue. We will encourage donations to our Charity Referral Network to direct toward the housing crisis, and we will give personally.

What do you think?

Here is a great example of why it is important to know HOAs (Home Owner Associations). In particular, why you need to read the CC&Rs (Covenants Conditions and Restrictions), as well as the Rules and Regulations (which describe what you can and can’t do with the property) and Bi-Laws (which describe how the HOA is run) when you purchase a home with an HOA.

Have a look at this story about possible changes in state law regarding when an HOA can force the sale of your home, and how one state senator wants to make it even easier for HOAs to take your property.

Current law: HOAs can foreclose on owners if they fail to pay their dues for a year or get behind by $1,200 — whichever comes first.

Suggested law: One senator wants to allow HOAs to foreclose if you are only six months behind on HOA dues, regardless of the amount.

Have a look at this article from the Arizona Republic for a run-down of the status of the issue.

Here is our take on this issue. First, it is surprisingly easy to get behind six months for some people. We saw it a lot during and after the Great Recession. I served on an HOA board myself, as we dug our way out of that terrible time and back to financial stability.

Second, there are many ways that HOA boards and board members can pile on fees when members first get behind on dues, such that getting caught up gets even harder.

So, while this is less of a problem in a strong economy, it could become worse the next time the economy weakens.

We are not posting this to take a position on this bill. Rather, this is a lesson in the importance of reading your HOA documents during your inspection period.

We understand HOAs and we can help you if you choose to sell or buy in an HOA. Call us at 602-456-9388 for more.

As part of a larger strategic plan to raise awareness around climate change and public health, the Maricopa County Department of Public Health is launching the Climate and Health Champions Recognition Program.  They are seeking nominations for youth, individual community members, businesses, and organizations in the county, who are taking action to improve health in the face of a changing climate.

You may know some ideal candidates for these awards, and we’d love to hear about them.  The county is circulating this announcement to our existing community partners.

The Climate and Health Champion Awards recognize local youth, individuals, businesses, and organizations that are taking steps toward implementing sustainable solutions, eco-friendly practices, or policies aimed at improving health and/or improving health equity (through elimination of economic or social barriers to health) that are at risk of climate-sensitive hazards.

Climate-sensitive hazards are exposures such as poor air quality, heat, flooding, drought, wildfires, dust storms, vector-borne disease, etc. that put people’s heath at risk and are influenced by local- to global-scale climate change.

Here are some examples of what eligible projects might include:

• water collection/distribution to address high summer temperatures
• water conservation to address the potential for drought and water scarcity
• school or community garden building
• tree planting to increase shade or combat air pollution
• community cleanup/beautification to encourage walking or biking
• composting or recycling programs that reduce landfill trash
• energy conservation
• trip reduction and hybrid fleet programs
• assisting vulnerable populations (children and older adults, individuals with physical/cognitive impairment, individuals living in poverty, individuals experiencing homelessness, etc.) with adapting to climate change