From the “In Case You Had Not Already Heard” department….

This news is a few days old, but I wanted to touch on it because this says a lot about all of the work y’all have been doing to emphasize supporting local.

The Arizona Capitol Times spoke with Phoenix Mayor Greg Stanton about it:

 

Not only is the city following a policy that provides for prudent and efficient investment, but provides additional funds for consumer and small-business loans in the local economy.”

Another reason for the city’s investment is to hopefully get a higher rate of return on some of Phoenix’s other investments. This move isn’t a totally unique one as several cities around the country have been implementing plans like this to manage their money in the fallout from the financial crisis.

It sounds like a novel idea and it stimulates and benefits the local economy, so why aren’t their reports of a high number of states and cities implementing such a plan? Says the Capitol Times…

Investing money in local banks isn’t easy. State law requires that the city’s bank deposits be insured by the Federal Deposit Insurance Corp. to prevent it from losing taxpayer money if the bank fails. The maximum federal insurance on low-risk investments that the city might utilize, such as a certificate of deposit, is $250,000. That could require the city to work with many banks if it hopes to invest anywhere near $50 million locally.

For these reasons, Phoenix mostly invests in U.S. government securities.

Jeff Dewitt, the City of Phoenix Finance Director said the city probably can’t invest more in local banks likely could not invest more in local banks given FDIC insurance limits. The East Valley Tribune also reported that Phoenix has a team of in-house investment managers who oversee its deposits and ensure that city funds are protected while earning the highest yield possible. Dewitt said the city is inviting local banks to submit applications with their investment pitches. He said proposals must be completely FDIC-insured or collateralized and offer a higher rate of return than U.S. Treasury notes.

As Local First so wonderfully reminds us,

The flow of these dollars will recirculate throughout the local economy, creating jobs and securing a strong economic future for our community. If you are a locally-owned and operated bank or credit union: Phoenix’s Finance Department will be accepting applications from local banks that have an interest in providing CDs and other FDIC-insured products to the city.  Local banks can contact the city’s Finance Department at 602-262-7166 for more information or to submit an application.”

Many of you know the role that monOrchid played in the establishment of First Fridays over 13 years ago, back when people still hosted raves and Clinton was still President.

You could not do First Friday without stopping first at monOrchid.

The recession slowed business for a while, but owner Wayne Rainey powered through with a rag tag fleet of artists, architects, designers and the like. Now he is announcing new additions and new incentives to his “creative  co-lab.”

First, for the uninitiated, a creative co-lab is a space where you can have office space at a great price and access to other folks in your industry. While you don’t necessarily need to be an award winning photographer, for instance (I’m not and I’m in here!), being here gives you access to folks with whom you can collaborate, market and create new ideas.

You also have free access to the conference room, wireless and a kitchen. Soon to come is a media room where you can print, cut, copy and touch-up. You can also have access to the industry standard cyclorama and event space.

The folks over at Co-Hoots have proven recently that there is a huge market demand for this and we all share the same vision for a creative hub in downtown.

So, what is new? First, the Songbird Coffee and Teahouse plans to open by July 9th, which will greatly increase foot traffic and give you the much-needed caffeine to get through your busy day.

Second, a bunch of us are moving in to help make this dream a reality: Get Your PHX, Stacey Champion and Cesar Chaves Design are the most recent.

Third, the massive loft spaces, which can be broken up in to affordable creative stalls, are available with a new price structure.

Finally, if you sign a contract between now and August 30th, you will get 25% off event space and studio rental for a year.

This is your chance to get inexpensive bricks and mortar in a reinvigorated downtown establishment.

See this link for floor plans, availability and prices.

Please call me at 602-456-9388 or ken@getyourphx.com for more information.

The Arizona Corporation Commission last week voted on proposals to reduce the solar rebates that utilities offer you when you install solar panels on your home. There is some debate within the solar industry about whether this is good or bad for the market, as a whole. But we  can say that your personal incentives will go down while incentives for central station power plant will remain the same. Three of these are the same Corporation Commissioners who voted to call a trash burning power plan “clean”.

There is a lot packed in to what I just wrote. So, let me explain. Stay with me because this is a crucial change in direction from the days when the Corporation Commission first started pushing the use of renewable energy.

First, some definitions:

Distributed Power Generation means people generating power from their homes. Good ol’ solar panels which increase your freedom, generate power where it is used and save you money.

Central Station Power Generation means big, remote power plants that actually waste energy as they send energy hundreds of miles to where you use it.

Corporation Commission is the constitutionally-empowered, elected body in Arizona which sets rates for power as well as how much renewable energy we use.

Rebates: we all pay a small amount of money on our bills, which goes in to a pot of funds. Some of that money can be used by people when they install solar on their homes, to bring down the cost. It is available to anybody who wants to use it …..until the money runs out. The current Corporation Commission is shrinking these rebates for regular folks and businesses in favor of big utility companies.

Second, some history:

When the Arizona Corporation Commission created the “Renewable Energy Standard and Tariff”, they divided money between central station (70%) and distributed power (30%). So, the money goes to paying down the higher cost of installing these technologies (which end up being cheaper in the long run). They gave more money to central station than to distributed because those projects are just bigger.

There is a traditional battle in the world of energy between distributed power and central station power. Utility companies like central station power because they have more control and, more importantly, they don’t lose customers (and money) when you decide you want to generate your own electricity. Freedom-loving, true patriots who want to throw off the shackles of Big Brother support distributed generation. (Am I showing bias here?)

OK, that was a little tongue-in-cheek. In reality, we need both distributed and central station. However, the current Corporation Commission is showing favoritism toward the wishes of the big power companies and they are ignoring the needs of regular home owners who want to save money and install solar.

Three of the five current Corporation Commissioners have shown that they don’t care about the overwhelming wishes of home owners to install solar energy and build our new energy economy.

Please take the time to learn about the three candidates for this year’s election who have a proven track record of supporting renewable energy. These three are all Clean Elections candidates.

– Paul Newman  www.paulnewmanaz.com

– Sandra Kennedy  www.kennedyacc2012.com

I’m very proud to announce a new listing that I have at the widely-coveted Villa del Coronado.

Please see this link for the listing information.

These condos, built in 1958 are one of the few quintessential examples of Mid-Century Modern design left in Phoenix. Did you know that one of our previous governors used to own a property here?

I use the word “coveted”, above because this community is absolutely pristine and sought-after by Mid-Century Modern buffs.

The owner of this property has renovated the bathrooms with beautiful modern features, opened up the great room. The Villa de Coronado community has two salt water pools, with one heated. It is also one of the few properties downtown with individual garage parking.

The community takes care of everything, even some maintenance for each unit. That way you can get out and explore, wether you are going across the street to the Phoenix Art Museum or to the light rail stop about 300 feet away.

These properties are co-operative condos, a rare breed in Phoenix. As such, the properties are kept in immaculate condition by people who are very particular about the type of property they own. It means that if you own one, you actually own a portion of a corporation. As such, all of your taxes, electricity, gas and other usual HOA fees are paid out of one monthly fee. It also means that these properties can only change hands by paying cash, with one exception –“seller carrybacks”. Financing is not an option.

To put it another way, because you are buying in to a corporation a lender is not likely to give you a loan.

What is a “seller carryback,” you ask? Check out this post from way back in 2010 about seller carrybacks and how they work. Basically, you can buy it directly from the owner through installments.

If you want more information about this unique opportunity, please give me a call at 602-456-9388.

My clients have just listed their new property for rent at 7th St. and Portland.

These townhouses were built in 2007, have all the latest modern features, secure garage space and pool access.

You can walk to First Fridays, or any number of great downtown activities.

Only $1,400 per month for a 2br/2ba 1,548 square foot townhouse!

Please contact me at ken@getyourphx.com or 602-456-9388 for more information.

We’ve reached a critical point as a city. Now in our hundredth year, the city of Phoenix has a terrible habit of demolishing it’s own history. Most of our historic properties are gone. As a city we need to constantly work to preserve historic properties in Phoenix.

The Lugo Bakery and W.L. Bobo House are two historic sites, built between 1910 and 1920 looking for investors to save the structures from disrepair. Written assessments have been done on both structures, but they need willing buyers to rescue them.

The Luis Lugo Bakery known originally as the La Pantellera was constructed in 1917. It’s a 2,000 square foot commercial structure, complete with a basement, 1,300 square foot addition, and vacant lot for possible parking. Overall, the Lugo Bakery is in poor condition.

Poor design, haphazard construction techniques,weathering, neglect, and unsympathetic renovations have not been kind to certain exterior building elements which require immediate attention to prevent further deterioration and/or lost of historic fabric. This building is in need of some serious TLC, ranging just under $400,000 according to the Building Condition Assessment Report.

The building has strong potential as an office, art gallery, sandwich/coffee shop, or bakery (duh). The bakery and grocery store was in continuous use for
nearly 50 years. The Luis Lugo Bakery is a rare example of an early Hispanic commercial
property in downtown Phoenix and should be saved

The property has a two story private residence attached, which is also in disrepair. This update is estimated around $170,000

The W.L. Bobo House  is in the McKinley Park subdivision. The W. L. Bobo House, a charming Craftsman bungalow at the southwest corner of 13th & Roosevelt Streets, is threatened with demolition.  It’s on a double lot and has a porte cochere on the 13th Street side and a detached garage at the rear. The house has numerous architectural features that set it apart as an unique design. Character-defining features include:

• Medium-pitched intersecting gable roofs
• Gables with decoratively cut wood shingle siding
• Broad porch on stuccoed brick piers, supported on massive, tapered cobblestone bases
• Cobblestone foundation wall at porch, and battered cobblestone chimney mass
•  Trellised porte-cochere
• Double-hung and casement wood windows, some with leaded and beveled glass

It’s a true fixer upper, but the building is in pretty good shape considering it’s from 1912. The house needs new roofing, the foundation needs repair, and some window fixes and a fresh coat of paint would do it some good. The interior needs all new plumbing, heating, electric, and replacement woodwork. Most of the fixes are minor, and according to the  Building Condition Assessment Report the total updates would cost approximately $143,240.  This residence could have a future at a single family home or a business/art gallery depending on the buyer.

Despite the cost , rehabilitating the residence would undoubtedly broaden the historical setting of the Lugo Bakery and Bobo House and add charm to the street scape. Historic Properties like these are priceless to our community’s history and future.

Short sales sound worse than they are.

Two years ago they took a lot longer and confused many more people (agents and lenders, alike). Now the systems are in place to make these transactions close more smoothly.

Even more important, if you qualify for the HAFA Program, you could get up to $4,500 for short selling your home!

A short sale is where the seller owes the bank more than than the property is worth. The term “short sale” literally means that the property is being sold “short” of what the seller owes the bank. In a short sale transaction the bank must agree to accept less money than what the seller owes and agree to release all liens on the property so that the property can be sold.

If you’re thinking about short selling your home there are a few short steps to the process:

1. Find an Attorney to speak to about your short sale. This shouldn’t cost you a lot of money. You can usually get an initial consultation for about $250. You DON’T need to have an attorney negotiate with the bank for you. If you have a tax attorney or CPA, speak with him or her, too!

2. Get your Property Listed. Listing your property with a seller with short sale knowledge is key to a smooth transaction. This is where I come in.

3. Find a Buyer. You should know that the average “days on market” are much, much lower now than they were even six months ago. This really should not take us long.

4. Send a contract to your lender along with proper documentation. We’ll work with you to make sure all the paperwork is in order for quicker approval. This is the part of the process that takes the longest. But I can take much of the pain out of this.

5. Get Approval and Close Escrow. This part goes largely the way normal sales go –inspection, appraisal, close of escrow.

16th Street Should Not Be Ignored

That is the message of Por Vida Gallery. Our January 2011 Get Your PHX was a celebration of 16th St. and we are going back to see what’s new.

Por Vida owners Pablo Luna, Thomas “Breeze” Marcus, and Lalo Cota have a foothold and a new statement that they want to share with you.

Lalo Cota tells us that 16th is the next logical step in art in Phoenix. First Friday, he says, can’t be about just 3rd and Roosevelt anymore. He tells us that space has become too much about food and artists are struggling. So it is time to expand.

Come see if the leading edge of art in Phoenix truly is making a move east and see Douglas Miles’ transfixing =Apacheria= show in which Miles challenges cliché images of Native American life through mixed media.

This will be the most engaging Get Your PHX that we’ve hosted for some time. So, don’t miss it!

Special sponsors to be announced soon!

Please join us and RSVP at our Facebook Fan Page.

March Get Your PHX
Thursday, March 22nd from 5:30 to 7:30pm.
2800 N. 16th St
Phoenix, AZ 85006 Map Here

This weekend marks the 11th annual M7 Street Fair. The fair and  classic car show features indie crafts, live music, food, cool cars, shopping, vintage trailers and fun for kids in Downtown Phoenix.

Every street fair that we have, every open market goes to building a better downtown. You just don’t get this sense of community in pre-planned developments. I’m just sayin’.

The first fair was 11 years ago, when local vendors partnered up with the School of Architecture at ASU to revitalize phoenix and a deteriorating Melrose Curve. The merchants received grant money from the City of Phoenix Neighborhood Fight Back Program and with the support of the surrounding neighborhoods, the Melrose District began to rebound.  One year after the Seventh Avenue Merchants Association incorporated, they held a “street fair” to commemorate the building of the first lighted canopies on Seventh Avenue.

Just over a decade later, what started as a 6 vendor street fair has grown into a highly anticipated family event with over 140 booths, food, live music, over 200 classic cars, and almost 18,000+ visitors

Its happening this weekend, March 3, from 11 a.m. to 5 p.m. at 7th and W. Glenrosa Avenues

We’ll you there! I’ll be out there with Ru visiting the booths and all that fun stuff.

Did you know 40% of single family and condo sales in Greater Phoenix in January were cash purchases. Now, I’m not talking about sacks or briefcases full of cash, but people are buying homes outright and their are some benefits.

• Psychologically,  there is a big benefit in knowing that you own your house free and clear. You also free up quite a bit of income because you will have no rent or mortgage.
• Buying a house with cash means that if the value of the home goes down by 10% then the money you put in also goes down by 10%. The most you can lose is the amount of money you put in. In the case of a 20% down mortgage, if the house’s value goes down 10% then you lose 50% of the money you put in because of leverage.
• When you have the cash to pay for the full amount of a house, it means that there will be no contingencies on getting a loan and the amount of time needed to close a deal is shorter. This generally gives you the buyer more negotiating power for a discount on the price of the home, and with the number of homes on the market quickly drops timing is everything.

But is it for you? Well there’s no tax advantage. But if the amount of cash you spend does not consist of a significant portion of your liquid assets and the amount of savings you get from an all cash deal versus a loan deal is significant, cash might be for you. In other words, you might be earning more money on your investment in a house than other investments.

Now, I’m not a financial advisor and I suggest you speak with one before you purchase a home. But if you want to know more about the market, please give me a call at 602-456-9388.