Two weeks ago, Lyssa Hall, Senior Landscape Architect for Parks Development at Parks and Recreation told me about the Final Report on Greening America’s Capitals: Lower Grand Avenue, Phoenix (PDF).

The report provides short, mid and long term strategies for the redevelopment of Lower Grand Avenue into a vibrant corridor.

Here is a major development: it mentions a possible street car or trolley in the future. That is a HUGE win for the Grand Avenue Rail Project (GARP) which I wrote about a few weeks ago as being in danger of losing its Phoenix support when a neighboring city received a proposal to take our trollies and add them to their local museum.

The mention of the possible trolley in the Greening on Lower Grand report is not an endorsement by the city, but I believe that the city needs to get behind this economic development project.

I joined the non-profit Grand Avenue Rail Project (GARP) board shortly after it was first proposed and we are working to get recognition of what a great return on investment this represents. If funded, it would mean that you could ride the modern light rail in from the burbs, jump on the old Trolley and visit all the galleries and sites that will inevitably populate Grand Ave.

But, it is less about transportation than it is about what happens when you have a feature like this in an area like Grand. If you look at the buildings along Grand, most of them were built when Grand was THE shopping street in Phoenix. They are close to the road, the sidewalks are wide. Basically, the architectural environment is in place for new businesses to spring up. Behind those buildings are hundreds of old bungalows that have been largely neglected. A project like this will encourage historic renovation with the fervor that we saw around the light rail line recently.

That represents more dollars in the local economy, new businesses and higher value homes. All from a 1.5 mile trolley line.

And, who knows? That short trolley line could eventually make its way all the way around downtown. This is just a start.

Now, that’s economic development.

Now, as for the process:

It is the Parks and Recreation Department’s mission to be the best Parks Development Division in the nation. To this end, public meetings “community design workshops” were held over three days in Feb and March, put on by the Grand Avenue Merchant Association (GAMA) and the U.S. Environmental Protection Agency. The result of those meetings was finalized on September 10 by the Environmental Protection Agency and can be found in this Final Report:

The Streets Transportation Department will be presenting the findings from the workshop and report at the Parks, Arts, Families and Seniors Subcommittee on Oct 9th at 10am in Phoenix City Hall, assemble room A. If you are unable to attend the subcommittee meeting, they will be televised and archived for viewing.  

The estimated cost to build the trolley infrastructure, outfit a new museum on grand and operate the system: $10 million. I’ve heard transportation planners say $50. I think that is high for 150 year old technology.

Regardless, believe that the resulting new home sales, infill development and business starts along grand will be worth ten times that. Please contact your city councilmen and let them know that you support the Grand Avenue Rail Project.

This is part two of my little analysis of what you might want to consider when deciding between a house and a condo. So, let’s get right in to it.

1.      Gated security may be just what you’re looking for right now.

Perhaps you are living alone. Perhaps you like to know that there are people right next door. These are all legitimate concerns that condominiums (at least the good ones) seek to address.

Some questions to consider regarding security at condos:

• How careful is the management company with the common area keys or codes?
• Is the common are well-lit?
• Is the HOA paying for any live security? If so, how much does that impact the monthly assessments?
• When you look at the condo, does it look like the other condo dwellers take security seriously?

2.      Condos are often close to public transportation (the car-free life!)

One of the best things about urban dwelling is that you can leave that car in the garage, or just go without it completely.

Some things to consider when you’re looking for a condo:

• Some condos used to be apartment buildings and the parking may not always protect your car from the sun and weather while you are taking the light rail to work every day.
• The closer your condominium is to public transportation, the more likely that your condo will eventually sell for more.
• If you are thinking of the car-free lifestyle, also consider whether amenities such as groceries, the dry cleaners, and coffee shops are near-by.

3.      Condos maintain all the goodies: pools, landscaping, general maintenance.

 Especially on those hot summer days, it’s a great relief not to have to maintain your own landscaping, or pay somebody else to do it. This is especially helpful if the condo has a pool. Maintaining a pool at a detached residence house can cost thousands every year, and you may not even use it 10% of the time!

Some things to ask yourself before you buy a condominium**:

• Is the current HOA solvent? Do they have enough to properly maintain all of the features they promise when you buy?
• Who manages the property? Many HOA’s pay a management company to take care of details such as landscaping contracts and maintenance.
• How long has that company been working? How many properties do they maintain? What do the current residents think of their work?

** You can have a chance to ask these questions during the inspection period.

 4.      What is an assessment and what is expected of you in an HOA?

An assessment is a monthly fee on every unit in condo that goes in to a pot to pay to keep the place up. If you don’t pay your assessments, the HOA can record a lien against your property. If you have a lien against your property, you can’t finalize the sale of your condo to another person without paying off that lien.

The more units vacant in a condominium, the harder it is for the HOA to pay the bills.

Also, if there are outstanding big projects or maintenance issues on the condominium, or if the HOA board is not wise with its money (your money!), your assessment might go up every month.

Learn what you can about the HOA board, before you purchase a condominium.

5.      What is a CC&R?

CC&R means “Covenants, Conditions, and Restrictions”. It means, basically, that all of the people in a Home Owner’s Association agree that their property came with (and will go with, in the future) certain conditions and restrictions.

In other words, condo owners can’t just do anything they want with their condo.

CC&R’s outline everything from how often the board meets, to what is considered common property.

When you buy a condominium, inspecting the CC&R before your purchase is just as important as inspecting the condo’s wiring!

If you are part of an HOA, read what is expected of you in the CC&R’s. The best way to protect your investment is to stay involved in the HOA.

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.”