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This article originally appeared on azcentral.com.
Fights over housing take place at city hall.
It’s where developers, elected leaders and residents come to argue over what, where and whether something should be built. That’s because mayors and city councilmembers decide how land is used. It’s why, in most Arizona cities, homes sit next to homes and Walmarts next to Home Depots.
This article originally appeared in the Phoenix Business Journal.
The buildout of one of the largest pieces of land left to be developed in Gilbert’s Heritage District could be spaced out in phases.
Heritage Park, a nine-building, mixed-use development planned by Phoenix-based developer Creation Equity, is headed back to Gilbert Planning Commission on Jan. 3 for minor design revisions and possibly a new timeline.
The project, reported to cost around $300 million, received approval in early 2022 to be developed in a single phase across nearly 12 acres on the southwest corner of Juniper Avenue and Gilbert Road. Creation has since filed updated plans that split the timeline over two phases.
How a serial entrepreneur is tackling housing scarcity in a different, sustainable way.
This article originally appeared in AZRE magazine.
Whether it’s raw land with no utilities, a complicated infill parcel, or a prime commercial corner, developers face a variety of challenges when attempting to bring their vision to life. Strategies for successfully navigating development rights and the complex web of zoning regulations, permitting processes, and local politics vary from jurisdiction to jurisdiction and require expertise and strong relationships. Even when a property might appear to be a perfect fit for a developer’s market strategy, unforeseen issues can arise.
This article originally appeared in the Phoenix Business Journal.
Wisconsin-based Ashley Furniture Industries Inc. has received the initial green light needed from the city of Avondale to build a new manufacturing and distribution center west of Phoenix.
Ashley Furniture is planning to develop a new 1.05 million-square-foot industrial facility on 75 acres in the West Valley city at the southwest corner of Interstate 10 and 107th Avenue.
This article originally appeared in AZ Big Media.
Every year, AZ Big Media, which publishes both PTK and AZRE magazines, selects Arizona’s top people and projects to showcase in its premier commercial real estate magazine — PTK — from an impressive and competitive nomination pool. Each day we will highlight 20 different categories of People to Know. Here are the real-estate attorneys to know in Arizona for 2024:
This article originally appeared in the Phoenix Business Journal.
The Church of Jesus Christ of Latter-day Saints — one of the largest private landowners in Arizona — plans to develop a gated rental community in Queen Creek.
On Oct. 18, the Queen Creek Town Council unanimously approved zoning changes to the land near Pima and Meridian roads to pave the way for development.
No market segment has performed better than industrial development in Phoenix in recent years. The market is shattering absorption records and attracting major manufacturing, tech and semiconductor users. Changes in recent finance and interest markets have shown some influence on new construction, but the overall outlook remains optimistic. In this episode we cover the state of the industrial market with Tyson Breinholt of Commercial Properties Inc. and Kevin Miller of Kitchell.
What’s the point of great land use entitlements if you can’t secure the financing to make it all possible. Having a finance concierge is key to the effort, and precisely what Adam Finkel at Tower Capital does.
Securing project financing is just as important as securing the land use entitlements. Without it, you’ve got nothing. George Weisz and Neill LeCorgne from Scottsdale Community Bank give us a peak on the creation of a community bank and how it serves underbanked communities.
By Adam Baugh and Alex Hayes
Whether it’s raw land with no utilities, a complicated infill parcel, or a prime commercial corner, developers face a variety of challenges when attempting to bring their vision to life. Strategies for successfully navigating the complex web of zoning regulations, permitting processes, and local politics vary from jurisdiction to jurisdiction and require expertise and strong relationships. Even when a property might appear to be a perfect fit for a developer’s market strategy, unforeseen issues can arise.
An issue we see regularly is when a property’s existing entitlements do not align with a municipality’s vision or goals for the area. As the Valley matures and the remaining vacant parcels finally develop, some municipalities have opposed development that does not align with their vision, even when the existing entitlements permit the use. This can create a complicated dynamic for a developer, especially when they expect to have future development opportunities in that city. Is the proposed development worth potentially affecting a long term relationship? How steadfast is the municipality’s opposition? How far are we willing to go to protect development rights? These are a few of the questions developers may ask themselves. In such situations, it is essential to have a clear understanding of the property’s entitlements, what development options exist, and what the implications are for each of those scenarios. To be successful, developers must do the following:
1. Due diligence
2. Know your facts – What’s allowed?
3. Know your process – Administrative or discretionary?
4. Manage expectations
At the end of the day, most cities and towns in Arizona are pro-development with supportive planning staff and decision makers. However, the devil is always in the details. Having an experienced land use counsel on your team to navigate the regulatory and political minefields can be the difference between a successful project and a lawsuit.
Lawyers you say? Yes indeed… but not just any lawyers, we are talking land use, planning / zoning, real estate and government affairs. Look at it this way, they are the hidden team behind every build and development, taking the intricacies and making them reality. Tune in here…
While our zoning case work creates headlines, reporting on it is better left to journalistic experts like Roland Murphy, AZBEX Digital Magazine. We hope you enjoy a different take on the Dirt to Development podcast with an expert in covering real estate news.
This article originally published on AZ Big Media.
On Aug. 3, commercial real estate leaders gathered for the 9th annual AZRE Forum to share their thoughts for a mid-year industry update. Sandra Watson, president and CEO of Arizona Commerce Authority (ACA) gave the keynote, followed by two panels: one looking at the market from a broker’s perspective and another focusing on what’s driving development. Here are the highlights and what the experts say to watch in commercial real estate.
Liquor laws are often an afterthought when it comes to rezoning new property, but sophisticated developers know to tackle that issue early in their due diligence phase. This is precisely what Withey Morris Baugh can help solve. In this episode we share practical advice and great stories to help you navigate Arizona liquor laws before building new developments.
In an effort to increase housing supply and improve affordability, the City of Phoenix plans new changes to its #zoning code.
The first involves #ADUs (Accessory Dwelling Units). Phoenix recently announced its plan for legalizing backyard casitas, duplexes and triplexes in an effort to combat Arizona’s affordable housing shortage. The new policy would allow smaller ADUs in residential areas where there is an existing single-family home. The law also adds definitions for duplexes and triplexes to distinguish them from ADUs.
Additionally, Phoenix plans to reduce the minimum number of parking spaces it requires apartment developers to build. Currently, city code requires a minimum number of parking spaces for new apartment communities. The new Phoenix proposal would sharply reduce that number across the city, with greater reductions allowed for affordable housing complexes and developments near light rail.
For example, a 100-unit apartment complex near light rail could see the requirement lower from 113 required spaces to 50 spaces. If it’s an affordable complex in one of those communities, the parking quota would, in most cases, fall to zero. A 100-unit complex elsewhere in the city would go from 150 spaces to 125 spaces. If it’s an affordable complex but not near light rail, it would go from 150 required spaces to 63.
Phoenix City Council is scheduled to vote on the parking law change and ADU policy in September.
This article originally published in AZRE and AZ Big Media.
If you’re looking for a crystal ball to look into the future of real estate development, taking a deep look into the work being done by a land use and zoning law firm might be as closest you can get to the mythical crystal ball. Land use/zoning and real estate law firm Withey Morris just rebranded to Withey Morris Baugh and Jason Morris and Adam Baugh share five reason why zoning/land use is a leading economic indicator of where the Valley will be in two years.
When former Senator Steve Kaiser proposed legislation to dramatically change zoning laws in 2022, it created huge shockwaves across Arizona towns and cities. A second attempt in 2023, created a similar reaction before the proposed legislation eventually lost steam at the state capital. The motive were noble though, and driven by a cause to provide better access to housing and remove barriers that impede new development. We were delighted to record this conversation with Senator Kaiser during the middle of that fiery debate among policymakers on a highly critical issue in Arizona.
by Adam Baugh and Alex Hayes of Withey Morris Baugh
In Arizona, dealing with water scarcity is a way of life. Through feats of engineering, political deal making, and forward-thinking policies, the State has fostered sustainable growth and enabled economic activity to blossom in the desert. Though that remains more true today than ever, recent events have contributed to a misunderstanding about the state’s water future and its impact on development.
On June 1, Governor Katie Hobbs announced the results of the latest groundwater model prepared by the Arizona Department of Water Resources (ADWR) for the Phoenix Active Management Area (AMA). The new model, which is intended to forecast the amount of available groundwater over a 100-year period, found that 4-million-acre feet of the simulated groundwater demand would be unmet. As a result, Governor Hobbs announced that ADWR would no longer issue new certificates of assured water supply in the AMA for development relying on groundwater.
Predictably, the result was confused hysteria. National media with little knowledge or experience with the intricacies of Western water law unleashed sensational headlines; the New York Times said “Arizona Limits Construction Around Phoenix as Its Water Supply Dwindles” while the Los Angeles Times wrote “Water Concerns Prompt New Limits on Growth in Arizona.” And our favorite from The Hill: “Arizona Seeks to Avert Groundwater Disaster.” What these stories lacked in nuance they made up for in gusto.
Unfortunately, headlines have consequences and many national developers, home builders, and lenders were suddenly wondering whether they should be worried about Arizona. This forced economic development professionals in the Phoenix metropolitan area to scramble to assure businesses looking at the region that we do, in fact, have ample water to support continued growth and development. Though some areas on the outer edges of the metro area will likely need to secure new water resources, the vast majority of municipalities in the Phoenix AMA have been designated by ADWR as having sufficient water to support development within their service areas. There are also tens of thousands of new homes that have already been approved but have yet to be built. These are not affected by the Governor’s announcement.
The reality is the announcement from Governor Hobbs is an example of Arizona’s progressive water management policies working as intended. The “unmet demand” represented just 4% of the projected demand over the 100-year period. There are many variables that will impact the actual groundwater use, including the timing of when approved developments actually come to fruition. There are also opportunities to augment our water supplies with new surface water resources and reclaimed water (i.e. treated wastewater).
There is much work to be done to ensure a successful water future, same as ever. But Arizona continues to be a national leader in water management and sustainability. We won’t hold our breath for that headline.
This article originally appeared in The Foothills Focus.
The City of Phoenix Planning Commission approved a 114-acre residential community located on the most northerly piece of property in Phoenix for Arizona home builder Bela Flor.
The land is located just six miles away from Taiwan Semiconductor Manufacturing Company’s (TSMC) manufacturing plant, which is what brought the opportunity for residential needs.
Read more…
This story originally appeared on NPR’s “All Things Considered.”
Arizona is limiting development in the Phoenix metro area due to a lack of groundwater. But the development party isn’t over.
MARY LOUISE KELLY, HOST:
The metropolitan area of Phoenix, Ariz., is growing rapidly. A recent state analysis shows Phoenix does not have enough groundwater to sustain that rate of growth over the next century. But developers say, hang on. That is not the whole story. From member station KJZZ, Katherine Davis-Young reports.
Development might seem repetitive, like jumping a rope, but there are plenty of areas where you can get tripped up. Recessions, raising equity, obtaining entitlements, securing financing, etc. can all become huge hurdles, but the best developers always find a way to succeed. Listen in as Larry Pobuda shares how he has created success in both the best, and worst, economic conditions.
This article originally appeared in the Phoenix Business Journal.
In the past several days, Chris Camacho, the CEO of the Greater Phoenix Economic Council, said his organization has fielded about 200 messages from stakeholders who have raised questions and concerns over Arizona’s future.
The texts, calls and emails poured in from national site selectors, investors and their clients wondering if the Phoenix metro could no longer support the substantial growth it has experienced for years in housing, population and economic development.
This article originally aired on KJZZ.
Arizona’s housing market has been booming in recent years. But now, due to projected groundwater shortfalls, the state is going to start limiting some housing development in areas that rely solely on groundwater. What will that mean for growth in the Valley?
“I think it’s going to be perceived in a sensational way, which is unfortunate,” said Mark Stapp, a longtime Arizona developer and director of the real estate development program at ASU’s W.P. Carey School of Business. “You get people who are making investment decisions who read these kinds of things without all of the facts and they’re going to make decisions based upon that risk.”
Stapp said the governor’s announcement should not be taken as a signal that development is going to stop in the Phoenix area, but he does expect it will mean some changes for the industry.
“We’re going to have to stop and think about how we’re going to continue to develop,” Stapp said.
Stapp said the majority of new housing construction in the Phoenix metro area in recent years has been on the outer edges of the Valley. Those areas, with less established water portfolios, are likely to be the most impacted by the new policy. So developers may now see more competition for space within cities, where water rights are more secure.
But infill development comes with challenges, said land use and zoning attorney Adam Baugh.
“Those infill sites have no problem obtaining water,” Baugh said, “But there’s a built environment already, neighbors around you, street limitations, drainage considerations, utility access. There’s a reason they’re some of the last sites leftover.”
That could create a need for legislation to change zoning rules, Stapp said.
“Our zoning ordinances and local politics don’t typically support the kinds of infill development that would accommodate the amount of growth we have to have if we’re going to shift from the periphery to the interior parts of the Valley,” Stapp said.
That’s a critical concern, Stapp said, because Arizona already has a housing shortage and will need to continue building more inventory to accommodate its growing population. He expects new limitations on some development could impact housing affordability in the region.
But he thinks rules to make development more sustainable will ultimately be good for Arizona’s economy.
“Even though there will be some players in this marketplace that will be hurt by it, the overall good of the metropolitan area is what we should be focused on and I think that’s what’s happening here.”
Among the factors to consider in creating a site plan, one that is often overlooked is crime prevention and threat assessment. Listen as Shawn Prinkey from Prinkey Consulting shares how developers should reconsider this aspect early in their site plan design process.
Not all sites are created equal and some require serious problem solving with local land use counsel. Scott Whittington from Avalon Development shares how he was once the office King of Albuquerque and how he pivoted towards retail sites across Arizona with the help of his favorite zoning attorneys.
This article originally published in the Phoenix Business Journal.
Ashley Furniture Industries Inc. is moving closer to building a new 1 million-square-foot manufacturing and distribution facility in Avondale.
The Wisconsin-based home furniture and decor retailer wants to develop two buildings including a 503,491-square-foot building with a mix of an 85,000-square-foot retail showroom, an office, a call center for 200 people and warehouse space for distribution uses. The second building will feature 551,039 square feet with manufacturing, distribution and office uses, according to project documents submitted to the city near the end of 2022.
The Design Review Board is a step in the entitlement process but it can be tricky to win over. Depending on the quality of the design, it can either be a comedy roast for a poorly-designed project, or a coronation for great development. In this episode we debate the merits of the DRB with a current DRB board member Scott Thomas and local architect Korey Wilkes.
by Adam Baugh and Alex Hayes of Withey Morris Baugh
The past decade has brought tremendous economic growth and prosperity to Arizona and its metropolitan areas. Lured by a supportive business climate and a high-quality workforce, businesses large and small have been flocking to the desert.
This economic boom has had profound positive impacts and helped Arizona emerge from the pandemic with a strong tailwind. However, it also amplified issues around housing affordability and availability that have often been overlooked.
It goes without saying, the demand for housing is simply outpacing supply. In particular, the Phoenix area ranks first among all tracked major metropolitan areas from October 2020 to October 2021 with a year-over-year increase of 32.35% in population growth, per the S&P CoreLogic Case-Schiller U.S. National Home Price Index. According to the Arizona Department of Housing, the state is short 270,000 housing units. At some point, this supply shortage and the resulting affordability challenges will begin to hinder our economic growth.
There are a number of contributing factors to the housing shortage including supply chain constraints, permitting regulatory delays, and the influx of new residents from pricier markets. However, one common critique is the pace at which local municipalities approve, delay, and oftentimes deny new housing options. Whether it is NIMBY-ism, strategic area goals, or high application workload, it has become increasingly difficult to approve new housing at the very moment it is most needed.
In response to local delays, a bill was proposed in the Arizona State Legislature seeking to address the issue head on. Though ultimately failing to gain sufficient support for passage, Senate Bill 1117 proposed to overhaul local municipal zoning powers in an attempt to accelerate new housing development.
The bill would have created “by right housing,” dramatically changing the real estate development landscape in Arizona and forever altering the way municipalities plan the growth of their communities.
For example, SB 1117 would have prohibited all municipalities from requiring minimum lot sizes over 4,000 square feet, effectively permitting 10 residences per acre by right. In larger municipalities with populations over 25,000, the bill would have permitted new multifamily development at densities equal to the greatest ever approved in that municipality and with maximum heights of at least 60 feet by right in many zoning categories.
And the kicker: these larger municipalities would have been required to administratively approve all applications to rezone property for residential use, eliminating the requirements for public hearings and citizen participation. These changes alone would have a substantial impact on the look and feel of our communities across the state. The implications could have been profound, impacting the availability of water resources, strategic planning, and responsible growth.
We recognize the good intentions behind a pro-housing bill like SB 1117. However, in an effort to solve housing pressure, it pre-empted local control in many areas that are most critical, such as building heights, density, location, uses and more.
Much work is needed to eliminate barriers to new, diverse housing options but legislation that removes municipal oversight is a heavy hammer to swing. Though well-intentioned, SB 1117 would have eliminated a process that plays an important role in shaping our neighborhoods, towns, and communities.
For now, SB 1117 has stalled, but related legislation is still under consideration in the current legislative session. There is no denying that solutions are needed to increase the supply and availability, and in turn, affordability of housing in Arizona.
Experienced architects and engineers know better than to navigate zoning matters solo. Hear why David Bohn and Nicole Posten-Thompson utilize local zoning counsel early in their design efforts.
2022 was a banner year for Withey Morris Baugh and our favorite restaurant – Tarbell’s. Who better to recap it with than an Emmy Award winner, James Beard nominated, Paris-trained, two-time inductee to the Arizona Hall of Culinary Fame, and award winning restaurant owner, Mark Tarbell!!
This article originally appeared in the Phoenix Business Journal.
Withey Morris PLC, one of Arizona’s leading land use and real estate law firms, has added the name of partner Adam Baugh to its masthead.
The firm is now known as Withey Morris Baugh PLC.
This article originally appeared in The Goodyear Independent.
Goodyear City Council approved a special use permit for a recreation vehicle storage condo concept designed to alleviate HOA restrictions for RV users.
The business, called Luxelocker, is a novel concept that allows individuals to store recreational vehicles in storage units. The catch is the storage unit is considered a condominium for actual property purposes. Those consumers can buy, rent out or sell that storage property for RVs, boats, and luxury vehicles.
Quick Land Use Update with Ben Tate: Recapping new state law regarding Major General Plan Amendments and why you should talk to your land use attorney immediately.
This article originally published in the Surprise Independent.
The vision of Surprise just after the turn of the century and the reality of it about 20 years later are dramatically different — witness Asante and its surrounding area.
This housing development just north and west of the intersection of 163rd and Grand avenues stalled for nearly a decade. One major retail development planned near the Asante entrance, bought by New York-based Kimco Realty in 2007, was in limbo as the developer’s original plans of a large outdoor retail center became increasingly less viable.
This article originally appeared in the Phoenix Business Journal.
The Asante planned area development was expected to include a regional power center, but after the Great Recession and other challenges, the longtime landowner and its development partners are proposing a different project for the area. Here’s what’s in store.
The site is located in the Asante area along Grande Avenue at the southwest corner of Pat Tillman Boulevard and 163rd Avenue.
From pinstripe suits and cowboy boots, to Auto malls and State Land, few people have had more of an impact on local development than Mike Withey, Co-founding Partner of Withey Morris, PLC and a beloved friend to Jason Morris and Adam Baugh. Enjoy the laughs with us as we take a trip down memory lane and learn why finding friends at the kegger on the first day of law school pays off in the long run.
The state of the residential land market, future projections, and why Arizona is well positioned for long term success.
This article originally appeared in the Phoenix Business Journal.
The city’s approval for the new industrial park comes about two weeks after it narrowly passed a separate industrial project near the Loop 303 due to resident concerns. The attorney who represented the developer praised the residents who at first opposed the deal and showed a willingness to compromise.
This article originally appeared in the Phoenix Business Journal.
Buckeye City Council moved forward this past week with multiple requests that could bring new commercial and residential development to the growing municipality west of Phoenix.
An existing master-planned community called Westpark south of Interstate 10 on both sides of State Route 85 will now be slated for a mix of uses including industrial, retail, restaurants and thousands of residential units.
What does Elvis at Las Vegas, The Beatles on the Ed Sullivan Show and the Dirt to Development Podcast at the AZ American Planning Association have in common? History making, wild fans and great performances. Listen as we regale audiences at the APA conference with a little back to the future planning knowledge.
When Greg Vogel started with Coldwell Banker in the early 80’s, little did he know about the value of land databases. In the 40 years since, he created Land Advisors Organization, one of the premier land brokerage firms and leaders in PropTech. Listen as Greg shares how he went from Fraternity Brother to Land Guru while thrusting Arizona to new development frontiers.
This article originally appeared in the Phoenix Business Journal.
Once a sleepy bedroom community, Surprise is gearing up for massive economic growth.
The city of Surprise, one of several fast-growing suburbs in the West Valley, has historically been known to longtime residents as a sleepy bedroom or retirement community.
But as the Phoenix metro continues to attract attention and new industries expand to the Grand Canyon State, the city of about 150,000 is seeing a shift in its population, housing and commercial offerings — and its image.
This article originally appeared in the Phoenix Business Journal.
On a 4-3 vote, a new mixed-use project that could bring millions of new square feet for industrial use will move to Gilbert Town Council.
Gilbert Planning Commission recommended approval of the project, called The Ranch, on Thursday, according to Dan Henderson, Gilbert’s economic development director.
Development has inherent risks which is why it is critical to be responsive to new trends and land use changes. Listen to our friends at Thompson Thrift talk about how they make commercial development an experience and destination to adapt to land use trends.
This article originally appeared in the Phoenix Business Journal.
A pair of big industrial projects could bring more than 5 million square feet of industrial development to Gilbert.
Phoenix-based Creation Equity is proposing Lindsay 202, a 1.4 million-square-foot industrial project on Lindsay and Germann roads off the Loop 202. Nine miles to the northeast, Las Vegas-based IndiCap and partner Salt Lake City-based Colmena Group are proposing The Ranch, a 4.1 million-square-foot mixed-use project on more than 300 acres mostly on the southwest corner of Elliot and Power roads.
This article originally appeared in the Arizona Republic.
A vacant stretch of desert on the east side of Interstate 17 just past Anthem is the northernmost point in Phoenix, and it’s about to be developed.
Bela Flor, a Mesa-based developer, wants to turn the 114 acres north of Circle Mountain Road into apartments, single-family house rentals, townhomes and for-sale houses as employment growth in north Phoenix drives demand for more housing. In total, 1,116 units are planned.
In sprawling Phoenix, the property is about 30 miles from downtown — but near Loop 303 and the 17, where Taiwan Semiconductor Manufacturing Co. is opening a massive chip manufacturing plant in 2024.
In early 2022, Arizona municipalities and cities were shocked to learn about a proposed bill in the Arizona State Legislature that would drastically handcuff municipal zoning authority in order to bring more affordable housing to market. We call it the Zoning Attorney Job Killer legislation. Thankfully, it didn’t advance, but the bill started a conversation about how Arizona might consider tackling the affordability issue facing housing today. Caleb Rhodes, Majority Policy Advisor at the Arizona House of Representatives, gives some background and insight on what might be on the horizon down at the State Capitol.
Join the Phoenix Business Journal for the latest in its series of real estate-focused virtual events that highlight key Valley cities and submarkets. These events bring together real estate sector executives, market experts and municipal economic development officials.
This event, hosted by Editor-in-Chief Greg Barr and economic development reporter Audrey Jensen, will focus on current and future development in the fast-growing West Valley city of Surprise. Surprise Mayor Skip Hall will deliver the opening remarks.
Read more and register here...
This article originally appeared in the Arizona Republic.
A plan for a 40-acre vacant field near Mercy Gilbert Medical Center aims to “create something different, unique and special,” a representative for the developer said.
Indiana-based Thompson Thrift, which has several other projects around the Phoenix area, is proposing a mixed-use project that will include a grocery store, apartments and restaurants surrounding public open space on the site, at the northwest corner of Val Vista Drive and Germann Road.
The project, called the Gilmore, includes 194,000 square feet of new commercial development, along with about 300 apartment units.
Adam Baugh, partner at Withey Morris and zoning attorney for the project, said the apartments will include loft units built above some of the commercial space toward the center of the development and a standalone apartment complex on the northwest corner.
Stay informed and up-to-date on the latest developments in land use and zoning law with insights and analysis from our experienced team of attorneys.
Read Our Blog
