The East Valley in 2008: A look ahead

Cities are scrambling for money. The housing market is in the cellar. And the economy is shaky at best. Yes, the Super Bowl will dominate the headlines for the next month. But that’s not likely to be the biggest story of 2008.

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Local elections will bring new political blood to cities where immigration has become the lightning rod for debate and dissension. Population growth continues to push people to the East Valley where buildings are still going up and major projects are pushing ahead.

Here’s a look at eight local issues and events we expect to lead the news in 2008.

HOUSING AND ECONOMY

No quick fixes are in store for the Valley’s weakened housing market in 2008, as it continues to battle an oversupply of homes, foreclosures, rigid lending guidelines and timid buyers.

More than 50,000 existing homes are still for sale throughout the Valley, and industry observers say sellers will have to lower prices or take their homes off the market to balance supply and demand. Builders of new homes also will continue to get rid of excess houses and start offering smaller, more affordable ones. And another wave of foreclosures is in the forecast, though experts expect lenders to work more with distressed borrowers.

LOCAL ELECTIONS

Mesa’s political landscape will change dramatically in 2008. Voters will elect a new mayor in March and usher in a change of the guard in four of the city’s six City Council districts, where council members are being forced out by term limits.

The reconfigured council will face the prospect of pushing for a property tax election in November to balance the city’s checkbook — even after a clear defeat of a property tax in 2006.

They’ll also wrestle with Mesa’s immigration policy at a time when Valley communities continue to enact their own law enforcement measures to curb illegal immigration.

In Chandler, the mayor’s seat as well as three City Council spots are up for grabs, too.

Chandler voters will decide who will lead the city through unprecedented and potentially challenging times. The next council will have to deal with a city that can no longer expand geographically and could see less tax revenue coming in from the state. That will test how the city uses its resources and still deliver quality services.

MESA FINANCES

Fresh off multimillion dollar budget cuts put in place 18 months ago, Mesa could face just as ugly a scenario during the next year or so.

A flagging housing market and softening economy could combine to create an estimated $13 million deficit in Mesa’s coffers by the end of the 2008-09 budget year.

That budget gap has already led to a city hiring freeze in the waning days of 2007.

Depending on the outcome of an anticipated controversial property tax election in November, the city could have to cut even deeper into an already bare-bones budget.

IMMIGRATION

The Valley’s growing Hispanic demographic has made it one of the battlegrounds in a national debate over illegal immigration, and nowhere is that more apparent than Mesa. One of every four city residents is Hispanic, and that minority population is anticipated to continue growing at a rapid pace. Chandler also has a solid Latino community that’s also on the rise.

The immigration debate will figure in elections and city business as well as in the private sector. A new law that took effect Tuesday punishes employers who knowingly hire undocumented workers and Mesa’s Latino business community already is feeling the pinch, as residents leave the city for states without such restrictions.

Public safety also has become a factor in the immigration debate. Mesa and other city police officials have been at odds with Maricopa County’s sheriff and county attorney over the extent that local officers should crack down on illegal immigrants and the issue remains controversial.

LOOP 202

The freeway system voters approved in 1985 will finally be complete — sort of. The last piece of that system, a five-mile section of Loop 202’s Red Mountain Freeway from University Drive to McKellips Road in Mesa, will open this summer. Two parts of the system weren’t built: The Paradise Parkway along Camelback Road was axed, while the South Mountain Freeway was delayed and may take close to a decade to complete.

LIGHT RAIL

The 20-mile Metro light- rail line will open Dec. 24 after years of heated debates over its value and three years of disruptive construction. It’ll be the Valley’s first rail transit system since Phoenix derailed its trolleys just after World War II. The $1.4 billion system will open as gas prices are rising and congestion is growing. Metro is projected to carry 26,000 riders a day, on average, but could carry several times that during major events.

TEMPE HIGH RISES

The high-rise condo market will be put to the test as the 30-story Centerpoint Condominiums open in downtown Tempe. Work is supposed to start on several other condo projects downtown this year, though there’s some speculation the slumping housing market could trigger delays on more new buildings that will redefine the East Valley’s skyline. Centerpoint is the East Valley’s tallest building, and several other proposed towers would rise 20 floors or more.

APACHE JUNCTION CHIEF

Apache Junction residents are hoping city leaders hire a permanent police chief this year who won’t wear out his welcome. City Manager George Hoffman is expected to select a new chief by March or April, following a nationwide search and interview process. The previous chiefs, Glenn Walp and Robert Warner, both left the job amid accusations of poor management. The department is currently led by interim Police Chief Thomas Kelly.