Law hinders historic preservation in Scottsdale

Three years ago, Scottsdale started a program to preserve its 1950s neighborhoods, hoping to tell the story of postwar life in the city.

In 2005, two neighborhoods were placed on the city’s historic register, and Scottsdale was on its way to approving a third neighborhood as well as one of the city’s oldest shopping districts.

Those plans are now being hobbled by a new law that gives property owners the right to sue if a government action reduces the value of a property. The law was created by Proposition 207, which was approved by voters in November.

“With Prop. 207, we’re dead in the water,” said Debbie Abele, Scottsdale historic preservation officer. Abele said efforts across the state are facing obstacles.

Most supporters of historic preservation argue that it increases property values. But some disagree, claiming such a designation places too many restrictions on home construction and takes away the right of homeowners to improve their property.

The possibility of litigation is having a chilling effect on historic preser- vation programs.

“Everybody is afraid at this point,” said Ken Strobeck, executive director of the League of Arizona Cities and Towns. “Anyone can sue over pretty much anything.”

In order to avoid a lawsuit, many Valley cities are requiring property owners to sign forms waiving their right to compensation in the event the value goes down.

For instance, Mesa now requires every homeowner in a neighborhood to sign a waiver to achieve historic designation, said Stephanie Bruning, historic preservation officer.

“If 100 percent is not signed, staff will recommend denial,” she said. “It’s up to the City Council to make the final decision.”

In the meantime, Bruning said she is trying to educate Mesa residents on the benefits of owning historic property.

“It doesn’t mean you can’t do anything. It doesn’t freeze it in time,” she said.

Some say the restrictions are far from flexible.

“What I don’t agree with is the city is coming in and forcing everyone in the neighborhood to freeze the value of the property. They can no longer do what they want,” said state Sen. Chuck Gray, R-Mesa. “Who wants to buy that house knowing they can’t restore it? It dampens investments in the neighborhood.”

Other historic programs are trying to decide how many waivers should be required for designation.

Phoenix is working on a policy that would require 80 percent of residents to be on board, said Kevin Weight, lead historic preservation planner in Phoenix.

“Right before Proposition 207 passed, the historic preservation commission needed to have the petition signed by two-thirds of property owners,” he said.

Scottsdale is moving forward to designate the 1950s neighborhood Scottsdale Estates 4 and the downtown Fifth Avenue shopping district — but just a little more slowly.

“A number of neighborhoods have approached us,” said city historic preservation director Bob Cafarella. “We will work with them and get as many waivers signed as possible and approach the City Council.”

But how many waivers it would take to gain council approval and move the process forward is unknown.

“Do we need to show that 80 percent of homeowners have signed off? Do we need 100? Fifty? That’s what we’re all talking about,” he said.