I believe that Proposition 207 says if the government passes laws to devalue your property they have to pay you for it.
Frank Lloyd Wright home debate pits preservation vs. property rights by Philip Haldiman - Oct. 7, 2012 11:12 PM The Republic | azcentral.com Voices fighting to preserve a famous Frank Lloyd Wright home in east Phoenix have been loud and resolute ever since its new owners indicated earlier this year they would demolish it to make way for redevelopment. But when the owners of the David and Gladys Wright House publicly threatened a lawsuit against the city last Tuesday, the controversy reached a new level, centered squarely on the fundamental issue of historic preservation vs. private-property rights. The property owners contend that the city's effort to designate the residence a historic property is illegal based on several factors. Preservationists argue that the property's historic value is immeasurable because of its architectural innovations and ties to Wright, perhaps the most well-known architect in American history. The battle lines are being drawn as preservationists around the Valley argue that the Phoenix area in general is too quick to pave over its past and that historic structures are useful in promoting everything from economic development to civic engagement. In downtown Phoenix, preservation advocates are trying to save two century-old hotels in the warehouse district, and similar efforts are playing out with historic properties in cities from Glendale to Mesa. On Tuesday, the Phoenix Planning Commission will consider the Wright home's historical significance, paving the way for an eventual decision by the City Council. The issue erupted June 5, when the city granted the owners of 8081 Meridian LLC approval to split the property, located near 56th Street and Camelback Road in the Arcadia area. The owners sought the lot split with the intent of tearing down the house and redeveloping it with at least two new residences. The Frank Lloyd Wright Building Conservancy, a Chicago-based group devoted to preserving Wright's works, had taken an interest in the house. When members found out about the lot split, they urged Phoenix to initiate historic-designation proceedings. On June 12, the city started rezoning for historic designation. On Sept. 27, the law firm representing 8081 Meridian submitted a letter to the city manager, stating the city violated the law because it did not obtain consent from the owners to rezone the property. Meridian also contends the rezoning could diminish the value of the property, in violation of state law. Last Tuesday, at a meeting of the East Camelback Village Planning Committee, a lawyer representing Meridian announced the owners were prepared to sue the city. Phoenix officials say that a city ordinance allows them to initiate historic designation without the consent of an owner and that a diminished property value would probably have to be argued in court. The owners cite a 2006 voter-approved law known as Proposition 207 to support their claim about property value. Prop. 207 was a statewide initiative that requires owners to be compensated when the government adopts regulations that affect the value of their properties. The owners were granted a permit Sept. 4 by the city to demolish the home. But city officials now claim it is invalid because it was granted after the process for historic designation had begun. In a Sept. 27 letter, David Lanksy, a Phoenix lawyer representing 8081 Meridian, wrote, "The city has no legal authority to unilaterally suspend, revoke or cancel the permit and certainly cannot do so without due process of law. ... In our view the city cannot legally prevent our client from demolishing the structures on the property." City's right to start process Michelle Dodds, a Phoenix historic-preservation officer, said the city is usually the applicant in historic-preservation overlay cases, but a property owner can be an applicant. The Historic Preservation Commission or the Planning Commission can initiate the process. "The city has the right to initiate a historical overlay if the (Planning or Historic Preservation) commission deems a property has significant historical value," she said. Earlier this year, the Wright Conservancy called the Historic Preservation Office about the potential sale of the Wright House. Officials discovered a lot split on the property, which the conservancy feared could lead to demolition. "The split appeared to shave the end off the house, and they were very concerned," Dodds said. "They asked that we initiate historic-preservation-landmark overlay." The Planning Commission initiated the process in June. "We started getting all the letters, and there was a huge response," she said. "The initiation was made because of how significant the Wright House is." The proceedings put a stay of demolition on the home until the council makes its decision. If historic overlay is approved, changes to the exterior of the property would require design review by the Historic Preservation Office. Dodds said the Mayor's Office contacted 8081 Meridian. But Meridian's co-owners, Steve Sells and John Hoffman, said they didn't find out about the proceedings until late August. Sells said that he was in Idaho and that Hoffman was in Montana this summer. Sells said he had conversations with officials with the city and the conservancy after the process was initiated, but nobody told him about the overlay. "It's like they were the judge, the jury and the executioner," Sells said. "Quite frankly, we were scared and fighting for our lives. We felt like we were deceived. ... That's when we got some legal advice." Need to prove case Nick Wood, a Phoenix zoning attorney who is not involved with the case, said the owners will probably have a hard time proving their case. He said the zoning ordinance permits the Planning Commission to initiate a zoning change without the consent of the property owner. Historic-preservation overlay does not deprive property owners of any rights, it simply prevents the owners from demolishing the building for up to three years, Wood said. "There has been an attempt to balance property rights versus the need to preserve historically relevant buildings," he said. "As a result, there's not an absolute prohibition of demolition." Barb Pahl, vice president for the Western field offices of the National Trust for Historic Preservation, said many municipalities have ordinances similar to Phoenix's. However, she said many major U.S. cities have the ability to deny demolition for a building that is landmarked, including in Denver, New York, Chicago, Washington, D.C., and San Francisco. She said California has one of the strongest state laws to defend historic buildings. "The rules in Phoenix are not uncommon, but a demolition is forever," Pahl said. Sean Malone, president and CEO of the Frank Lloyd Wright Foundation, said the Phoenix home is one of Wright's last homes, designed for his son David and David's wife, Gladys, in the early 1950s. It was based on the spiral plan that Wright created for the Guggenheim Museum in New York City, Malone said. Wright created buildings that were deeply appropriate to man, space and time, he said.
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