Large-scale
At issue: What will happen to those properties in the long run, and how will it affect economic development in the area? Are surrounding property values being negatively impacted? And what about public safety?
“It’s all about public safety. That’s the main thing we’re concerned about,” said Michael Hammett, a spokesman for the city of
Hammett said city inspectors have been checking stalled projects frequently to make sure the responsible parties have installed adequate fencing. Many of those projects no longer have valid building permits, so very little can be done other than to protect the property from vandalism and protect the public from injury or harm.
Phoenix Mayor Phil Gordon said he’s well aware of the problems.
“We are working with the development community and neighborhoods to be mindful of projects that are under way and take care to maintain a well-kept appearance and monitor the site,” he said. “The city has a team ready to respond to reports of graffiti, trespassing or unkempt lots to limit blight in our community.”
One investor that decided not to take any chances is
So earlier this year, the company took the property off the market and decided to bulldoze it at a cost of $600,000. Safety issues were a top concern.
“They did not want anybody to die on the property and sue (them). That was their biggest fear,” said Bobby Bull, managing director of
Despite the cost of demolition, which was especially high in this case because of asbestos mitigation, Consolidated decided it was worthwhile. The company will hold on to the parcel until the market improves.
Making a decision to demolish often is not easy, according to Scott Macpherson, a principal of
Rider is often hired to estimate the comparative costs of reconfiguring a busted project. Some major criteria include the structural integrity of a development, current market conditions, availability of construction materials, pending liens or lawsuits, and the cost of hiring a new development and construction team. Another key factor is determining whether there have been significant building code changes that would deem the original project inadvisable.
Macpherson said one stalled Valley project may be particularly difficult to resurrect: Elevation Chandler.
The steel structure, built several years ago, has been exposed to the elements while the developer has been caught up in financial issues. The current owner, Point Center Financial of California, could not find a buyer at auction this month and now is left with the eyesore.
“A structural steel building is designed to be load-bearing, and when it doesn’t bear a load, there can be additional degradation,” Macpherson said.
Exposed rebar also is evident at the Elevation Chandler site.
“(Exposure) to the elements of weather can affect (rebar’s) ability to bond properly with concrete,” Macpherson said. “Increased exposure may increase chances that the material is a total loss.”
Depending on how long the recession lasts, some partially completed projects could be at risk structurally. For now, the public will have to get used to looking at the remnants of what might have been.
“This is really an unprecedented time,” Hammett said of the economy.
But there is one way the public can be proactive, he added: “The city wants to know if there are blight and safety issues that we still need to address.”
To report such issues, send information to blight@phoenix.gov.
