On Feb. 1, the City of Holbrook was notified of a complaint filed by The Goldwater Institute in Navajo County Superior Court on behalf of local hotel owner Anil Patel, stating that actions taken by the city last year greatly diminished the value of Patel’s property and left him without a buyer for his land.
The property in question is the former Howard Johnson hotel, located at 2608 Navajo Blvd. In a press release by The Goldwater Institute, it states that Patel was looking to sell the property and found a buyer in December 2022 who wanted to turn the hotel into a temporary short-term lodging for low-income individuals. The planning and zoning administrator at the time, Michael Young, under the direction of former manager Ted Soltis, had informed the buyer, ChangePoint Integrated Health, that this was a permitted use and the sale was expected to go through at the end of February 2023.
However, once the Holbrook Planning and Zoning Commission and the City Council learned of the pending transaction by ChangePoint it was determined that a conditional use permit would be required for the intended use. The problem stemming from a conflict in ordinances. The property is zoned C-2, which requires a conditional use permit for residential housing but also included all allowances from C-1 zoning. At the time, C-1 listed residential housing as a principal permitted use. The council addressed the conflict, requiring both C-2 and C-1 to require a conditional use permit for residential housing. Following that change, ChangePoint was required to go before the Holbrook Planning and Zoning Commission for the permit. Upon review of the development the Commission recommended denying the permit, a decision upheld by the City Council.
However, Chief Executive Officer of ChangePoint Jeff Oakes had gone before the council while the project was under consideration and clarified the intended use of the property stating, “Just to make it clear, it’s not a residential facility. What we’re proposing is actually a transitional housing project that’s available for individuals that need housing.” Those mentioned would include homeless individuals and families, and those with behavioral health problems.
Prior to the council making their decision, several citizens spoke out against the permit, with concerns of an increased crime rate, and homelessness should residents of the facility no longer become able to live in the housing. A concern was also brought up by Holbrook Emergency Medical Services (EMS) that such a facility would drain from their already few resources.
In the complaint filed by the Goldwater Institute it states that Holbrook officials are attempting to seize Patel’s property by prohibiting him from using his land as he sees fit by usurping private property rights Arizona Private Property Rights Protection Act (A.R.S. § 12-1131 et seq.). The complaint states that this is an effort by city officials to “selectively exclude newcomers from entering Holbrook.”
Although the building was originally constructed and used as a hotel, Patel states that the change of ordinance restricting his property from being used as a residential care facility has reduced its value by $675,000. The Request for Relief asks that the court award Patel just compensation in an amount to be determined at trial for the diminution of the fair market value of the Property pursuant to the Arizona Private Property Rights Protection Act, A.R.S. § 12-1134.
When contacted regarding the lawsuit, Mayor Kathleen Smith stated that she had not received any official documentation and as such, would not be commenting at this time.
As this is the initial filing, there was no notice as to when the proceedings would move forward.
