Apartment News - December 2015

The official publication of the Arizona Multihousing Association

NEWS

Riding to prosperity Public transportation having a big impact on multihousing industry

NEWS & HAPPENINGS David Adame to lead Chicanos Por La Causa DECEMBER 2015/JANUARY 2016

LEGALLY SPEAKING Copyright law: Your rights to use the airwaves

BEST PRACTICES Q&A with Amy Davidson, Cox Communications

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WELCOME LETTERS

A year of growth

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hen I assumed the position of board chair, I thought I understood the depth of knowledge and capacity that this organization possessed.

As I reflect on this past year, I appreciate so much more.

As an organization, our members support each other, lead by example and share a mutual respect for quality housing, cash flow, and the communities and citizens throughout Arizona.

This year, the growth in our industry in Arizona put us at the forefront of many cities’ conversations about how their cities would grow. Adding density to emerging downtowns, and building new developments in gentrifying areas, many of us have been in educational conversations with staff and council members about how multifamily adds to the vibrancy and economic opportunity for citizens.

It hasn’t always been easy, but thanks to our advocacy team and to members delivering high quality projects across the Valley, and in Tucson and Flagstaff, we are changing people’s perceptions about our industry.

The AMA political action committee (PAC) will continue to be an important tool for our Association and the future of our industry’s growth. Together, we have raised the much needed funds to make an impact and to help to educate regulators at the city and state levels about various aspects of our industry. Beyond entitlements and development, we are involved in regulatory issues, taxation issues and so much more. Our PAC allows us to support those leaders who are reasonable and willing to work with our industry to make Arizona more prosperous and a great place to live.

Through your leadership the Arizona Multihousing Association has set the path and example for the future of healthy communities. LEED certified housing and the

smoke-free initiative, focused on reducing our footprint and expenses. Rehousing our veterans and homeless populations have become a call to work beyond our offices for a bigger cause. Raise-a-Reader has expanded from a handful of locations to a wide reaching opportunity for illiteracy reduction programs throughout our state.

A restored partnership with the police and fire officers has encouraged the largest Project SAFE and crime suppression program participation in our history.

Thank you to our members for your continued generosity when it comes to community engagement. Through Big Hearts, we have the ability to help change people’s lives in the communities where we work, helping families find stable places to live and get the support they need.

Your efforts have raised millions over the years and we’ve been able to support nonprofits with proven programs.

This year, the need to support Arizona’s families dealing with autism was particularly acute.

One in 85 children are diagnosed on the autism spectrum and we are facing a wave of adults who will need apartments in the future, particularly places that offer supportive programs to allow these adults to live on their own. Our industry will be challenged to help create those places where these young people can live independently and we are on the leading edge supporting the work of SARRC and Autism Speaks as they begin to address this issue.

The annual walk, chaired by one of our members, MC Companies’ Lesley Brice, was well attended and our industry stepped up in a way that demonstrated the heart of our organization and its members.

As we approach the end of 2015, I want to personally extend my thanks and sincere appreciation to the board of directors and each associate and regular member.

I am honored to have served as your chair and look forward to our future.

— Christine E. Shipley, AMA Board Chair, Dunlap & Magee

ENJOY ALL OF THE BENEFITS OF AMA MEMBERSHIP - CALL AMY AT 602-296-6209 TO JOIN TODAY. www.azmultihousing.org

Apartment News > December 2015/January 2016

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Cox owns, maintains and monitors one of the nation’s largest hybrid fiber-optic networks, providing the bandwidth options needed to support advanced technology and connectivity. As a Cox Digital Community, you can provide innovative services like Contour,SM a personalized TV experience that adapts to individual viewers. And you always get local support whenever you need it. Make sure your residents are connected to the services they want, today and in the future. ©2014 Cox Communications, Inc. All rights reserved.

Let’s Talk!

Amy Davidson MDU Manager, Arizona Amy.Davidson@Cox.com 623-328-3805

TABLE OF CONTENTS

> December 2015/January 2016 > www.azmultihousing.org 13

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Valleywide Service

ALL PHASES OF PEST CONTROL

• Monthly Pest Control Programs

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• Termite Specialists/ FREE Est. 14 COVER STORY: Riding to prosperity

Public transportation having a

big impact on the multihousing industry

FEATURES 12 AMC enjoying the ‘Liv Life’ 13 Multihousing leader Vicki Allison retires

DEPARTMENTS 6 News &

Happenings 8 Legislative Update 10 Legally Speaking 18 Best Practices 19 Events & Education 20 On the Scene 22 Focus on Tucson 23 Thank You Patron Members

• Termite Warranties Available

Commercial

• Bed Bugs • Bee Service/ Emergency • Beehive Removal

AMA Main Office 818 N. 1st St., Phoenix, AZ 85004; 602-296-6200; Fax:602-296-6178 AMA Tucson Office 660 S. Country Club Road, Tucson, AZ 85716; 520-323-0643; Fax: 520-323-3399

AMA STAFF Tom Simplot President & CEO tsimplot@azmultihousing.org James Tunnell Vice President jtunnell@azmultihousing.org 602-296-6212 Erika Kowalski Director of Operations ekowalski@azmultihousing.org 602-296-6210 Michelle Rill Director of Events & Education mrill@azmultihousing.org 602-296-6205 Sharon Hosfeld AZ Smoke-Free Community Coordinator/Government Affairs Analyst shosfeld@azmultihousing.org 602-296-6214 Desi Brinkman Marketing & Sponsorship Specialist dbrinkman@azmultihousing.org 602-296-6203

AMA TUCSON STAFF Stephanie Garcia Community Outreach Manager sgarcia@azmultihousing.org 602-296-6208 Amy Hindenlang Membership Administrator ahindenlang@azmultihousing.org 602-296-6209 Kyle Simplot Accounting Assistant kyles@azmultihousing.org 602-296-6207 Kristina Fleischer Events & Education Coordinator kfleischer@azmultihousing.org 602-296-6204 Todd Bradford Membership Benefit Services Consultant tbradford@azmultihousing.org 602-377-2553 Cassidy Campana Apartment News Editor & Communications Consultant ccampana@azmultihousing.org 602-770-6014

Lauren Romero Tucson Area Association Executive lromero@azmultihousing.org 520-481-9646

ARIZONA DEPARTMENT OF HOUSING www.housingaz.com ARIZONA LANDLORD TENANT ACT http://bit.ly/1oYUoTA

EXTRA COPIES If you would like additional copies of the Apartment News delivered to your office, just email Amy at ahindenlang@ azmultihousing.org with the names and address you would like added.

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AMA NEWS & HAPPENINGS

Adame Named CEO for Chicanos Por La Causa David Adame, an AMA board member, was recently appointed the new president and CEO of Chicanos Por La Causa, Inc. (CPLC), the largest nonprofit organization in Arizona.

Upon graduating from ASU, Adame began his first tour at CPLC where he would serve for the next two years eventually becoming the director of Economic Development. More than 21 years later, following prolific experience in the many aspects of business development, management, and finance, and also having earned an MBA, Adame returned to CPLC in 2008 where he served as the chief economic development officer for CPLC. Under Adame’s leadership, CPLC has created a long term strategy that will enable the organization to internally provide the majority of their funding through social ventures and for-profit subsidiaries that support CPLC’s social services.

During the last eight years at CPLC and among his many accomplishments, Adame has raised more than $250 million dollars in resources from government agencies, corporations, and foundations. In addition, Adame completed 12 real estate development projects across Arizona valued at more than $60 million dollars and has significantly expanded the number of CPLC owned and operated for-profit business ventures which contribute towards CPLC’s unique goal of becoming self-sufficient.

CPLC is a regional community development corporation committed to building stronger, healthier communities as a lead advocate, coalition builder, and direct service provider. Today, CPLC has 48 programs and services, 19 lines of business, 800 employees and 60 offices, making CPLC the thirdlargest Hispanic nonprofit in the nation and the No. 1 charity organization in Arizona.

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How an (Autism) Walk Can Change Our Community

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very year, thousands of families gather for the annual Autism Walk sponsored by Southwest Autism Research and Resource Center (SARRC) and Autism Speaks to raise more than $1 million to support Arizona families. MC Companies’ Ken McElroy chaired the walk and took their company’s support of this important cause to a new level. All 45 MC Companies properties participated in the fundraising drive; their employees donated vacation hours and directed dollars from their foundation, Sharing the Good Life Foundation. Lesley Brice, past AMA board chair and AMA Autism Committee chairman, helped the company to tap their industry partners for support as well and together the company raised more than $125,000 for the 10th annual autism awareness event, far exceeding their goal.

Walkers for the AMA Group turned out in force and created the walk’s largest group. Overall, the walk raised more than $1 million toward the $1.1 million need and the AMA continues to support this partnership. “The walk was the launch for our Autism

Apartment News > December 2015/January 2016

campaign within the AMA. We have had an overwhelming response in a very short period of time. This tells us we are on the right track with this initiative. We are asking for our members and residents to step up and help fill the gap by raising awareness and much needed dollars through year end and beyond,” said Brice.

The AMA Board of Directors voted to add SARRC to the Big Hearts campaign this year. SARRC recently launched First Place, a new initiative to provide adults with autism a more independent life in multifamily housing along the transit lines. This supportive, urban housing option will become a model for housing across the country as many organizations are collaborating to create communities that will help these adults transition into their first homes.

Thousands of young adults will utilize these transition programs and support services, including professional development and training. AMA is proud that SARRC’s First Place has become a member of the Association, thanks to a membership grant donated by MC Residential. www.azmultihousing.org

480.963.3416

regionalaz.com

LEGISLATIVE UPDATE

TIME TO GET TO WORK

Arizona lawmakers make their way back to the Capitol

By Courtney LeVinus & Jake Hinman

Courtney LeVinus is a principal with Capitol Consulting and Jake Hinman leads legislative affairs for the firm.

They can be reached at 602-712-1121.

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H

ere we go again! As it does every year, the legislature officially convened at twelve o’clock noon on the second Monday in January. By rule, the legislature is authorized to be in session for one-hundred days.

Though Arizonans have grown accustomed to much longer sessions in the past, some are saying that last year’s historic 81-one day blitz may have set a new precedent going forward.

When the Governor addresses the legislature during his annual State-of-the-State address, he will most certainly outline his policy priorities for the year. Those policies will likely include

Apartment News > December 2015/January 2016

a second round of regulatory reforms and a continuation of his campaign pledge to shrink state government. The Governor made true on both promises during his inaugural year by enacting a moratorium on new agency regulation, eliminating the Department of Weights and Measures, and instituting a state government hiring freeze. We will have a better sense of his specific policy priorities after this month’s address to the legislature.

What we do know for certain is that the Governor will head into the 2016 Legislative Session absent a $3.5 billion monkey on his shoulder. That’s because after weeks of closeddoor negotiations and a three-day Special Legislative Session in October, the Governor, legislative leaders and education officials were able to reach a settlement on the education lawsuit that has plagued the state for the past five years. The lawsuit and the resulting court ruling required the legislature to repay schools hundreds of millions of dollars and most certainly would have placed a damper on the Governor’s broader agenda had a deal not been reached.

The agreement itself puts $3.5 billion into schools over ten years by increasing the base amount of K-12 funding and requiring that base be adjusted for inflation every year. Voters ultimately have to approve the deal in a special election in May, but for the Governor, it means a clean bill of health to start 2016.

The state budget will be another major sticking point for the legislature, much like it has been for the past several years. The $9.1 billion FY2016 State Budget represented one of the leanest state budgets in recent history and the first structurally balanced budget since 2007. Lawmakers plugged the nearly $678 million deficit with $497 million in spending reductions, $74 million in revenue increases and $220 million in agency fund sweeps. When the legislature passed the FY2016 budget last year, it was anticipated that the plan would leave the state with a $16 million shortfall for FY2017. In other words, while the budget isn’t in a dire state as it was last year or in years prior, the legislature will need to make some fiscal adjustments in order to reach their projected surplus in FY2018.

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LEGALLY SPEAKING

Use of the radio and the television The unknown risk of copyright infringement

By Christopher R. Walker, Esq.

Christopher R. Walker is an attorney with the Law Offices of Scott M. Clark, P.C. He can be reached at 602-957-7877.

The views expressed here are generalized advice or information. Fact-specific questions should always be referred to legal counsel.

Statements and opinions expressed in these legal columns are solely those of the author or authors. This advice does not necessarily represent the views or opinions of the Arizona Multihousing Association.

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W

hether you enjoy using the radio in your car, at the gym, or at your place of employment, the use of the radio is widespread. With the advent of the television, many companies have installed televisions in their employee break rooms and in various amenities that are offered to business patrons. While many take for granted the free use of the copyrighted material that is broadcasted through the use of a radio or television, some uses of the same copyrighted material can subject the operator to liability for copyright infringement.

In the arena of copyright enforcement for the performing arts, SESAC, ASCAP, and BMI, known as performance rights organizations (“PROs”), hold licenses from the various music recording companies and seek enforcement of the copyright code. These same PROs monitor the use of televisions in commercial establishment, enforcing the same rules and regulations applicable to the use and operation of radio devices. In the context of the property management, many major property management firms have been approached by one or more of these PROs regarding the operation of radios and televisions in various areas of their residential rental communities. For those who refuse to purchase a license, they often receive stern letters threatening the use of litigation to protect the copyright holders’ rights.

While copyright laws are complex, they are not as strict as the PROs would lead you to believe. Certain exceptions, which if applicable to your organization, serve as a defense to a

Apartment News > December 2015/January 2016

copyright infringement claim. However, the use of music derived from any other source (e.g., iTunes, CDs, etc.) or exceeding the maximum number of televisions and/or speakers permitted on site will almost certainly subject you to liability for copyright infringement, unless you obtain a license for its use.

Copyright law Under 17 U.S.C. § 106, “The Copyright Act,” the owner of the copyrighted work has exclusive rights with respect to the copyrighted materials.

Among the exclusive rights granted to the owner are the rights to (1) publically display the work, and (2) publically perform the work. In almost all of these cases, the PROs allege that the use of the radio equates to a public performance.

While the Copyright Act affords the copyright holder control over the copyrighted work, it does not give the copyright holder control over all uses of his copyrighted work. Since enacted, there have been several court cases which sought to interpret the Copyright Act as technology www.azmultihousing.org

advanced and copyrighted works became more easily transmitted to the public. The most important of which is the Supreme Court’s decision in Twentieth Century Music Corporation v. Aiken, 422 U.S. 151 (1975) which upheld a café owner’s use of a small personal radio for the benefit of his patrons and employees. In the aftermath of Aiken, Congress has taken action to amend the Copyright Act to address various technological advances and new uses of copyrighted materials.

Use of television

In the context of televisions, rules similar to those set forth above regarding the use of radios are applicable. Any establishment seeking to utilize televisions in its facility must take action to ensure that they are in compliance with the exemption set forth in 17 U.S.C.A. § 110(5)(b)(II). Pursuant to 17 U.S.C.A. § 110(5)(b)(II), an establishment displaying a “performance” by audiovisual means, the establishment is limited to the use of only one (1) television per room with a maximum of four (4) televisions in its facility. In addition to the limitation on the number of televisions that may be used, the establishment Exemptions to copyright liability may not use a television that has a diagonal screen size greater Found in 17 U.S.C. § 110(5)(A), the “home-style than 55 inches and is limited to the use of no more than four exemption”, applies to performances and displays of (4) loudspeakers in any one (1) room. The exemption for all types of works in small commercial spaces. Its purthis would be limited to television licensed by the Federal pose is to exempt from copyright liability anyone who Communications Commission. The use of DVD’s would not merely turns on, in a public space, an ordinary radio qualify for this exemption. or television receiving apparatus of a kind commonly Unlike its brethren the radio, the television rules are clearly sold to members of the public for private use. articulable and the parameters are made reasonable clear by the Copyright Act. By limiting your use to only one television Use of radio per room and adhering to the screen size limit While the use of radios in certain and speaker configuration discussed above, commercial establishments is permissible, there are limitations to their What is clear from broadcasting over the air transmissions should may likely limit your organization’s liability use. Found in 17 U.S.C.A. § 110(5) the case law is under the Copyright Act. (B)(i), the broadcast of a radio transthat there is no mission is exempt from copyright “one-size-fits-all” infringement liability so long as the formula and that What action should you take? performance is audio only and comeach case must be What is clear from the case law is that there municated through no more than six determined on a is no “one-size-fits-all” formula and that each loudspeakers, of which not more than case-by-case basis. case must be determined on a case-by-case four can be in any one room or adjoinbasis. Property management firms must be ing outdoor area. In other words, the cognizant of these issues when they utilize radio must be of the kind commonly used in private radios and televisions in their facilities. By providing these homes. This is known as the “home system defense.” types amenities to your residents, you may be subjecting yourThe determination of the “home system defense” is self to liability under the Copyright Act. Property management done on a site-by-site basis. The operation of several firms who employ radios and televisions at their communities facilities will not jeopardize the applicability of this are strongly encouraged to contact their legal counsel to see if exemption so long as each facility conforms to the they qualify for the exemptions discussed above. This discusspeaker limitations discussed above. sion should include the size of the facility, the number of speakWhile there is no bright line rule to the home-system ers in each room, the type of receiver used to operate the radio, defense, some important considerations are the type and the size, type, and quantity of televisions in use at your and sophistication of the equipment used, size of the community. area in which the broadcast is audible, and whether the As an additional resource, the National Apartment Associaequipment has been altered, augmented, or integrated tion prepared a White Paper detailing the copyright issues in some fashion to be something other than what is associated with the use of radios and televisions in apartment commonly used in private homes. In at least one case, communities. The White Paper contains a very detailed discusthe court found that a restaurant’s stereo system, consion on the Copyright Act and the exemptions discussed above. sisting of a single receiver and nine (9) speakers, did Property management firms should review the White Paper not qualify for the Copyright Act’s “home-style” excepfor additional information on this topic. However, the White tion. Therefore, the more speakers you connect to the Paper should not be used to supplement legal counsel and any receiver and the greater the complexity of the receiver property management firm seeking guidance on this issue itself will likely contribute to the court finding the conshould contact their local counsel to ensure that they are in figuration to be outside the “home-style exemption.” compliance with the Copyright Act. www.azmultihousing.org

Apartment News > December 2015/January 2016

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AMC Enjoying the

By Adam Greco, Burns Pest Elimination, and Chair of AMC

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isiting IPA’s new Liv North Scottsdale, you start to look for a concierge to help you with your bags. The resort feel of the clubhouse and the connected views of the pool and waterfall area are stunning and relaxing all at once. The business center, common areas and coffee bar signal to residents that this is a place Adam Greco to relax and enjoy and when the AMA visited, we saw residents making the most of this new community.

About 70 AMA members were welcomed by Community Manager Rebecca Urias. She and Heidi Arave, the regional director for IPA, planned out an elegant sunset reception with hosted hors d’oeuvres bar and specially selected wines from their private reserve.

Adam Greco, AMC Chair and Burns Pest Elimination executive, emceed the evening’s program along with Urias.

During the meeting, our members

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Liv Life

heard an inspiring story from SARRC’s Lyndsey Waugh about their partnership with Autism Speaks and the upcoming walk to raise funds. The AMA Foundation continues to raise funds for the Julie Hurst Scholarship Fund and the AMC meeting added hundreds of dollars. The winner of the business card raffle lunch with Heidi Arave was Abi Damon from Criterion Brock.

Apartment News > December 2015/January 2016

Our group had the opportunity to tour one of the impressive model units. Next stop was the fitness center and then on to the impressive rooftop deck with a kitchen, outdoor TVs and seating. The views of the mountains to the north and west during sunset on the roof were simply spectacular.

IPA is a long-term hold owneroperator specializing in Class A+ assets. Their communities stretch across Michigan, Indiana and Arizona. The Liv community portfolio in the Phoenix Metro represents the first multi-family (multi-site) brand with presence in Chandler, Gilbert, Ahwatukee and North Scottsdale. All of their communities offer residents smoke-free living. Liv North Scottsdale, IPA’s first podium style midrise development, offers residents high end interior finishes and lavish amenities in one of the most desirable areas of the Valley, close to both Kierland and Scottsdale Quarter.

Adam Greco is the commercial sales manager of Burns Pest Elimination. He can be reached at 602-971-4782 and adamg@ burnspestelimination.com. www.azmultihousing.org

Multihousing leader Vicki Allison retires

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ne of the most entrepreneurial and expert women in this business, Vicki Allison is sailing off into the sunset as she retires from Allison-Shelton Real Estate Services. Nearly 40 years ago, Allison began her career in public accounting and quickly started her own accounting firm where she specialized in real estate tax work. This successful firm grew until she was invited to join one of her clients as their vice president of finance.

Allison had raced off-road cars with Jerry Finney and she and Kim Bernard had become friends. At the time, Bernard/Allison managed just two sites and employed four people in the corporate office. “I don’t think I would have gotten out of my business for any other business or people. I knew Jerry and Kim so well and they treated me like a partner, even in those early years,” said Allison. Allison used her expertise to help them grow their business and she was named a partner just a few years later when Jerry Finney retired. When Kim Bernard retired in 2009, Allison became the sole owner of Bernard/Allison.

Immediately, Allison was looking for new partners as the company had grown too large for her to run alone. Pam and Tom Shelton became partners in the firm and the company was rebranded Allison-Shelton Real Estate Services. Tom Shelton had started out at Greystar and Pam’s superior marketing and human resources knowledge brought new dimensions to their company. These longtime friends brought complementary skills to the business and together they have grown this management company into one of the most prominent in Arizona.

Learning experience Throughout her career, Allison made it a priority to learn all aspects of the business. “You aren’t just stuck in accounting, you have to understand marketing, how to manage risk, taxes and human resources. When you are a small business and you are trying to keep the doors open, you end up wearing a lot of hats.” This on-the-job training proved helpful as AllisonShelton grew and she supervised the finance, technology and risk management teams.

Partner Tom Shelton praised her expertise. “During her time with the firm, Vicki worked with dozens of clients and assisted them in not only the acquisition of assets, but also supervised the management of those communities through their disposition. Each property within the company’s portfolio has benefitted from her oversight, and it would be difficult to tabulate the millions of dollars in proceeds she helped generate for clients over the past almost 30 years.”

“Vicki has always been an outstanding representative of our company. She has also been a vocal advocate for our industry and few people have earned the level of respect that Vicki has www.azmultihousing.org

achieved. I believe that Vicki has probably served more years on the AMA Board of Directors than any Board member,” said Pam Shelton of her work for the Association. “Vicki is the most caring and giving person you will ever meet!”

‘Dedicated and reliable’ Suzanne Gilstrap, the former CEO of the AMA and a partner with Capitol Consulting echoed these sentiments, “During my 25 plus years with the AMA, I never met a more dedicated or reliable individual. During Vicki’s tenure on the Board of Directors and prior to service on the Board, Vicki was always a great source to help navigate issues of importance to the industry.”

A love of learning different things in life is something that is echoed throughout all aspects of Allison’s life. Her family enjoyed off-road racing and Allison was the first woman to race in Mickey Thompson’s short course series in the 1990s.

She loves exciting activities and travel, and especially enjoys Mexico, a second home for the Allison extended family.

During those years she spent building the businesses; Allison tended toward exclusive focus there and in recent years has sought more balance. Her mantra “Don’t be too busy making a living that you miss making a life,” continues to guide her. She and her new husband, Scot Cummins, (Vicki is now Vicki Cummins) are reaping the benefits of those years now as they plan years of travel and exploration around the globe.

“Much of our life is in Puerto Penasco where we have a family boat and there’s kayaking, paddle boarding, fishing and just enjoying the beach with family and friends.”

When asked to look into the multifamily crystal ball for the future, Allison replied with sage advice for operators, “Our business is cyclical and we have seen this a couple of times.

Everyone should take advantage of the growth opportunity while it’s there. This is also a time to invest in technology and people. This is a time to modernize for the future and put dollars into processes and great people. Great people will get you through the next market turn.”

Apartment News > December 2015/January 2016

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‘RIDING’ SUCCESS

A closer look at economic benefits of transit, public transportation for multihousing market

By Tony Motola, Valley Metro

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ublic transportation services are important in many ways. They provide mobility, shaping land use and development patterns, generating jobs and enabling economic growth.

It also supports public policies regarding energy use, air quality and carbon emissions. All of these characteristics are important when considering the benefits, costs and optimal investment levels for public transportation. For example, various aspects of the economy are affected

Valley Metro operates 365 days per year, providing:

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Apartment News > December 2015/January 2016

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by decisions made regarding investment in public transportation.

As Valley Metro plans for the future, it is important to understand the impact that the total transit network has on the region, particularly since the initial investment in light rail. In addition to moving people within the region, Valley Metro supports the development of the real estate market, generates tax revenues through economic development and is a key to the region’s economic vitality.

Express/ RAPID routes

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circulator routes

www.azmultihousing.org

“In addition to being a reliable public transit option for the residents of Phoenix and the region, light rail has also proved to be an important tool for neighborhood revitalization and economic development,” said Phoenix Councilwoman and Valley Metro Rail Chair Thelda Williams.

“Extension of the region’s light-rail network westward and north to Metrocenter is key to our economic future. It will create jobs, further connect our community and act as a catalyst for new business development opportunities.”

Mixed-use development, such as a multi-family housing project with retail at street level, is ideal for transit corridors since it attracts riders to the station areas. Compact, dense development is aligned with Valley Metro’s goal to partner with stakeholders to incentivize expanded transit use and to continue to attract riders to the total transit network and its diverse modes.

Residential developments served by Valley Metro Rail performed 24 percent better than home values in the rest of the Phoenix metro area. Near Valley Metro Rail stations, sales volume of vacant land more than doubled for the first three years after the alignment and station areas were established and developers began amassing parcels of land.

It’s not just investment, it’s jobs and ROI Nationally, more than 650 miles of light rail has been built over the past 30 years, and every $1 billion invested in public transportation capital and operations creates and supports an average of 36,000 jobs. These jobs result in roughly $3.6 billion in business sales and generate nearly $500 million in federal, state, and local tax revenues.

During the peak of construction (2013-2015), more than 1,300 workers

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miles of light rail and 32 stations

www.azmultihousing.org

were hired for the Central Mesa and Northwest light rail extensions. Many other jobs are indirectly supported by these construction projects.

Public transportation also benefits families and businesses, as nationally every $1 invested in public transportation generates $ 4 in economic returns, while in metro Phoenix the return on investment has been nearly double that rate. Such an economic return on investment keeps the region competitive by attracting businesses and retaining top local workforce talent.

Today, light rail has become integrated into the greater Phoenix transportation network, helping to serve as a viable travel option for an average of 43,500 riders per day.

As a result of this demonstrated return on investment, the cities of Phoenix, Tempe and Mesa are taking action to encourage development near Valley Metro Rail. There is a substantial increase in planned or completed development activity since the opening of the 20-mile line in December 2008. In August 2015, Valley Metro Rail added three miles of service traveling east into downtown Mesa and in March 2016 service will be expanded west to Dunlap Avenue in Phoenix.

Valley Metro rail stations increase the value of the surrounding area by supporting greater mobility and access.

412

active vanpools

36,372

They also enable more people to access businesses, residences, and retail establishments close to stations than in areas farther from light rail.

Tyler Anderson, Vice Chairman of CBRE, explained “The impact of the light rail has been significant in attracting new development all along the route.

Many areas would not have attracted the development and created the life style for residents without the Light rail. It has been very successful in revitalizing the areas serviced by the system. Future expansion will continue to have even more positive impact to the community.

The City cannot expand the system fast enough is the reality.” Anderson specializes in institutional properties and multifamily for CBRE. Since its inception, light rail ridership has been extremely popular, exceeding opening year forecasts by 34 percent and nearly reaching 2020 ridership forecasts after six years of operations. In the most recent fiscal year, there were 14.2 million boardings, or 43,500 daily riders.

Who’s riding?

Today, light rail has become integrated into the greater Phoenix transportation network, helping to serve as a viable travel option for an average of 43,500 riders per day, which is up from 35,000 average daily riders in 2009, representing a 34 percent increase in riders.

Thirty-one percent of riders are using public transit to get to school or college, with nineteen percent using transit for college and 12 percent for grades K-12.

Another third of transit riders (34%) are utilizing public transit to get to and from work.

What’s ahead for transit In addition to the economic benefits, there are many positive social and

active users on Valley Metro’s ridematching site

Apartment News > December 2015/January 2016

15

ABOUT VALLEY METRO Valley Metro provides eco-friendly public transit options to residents of greater Phoenix and Maricopa County including the planning and operations of a regional bus system and the development and operations of light rail. In Fiscal Year 2015, total ridership for the system was 71 million passengers. Six light rail extensions are planned or are under construction that will create a 66-mile system by 2034. Valley Metro also offers transit options including alternative transportation programs for seniors and people with disabilities, commuter vanpools, online carpool matching, bus trip mapping, bicycle safety and telework assistance. Two Boards of Directors set the policy direction for the agency with the intent of advancing the regional public transit system. Get the latest news by following them on Facebook and Twitter or visiting valleymetro.org.

If you or your organization would like to become more engaged in the regional transit discussion, Valley Metro offers free transit education programs designed to meet the diverse needs of our community. Contact Transit Education staff to schedule your transit presentation and start learning how to make smart transit choices today by calling 602-253-5000 or outreach@valleymetro.org.

environmental impacts provided by Valley Metro’s Total Transit Network in the region such as congestion relief, maintaining regional mobility services for youth, seniors and people with disabilities, and personal time savings.

As the demand for transit is outpacing growth in population, Valley Metro has plans to continue to invest in the future rail system.

Future extensions will include: Northwest Phoenix Extension (March 2016). Construction on the 3.2-mile

extension began in January 2013. It will extend light rail north on 19th Avenue from Montebello to Dunlap Avenue and serve 5,000 riders per day.

Gilbert Road Extension (2018). The project will expand light rail nearly two

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miles on Main Street from Mesa Drive east to Gilbert Road. It includes two light rail stations, a transit center and a park-and-ride.

Tempe Streetcar (2018). In June 2014, the Tempe City Council supported a route recommendation for a three-mile Tempe Streetcar route on Rio Salado Parkway from the Marina Heights development west to Mill Avenue, downtown loop on Mill and Ash avenues and south to Apache Boulevard, then east to Dorsey Lane.

Phoenix South Central Extension (2034). In November 2014, the Phoenix City Council approved lane configuration along Central Avenue south of downtown to Baseline Road. Proposed station locations considered for further study in the next phase of the project.

Valley Metro has also begun planning and design on two high-capacity/light rail transit projects providing the West Valley with higher-capacity and more efficient

transit options. This is critical for the area as only five percent of all new multi-family development in the regional over the past 10 years has been built in the West Valley, representing less than 300 units, with prices point approximately 25 percent lower than Phoenix and the East Valley.

Capitol/I-10 West Extension (2023).

The Capitol/I10 West extension will extend light rail 11 miles from downtown Phoenix, through the State Capitol area, to approximately 79th Avenue and the I-10 West freeway. A preferred route and transit mode have been identified and approved. This is the Valley’s first freeway corridor project, providing the growing West Valley more transit and potential development opportunities.

Northwest Phase II Phoenix Extension (2026). The 2-mile project will extend light rail from the intersection of 19th and Dunlap avenues west across I-17 to the Metrocenter area. A project

definition study was recently completed to identify the connection across I-17.

Phoenix City Council approved the modified Locally Preferred Alternative (LPA) to include the I-17 crossing in November 2014.

The Valley Metro Rail Board of Directors approved the LPA in December 2015 and MAG Regional Council approved it in June 2015.

West Phoenix/Central Glendale Extension (2026). Valley Metro is currently conducting a focused analysis of the downtown Glendale area where several preliminary route alternatives have been identified for study. Valley Metro will continue analysis of the overall corridor, evaluating ridership potential, detailed right-of-way and traffic impacts and detailed cost estimates. Community input has been a part of the study process.

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Q &A

A conversation with Amy Davidson, Cox Communication Q: Technology is changing our lives in so many ways. What does this mean for businesses and communities trying to provide the right services for their customers?

A: The property owners I have worked with all want to make sure that their communities are future proof. Today, the average household has more than six devices connected to the Internet and that number is expected to reach 11 devices by 2017. We partner with each owner to provide the right solutions for their residents today while anticipating future needs based upon market trends.

Gigabit speeds are more than just an amenity — it opens up a world of opportunity for residents. For example, more people can now choose the option to work from home. Multitasking — such as simultaneously downloading large files and using web-based applications while videoconferencing - is a breeze with Gigablast.

Q: What do we need to know about fiber infrastructure?

A: Cox has had a robust fiber infrastructure in the Phoenix and Tucson markets for many years and we currently buildAmy Davidson is the Southwest MDU Sales Manager with ing 25 to 35 fiber miles Cox Communications and an each week to ensure AMA Board Member. She is an Arizona native and has been that all of our customers Q: Can you help us active with the AMA since 1998. have an array of speed understand what and pricing options.

The communities one Gigabit service is and do and businesses we partner with can be we need it? Do we need it in our confident that they are prepared for businesses, at home? the future.

A: The average consumer with Cox We first offered 1Gig to business has access to 50Mbps while Cox’s owners in 2007, and today are deliv“Gigablast” delivers up to 1000Mbps ering Gigabit speeds to homes in the or 20x more speed. As consumers put Valley. While we are leveraging that more connected devices on their home technology throughout our network or office WiFi, having the available nationwide, we have a roadmap that speed to spread to each device becomes will enable us to provide Gigabit speeds increasingly important. in all Cox markets over our existing Some real-life examples of what you infrastructure as well. can do with Gigablast speeds include downloading an HD movie in less than 60 seconds, downloading 100 songs Q: Cox has been one of the in three seconds and uploading about most engaged members of 1,000 photos in about a minute. the AMA and supports some

18

Apartment News > December 2015/January 2016

of the Association’s signature events including the annual Tribute Awards. How does your membership enhance or support your business?

A: Cox has been actively engaged with the AMA for over 20 years. Our organizations have remained aligned on key community values like education, diversity and political engagement. The partnership has helped support Arizona business owners and residents. It also allows Cox to have an open line of communication with the housing industry and customers, so we can continue to stay ahead of the needs of Arizonans.

Q: Fast forward 10 or 20 years. What will our homes be like? What does this mean for our technology use and our internet consumption/connection?

A: Network consumption/utilization has been growing at 50 percent-plus per year for a while now, but no one really knows how long this trend will continue.

By 2020, it’s estimated that 90 percent of cars will be connected to the Internet as compared to 10 percent in 2012. More than two-thirds of consumers plan to buy connected technology for their homes by 2019. The connected devices will include almost everything from thermostats, to refrigerators, vacuum cleaners, televisions/displays and even clothing. This will of course extend beyond the home, to the community and city, and internet of things (IoT) in addition to smart home, and connectivity will be a part of almost all of our activities. www.azmultihousing.org

EVENTS & EDUCATION AZMULTIHOUSING.ORG

Phoenix DECEMBER 2015

10 AMA Board of Directors Meeting, 8:30 a.m.; AMA Associate Member Council Holiday Party, 5:30 p.m.

Wrigley Mansion, 2501 E Telawa Trail, Phoenix 14 Tribute Awards nominations deadline, 5 p.m.

JANUARY 2016

20 Phoenix Dinner Meeting Phoenix Country Club,

2901 N. 7th St., Phoenix

Tucson DECEMBER 2015 March 19 – Phoenix Reverse Trade Show

CLASSES

Held at AMA Gallery, 818 North 1st Street, Phoenix Feb. 10, March 9 CPR, 8 a.m.-2 p.m.

Feb. 23 Fair Housing, 9 a.m.–noon March 15 Landlord Tenant, 9 a.m.–noon

EXPERTS IN FOAM ROOFING SYSTEMS

9 Five STAR Certification Training, 9 a.m., $25

The Springs, 4900 E. 5th St., Tucson

Jan. 14 – Tucson Dinner Meeting

15 AZ Landlord Tenant Act, 9 a.m.-noon, $20 ($40 non-members)

La Mirada Apts, 4415 E. Grant Rd, Tucson

FEBRUARY 2016

JANUARY 2016

15 Fair Housing, 9 a.m.-noon, $20 ($40 non-members)

14 Tucson Dinner Meeting, 5-8 p.m.; $49 ($69 nonmembers); ($69/$89 after Jan. 8)

18 Tucson AMC Meeting, Noon-1 p.m.

Encantada at Tucson National

27 Project SAFE Orientation, 9 a.m.-noon

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ON THE SCENE RECENT AMA EVENTS

BACK TO THE FUTURE AT AMA/ COX PAR TEE

O

n a brisk Friday in October, AMA members headed to work with sets of clubs in the trunk of their car for the 20th Annual Golf Tournament held at the Starfire Golf Club.

One of the most popular events of the year, more than 150 golfers participated this year.

An energized Golf Tournament Committee signed up every hole sponsor early. Companies had time to plan memorable holes to play through for the members.

The AMA/Cox Par Tee Golf Tournament transformed into a Back to the Future-themed event this year with fun, movie memorabilia and silly hole sponsorships. Fans will remember that October 21, 2015 was the date that Marty McFly arrives from the past via the time-traveling DeLorean in the 1989 film Back to the Future Part II. A special “thank you” to Julie Brelsford with ConAm Management and Diane Tone with Affordable Fire & Safety, our 2015 Golf Committee Chairs, for making this event so successful! And another huge shout out to Cox Communications for their Title Sponsorship!

LEADERBOARD 1ST PLACE:

2ND PLACE

3RD PLACE

Jon Williams Terry Kohler Todd Sheehy DJ Merenes

Rebecca Anderson Max Zarsinski Michael Gonzales Greg Stobart

Tim Thorne Matt Goodwin Baylen Brice Chris Hanson

AMA celebrates a successful 2015 session

Top row: AMA Government Affairs Chair John Carlson, Mark-Taylor Residential; Courtney LeVinus, Capitol Consulting; Tom Simplot, AMA; Sharon Hosfeld, AMA. Bottom row: Senator Gail Griffin(R-Hereford), Governor Doug Ducey, AMA Board Chair Chris Evans, HSL Asset Management

20

Apartment News > December 2015/January 2016

AMA members Kim Fitch, Nicolosi & Fitch and John Carlson, Mark-Taylor Residential welcome Senator John McCain at the home of Courtney LeVinus during an AMA-hosted reception.

www.azmultihousing.org

ON THE SCENE RECENT AMA EVENTS

PROJECT S.A.F.E.

During the most recent AMA Dinner meeting, honorees from the Project S.A.F.E. program shared their successes in protecting and building communities through this signature program. In Phoenix, we have more than 110 Project S.A.F.E. events this year!

WINNERS:

Best Community Participation: Whispering Pines; U.S. Residential Group Best Theme: San Privada; Mark- Taylor Best Flyer: Arcadia Walk; Allison- Shelton Best Community Turnout: Reflections at Red Mountain; P.B.Bell Committee’s Choice: Sera Bella; Centurion The AMA honored the Regional Managers who have all of their properties participating in Project S.A.F.E.: > Lisa Cote, Allison-Shelton Real Estate Services, Inc. > Julie Brelsford, ConAm > Shandra Mixey, ConAm > Anna DiSabato, Dunlap & Magee Property Management > Carolyn Manning- Dunlap & Magee Property Management Inc. > Rosalinda Moehn, Milestone > Cary Cole, P.B. Bell > Vicky Morales, U.S. Residential www.azmultihousing.org

Apartment News > December 2015/January 2016

21

FOCUS ON TUCSON

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FOR TUCSON TRADE SHOW

Tucson heats up with Chili Cookoff Costumed kids and families gathered for Tucson’s 3rd Annual Chili Cook Off & Fall Family Festival Networking Event hosted at Redi-Carpet in late October.

Eighteen associate members brought games for the festival and 12 properties/management companies submitted chili for the cookoff.

WINNERS: Best Overall: Zona Village (MEB) “Ortega’s Heat” Best Apron: Lantana Apartments (Quarterpenny Management) Most Unique Chili: Casa Marin (Nicolosi & Fitch) “Goldilocks” Spiciest Chili: Park Place (Prime) “Skellington’s Revenge” People’s Choice: Lantana Apartments “No Mercy”

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More than 400 people attended and more than 80 exhibitors dressed for the 80s theme. Bringing back great memories, attendees enjoyed PacMan, Cheers, Back to the Future, Top Gun, Risky Business and more while feasting on Pop Rocks and Candy Rings. Congratulations to the dedicated chairs Vikki Garcia (Scotia Group Management) and Tim Furnas (Valley Wide Security) on their huge success with this event.

WINNERS:

Best Use of Theme: Valley Wide Security Best Costume: Redi Carpet Most Interactive Booth: Distinctive Carpet & For Rent People’s Choice: Koglmeier Law Group, PLC

THANK YOU

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FOR MORE INFORMATION ON HOW TO BECOME A PATRON MEMBER OF AMA, PLEASE CONTACT JAMES TUNNELL 602-296-6212 OR JTUNNELL@AZMULTIHOUSING.ORG