"Home of 1st Class Service"  

Ken Berkhoff & Robert Baker  
Flagstaff, AZ  

1st Brokers Realty
"Home to 1st Class Realty"


1st Brokers Realty Position Paper for Economic

Development in the Flagstaff Region

Summer/Fall 2011



Airport Economic Development: Promote different types of business for the Airport

Park: expand zoning standards to allow a larger use range of desired employers.


Tourism Economic Development: Use lead capture techniques for all marketing

materials: Consider using a one point of contact in ALL regional print/marketing efforts

such as a central phone number to call for additional information on Flagstaff instead of

general branding advertising. One point of contact could be the Flagstaff Visitors Center,

Chamber of Commerce or Economic Collaborative of Northern Arizona (ECoNA) or

similar organization depending on the target market and available personnel.


Redevelopment: Consider incentive programs for re-development of existing products

and infill projects that could include: reduced building permit fees, accelerated building

plan approval, waiver of DRB fees and other incentives.


Attraction of New Companies: Partner with NABA, and similar organizations, to

attract quality businesses to the Northern Arizona region by creating a leads team

consisting of local professionals that will work directly with potential clients to meet their

relocation needs and to show companies moving to the area that the community is indeed

committed to their success in Flagstaff. ECoNA has a good framework for this group but

the group needs to be formed and activated in the short term, we are falling behind other

communities in this area each and every day a leads team is not active.

Proposed Leads Team members

· Commercial Developer

· Land Developer

· Commercial/Residential Contractor

· Land Broker

· Commercial Broker

· Engineer

· Architect

· Real Estate Attorney

· Land Owners

· Excavation Contractor

· Community Development/Land Planner from the City and County

· Commercial Banker or Angel/Venture Capital Investor

Leads Team to Provide Data to Prospective Clients

· Workforce Date and Demographics

· Site and Building Specifications

· GIS Property Listings

· Zoning and Development Strategies

· Arizona Economic Development Data

· Northern Arizona News and Events

· Northern Arizona Site-Selection Assistance

· Other Forms of Assistance as Requested by Client


Retention of Existing Companies: Anticipate existing companies’ retention needs and

develop strategies to mitigate negative objections.


Case Study: Senestech Inc.

Requirements: 400 Ovarian Scientists for Product Development and Research

Proposed Solution: Create a custom NAU Program for Senestech,

designed by and approved by Senestech, to supply some of their scientific

and education needs.

Housing Desires: 400 employee housing units

Proposed Solution: Issue RFP to residential developers to supply

Senestech housing at reduced costs in exchange for development



1st Brokers Realty Positions on Specific Questions on

Economic Development Issues


1. How is Economic Development Related to Land Use and Transportation?


· Limited land and Industrial Zoned Properties within the City of Flagstaff limit

mid-size and large company relocation.

· Preserve appropriately zoned Industrial zoned parcels in the County (Bellemont

and Winona) that are suitable for mid-size to large company relocations and

provide incentives for development.

· Understand that most mid-size to large company relocations will locate in the

County at Bellemont or Winona.

· Consider appropriate traffic solutions for South Milton Road and Highway

180/Snowbowl/snowplay congestion.

· Consider using Community Facilities Districts (CFD’s) Financing opportunities

for infrastructure expansion for Bellemont and Winona industrial areas as well as

other future projects to develop public/private infrastructure needs. See Attached

Documents Tab-“CFD Explained”.


2. What kind of jobs really work for our community?

· Ask any unemployed worker and they will likely say “any job will do”. However,

attracting jobs that fit within our community’s character is preferred.

· Making the decisions of what fits into our community should rest with the

community as a whole and not at the City and County staff level.

· The current Nestlé Purina Pet Care Company, if proposed today, would probably

not meet the standards of some within our community, but all agree we want to

retain their jobs and community involvement today.


3. Where should growth occur?

· Any appropriately zoned parcels.

· Support smart thoughtful growth in and around Flagstaff.

· Section 20 south east of the Country Club.

· Community approved development of State Trust Lands surrounding Flagstaff

and in Coconino County.

· Careful consideration should be given to any measure that would limit future

growth around Flagstaff such as the expansion of Walnut Canyon National

Monument which would have the effect of eliminating any and all growth south

of Flagstaff.

· Limiting growth, beyond market conditions, in any manner, will continue to drive

home prices in and upward direction. The solution to reasonably affordable

housing in the Flagstaff area is a basic economic principle: Supply and Demand.

The lower the supply the higher the demand, the higher the demand the higher the

price. Careful consideration should be given to market conditions when

considering the appropriate number of new housing units introduced to the market

each year.

· We need to avoid the 30% appreciation of housing values experienced in 2006, it

has created an unhealthy market and has made the correction experienced in 2007

to the present more dramatic and harmful to the community than necessary.

· Recent Maricopa County of Governments (MAG) studies showed little growth in

Flagstaff between 2000 and 2050, more so than any other community in Arizona!

See attached MAG Map in Map Tab. If this MAG study holds true, Flagstaff

will be subjected to higher demand for housing and commercial development and

therefore higher priced housing stock into the future.

· Careful consideration should be given to project designs that have not

traditionally been used in the Flagstaff area, such as Presidio. This project is now

a bankrupt eyesore that will not provide housing to our community for many

years and has created an unwelcome burden on our City Budget. Presidio, unlike

the Sawmill Project, was not affected by market conditions but was flawed by


· Careful consideration should be given to efforts to expand Walnut Canyon

National Monument, by 30,000 acres, and continued efforts to purchase State

Trust Lands around Flagstaff for various special land use purposes. A smaller

privately held land development pool will create a larger gap between supply and

demand and thus increase prices for all land use types in the region.


4. What additional services would you like to see at the Airport Area?

· Consider uses of other airparks, such as: Scottsdale Airpark and other similar

sized communities.

· Privately owned hangars with adjacent office space for companies.


5. What is your opinion of the future of the tourism industry?

· Our community has been partially built on Tourism and efforts must be continued

to expand this industry.

· Tourism brings lower paying jobs but any effort to limit these existing jobs would

be detrimental to the community as a whole.

· Consider attracting higher paying tourism jobs using “out of the box” ideas.