How the South Mountain Freeway May Impact Buyers and Sellers in South Phoenix
Arizona courts have held that where a seller of real property knows of facts materially affecting the value of the property that are not readily observable and are not known to the buyer, that the seller is under a duty to disclose those facts. On occasion, facts of this nature can include the construction of a nearby roadway, especially one that has the potential to generate increased traffic, noise, and air pollution. It is for this reason that REALTORS®, via the Buyer Advisory, wisely instruct buyers to “search for roadway construction and planning.”
Although the Buyer Advisory places the buyer on notice of their need to research this important issue, thereby reducing the potential liability of the seller and listing agent, buyers and sellers of real property in portions of South Phoenix should still be attuned to the fact that, on March 5, 2015, the Federal Highway Administration granted final approval for the Arizona Department of Transportation (ADOT) to begin construction of a 22-mile-long freeway, known as the South Mountain Freeway expansion project. Pursuant to this project, the Loop 202 freeway, also known as the South Mountain Freeway, will soon run east and west along Pecos Road and then turn north between 55th and 63rd avenues, connecting with Interstate 10 on each end.
With approval having been obtained, ADOT is now procuring identified right-of-ways with the intention of beginning freeway construction in 2016. The freeway is planned to be open to traffic in late 2019 or early 2020.
To prepare for construction, ADOT has been contacting property owners whose properties will be impacted by this freeway expansion, and is beginning the process of acquiring properties within the freeway corridor. Although ADOT currently owns a substantial majority of the needed right-of-way along Pecos Road, approximately 400 total properties, including approximately 200 homes, will need to be acquired to construct the freeway.
Additional information on the South Mountain Freeway, including a map, can be found at http://azdot.gov/projects/phoenix-metro-area/loop-202-south-mountain-freeway.
Updated March 30, 2015
While property owners and REALTORS® in South Phoenix should be aware of the new South Mountain Freeway, property owners and REALTORS® in southern Arizona should know that Arizona Senators, John McCain and Jeff Flake, have recently introduced a bill titled the Intermountain West Corridor Development Act of 2015. The bill formally extends Interstate 11 from Wickenburg through the Tucson area to Nogales. If successful, the Act will not only extend I-11 in southern Arizona, it will additionally extend the interstate north through Nevada with plans to ultimately connect with existing high-priority corridors to the Canadian border.
About the author: Scott M. Drucker, Esq., a licensed Arizona attorney, is General Counsel for the Arizona Association of REALTORS® serving as the primary legal advisor to the association. This article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.
Tags: disclosure, Loop 202, Phoenix Contstruction, Seller Disclosure, South Mountain Freeway