Protecting a Small Business Owner’s Private Property Rights

Anil Patel is a property owner in the city of Holbrook, Arizona. His property is currently a Howard Johnson motel. In December 2022, he planned to sell his property to a buyer who desired the property’s available uses in that commercial zone. But the city of Holbrook interfered when it enacted a new ordinance that removed an existing property use for the hotel. The ordinance was passed by the city council in order to restrict what businesses can operate in Holbrook. This left Anil without a buyer, and the value of his property decreased.

Arizona’s Private Property Rights Protection Act (also known as Prop 207) was enacted to ensure that property owners are fairly compensated when government regulations decrease the value of private property. Under Prop 207, if a property owner’s right to use their land is restricted by a land use law, and that reduces the fair market value of the property, owners are entitled to just compensation.

That is why the Goldwater Institute filed a lawsuit against the city of Holbrook demanding the just compensation Anil is entitled to for the city’s restriction of his property rights.