The Mayor’s Role in Payson’s Government
Payson operates under a council–manager form of government. This means the elected Town Council, which includes the Mayor and six council members, sets policy and passes local laws, while a professional Town Manager runs day-to-day operations. The Mayor is directly elected by Payson voters for a two-year term and serves as the chair of the Town Council, presiding over council meetings and representing the town at official functions. In practice, Mayor Otto has a vote on all council decisions (just like any council member) and helps guide the agenda by making recommendations and highlighting issues he believes the Council should address.
In short, the Mayor is the public face of the town’s leadership and a key agenda-setter. While the Mayor doesn’t unilaterally run the town (that’s the Town Manager’s job), he influences policy through leadership and collaboration. He also signs official documents on behalf of the town and can declare local emergencies if needed. For our purposes as real estate professionals, what’s most important is that the Mayor and Council collectively make decisions on budgets, ordinances, and plans that directly affect real estate conditions; things like zoning rules, infrastructure investments, and housing programs. Let’s break down some of those areas.
How the Mayor Impacts Real Estate (Zoning, Infrastructure, Housing & More)
The connection between the Mayor’s office and the real estate industry might not be obvious at first glance, but it’s absolutely there. Many of the Mayor’s responsibilities are related to the growth and development of the town, which in turn affects property values, housing availability, and the attractiveness of our area to buyers. Here are some key areas where Mayor Otto’s work influences real estate in Payson and surrounding communities:
- Zoning and Land Use: One of the Town Council’s core powers is passing ordinances, including zoning changes. Zoning decisions determine what can be built where (residential vs. commercial use, housing density, etc.). Mayor Otto, alongside the council, reviews rezoning requests and development proposals. For example, if a developer wants to rezone land for a new housing subdivision or retail center, the council’s approval (often guided by the Mayor’s input and the town’s general plan) is crucial. These decisions directly impact property development opportunities. A Realtor selling land or new builds in Payson is affected by whether an area is zoned for a certain number of homes or if a commercial project next door gets the green light. The Mayor’s philosophy here is generally pro-growth but with an emphasis on planning, ensuring that new developments fit the town’s vision and infrastructure capacity.
- Infrastructure and Community Projects: Local government budgets fund infrastructure like roads, water systems, sewer, parks and public facilities. The Mayor helps set priorities in the annual budget for such projects. Good infrastructure tends to boost real estate values; think improved roads making a neighborhood more accessible, or expanded water capacity allowing new homes to be built. In Payson, water infrastructure is a perennial concern (our growth depends on sustainable water supply). The town in recent years completed the C.C. Cragin pipeline project to bring in surface water, an effort supported by town leadership to secure long-term water for development. Additionally, community amenities can spur real estate interest: an example was the proposal for a new aquatic center and recreation complex. While that large project was put on hold late last year amid public debate over a $70 million bond financing (the council passed a resolution to stop that bond issuance), it illustrates how the Mayor and Council weigh big investments. The way such projects are handled can affect local taxes and the desirability of our town. Mayor Otto and the current council have signaled a more cautious approach to major capital projects, focusing on needs like public safety and infrastructure maintenance, and ensuring there’s community support before taking on huge debts. This fiscally careful stance is meant to keep Payson attractive and affordable, a positive for residents and property owners alike.
- Housing Policy and Availability: Perhaps the hottest topic connecting the Mayor’s office and real estate is housing. Like much of Arizona, Payson faces a housing crunch – especially affordable and workforce housing. Mayor Otto has made housing a priority. In fact, the previous Town Council (just before Otto took office) declared a housing emergency in April 2024 in recognition of skyrocketing home prices and lack of affordable options. Under Mayor Otto’s leadership, the town has been exploring solutions: commissioning studies, pursuing partnerships, and adjusting policies. A recent housing demand study presented to the Council in January 2025 showed Payson will need roughly 500 new homes in the next five years to meet projected growth, including about 395 homes for sale and 107 rentals. The study highlighted a particular shortage of homes in the starter home price range (around $250K–$325K), a price point critical for middle-income families. This data is now guiding town discussions with developers and shaping future plans. For example, the town can use this information to update zoning or offer incentives to encourage the types of housing most needed.
- Community Planning and Growth Management: The Mayor also plays a key role in broader community planning, updating Payson’s General Plan, setting long-term growth strategies, and balancing economic development with quality of life. Real estate thrives when a town finds the sweet spot between growth and preservation. Mayor Otto campaigned on managing growth thoughtfully and restoring public trust in the process. That means making sure citizens have input on big decisions (like large developments or land deals) and keeping growth in line with infrastructure. “There is a cry in town for growth; some don’t want any growth. More than likely, we all want the same thing: a vibrant, prosperous community, we may just disagree on how to get there. Citizen involvement and ‘buy-in’ via the ballot box on large-scale projects appear fundamental to that process,” as one community commentary noted about Payson’s direction. In practical terms, expect Mayor Otto to ensure that major planning decisions, whether a new annexation, a big commercial center, or investing in new public facilities, are vetted openly and align with what residents and experts say is sustainable. For Realtors, this approach can be reassuring: it seeks to prevent boom-and-bust overdevelopment and instead foster steady, livable growth that keeps property values healthy over the long term.
Current Issues to Watch (What’s on the Mayor’s Plate)
So, what specific issues are in front of Mayor Otto and the Town Council right now that could ripple into the real estate realm? A few stand out, and you may even want to ask the Mayor about these at the breakfast:
- Short-Term Rentals and Housing Affordability: If you’ve struggled to find a long-term rental for clients or heard about locals unable to find housing, you’re not alone. Short-term rentals (STRs like Airbnb) have taken many homes out of the local long-term market. Mayor Otto has been vocal alongside other Arizona mayors about this challenge. In February 2025 he joined a forum of northern Arizona mayors to highlight how STRs contribute to housing shortages and high prices, urging state lawmakers to give towns more control. Currently, an Arizona law (SB 1350) severely limits cities’ ability to regulate vacation rentals, but there’s a growing coalition pushing to change that. “What’s good for big communities is never good for small communities,” one mayor said, arguing that local leaders know best how to protect their neighborhoods. The bottom line: Mayor Otto supports regaining local authority to put reasonable limits or rules on short-term rentals. For real estate folks, this could eventually mean a more balanced market, easing pressure on inventory and making it easier for workers and families to live in town (which in turn supports a stable client base for us). It’s a sensitive issue (we all appreciate tourism income too), but any changes will aim to strike a balance that keeps neighborhoods livable and available for year-round residents.
- New Housing Developments in the Pipeline: On the upside, there are several new housing projects under consideration that could add inventory to our market. One notable proposal is the “Reserves on the Rim” apartment complex by Overland Property Group. This project would create 72 new multifamily units on Malibu Drive, near Highway 87, with 48 of those units set as income-restricted affordable housing. The plan includes a small Natural Grocers market and a community center on site, which would be a nice amenity for the area. The catch: it’s dependent on competitive state funding (Low-Income Housing Tax Credits and other financing). The project was passed over for funds in 2023, but developers and town leaders haven’t given up. They held public info sessions to drum up community support and are seeking state housing funds again. If Mayor Otto can rally support and the funding comes through, construction could start and potentially finish by 2026. This would be a significant boost to our rental and entry-level housing supply, helping first-time buyers and renters, and even bringing a new grocery store option to town.
- Affordable Housing Initiatives: Another initiative in the works is the Green Valley II affordable housing project. This one is a bit complex: it’s a 40-unit development proposed in an area by the American Gulch, and it was spearheaded by the Payson Regional Housing Development Authority. The town actually acquired land for this project and, in a sign of support, helped facilitate an application for state tax credits. Good news: in June 2024, the Arizona Department of Housing awarded about $1.86 million in tax credits to the Green Valley II project. This was a big win and indicates the project is moving forward. However, the site sits in a floodplain (the American Gulch area), so making it buildable will require a major flood control project (estimated around $9 million) to channel and mitigate flooding. The town has been planning to fund that flood-control work, possibly via bond or other financing. It’s a reminder that solving housing issues can require solving infrastructure issues hand-in-hand. Mayor Otto and the council will have to decide how to tackle that, whether to proceed with those improvements and how to pay for them. For the real estate community, Green Valley II could eventually mean more affordable rentals and perhaps homes for local workforce, which is very much needed. But we’ll be keeping an eye on how the town manages the costs (since that can touch taxes or budgets).
- Community Amenities and Planning: We mentioned earlier the proposed aquatic center and sports complex. To recap, the prior town council had bundled several big projects (an aquatic center, park improvements, maybe the gulch flood project, etc.) into a large bond ask last year. That sparked a lot of community discussion. Many residents wanted a say at the ballot box before the town took on $70 million in debt for these projects. After a change in town leadership (Mayor Otto and a slate of new council members were elected in 2024), one of their first actions was to hit pause on that bond, effectively canceling the immediate plan for the aquatic center and related projects. This doesn’t mean Payson will never get a new pool or other amenities, but it does mean the approach will be a bit different going forward. You can expect Mayor Otto to discuss how such projects might be revisited with more public input or phased in more sustainably. For Realtors, quality-of-life amenities like parks, pools, and libraries are selling points for a town, but only if they’re done in a fiscally responsible way. The fact that the new council chose to slow down and seek broader consensus may indicate a more measured approach to town improvements, aimed at keeping Payson financially healthy (and property taxes stable). It’s a delicate balancing act: investing in the community while not overburdening taxpayers. Keep an ear open for the Mayor’s thoughts on this at the breakfast, especially if you have clients asking “what happened to the new pool?” or where their tax dollars are going.
A Final Word – Collaboration and Looking Ahead
In the past year or two, Payson has navigated a lot of change, new leadership, debates over growth, efforts to address housing needs, all within the context of a rapidly evolving real estate landscape. The good news is that Mayor Otto campaigned on bridging some of these divides. He emphasized listening to the community and making sure growth benefits everyone. From our perspective in real estate, a collaborative relationship with the town government is invaluable. The Mayor’s appearance at our business breakfast is a chance to build that relationship, to share our industry’s insights and concerns, and to hear directly how the town’s plans might create new opportunities (or challenges) for the property market.
Importantly, Mayor Otto’s approach has been nonpartisan and pragmatic. City issues like zoning, infrastructure, and housing don’t fall neatly along party lines, and the Mayor has been careful to keep it about finding solutions that work for Payson. So, you can expect a conversation that’s informative but not political. We might learn about upcoming road improvements, changes in permit processes, or new business developments coming to town, all things that help us as Realtors stay ahead of the curve.
To wrap up, remember that the Mayor’s role is to help shape an environment where our community can thrive. When zoning is sensible, infrastructure is solid, and housing policy aims for affordability, the real estate market tends to flourish in a sustainable way. Payson is a growing community, and we’re lucky to have leadership that recognizes the importance of planning for that growth. So let’s give Mayor Otto a warm welcome, learn what we can from his update, and continue working hand-in-hand to make Payson and Rim Country an even better place to live, work, and own property.
We look forward to an engaging discussion at the breakfast – see you there!
Sources:
- Town of Payson official description of the Council-Manager form of government and Mayor’s duties under town code.
- Payson Town Council meeting reports on housing needs (2025 Housing Demand Study).
- Payson Roundup/AZBEX coverage of the proposed “Reserves on the Rim” 72-unit housing development and Natural Grocers market.
- Transparent Payson community updates on the town’s April 2024 housing emergency declaration and affordable housing projects.
- Arizona’s Family (Channel 3) news report on northern Arizona mayors (including Payson) advocating for local control over short-term rentals to ease the housing crunch.
- Transparent Payson summary of community perspectives on growth, development, and voter involvement in major projects.
- Transparent Payson update noting the new council’s halt of a $70M bond proposal for an aquatic center and other projects, reflecting a shift toward more public input.
