Another View: Developer Johnson scrapes bottom of believability

East Valley Tribune

Scottsdale-based land developer George Johnson still wants the public to believe he’s been the real victim in a state civil prosecution related to a now-defunct 2,000-acre development in the desert north of Tucson. Johnson maintains his innocence even after he agreed last week to pay $7 million in fines as his share of the largest judgment for environmental violations in state history. We aren’t buying his story any longer.

For more than two years, Johnson had fiercely denied the various charges by state prosecutors and environmental regulators, even though he had a hefty insurance policy to cover the state fines if he had settled his case right away. His legal strategy included counter-lawsuits, such as a demand for $40 million from state Attorney General Terry Goddard on an accusation of libel. Johnson had even won an early legal victory this year before an appellate court in that part of the dispute.

Despite all of the time and money Johnson had invested in proving the state wrong, Johnson suddenly decided to end his fight and surrender last week. His change of heart came almost immediately after another legal ruling that Johnson faced punitive damages if the state proved he intentionally violated environmental rules. That exposed Johnson’s development business to additional fines of millions of dollars potentially not covered by his insurance, Capitol Media Services reported.

Johnson probably would have had a much stronger case if the dispute had solely been about his right to begin earthwork on the 2,000 acres that he had directly owned. State and local officials claim Johnson didn’t have the proper permits for such work. But government has a strong tendency to overregulate the use of private property, and then to exaggerate the real harm to the public when it tries to enforce that overregulation.

However, Johnson and his contractor opened the door for aggressive state action by also scraping the terrain of about 270 acres of state trust land, property that he didn’t own and had no right to be on. State officials also say Johnson heavily damaged seven archeological sites of the ancient Hohokams, tore up washes in ways that could disrupt southern Arizona rivers, and allowed herds of goats to leave his property and spread a deadly disease to bighorn sheep living on state and federal lands.

Johnson had to abandon the project and sold his land. Now, the state can claim clear vindication, and a total of $12 million, for Johnson’s careless actions.