Phoenix closes $18 million deal on South Mountain

 
April 2, 2009

After coveting hundreds of acres of state trust land south of South Mountain Park for a desert preserve, city park and services complex, Phoenix closed the deal Thursday morning on 247 acres northwest of Chandler Boulevard and 19th Avenue.

The land is part of the so-called South Mountain 620, the last major piece of desert that can be master planned and developed in the Ahwatukee Foothills.

Flush with revenues generated by bonds approved by voters in 2001 and 2006 and eager to take advantage of cheap land prices in the down real estate market, Phoenix Council approved the $18 million purchase and became the successful bidder in a state land auction. 

"It's a phenomenal location. It's beautiful," said Phoenix City Councilman Sal DiCiccio, who represents Ahwatukee. "This is a project that is very big for our area. It's something that is 100 percent quality-of-life-driven."

Phoenix's plans call for the construction of a fire station and a public library on 3 acres at 19th Avenue and Chandler Boulevard and a 40- to 60-acre park just west of the city buildings.

More than 100 acres will remain an undeveloped section of preserve land, DiCiccio said.

Jamie Hogue, deputy commissioner for the Arizona State Land Department, said that as of Wednesday afternoon, only Phoenix had expressed interest.

The Land Department has tried seven other times to auction various parts of the South Mountain 620 since 1997. In 2002, the price for the entire 620 acres was about $56 million.

Hogue said the Land Department's original plan was to sell the land - bounded by Pecos Road, South Mountain Park and 19th and 27th avenues - to a private developer. Complicating the deal, however, was a requirement that the developer allow Phoenix to build the park and city services on the land.

After the recent plummet in land prices, the Phoenix City Council decided to stop waiting for a private-sector co-developer. It voted in January to use bond funds to purchase the north section of the 620 and to move forward with plans for the park and city complex.

 

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