Gilbert seeks appraisal after land deal panned

Looking to combat criticism that Gilbert overpaid by millions for parkland it acquired in 2009 without an appraisal, the Town Council is spending taxpayer money for an after-the-fact appraisal.

Real-estate experts and angry residents have criticized the town for spending $42.7 million to buy 142.5 acres of undeveloped land from dairy farmer Bernard Zinke in early 2009.

The intent of the appraisal, which is part of an independent audit of the deal, is to address claims that the town paid 10 times the true value for the land, Mayor John Lewis said. Town spokeswoman Beth Lucas said it wasn't yet known how much the third-party audit will cost.

The appraisal comes as three of the council members who joined the unanimous approval of the deal prepare for spring elections in the town.

Lewis was not on the council when the deal was approved in January 2009, but incumbents Linda Abbott, David Crozier and Vice Mayor Les Presmyk all voted for it and their seats are up for election in March. Unhappy citizens have threatened to make the purchase an issue in the campaign. The other three votes came from former Mayor Steve Berman and former council members Joan Krueger and Don Skousen.

Gilbert bought the land for $300,000 an acre and designated it for two parks projects to be constructed at an unspecified future date.

Presmyk said the audit and appraisal are not intended to help the three council members in their bids for re-election.

"This has nothing to do with my re-election," Presmyk said. "It has everything to do with continuing good stewardship and proper management of the town's resources. I have never done anything or made any decisions that I felt were based on whether I was going to get re-elected."

Crozier said, "We're really just trying to understand the facts as best as we can get them."

Abbott declined to comment.

As part of the complex agreement, the town also spent $7.4 million to acquire dairy infrastructure in exchange for rights-of-way needed for street improvements, according to a town document on the deal.

Real-estate experts familiar with southeast Valley land values have told The Republic that the deal was way out of tune with the market, which was quickly spiraling downward at the time. Land broker Stacy Brimhall said other purchases around the same time went for $35,000 to $40,000 an acre.

Sources did not give a specific opinion on the value of the Zinke property, but they agreed it would not have appraised for $300,000 an acre, even at the peak of the real-estate bubble.

Town officials conducted an internal review of the purchase and have contracted with outside attorney Gary Birnbaum and appraiser Marc Barlow to give an independent assessment.

It is not yet clear when the results of the audit and appraisal will be available, but the council has scheduled an executive session this week for legal advice and discussion regarding property acquisition, Town Attorney Susan Goodwin said.

by Parker Leavitt The Arizona Republic Oct. 17, 2010 12:00 AM



Gilbert seeks appraisal after land deal panned