Scottsdale is close to settling a costly condemnation case for state land that took a decade to acquire.
Earlier this month, the Scottsdale City Council agreed to pay Hualapai LLC nearly $7.8 million for 6.9 acres of land the city needed for a water treatment plant.
In July 2006, Hualapai outbid the city for the land at an Arizona State Land Department auction. Hualapai bid $6.16 million for a property that was appraised in early 2006 for $4.86 million.
Both sides agreed to the settlement that still must be approved by the Arizona Court of Appeals and Maricopa County Superior Court, Scottsdale City Attorney Bruce Washburn said.
"The council approved this settlement and in my opinion it was beneficial to have this matter resolved," Washburn said.
Scottsdale's complicated condemnation case, with nearly six years of litigation, involved some unusual twists and speculation on land values that were at least $8 million apart.
Scottsdale got the cart before the horse when it leased the land from the state in 2005 as it started a $35.8 million expansion of its Central Arizona Project water-treatment plant. The trouble started when the city got outbid for land it intended to buy.
Ultimately, the two sides agreed to negotiate a price for the land between $5.27 million and $13 million. The site is west of Pima Road at Hualapai Drive just north of Loop 101.
Bidding war for land
At the State Land Department auction in July 2006, Scottsdale and Hualapai submitted 14 bids between them starting at $4.86 million before the city bowed out.
"Hualapai's strategy as they described it themselves was to take advantage of the lease the city entered into," Washburn said. "They always intended to sell the land to the city."
It's "impossible to know" whether the city could have ultimately saved money by continuing the bidding war with Hualapai rather than go through condemnation and the legal battle they ultimately chose, he said.
Hualapai and its principal Robert Kimball of Paradise Valley and the company's attorney did not return calls seeking comment.
Scottsdale applied to buy the land in 2002 but the property was not appraised and brought forward for auction until 2006.
The State Land Department agreed to lease the land to the city in late 2005 so it could start construction on the treatment plant to meet federal requirements.
The 10-year lease was structured so that the city would pay $2,400 the first year and $1 million per year after that. No one was worried about the $1 million payment because Scottsdale assumed it would own the land in less than a year.
When Hualapai won the bidding, it argued that the $1 million lease set the value of the land higher than the city's estimates.
City fought to exclude lease
Scottsdale, which filed its condemnation lawsuit in September 2006, argued that the lease was invalid because then Mayor Mary Manross was the only person who signed the document and it had not been approved by the City Council. Superior Court Judge Jeanne Garcia ruled against the city in a summary judgment and declared the lease valid.
Scottsdale won a summary judgment on a motion to exclude the lease by invoking the project-influence rule. Under that provision, in a condemnation case, the market value cannot be positively or negatively altered by the public project that spurred the condemnation.
That led to the negotiated settlement.
Scottsdale has already paid Hualapai $5.2 million because that was the agreed-upon minimum value of the property.
The Scottsdale City Council on July 3 authorized the remaining payment of $2.52 million to settle the case with Hualapai.
by Peter Corbett - Jul. 19, 2012 The Republic | azcentral.com
After 6 years, Scottsdale is settling state-land case
Showing posts with label state land. Show all posts
Showing posts with label state land. Show all posts
Monday, September 3, 2012
Thursday, June 7, 2012
Westcor turns back state land for Palisene
A regional-mall site intended for Westcor's Palisene project is going back to the Arizona State Land Department.
Westcor and the Land Department reached an agreement last week to end Westcor's 99-year lease of 112 acres of state trust land northwest of Scottsdale Road and Loop 101.
"We're getting the piece back intact," state Land Commissioner Maria Baier said. "It's ready for the next healthy market."
The property can be auctioned again as the commercial real-estate market recovers, Baier said.
The settlement puts a halt to Westcor's 20-year plan for a mall and mixed-use development on the state land just west of Scottsdale Road in Phoenix.
It stalls planning and development of roads, utilities and flood control for thousands of acres in the Paradise Ridge area.
Westcor was the sole bidder four years ago to lease the 112-acre Palisene site for $32 million, with the obligation to invest $67 million for development improvements that would have served the broader area of state land northwest of Loop 101 and Scottsdale Road.
Scott Nelson, Westcor vice president of development, said the property is some of the best-located land in the Valley but it lacks water, sewer, streets and flood control.
"There is not a comprehensive drainage solution to allow for development to occur," Nelson said. "That became the impetus for canceling this lease."
It was difficult for Westcor to walk away from the site after spending so many years planning for its development, he said.
It's still going to be great real estate," Nelson said. "The community and the cities (Scottsdale and Phoenix) need to look hard at how this area should be developed and how to get the public infrastructure funded."
Baier said Westcor had planned on recovering infrastructure costs from Phoenix but that was no longer possible after Arizona Supreme Court rulings on development agreements involving CityNorth at 56th Street and Loop 101. The court in 2010 put strict limits on municipal tax incentives to ensure there is clear public benefit.
Westcor, a division of Santa Monica, Calif.-based Macerich, paid $1.26 million in lease payments to the Land Department through 2010 and deferred its $1 millionpayment for 2011.
The settlement, reached with the help of a mediator, divides $18 million in an escrow account with $10 million going to the Land Department and $8 million to Westcor, Baier said.
The Land Department keeps $1.26 million of Westcor's lease payments but reimburses Westcor $1.1 million for its $2.5 million in expenses in developing a master plan for the site, Baier said.
The Land Department plans to spend $8 million of the funds from Westcor to improve the area's infrastructure, which will make it more valuable for development, she said.
Westcor for at least two decades targeted Paradise Ridge northwest of Loop 101 and Scottsdale Road for a regional mall. In 2005, company officials unveiled conceptual plans for an ambitious mixed-use plan for the area in partnership with the Landmark Land Co.
The Palisene shopping center was to include 1 million square feet of high-end retail, restaurants and entertainment on 72 acres. Westcor envisioned a 2,100-acre mixed-use project at Paradise Ridge with offices, homes and condominiums, a hotel and buildings rising to 17 stories.
With the economy in high gear, developers were racing to build major mixed-use projects in the Northeast Valley including CityNorth, Scottsdale Quarter, One Scottsdale and Palisene.
CityNorth and Scottsdale Quarter got built and struggled out of the gate in 2009 as the economy faltered. Westcor went ahead with acquisition of the Palisene site in April 2008 and later that year announced plans for a retractable roof for the shopping center.
But retailers pulled back as the recession hit. In the past year, Westcor tried to land a luxury outlet mall for the site but was unsuccessful.
Nelson said it is hard to say if the company would once again pursue the Palisene site in a future state land auction.
by Peter Corbett - Jun. 7, 2012 11:43 AM The Republic | azcentral.com
Westcor turns back state land for Palisene
Westcor and the Land Department reached an agreement last week to end Westcor's 99-year lease of 112 acres of state trust land northwest of Scottsdale Road and Loop 101.
"We're getting the piece back intact," state Land Commissioner Maria Baier said. "It's ready for the next healthy market."
The property can be auctioned again as the commercial real-estate market recovers, Baier said.
The settlement puts a halt to Westcor's 20-year plan for a mall and mixed-use development on the state land just west of Scottsdale Road in Phoenix.
It stalls planning and development of roads, utilities and flood control for thousands of acres in the Paradise Ridge area.
Westcor was the sole bidder four years ago to lease the 112-acre Palisene site for $32 million, with the obligation to invest $67 million for development improvements that would have served the broader area of state land northwest of Loop 101 and Scottsdale Road.
Scott Nelson, Westcor vice president of development, said the property is some of the best-located land in the Valley but it lacks water, sewer, streets and flood control.
"There is not a comprehensive drainage solution to allow for development to occur," Nelson said. "That became the impetus for canceling this lease."
It was difficult for Westcor to walk away from the site after spending so many years planning for its development, he said.
It's still going to be great real estate," Nelson said. "The community and the cities (Scottsdale and Phoenix) need to look hard at how this area should be developed and how to get the public infrastructure funded."
Baier said Westcor had planned on recovering infrastructure costs from Phoenix but that was no longer possible after Arizona Supreme Court rulings on development agreements involving CityNorth at 56th Street and Loop 101. The court in 2010 put strict limits on municipal tax incentives to ensure there is clear public benefit.
Westcor, a division of Santa Monica, Calif.-based Macerich, paid $1.26 million in lease payments to the Land Department through 2010 and deferred its $1 millionpayment for 2011.
The settlement, reached with the help of a mediator, divides $18 million in an escrow account with $10 million going to the Land Department and $8 million to Westcor, Baier said.
The Land Department keeps $1.26 million of Westcor's lease payments but reimburses Westcor $1.1 million for its $2.5 million in expenses in developing a master plan for the site, Baier said.
The Land Department plans to spend $8 million of the funds from Westcor to improve the area's infrastructure, which will make it more valuable for development, she said.
Westcor for at least two decades targeted Paradise Ridge northwest of Loop 101 and Scottsdale Road for a regional mall. In 2005, company officials unveiled conceptual plans for an ambitious mixed-use plan for the area in partnership with the Landmark Land Co.
The Palisene shopping center was to include 1 million square feet of high-end retail, restaurants and entertainment on 72 acres. Westcor envisioned a 2,100-acre mixed-use project at Paradise Ridge with offices, homes and condominiums, a hotel and buildings rising to 17 stories.
With the economy in high gear, developers were racing to build major mixed-use projects in the Northeast Valley including CityNorth, Scottsdale Quarter, One Scottsdale and Palisene.
CityNorth and Scottsdale Quarter got built and struggled out of the gate in 2009 as the economy faltered. Westcor went ahead with acquisition of the Palisene site in April 2008 and later that year announced plans for a retractable roof for the shopping center.
But retailers pulled back as the recession hit. In the past year, Westcor tried to land a luxury outlet mall for the site but was unsuccessful.
Nelson said it is hard to say if the company would once again pursue the Palisene site in a future state land auction.
by Peter Corbett - Jun. 7, 2012 11:43 AM The Republic | azcentral.com
Westcor turns back state land for Palisene
Sunday, October 17, 2010
Scottsdale, Phoenix acquire trust land for preserves
Scottsdale and Phoenix were unopposed Friday in separate bids to acquire state trust land for their respective preserves, generating more than $69 million for the Arizona State Land Department.
The department scheduled the back-to-back auctions at its headquarters in downtown Phoenix.
Scottsdale succeeded in its bid for 2,000 acres in the Granite Mountain area of northern Scottsdale. The cost was $44.1 million, of which half will be covered by a grant from Arizona's Growing Smarter conservation fund.
"These dollars are really only available for this use," said Scottsdale Mayor Jim Lane, who represented the city in its winning bid. "It is perfect timing."
Scottsdale has acquired and protected almost 18,000 acres for its McDowell Sonoran Preserve, with a goal of preserving 36,000 acres.
Phoenix was the lone bidder on 1,139 acres a mile south of the Carefree Highway and 4 miles east of Interstate 17.A Growing Smarter grant will cover half the purchase price of $25.8 million. The remainder will be paid by sales-tax proceeds from the Phoenix Parks and Preserve Initiative, city spokesman David Urbinato said.
Voters approved the measure in 1999 that raises funds to preserve thousands of acres of state trust land and build and improve parks. Sixty percent of the money goes toward purchasing state trust land for the Phoenix Sonoran Preserve. The city has 6,688 acres in total.
"It's very rewarding to be able to come and add to our preserve," said Councilwoman Thelda Williams, who made the bid for Phoenix.
Money generated by the auctions goes toward funding for public schools and other entities.
by Beth Duckett The Arizona Republic Oct. 15, 2010 02:36 PM
Scottsdale, Phoenix acquire trust land for preserves
The department scheduled the back-to-back auctions at its headquarters in downtown Phoenix.
Scottsdale succeeded in its bid for 2,000 acres in the Granite Mountain area of northern Scottsdale. The cost was $44.1 million, of which half will be covered by a grant from Arizona's Growing Smarter conservation fund.
"These dollars are really only available for this use," said Scottsdale Mayor Jim Lane, who represented the city in its winning bid. "It is perfect timing."
Scottsdale has acquired and protected almost 18,000 acres for its McDowell Sonoran Preserve, with a goal of preserving 36,000 acres.
Phoenix was the lone bidder on 1,139 acres a mile south of the Carefree Highway and 4 miles east of Interstate 17.A Growing Smarter grant will cover half the purchase price of $25.8 million. The remainder will be paid by sales-tax proceeds from the Phoenix Parks and Preserve Initiative, city spokesman David Urbinato said.
Voters approved the measure in 1999 that raises funds to preserve thousands of acres of state trust land and build and improve parks. Sixty percent of the money goes toward purchasing state trust land for the Phoenix Sonoran Preserve. The city has 6,688 acres in total.
"It's very rewarding to be able to come and add to our preserve," said Councilwoman Thelda Williams, who made the bid for Phoenix.
Money generated by the auctions goes toward funding for public schools and other entities.
by Beth Duckett The Arizona Republic Oct. 15, 2010 02:36 PM
Scottsdale, Phoenix acquire trust land for preserves
Saturday, September 25, 2010
Scottsdale seeks development proposals for 80 acres near WestWorld
Scottsdale is looking for developers interested in an 80-acre site north of WestWorld that will cost the city $81 million in bond payments over the next 25 years.
The Scottsdale City Council on Tuesday, with little discussion, voted unanimously to issue a request for proposals for the former state trust land at 94th Street and Bell Road.
The city bought the site at auction five years ago.
"We want to determine the level of interest to develop this site," said Harold Stewart, economic development director. A background report from Scottsdale's Economic Vitality Office recognizes the challenge of unloading the property.
"The City Council may want to determine whether committing the land for development in the current marketplace would be the correct step to take because of financial or other reasons," the report said.
But council member Bob Littlefield, a longtime advocate for selling the site, expressed public optimism.
"I think we're going to get more than one proposal," Littlefield said.
Councilman Ron McCullagh convinced the council to extend the submission deadline from 60 to 90 days because of the size of the site.
The city is offering all or part of the 80 acres for sale or lease.
McCullagh said he did not want the city to be accused of having rigged a deal with a preselected developer by having a short response time.
Scottsdale bought the 80 acres in September 2005 for $47.2 million to protect its interests at WestWorld and make sure it would have adequate parking for WestWorld events and the Waste Management Phoenix Open nearby.
The land was appraised for $27.6 million, but state land auction bidding involving homebuilders pushed the price up by about $20 million more.
Scottsdale financed the land deal with municipal property corporation bonds that will nearly double the cost to $92 million.
Scottsdale already has paid $10.5 million on that debt, leaving a balance of about $81 million.
In December 2005, the city also bought another two parcels of state trust land totaling 69 acres for $31.4 million.
The larger of the two sites, nearly 52 acres, is immediately adjacent to WestWorld and is well suited for parking and expansion of the events center.
The bond financing for the 52-acre site will cost Scottsdale $46.7 million.
That purchase made the 80-acre site expendable in a vibrant commercial real estate market.
But city leaders chose to hold onto the land, which is split by 94th Street north of Bell Road.
At the time, Littlefield argued that the city should sell the land because it got the other site closer to WestWorld.
"Now we're stuck," he said last week. "There may not be a buyer for it."
A hotel company talked to the city two years ago about the developing the site, Littlefield said.
"We'll run it up the flagpole and see what salutes," he said about seeking developer bids for the land.
There is no shortage of vacant land along Bell Road.
The developer of the Scottsdale Epicenter project on 125 acres northeast of Pima and Bell roads defaulted earlier this summer on its lease payments for the site.
Scottsdale Vistella LLC was the winning bidder three years ago to lease the land from the Arizona State Land Department for $68.5 million.
That site has gone back to the department.
In other matters, the City Council:
• Asked for more details on the potential cost savings of reducing or eliminating an after-school program serving about 1,100 children.
• Voted to discuss at a future meeting a citizen petition challenging the Scottsdale Cultural Council to disclose its financial-performance information as required in its city contract.
by Peter Corbett The Arizona Republic Sept. 23, 2010 11:23 AM
Scottsdale seeks development proposals for 80 acres near WestWorld
The Scottsdale City Council on Tuesday, with little discussion, voted unanimously to issue a request for proposals for the former state trust land at 94th Street and Bell Road.
The city bought the site at auction five years ago.
"We want to determine the level of interest to develop this site," said Harold Stewart, economic development director. A background report from Scottsdale's Economic Vitality Office recognizes the challenge of unloading the property.
"The City Council may want to determine whether committing the land for development in the current marketplace would be the correct step to take because of financial or other reasons," the report said.
But council member Bob Littlefield, a longtime advocate for selling the site, expressed public optimism.
"I think we're going to get more than one proposal," Littlefield said.
Councilman Ron McCullagh convinced the council to extend the submission deadline from 60 to 90 days because of the size of the site.
The city is offering all or part of the 80 acres for sale or lease.
McCullagh said he did not want the city to be accused of having rigged a deal with a preselected developer by having a short response time.
Scottsdale bought the 80 acres in September 2005 for $47.2 million to protect its interests at WestWorld and make sure it would have adequate parking for WestWorld events and the Waste Management Phoenix Open nearby.
The land was appraised for $27.6 million, but state land auction bidding involving homebuilders pushed the price up by about $20 million more.
Scottsdale financed the land deal with municipal property corporation bonds that will nearly double the cost to $92 million.
Scottsdale already has paid $10.5 million on that debt, leaving a balance of about $81 million.
In December 2005, the city also bought another two parcels of state trust land totaling 69 acres for $31.4 million.
The larger of the two sites, nearly 52 acres, is immediately adjacent to WestWorld and is well suited for parking and expansion of the events center.
The bond financing for the 52-acre site will cost Scottsdale $46.7 million.
That purchase made the 80-acre site expendable in a vibrant commercial real estate market.
But city leaders chose to hold onto the land, which is split by 94th Street north of Bell Road.
At the time, Littlefield argued that the city should sell the land because it got the other site closer to WestWorld.
"Now we're stuck," he said last week. "There may not be a buyer for it."
A hotel company talked to the city two years ago about the developing the site, Littlefield said.
"We'll run it up the flagpole and see what salutes," he said about seeking developer bids for the land.
There is no shortage of vacant land along Bell Road.
The developer of the Scottsdale Epicenter project on 125 acres northeast of Pima and Bell roads defaulted earlier this summer on its lease payments for the site.
Scottsdale Vistella LLC was the winning bidder three years ago to lease the land from the Arizona State Land Department for $68.5 million.
That site has gone back to the department.
In other matters, the City Council:
• Asked for more details on the potential cost savings of reducing or eliminating an after-school program serving about 1,100 children.
• Voted to discuss at a future meeting a citizen petition challenging the Scottsdale Cultural Council to disclose its financial-performance information as required in its city contract.
by Peter Corbett The Arizona Republic Sept. 23, 2010 11:23 AM
Scottsdale seeks development proposals for 80 acres near WestWorld
Sunday, August 15, 2010
Scottsdale set to buy 2,000 acres of trust land for preserve
Scottsdale is gearing up to acquire 2,000 acres of state trust land for its McDowell Sonoran Preserve, a move that would allow a future trailhead in the city's northern reaches.
The land, appraised at $44.1 million, will be sold at auction in October.
Kroy Ekblaw, the city's strategic projects and preserve director, said a grant from Arizona's Growing Smarter conservation funds could reduce the cost by half.
"We think that is a good value," Ekblaw said.
Barring other bidders, Scottsdale could spend about $22 million, or $11,000 an acre, to expand its preserve by nearly 13 percent, to 18,000 acres.
The 3 square miles of desert east of Pima Road has rock-covered washes and views of Pinnacle Peak, the ridge of Four Peaks and the McDowell Mountains.
A trailhead, tentatively dubbed the Alma School access point, would connect to existing trails north of Dynamite Boulevard, said Scott Hamilton, preserve trails planner.
More land, trailheads planned
If the city's Gateway trailhead is an indication, residents want preserve access.
Scottsdale raised the curtain last year on the Gateway east of Thompson Peak Parkway between Bell Road and Union Hills Drive. Claire Miller, the city's preserve manager, said the trailhead is "wildly popular, especially when the weather was nice."
"Clearly, this year we were busting at the seams," Miller said. "We would have folks parking around the perimeter of the parking lot."
To handle the flood of visitors, the city is adding about 100 parking spaces and other enhancements this summer, she said.
The $500,000 cost will be paid with savings from the Gateway project along with city tax funds earmarked for preserve trails and access improvements, said Robin Rodgers, project manager.
Scottsdale has trailheads planned along the outer edges of future preserve lands, including the access point 1 1/4miles north of Alma School Parkway and Dynamite Boulevard, Hamilton said.
The trailhead would be smaller than the Gateway, with parking spaces and a possible ramada, he said. The city will maintain a portion of existing trails and clear away others.
"Historically, trails have resulted (from) people on mountain bikes, horses (and) lot of ATV access," Hamilton said. "We asked (a group) to look at these maps and tell us which trails they couldn't live without. We also asked them to cross out the ones that aren't important."
Scottsdale has acquired and protected about 16,000 acres of land so far within the McDowell Sonoran Preserve.
That includes 400 acres the city purchased last year for $6.5 million.
Scottsdale used a grant from the state's Growing Smarter program to cover half of the cost. The rest was paid for by city tax funds collected for the preserve.
For the next 2,000 acres, Ekblaw said, Scottsdale submitted a Growing Smarter grant application in June. The grant likely will go before the Arizona State Parks Board for approval in September.
"We're trying to move at a time when it's best from a point of view of land prices," said Gerald Miller, chairman of the city's McDowell Sonoran Preserve Commission. "There are lots of other reasons, too. Some of the lands we're looking at may be bid on by other people. And we want it for the preserve."
Growing Smarter, adopted by voters in 1998, pours $20 million a year from the state's general fund into the land-conservation fund to conserve land and shape growth in communities.
Long-term acquisitions eyed
Arizona State Parks manages the program, which ends in 2011. Ellen Bilbrey, state parks spokeswoman, said there is $124 million in the fund.
That could change if voters approve a ballot measure in the fall.
Proposition 301, designed to combat the state's budget woes, seeks permission from voters to redirect money from the land-conservation program and use it for general purposes.
Scottsdale's goal is to secure the matching funds before the 2,000 acres goes to auction, Ekblaw said. Future land acquisitions might be more difficult.
If the funds are diverted, "that simply is dollars that will have to come from the city's funds," Ekblaw said. "It doesn't mean we won't move forward."
Miller said he hopes voters reject the proposition. "Beyond that, we have to live with what will happen," he said.
Down the road, Scottsdale is eyeing another 1,940 acres of state trust land west of 136th Street, in the Dynamite Foothills area for the preserve.
In June, the City Council gave a thumbs-up to applying to acquire the land. An auction could be scheduled in fall 2011, Ekblaw said.
If Growing Smarter funds still are available, Scottsdale could apply for a grant in the spring or summer of next year.
Much of the land abuts McDowell Mountain Regional Park to the east, which would link the park with existing and future preserve lands in the city's fringes.
If all goes well, Scottsdale could also attempt to purchase 1,425 acres east of Pima Road between Dixileta Drive and Legend Trail Parkway, Ekblaw said.
Estimated costs have not been determined. Miller said the McDowell Sonoran Preserve Commission will meet soon to discuss long-range planning and funding for the preserve.
by Beth Duckett The Arizona Republic August 5, 2010 01:17 PM
Scottsdale set to buy 2,000 acres of trust land for preserve
The land, appraised at $44.1 million, will be sold at auction in October.
Kroy Ekblaw, the city's strategic projects and preserve director, said a grant from Arizona's Growing Smarter conservation funds could reduce the cost by half.
"We think that is a good value," Ekblaw said.
Barring other bidders, Scottsdale could spend about $22 million, or $11,000 an acre, to expand its preserve by nearly 13 percent, to 18,000 acres.
The 3 square miles of desert east of Pima Road has rock-covered washes and views of Pinnacle Peak, the ridge of Four Peaks and the McDowell Mountains.
A trailhead, tentatively dubbed the Alma School access point, would connect to existing trails north of Dynamite Boulevard, said Scott Hamilton, preserve trails planner.
More land, trailheads planned
If the city's Gateway trailhead is an indication, residents want preserve access.
Scottsdale raised the curtain last year on the Gateway east of Thompson Peak Parkway between Bell Road and Union Hills Drive. Claire Miller, the city's preserve manager, said the trailhead is "wildly popular, especially when the weather was nice."
"Clearly, this year we were busting at the seams," Miller said. "We would have folks parking around the perimeter of the parking lot."
To handle the flood of visitors, the city is adding about 100 parking spaces and other enhancements this summer, she said.
The $500,000 cost will be paid with savings from the Gateway project along with city tax funds earmarked for preserve trails and access improvements, said Robin Rodgers, project manager.
Scottsdale has trailheads planned along the outer edges of future preserve lands, including the access point 1 1/4miles north of Alma School Parkway and Dynamite Boulevard, Hamilton said.
The trailhead would be smaller than the Gateway, with parking spaces and a possible ramada, he said. The city will maintain a portion of existing trails and clear away others.
"Historically, trails have resulted (from) people on mountain bikes, horses (and) lot of ATV access," Hamilton said. "We asked (a group) to look at these maps and tell us which trails they couldn't live without. We also asked them to cross out the ones that aren't important."
Scottsdale has acquired and protected about 16,000 acres of land so far within the McDowell Sonoran Preserve.
That includes 400 acres the city purchased last year for $6.5 million.
Scottsdale used a grant from the state's Growing Smarter program to cover half of the cost. The rest was paid for by city tax funds collected for the preserve.
For the next 2,000 acres, Ekblaw said, Scottsdale submitted a Growing Smarter grant application in June. The grant likely will go before the Arizona State Parks Board for approval in September.
"We're trying to move at a time when it's best from a point of view of land prices," said Gerald Miller, chairman of the city's McDowell Sonoran Preserve Commission. "There are lots of other reasons, too. Some of the lands we're looking at may be bid on by other people. And we want it for the preserve."
Growing Smarter, adopted by voters in 1998, pours $20 million a year from the state's general fund into the land-conservation fund to conserve land and shape growth in communities.
Long-term acquisitions eyed
Arizona State Parks manages the program, which ends in 2011. Ellen Bilbrey, state parks spokeswoman, said there is $124 million in the fund.
That could change if voters approve a ballot measure in the fall.
Proposition 301, designed to combat the state's budget woes, seeks permission from voters to redirect money from the land-conservation program and use it for general purposes.
Scottsdale's goal is to secure the matching funds before the 2,000 acres goes to auction, Ekblaw said. Future land acquisitions might be more difficult.
If the funds are diverted, "that simply is dollars that will have to come from the city's funds," Ekblaw said. "It doesn't mean we won't move forward."
Miller said he hopes voters reject the proposition. "Beyond that, we have to live with what will happen," he said.
Down the road, Scottsdale is eyeing another 1,940 acres of state trust land west of 136th Street, in the Dynamite Foothills area for the preserve.
In June, the City Council gave a thumbs-up to applying to acquire the land. An auction could be scheduled in fall 2011, Ekblaw said.
If Growing Smarter funds still are available, Scottsdale could apply for a grant in the spring or summer of next year.
Much of the land abuts McDowell Mountain Regional Park to the east, which would link the park with existing and future preserve lands in the city's fringes.
If all goes well, Scottsdale could also attempt to purchase 1,425 acres east of Pima Road between Dixileta Drive and Legend Trail Parkway, Ekblaw said.
Estimated costs have not been determined. Miller said the McDowell Sonoran Preserve Commission will meet soon to discuss long-range planning and funding for the preserve.
by Beth Duckett The Arizona Republic August 5, 2010 01:17 PM
Scottsdale set to buy 2,000 acres of trust land for preserve
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