In 2002, the Arizona State land department put nearly 800 acres of land for sale located north of Bell road and flanking the future (and now existing) Thompson's Peak Parkway. Half of that land was designated for the McDowell
Sonoran Preserve. The city charter allows them to only purchase land for preserve when using the preserve fund. The city approached Toll Brothers prior to the auction and reported "with a hand shake deal, we agreed to purchase the preserve section from Toll after the auction." Of course today Toll has stated there was on hand shake agreement.
Toll Brothers paid about $66 million for the entire 800 acres of land. Then Toll stalled on the negotiations. The land was undeveloped while the negotiation went on. The state land department, as I understand, only requires a 10% down payment to hold the land. Toll Brothers wanted more for 383 acres of the land than they paid for the entire 800 acres. Negotiations dragged on, but never in earnest by Toll. They were greedy in my opinion!
The city was forced to condemn the land as property values were sky rocketing. The land was condemned in 2004. Negotiations still dragged on and they went to court.
Now, many builders are writing down the value of their land or just giving it back. Land values have dropped like a lead balloon, or a Led Zeppelin. However, since the condemnation occurred in 2004, the value is frozen at 2004 values. This is probably why Toll has kept the prices at
Wingate Ranch so artificially high, as a negotiating tool in court. They aren't selling many homes, but it sure helped in getting a higher price.
Now the Tax payers, you and me and
depree, are stuck footing the bill. This is why we need State Land Reform. Builders are sticking it to us. There JURORS awarded Toll Brothers $81.9 million dollars for the land. Toll was willing to take tens of millions less. This is why innocent people in our court systems can't go to court and have to take a plea. The risk is too high. So, innocent people go to jail, rather than risking much longer terms. Most REAL criminals pleas out. Here we have the innocent city of Scottsdale. They say, "hey we can't buy the whole parcel. If, you buy it all we will buy half from you. You get our cooperation and a little profit." The original offers by the city offered plenty of profit.
What is up with Toll. They should donate the land to the city. Most builders have to donate land for schools and parks in the land they purchase. Not Toll, no public land in
Wingate Ranch. With their company falling apart and stock price plummeting, I don't see Toll being humane. I bet they take the Corporate Welfare and RUN to the bank.
I don't really see an option for the city. The only wonder I have is if the city released the condemnation now. Then negotiated further and appealed the Jury's verdict. Then next year condemned the land again, I bet it would be worth less than half of what the Jury awarded today.
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