Camelback Ranch
Real Estate

Glendale will profit nearly $2.5M from Camelback Ranch deal

(Source: GlenadaleStar): Darrel Jackson –  While the city has researched ways to increase funding from Camelback Ranch Glendale, the council voted unanimously to sell more than 14 acres of land near the stadium for a nearly $2.5 million profit eventually.

“This is an option agreement and joint escrow of sale of property near the northwest corner of North 107th Avenue and West Camelback Road,” said Assistant City Manager Jack Friedline. “Glendale owns certain property (two parcels) near Camelback Ranch and are exercising our option to purchase (two more parcels) and sell them to Camelback Ranch Spring Training LLC.”

The land sale is Glendale-owned property to Camelback Spring Training LLC (CRST), operators of Camelback Ranch, which is owned by the City of Glendale; a total of 14.2 acres that the city has been in the process of purchasing from the City of Phoenix.

“The agreement to purchase land was entered into in 2010 and amended in 2014,” said Assistant City Manager Tom Duensing. “The 2014 agreement was to purchase 14.2 acres in four installments.”

The city has one more installment payment remaining to Phoenix that, with this sale of land, will allow Glendale to make the final payment to Phoenix. Glendale will sell the land to Camelback Ranch LLC for $3.34 million, which allows the city to make the final required payment to Phoenix for $1.07 million.

“The $1.186 million is an estimate based on the last installment payment from the 2014 agreement,” said Duensing. “It is estimated that the actual payment to Phoenix will be about $1.07 million.  Any remaining amounts will stay in the escrow account.”

“After the money is placed into escrow, the city will then transfer all four parcels to CRST,” Friedline said.

“The transfer of ownership will not take place (immediately) and (CRST) will have a seven-year option to exercise the transfer,” City Manager Kevin Phelps said.

City Attorney Michael Bailey said the city had amended the deal that would keep it from being forced to lease the property back after the sale is complete.

“We added some additional language in which ‘buyer closed escrow and develops Glendale property,’ and in the event the development removes parking spaces (required by the city’s parking requirements), the city will not be liable for leasing more spaces from (CSRT),” Baile said.