Peed property purchase ends in council stalemate; special meeting scheduled for Friday

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At Tuesday’s Maricopa City Council meeting, the option to purchase the remaining 138.5 acres of the Peed property, located at the northeast corner of SR 238 and Rachel, once more came forward for discussion and possible action.

There was plenty of action as several new properties came to the forefront, but the option to purchase motion as well as a motion not to exercise the purchase option on the Peed property both ended in 3-3 votes, with Councilman Steve Baker recusing himself due to conflict of interest as the realtor for the Peed property.

Exercising the purchase option would have completed a transaction which began on May 2 with the council agreeing to purchase 10 acres of that property at $97,000 per acre. On June 20 the city purchased the option on the remaining acreage for $25,000 at a negotiated purchase price totaling $14,608,200 (or $97,000 per net acre). Discussion and action on the remaining 138.5 acres was previously tabled once for further review and once due to the absence of one of the council members.

Representing a property owned by Ken Lowman, located a half mile south of SR 238 on Warren and McDavid, Wendy Nelson of Long Realty Alliance indicated that this was an offering of 160 acres, “clarifying the seller would either sell it as whole 160 acres ‘or’ negotiate a sale of any portion of the 160 acres.”

Councilman Edward Farrell indicated that he had a 103-acre parcel on Farrell and Porter, which already has water and sewer unlike the Peed and Lowman properties. “We need to try to concentrate on where our citizens are living,” Farrell noted. “I am looking for the best interests of the citizens in my community.” As a licensed realtor, Farrell explained that he would “forfeit any commission coming to me, and contribute it to a charity like Against Abuse.”

“Until last night I had no idea,” explained Councilman Will Dunn. “For two months I have been philosophically opposed to the Peed property, but this property is owned by a member of my family.” After seeking legal counsel from City Attorney Denis Fitzgibbons, no conflict of interest was determined for Dunn.

Steve Murray, representing seller Ed Peters, presented another property of 43 acres at $290,000 per acre. This acreage is located at Honeycutt and John Wayne Parkway and already has water and sewer.

Additionally, via email Wednesday, Councilman Dunn informed staff and the media: “For everyone’s information, Kelly House from El Dorado Holdings spoke with us today, and they have three properties that might work.”

Councilman Kelly Haddad, after hearing the various property offerings, stated, “I thought Peed was a decent property, but I think we need to table and have staff look again.”

Added Councilman Dunn, “160 acres is simply more than we need. Any way you cut it, $13 or $14 million is a ton of money. Wherever we put it (City Hall), things will boom around it. We would be taking valuable commercial and industrial property.”

“Right now we don’t need 160 acres; we could do with 20, but is that in the best interest of the community?” asked Councilman Joseph Estes. “I think the Peed property is the best location for us now.”

Vice-Mayor Brent Murphree noted, “I was hugely disappointed when the initial property fell through.” He explained that the Peed property has access to state lands that “we can promote for medical and educational needs. We need to get going on this,” he said.

“I have been very public in my support for purchasing the Peed property,” stated Mayor Kelly Anderson. “I see 238 as the Golden Corridor.”

City Manager Rick Buss reiterated the two options available to the council. First, council could exercise the purchase option and extend the close at a cost of approximately $125,000, or, secondly, walk away from the property at a cost of $25,000.

A motion to exercise the purchase option ended in a tie with Mayor Anderson, Vice-Mayor Murphree and Councilman Estes voting in favor of the measure. A second motion by Councilman Farrell not to exercise the option ended in the same manner.

Due to the stalemate, the next option is to have interested sellers and their representatives get together with city staff and council members to discuss their various properties. The purchase option on the Peed property expires on Friday at 5 p.m.

“Is anyone opposed to a 3 p.m. special meeting on Friday?” queried Councilman Haddad.

“Given it’s a stalemate, it’s a good idea,” agreed Vice-Mayor Murphree.

There will be a special meeting on Friday, July 28, in Room 1 at the high school.