By Edward Gately | The Republic | azcentral.com
Residential construction is slowly showing signs of life in Fountain Hills as the economy improves, bringing more revenue to the town’s coffers.
However, one major project in the works for several years hasn’t budged despite the improving climate for builders. In 2007, Ellman Cos. purchased 1,275 acres of former state trust land that was annexed into the northeastern corner of town.
When developed, the property could include 1,350 residential lots, a hotel and retail center. The subdivision would be built around what Ellman plans to call Arpaio Park to honor Maricopa County Sheriff Joe Arpaio, a Fountain Hills resident.
Ellman bought the property in a state land auction but development stalled with the recession. The Phoenix-based company is headed by Chairman and CEO Steve Ellman.
In spring 2012, Bob Rodgers, the town’s senior planner, said Ellman had been waiting for the recession to end to start development.
Fountain Hills Investment Co., a division of Ellman, had submitted plans for grading, drainage and realignment of Fountain Hills Boulevard.
“It’s really kind of in limbo at this point,” Rodgers said. “I know they plan to keep going eventually, but we haven’t heard anything. We have not heard from them in months. There have been no updates and no additional applications for anything.”
Don Kile, Ellman’s president of master-planned communities and project spokesman, didn’t return calls seeking comment.
A preliminary master plan for the entire acreage was approved in 2009, Rodgers said.
“The last time we spoke to them we did a review of their road layout and gave them back some (feedback), and we haven’t heard anything since,” he said.
Ellman is facing a deadline to pay for the acreage. The company has paid the Arizona State Land Department $25 million and is under extension until March 15, 2016, when nearly $182 million will be due.
There will be no further extensions, and if Ellman hasn’t paid the full amount, the company will lose the $25 million already paid, said Bill Boyd, legislative policy administrator for the State Land Department.
“The land will be auctioned again when there is a buyer,” he said. “It will be an available property until someone wants to buy it.”
The nearly $182million must be paid by the deadline regardless of whether Ellman has started developing the acreage, Boyd said.
The development of the Ellman property is inevitable because it is state trust land and by law must to sold by the state, said Fountain Hills Mayor Linda Kavanagh.
According to Ellman Cos.’ website, the property is one of two major remaining residential development opportunities in the northeastern quadrant of the county and is accessible via Fountain Hills Boulevard off the Beeline Highway.
The Ellman Cos. is a privately- owned real-estate and investment firm with ownership interests in 88 companies throughout the United States, Canada and the Caribbean.
