Queen Creek sells downtown land for $7.4M

The town of Queen Creek has agreed to sell almost 7 acres of land in the Downtown Core to a developer for $7.4 million.

At its Dec. 20 meeting, the Queen Creek Town Council voted to approve purchase and development agreements with Creation RE LLC for about 6.8 acres of town-owned land on the northeast corner of Ellsworth Loop Road and East Ocotillo Road.

The item was on the council’s consent agenda but was pulled out by Council Member Leah Martineau for a separate vote. Martineau recused herself from the vote. After the meeting, she told the Queen Creek Independent that she recused herself because of a family connection.

In April 2022, town staff issued a request for proposals for the development of a mixed-use project on the property.

“The RFP outlined the town’s desire for developers to focus on the vision outlined in the Town Center Plan and show how urban design will be incorporated into the project. The RFP also expressed the town’s interest in seeing a denser, downtown mixed-use project with verticality as appropriate. The RFP further asked that the proposed project include mixed-uses geared towards pedestrian-oriented development, and include a design that engages with surrounding developments, specifically the privately-owned parcels along Ocotillo Road,” a council staff report stated.

Fulfilling those requirements was Creation RE, which proposes to develop 15,000 square feet of office space, 30,000 square feet of retail space, including a restaurant, 150 to 300 units of “luxury” multifamily housing, and open park areas and patio spaces, the staff report stated.

It’s estimated that if the multifamily project comes to fruition, it will generate about $2.9 million in one-time revenue from building permit fees, impact and capacity fees, and construction sales tax, the report stated.

“Also, estimates that ongoing revenues from the multifamily development will be approximately $500,000 per year in property tax, sales tax and state-shared revenues,” the report stated.

Staff estimated the commercial portion of the project will generate approximately $850,000 in one-time revenue from construction sales tax, impact and capacity fees, and building permit fees. Staff has also estimated that ongoing revenue from the non-residential development will be about “$430,000 per year from sales tax and property tax based on the proposed mix of office and retail spaces,” the report stated.

Under the agreement, construction is expected to start by Jan. 1, 2025. Creation RE and the town will share closing costs, The buyers did not ask for and the town did not offer any incentives for the project.

“As has been done in the past, staff recommends that the proceeds from the property sale be deposited into the Town Center Fund where the funds will remain until the Town Council provides direction for use of the funds. Town policy currently does not have any restrictions on use of proceeds from property sales,” the staff report stated.

We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org. Janet Perez can be reached at jperez@iniusa.org.