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Camelback Ranch area expands, no plans to build yet

Posted 2/2/18

By Mark Carlisle

Independent Newsmedia

Camelback Ranch is growing.

But not anytime soon.

Glendale City Council approved a deal this week for Glendale to buy two parcels of land around the …

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Camelback Ranch area expands, no plans to build yet

Posted

By Mark Carlisle

Independent Newsmedia

Camelback Ranch is growing.

But not anytime soon.

Glendale City Council approved a deal this week for Glendale to buy two parcels of land around the facility from Phoenix and sell those parcels, plus two other parcels, to Camelback Spring Training LLC, which operates the spring training home of the Los Angeles Dodgers and Chicago White Sox.

However, the land will sit dormant for the time being. Camelback Ranch has yet to establish any plans regarding what to develop on the purchased land nor a timetable for when future development might take place, said Jeff Overton, Camelback Ranch’s president and general manager.

“Right now, we do not have any specific plans or thoughts, we’re just beginning the due diligence process,” Mr. Overton said. “So, this will likely be a fairly long, studious process.”

The Camelback Ranch group will not receive ownership of the property right away, City Manager Kevin Phelps said, but have seven years to exercise the option to transfer ownership.

Glendale City Manager Kevin Phelps

“What they’re purchasing is an option for the threeplus million dollars and then ownership will take place when they exercise that option,” Mr. Phelps said in the Jan. 23 City Council meeting.

Council voted unanimously to approve the purchase and sale. Mayor Jerry Weiers was absent while in Washington to attend The United States Conference of Mayors.

Camelback Ranch-Glendale is located in Phoenix, just south of the Glendale border. The facility opened in Spring 2009, and the purchase agreement between Glendale and Phoenix stated that Glendale would make payments in four installations, the last of which was due no later than Oct. 19 of this year. With that final payment, Glendale receives two additional parcels of land to the west of the facility that until now had remained under Phoenix’s ownership.

Camelback Spring Training LLC offered to purchase land from Glendale, said Assistant City Manager Tom Duensing, which enabled Glendale to negotiate a lower payment price with Phoenix, because the early payment garners interest savings.

The planned payment for the remaining two land parcels was $1,186,000, but Glendale was able to save $116,000 by paying early and reduced the final payment to $1,070,000. That payment was made from the proceeds of the sale to Camelback Spring Training LLC — $3,340,000 for four land parcels, including the two just bought from Phoenix.

“I think that there was opportunity to take a deeper look and to review over the future to see what we can do with it and try to find a compliment to the ballpark, the neighborhood and to the city,” Mr. Overton said of the decision to purchase the land.

Although there aren’t yet any development plans, Mr. Duensing said development will likely occur more quickly than if Glendale had kept possession of the land.

“They are incented to develop that property because they have an investment now in that property,” Mr. Duensing said.

It doesn’t make much difference to Glendale whether it owns the property or Camelback Spring Training LLC owns the property, Mr. Duensing said, because either way, the city still receives 80 percent of revenues generated by the property, as per Glendale’s agreement with Phoenix. Most of that revenue will come from sales tax, Mr. Duensing said.

He said the city will also benefit because Glendale, which was legally obligated to buy the land based on its contract with Phoenix, will save money because private dollars will be used to develop the land rather taxpayer dollars. “We were going to purchase that (land) anyway, regardless,” Mr. Duensing said.

“And so now, we don’t have to develop it, we got $3.3 million for it, and we still have the revenue sharing on that property (receiving 80 percent of the revenue) the day that they do develop. So, it’s really a good deal for us.”

Even if the city owned the property, Camelback Spring Training LLC would have to approve any developments on the land.

The remaining proceeds from the sale to Camelback Spring Training LLC afterGlendale’s purchase from Phoenix — $2,270,000 — will be placed in a joint escrow between Glendale and Camelback Spring Training LLC, “but it eventually will go for Glendale’s use,” Mr. Duensing said.

From July on Camelback Ranch

The approval of the purchase and sale in the Jan. 23 Council meeting included a floor amendment regarding parking around the stadium. Glendale is required to provide 4,000 parking stadiums around Camelback Ranch based on the facility use agreement.

“This provision provides that to the extent a parking space is taken down due todevelopment, the city is not obligated to replace that parking space, the developer is required to replace that parking space,” said City Attorney Michael Bailey during the Jan. 23 meeting.

Councilman Jamie Aldama, of the Ocotillo District, was grateful for the amendment.

“What that does is secures the citizens from additional risk, so thank you for adding that,” Mr. Aldama said to city staff.

Though Camelback Ranch is not in Glendale, the property touches Glendale’s southern border. Mr. Duensing said he hopes development around Camelback Ranch will benefit not only the spring training facility itself, but also the surrounding area.

“Between the spring training facility and the Westgate Entertainment District, that area is prime for development, quality development,” he said. “And so one of the things, if development starts to occur around the (spring training) facility, the hope is development will start to occur between it and Westgate.”

Camelback Ranch’s first spring training game of 2018 will be a matchup between the facility’s two host teams — the Dodgers and White Sox — at 1:05 p.m. Friday, Feb. 23. Pitchers and catchers report Tuesday, Feb. 13.

Mark Carlisle can be reached at 623-876-2518 or mcarlisle@newszap.com.