Current Status of Trust Land Applications for Residential/Commercial Development
Demand for state trust land was already on the rise in the North Gateway Village, but since TSMC’s arrival in North Phoenix, the need for suppliers, support services and housing near the chip plant has been driving the growth.
Valley Vibe reached out to the State Land Department with an inquiry regarding the status of the current applications in the far North Phoenix area, where developers have initiated the request process for the future auction of state land.
Following rezoning of the TSMC property and the future Sonoran Oasis Technology Park, the City’s Infrastructure Limit Line on I-17 was extended west, which opened significantly more state trust land in North Gateway Village for potential development, according to a representative from ASLD. The amount of State Trust Land in the City of Phoenix north of Loop 101 is approximately 51,000 acres.
More Commercial/Retail Development
On the commercial/retail development end, Phoenix-based Vestar Development, LLC, has two pending applications with the Arizona State Land Department. The first is for a 127-acre parcel at the southeast corner of the I-17 and Carefree Highway interchange [See “Retail Developer Eyes I-17” Valley Vibe, January 2024]. The second application is for 158 acres on the east side of I-17 bordering the freeway between Dove Valley Road and Sonoran Desert Drive. Only the second parcel would require a rezoning process through the City, as a portion of the site is currently zoned as S-1 (ranch or farm).
Vestar is the developer of Desert Ridge Marketplace, Happy Valley Towne Center and Lake Pleasant Towne Center, among a portfolio of nearly two dozen shopping centers around the Phoenix metro area.
A timeline has not yet been set for the auctions, but could happen in late 2024, according to ASLD.
Pulte Homes/Lennar Homes Applications
Pulte Homes has a pending application with the state for roughly 6,000 acres for a master-planned development on multiple state trust land parcels west of I-17, just south of the Loop 303 and the Sonoran Oasis Technology Park. ASLD said the land requires rezoning (currently zoned S-1 Farm/Ranch Residence 1 dwelling unit per 10 acres), and the process to bring that land to auction could take a couple of years.
Lennar Homes has an application in for a 218-acre parcel to the east of Paloma Parkway between Carefree Highway and Dove Valley Road. The parcel is adjacent to the Carefree Crossing neighborhood to the south and Amber Hills to the north. This parcel would require City rezoning too, as it is currently zoned a mix of S-1 and RE-35 (Single Family Residential, 35,000- square-foot minimum lot size).
Fast Facts: State Trust Land
State Trust land is land that the Federal government granted to Arizona prior to statehood to support its K-12 public schools and 12 other institutional beneficiaries. The Arizona State Land Department (ASLD) manages state trust land and was created in 1915 to manage state trust land and maximize returns to the trust beneficiaries.
Beneficiaries Approximately 8 million of the State Trust’s 9.2 million surface acres are designated for K-12 public education. Other beneficiaries include the state’s public universities and programs, ROTC programs, the Arizona School for the Deaf and the Blind; the State Legislative, Executive and Judicial Buildings; the Arizona State Hospital in Phoenix; the Arizona Pioneers’ Home in Prescott; the Arizona Department of Juvenile Corrections and the Arizona Department of Corrections.
Each acre of land has its own designated beneficiary. Income generated on a specific parcel through a lease is returned directly to that parcel’s designated beneficiary by ASLD. Income earned on a specific parcel through sale of the land or products from the land is deposited into the Permanent Land Endowment Trust Fund, which is managed by the State Treasurer’s Office.
ASLD can initiate a public auction on a parcel of land at the commissioner’s initiative, but most are initiated by an applicant. There is no statutory limit to acreage sold within a given time.
SOURCE: Arizona State Land Department
By Karen Goveia