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Public Announcement Auction at NWC of Thomas and Recker Roads

Published
The City of Mesa is conducting a Public Auction to identify the highest bidder for City-owned parcels located at the Northwest corner of Thomas and Recker Roads in Maricopa County, Arizona.
Auction Date: Nov 21, 2019
Auction Registration: Nov 20, 2019
Bidding Start Time: 10:30 a.m.

Property Description:

MARICOPA COUNTY ASSESSOR PARCEL NUMBERS:
  • 141-39-001N, containing approximately 46.51 ± acres
  • 141-39-001P, containing approximately 66.18 ± acres*
  • 141-39-001M, containing approximately 19.84 ± acres
The three parcels will be sold together and total approximately 132 acres ± (“Property”)
*Approximately 2.7 ± acres will be excepted from the sale for the existing sewer lift station.
ZONING: Public and Semi-Public (PS)
GENERAL PLAN: Parks/Open Space
Buyer will be responsible for obtaining approval, through the City’s ordinary and customary processes, of a Minor General Plan Amendment to an appropriate character type, and a re-zoning to a zoning district that allows residential development.

Pre-Auction Conference

Prospective Bidders are encouraged to attend a pre-auction conference.
DATE: Nov 9, 2019
TIME: 2:00 p.m.
LOCATION: Mesa City Plaza at 20 E. Main Street Suite 170, Mesa, AZ
SUBMISSION OF QUESTIONS AND INQUIRIES. All questions and inquiries except those made at the Pre-Auction Conference shall be submitted in writing to the City Contacts no later than Nov 12, 2019. Failure to submit by this deadline may result in the question or inquiry not being considered for a Public Auction Notice Addendum. Mesa staff will respond in writing and post all questions, inquiries and responses by Nov 14, 2019.
NO RIGHT TO RELY ON VERBAL RESPONSES. A Bidder shall not rely on Mesa staff, employees, elected officials, board members, or consultants’ verbal responses to questions or inquiries.

Information

Hard copies of the information posted here are available for inspection at the City of Mesa Clerk’s Office, 20 E. Main St., Suite #150 Mesa, from 7:00 a.m. to 6:00 p.m., Monday through Thursday, exclusive of holidays.
City Contacts: All questions regarding this public auction shall be directed to Kim Fallbeck at kim.fallbeck@mesaaz.gov and to Angelica Guevara at angelica.guevara@mesaaz.gov.
DUTY TO EXAMINE. It is the responsibility of each Bidder to examine all information made available, make inquiries, ask questions and seek clarification as necessary. Lack of care in preparing a bid shall not be grounds for modifying or withdrawing the bid after the auction, nor shall it give rise to any claim in law or equity.
LOBBYING PROHIBITION. Any communication regarding this auction for the purpose of influencing the process or the outcome of the auction, between any bidder participating in the auction and the City including, but not limited to, City Council, City employees, and consultants hired to assist the City in the auction, is prohibited. This prohibition is imposed from March 14, 2019 to March 22, 2019 or until the City cancels the auction, rejects all bids, or otherwise takes action which ends the auction process. This section shall not prohibit public comment at any City Council meeting, study session, or City Council committee meeting. This prohibition shall not apply to Bidder-initiated communication with the City contacts identified here, or City-initiated communications for the purposes of conducting the auction. Violations of this provision will be reported to the City contacts for the auction. Persons violating this prohibition may be subject to a warning letter or rejection of their bid depending on the nature of the violation.

Summary of Terms of Sale

The specific terms of sale of the Property are set forth in an un-executed Purchase and Sale Agreement and Escrow Instructions that is included in bid package. It is the responsibility of prospective bidders to review all terms outlined in the Purchase and Sale Agreement and Escrow Instructions.
(A) Property Sold AS-IS.The Property is being sold AS-IS and therefore is subject to existing encumbrances, reservations, easements, leases and rights-of-way.
(B) Date of Council Consideration for a Purchase and Sale Agreement and Escrow Instructions.The Mesa City Council is scheduled to consider approval of a Purchase and Sale Agreement and Escrow Instructions with the highest bidder at a date following the auction, or it may reject bid.
(C) Requirements for Entering into Purchase and Sale Agreement and Escrow Instructions.The highest bidder will be required to enter into a Purchase and Sale Agreement and Escrow Instructions.If the highest bidder fails to enter into the Purchase and Sale Agreement and Escrow Instructions and deposit the Earnest Money with the escrow agent, Mesa may offer and award the Purchase and Sale Agreement and Escrow Instructions to the next highest bidder, if 1) bidder is qualified and willing to accept the Purchase and Sale Agreement and Escrow Instructions, and 2) bidder deposits the Earnest Money with the escrow agent.
(D) Opening of Escrow.The opening of escrow shall occur within five days after the execution of the Purchase and Sale Agreement and Escrow Instructions by both buyer and seller.
(E) Entitlements.The Property is zoned Public and Semi-Public and has a General Plan designation of Open Space.Before the closing of the transaction, the highest bidder will be required to follow usual and customary City processes to obtain a Minor General Plan Amendment, and re-zone and plat the Property, so that it can be developed for residential use.
(F) Feasibility Period.The feasibility period is 12 months from the opening of escrow. The Earnest Money will be refundable to buyer during the feasibility period and will be non-refundable and payable to the seller after the feasibility period.
(G) Closing Deadline.The highest bidder must close on the purchase of the property within 15 months with three, one-month extensions with approval of the City Manager of the opening of escrow.

General Information

(A) Waiver and Rejection Rights.The City of Mesa may cancel this auction, in whole or in part, at any time prior to the acceptance of a final bid.The Mesa City Council may accept the highest bidder and reserves the right to reject all bids.
(B) Site Inspections.Prospective bidders may inspect the Property, including soils testing, after an Access Agreement (provided below) is executed.An Access Agreement must be signed and submitted to Kim Fallbeck for processing and execution.
© Persons with Disability.Persons with disability may request a reasonable accommodation by contacting the City of Mesa Real Estate Office, at 480 644-2521.Requests should be made as early as possible to allow time to arrange the accommodation.

Additional Property Information

Appraisal Reports:
  • August 19, 2018 for $15,600,000
  • May 3, 2018 for $25,500,000 (this appraisal did not account for: a non-developable buffer along the north Property line, the sewer lift station exception, and undevelopable acreage)
Maps: