Title
Authorization to Sell City-Owned Property at Cave Creek Water Reclamation Plant to Arizona Public Service Company (Ordinance S-46166)
Description
Request to authorize the City Manager, or his designee, to enter into a purchase and sale agreement and other agreements necessary to sell approximately 93,061 square feet of City-owned real property to Arizona Public Service Company (APS), an Arizona corporation, and to grant APS an access easement across City-owned land for the purpose of vehicular access to the site. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Since 1998, APS has leased approximately 77,674 square feet of City-owned land at the Cave Creek Water Reclamation Plant (WRP) to operate an electrical power substation that serves the WRP and the neighboring community. APS built and maintains the substation at its own expense and owns all improvements on the leased land. The final extended term of the lease expires Aug. 11, 2020. APS has requested to acquire the land that it currently occupies, as well as additional adjoining land, in order to expand its substation to accommodate the future power needs of the WRP and additional residential development in the surrounding area.
The land to be sold to APS is approximately 93,061 square feet within a portion of Maricopa County Assessor parcel number 213-02-169A. The land is accessible by a private road leading to the WRP that is maintained by the Water Services Department. The City will grant APS an easement to access the property via the private road, and APS agrees to mill and overlay at its own expense a portion of the private road that leads to the substation. As part of the purchase and sale agreement, APS will allow the City of Phoenix to reserve the right to continue accessing and maintaining an electrical vault within the substation property that serves the WRP until such time as the electrical vault can be relocated or abandoned by the City.
Financial Impact
Revenue will be based on the appraised value of the land with access, reviewed and approved by the Finance Department's Real Estate Division. APS will be responsible for all closing costs.
Location
Near the northeast corner of N. Cave Creek Road and E. Deer Valley Drive
Council District: 2
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services and Finance departments.