posted 09-16-2005 06:14 PM         

SCOTTSDALE - Outbidding some of the Valley's biggest home builders, Scottsdale paid $47.2 million Wednesday for 80 acres of state trust land that could be used to provide additional parking for a car auction, a golf tournament and other big events.

The land, near 94th Street and Bell Road, sits alongside WestWorld, site of the Barrett-Jackson Classic Car Auction. The auction's owners have threatened to move elsewhere unless the city improved conditions. City officials feared the loss of revenue from the car auction and worried that other events could leave as well.

The per-acre price of $590,000 is not a record for trust land auctions, but is significantly higher than what home builders have paid. advertisement

Brad Gessner, WestWorld's general manager, said the land will make WestWorld "a better package."

"The bottom line is we'll be able to provide for parking for our major events," he said. "Obviously, the largest event we do now is Barrett-Jackson. It's going to go a long way to provide infrastructure and parking they need, but also for a lot of events."

"The way we look at WestWorld is, it's not so much the money we make on-site but all the economic impact we generate as well as all the entertainment and recreation," Gessner said.

Scottsdale owns and runs WestWorld, although the federal government owns the land underneath.

Craig Barrett, Barrett-Jackson's president, was elated by the city's decision to buy the land, a spokesman said.

"On a scale of one to 10, this is a 9.5," said Jason Rose, whose public relations firm represents the auction.

The city had to write the State Land Department a check for $3.3 million Wednesday as a down payment and must come up with the rest of the money within 30 days.

Scottsdale City Manager Jan Dolan said the cost was within the parameters of what City Council members said they would pay, but "was close" to the upper limit.

"This is part of our overall strategy to protect our investments in WestWorld and the TPC," she said.

It's the first time in anyone's memory that a city has not only bid competitively for state trust land, but also purchased it for a use other than preservation.

A state law previously allowed cities to purchase trust land without competition if the land was set aside for conservation, but that law has been suspended because of constitutional questions.

posted 09-16-2005 11:02 PM         

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Originally posted by Kraut:
Gonna take a long time to recover $47 mil in parking fees. I bet the people of Scottsdale are real happy about that.

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Kraut - wrong sir

Take the 2005 Barrett-Jackson Scottsdale auction sales figures X the sales tax rate**. That alone will cover the land purchase over time,,,,plus B-J has been threatening to leave Scottsdale and move the auction to LasVegas if Scottsdale didn't throw in some concession to them. Also, the auction fills up the resort hotels, restaurants, shopping malls, and rental cars for extra taxes. It's a staggering figure of all the $$$ that goes through here during the auction dates. Will not take long to recoup!

** That 'one' Olds that brought $3M,,,,,,,, = $243,000+ extra on collected sales tax!

posted 09-16-2005 11:18 PM         

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Originally posted by CTProwler:
Never been would like to go.

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What are you buying Chuck? Just curious!

You must be out of garage bays by now.

posted 09-17-2005 08:42 AM         

In Arizona, our laws were changed many years back. If a private party buys a car from another private party, NO sales tax is collected on that transaction. Buy from a dealer,,,you pay it.

posted 09-17-2005 09:14 AM         

NOTE: Payment is required for each vehicle purchased on the day of the sale. A Buyer’s Premium is calculated and added to the Hammer Price. As the buyer, you are responsible for payment of this premium, as well as all applicable fees and taxes, at the time of payment.