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Regional economic planner briefs Greenlee County on large housing proposal on state trust land
Summary
SEAGO economic development staff outlined a multi-phase plan for workforce housing on state trust land near Loma Linda, emphasizing water, state land sale timing and the need for feasibility studies and legal counsel; no formal county action was taken, but staff were directed to follow up.
Kevin (last name not provided), economic development manager with the Southeast Arizona Governments Organization (SEAGO), briefed the Greenlee County Board of Supervisors on an initial plan to pursue housing and mixed-use development on state trust land near Loma Linda and the Y. The presentation outlined water-supply, state-land disposal, funding and legal steps county leaders would need to consider.
The SEAGO presentation said water is the primary feasibility constraint. Kevin said the Arizona Department of Water Resources (ADWR) may require certificates of adequate supply and that the likely path for development would be a freestanding well plus conservation measures (graywater, reuse, recharge). He urged the county to engage hydrologist consultants with experience on large developments and noted ADWR’s interpretations can vary by case.
Kevin described a multiuse planned area development concept: phased commercial uses (hotel, gas, RV park, mini-storage), higher-density apartments near commercial services, medium-density townhomes and single-family farther out. He suggested modular or factory-built housing as a lower-cost option and said a 900-square-foot modular home could be delivered for under $100,000 in some cases. He also proposed phasing the project so initial phases test demand before moving forward.
On state trust land procedures, Kevin summarized conversations with the Arizona State Land Department: the agency must seek highest-and-best value in trust land sales, the appraisal process can set a wide per-acre price range, and the state land disposal process typically takes 18 to 24 months. He said the department charges a nonrefundable $2,000 application deposit and requires archaeological and other due-diligence work (phase I cultural assessments, ALTA surveys) that the applicant pays for and that can take weeks to months depending on consultant availability.
Kevin identified an initial, smaller 54-acre parcel as the most practicable first step while considering a linked application for a larger, roughly 150-acre area. He gave a rough purchase estimate (based on state land appraisal guidance) of about $750,000 for the smaller parcel and said state appraisals could range from approximately $1,000 to $5,000 per acre for the larger acreage, depending on final appraisal results.
On funding, Kevin said the Greater Arizona Development Authority (GADA) and other state entities prefer to lend to public entities and can provide planning grants (he cited an example $100,000 planning grant). He suggested a local development authority as a vehicle to access public infrastructure funding. He also mentioned private partners such as Freeport-McMoRan and potential tribal engagement with the San Carlos Apache Tribe.
Legal risk and timeline were recurring themes. Kevin recommended retaining experienced development counsel (he referenced Pierce Coleman and water-law expertise) to advise on development agreements, potential litigation risks and complex water-law issues. He said some water-law and ADWR questions might require specialized counsel because of rule interpretation and certificate-of-supply requirements.
Board members asked detailed questions about local water providers, existing wells in Loma Linda, hydrologic capacity of nearby systems and the state’s certificate-of-supply rules. Kevin said Loma Linda’s utility likely cannot support a large expansion and that any new development should plan for independent water supply. He noted the state land department told him it is “anxious to work with the county” but constrained by trust responsibilities and administrative rules.
No formal county vote or land application was made during the meeting. County Administrator Derek Ruppier and members of the board asked for follow-up: to provide SEAGO’s handouts to the board, compile feasibility work, and coordinate meetings with the State Land Department, water counsel and other partners. Kevin said he would supply his documents and that staff-level meetings with state land and ADWR would be appropriate next steps; he also suggested an executive session with county counsel to discuss legal strategy if the board wished to explore acquisition further.
Why it matters: the area’s mine-driven workforce has a documented housing shortage; SEAGO told the board there were over 1,000 people on the mine housing waiting list in the region and that workforce housing demand underpins the development rationale. The project would involve long lead times for water and cultural-resource clearances and likely require a mix of public and private finance and legal planning.
Next steps reported to the board included: staff follow-up and document sharing from SEAGO, scheduling meetings with the Arizona State Land Department and ADWR, and further work on a feasibility study that would include hydrology, wastewater and infrastructure cost estimates. The board did not vote to apply for state land at this meeting.
