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City staff briefs council on Arizona State Land Department purchase process and potential parcels
Summary
City staff outlined steps, costs and risks for buying state trust land inside Kingman city limits, recommending a pre-application meeting and identifying four parcels of interest; council offered no immediate direction.
City staff provided the Kingman City Council an overview of the Arizona State Land Department purchase process on Oct. 7, outlining application steps, required due diligence, appraisal and auction procedures and estimated upfront costs.
Staffer Terry explained the five main steps: pre-application outreach to state staff, formal application (with a $2,000 nonrefundable fee), title and contract review, due-diligence studies (Phase I environmental, ALTA survey, title report, cultural resources), and appraisal leading to a public auction. Terry said typical upfront due-diligence costs “are upwards of $50,000” and that the state requires the city to pay the appraisal up front; the appraisal then sets the auction minimum bid. He warned of the risk of being outbid at auction and that application costs would be nonrefundable if the city were the successful bidder.
Terry also identified four large state parcels within city limits and recommended the parcel adjacent to Flying Fortress Parkway as the priority for initial review due to likely industrial/airport-compatible uses. Council members discussed tradeoffs: several said the Flying Fortress parcel offers the most strategic fit with airport and industrial needs, while acknowledging the city lacks a current capital appropriation for appraisal and due-diligence costs. Councilor Walker and others noted that private development of the parcels could still bring benefits even if the city does not acquire them.
Outcome and next steps: Staff recommended a pre-application meeting with the State Land Department and budgeting for upfront costs if council wishes to pursue a parcel. Council did not give immediate direction; members asked staff to return with cost options if council wants to prioritize a purchase in a future budget.
