Cave Creek council unanimously authorizes filing to seek auction of 4,005 acres of state trust land

Cave Creek — The Cave Creek Town Council on March 31 voted unanimously to authorize staff to file an application with the Arizona State Land Department (ASLD) to initiate an auction for 4,005 acres of state trust land and to begin required studies, surveys and plans needed for the ASLD application process.

The action follows presentations from two ASLD assistant directors, a state parks grants consultant and town financial advisers. The motion, moved from the dais and seconded, passed on a 7–0 voice vote. Council also instructed staff to pursue a council-preferred financing option — the council discussed and favored a 25‑year revenue bond scenario — while pursuing federal grant opportunities that could supply a dollar‑for‑dollar match.

Why it matters: The acreage sits adjacent to Cave Creek and, if acquired, would expand permanently protected open space and recreation lands under local control. The ASLD manages state trust land under a trust mandate and specific legal constraints; any sale must be appraised at fair market value, reviewed by an appointed Board of Appeals and — for sales or leases longer than 10 years — offered through a public auction process.

What was presented: Karen Datta, assistant director for the Arizona State Land Department’s real estate division, provided a “State Land 101” briefing explaining the trust’s mission, the requirement that sales reflect fair market value and the department’s appraisal and auction rules. Ruben Ojeda (ASLD) outlined the application and sales process: applicants file online, complete due diligence (ALTA boundary survey, cultural resource consultation, Phase I environmental review as applicable), and the department requires a third‑party appraisal; Ojeda said the appraisal phase alone can take about 90 days and a full ASLD transaction may typically take 12–18 months, though complexities can extend that timeline.

Grant and partnership opportunities: RJ Carden, a consultant and former Arizona State Parks planner, outlined Land and Water Conservation Fund (LWCF) opportunities administered by Arizona State Parks and Trails. Carden said the program has recently increased its per‑application cap (reported during the meeting as raised from $1.5 million to $2 million) and highlighted that LWCF requires a 1:1 cash match and ties funded acres to perpetual public recreation use. As Carden told the council, “All eligible applications over the last 3 years that have submitted grant applications to the Land and Water Conservation Fund have been awarded funding.” He also noted some LWCF components can fund mitigation work (for example, fencing to reduce OHV impacts) as well as trail improvements.

Financing options: Sherry White, Cave Creek’s chief financial officer, introduced Stifel financial advisers who ran several scenarios for an assumed acquisition price (presenters used a working estimate of about $14.5 million). Stifel’s examples included issuing roughly $10.4 million in revenue bonds (after using about $4.1 million in existing funds), with a 20‑year scenario producing an estimated annual debt service of roughly $800,000 and a 25‑year scenario lowering annual payments to about $710,000. Council members and advisers noted the town’s open‑space excise tax of roughly $500,000 a year could offset most annual debt service under the revenue bond examples. Stifel also presented voter‑approved general obligation bond examples (which would require a ballot measure) and a scenario that applied $6.2 million of town cash to reduce bond size.

Council debate and public comment: Council discussion weighed minimizing resident tax impacts against speed and certainty. Several residents urged limiting permanent tax increases and asked that any sales‑tax adjustment be sunset or dedicated specifically for the acquisition. Public commenters suggested alternative or supplemental funding paths, including a local ballot initiative being circulated by residents that proponents say could raise roughly $1.0–$1.2 million a year.

Formal action and next steps: The council passed a motion authorizing staff to file an ASLD application for the 4,005 acres and to allow the town manager to administratively approve studies, surveys and plans needed for the application. The council also gave staff direction to pursue the council’s preferred funding approach (the group discussed favoring the 25‑year revenue bond option) and to continue grant and partnership outreach, including coordination with Maricopa County and Arizona State Parks. According to staff, ASLD application deadlines and grant cycles differ; LWCF applications open October 1 and typically run through January for initial consideration with funding payouts January–May, while ASLD processing to auction may take 12–18 months depending on due diligence and appraisal timing.

What’s next: Staff will begin commissioning required surveys and studies (boundary survey, cultural resource review, Phase I environmental, title work) and continue grant applications and fundraising outreach. The council may later take additional action to set financing terms, authorize bond issuance or place a ballot measure before voters if the council chooses a GO bond path. The town’s approval does not itself complete any land purchase; it authorizes staff to start the ASLD application and related work required to be eligible for auction and to prepare financing options for subsequent council decisions.