County attorney warns buyers to ‘do due diligence’ as board previews auction plan for thousands of Rio Rico Vitari lots

Santa Cruz County officials on June 3 presented a phased plan to return roughly 2,000 county-owned "Vitari" lots in Rio Rico to private ownership and restore property tax revenue, and county counsel warned would‑be buyers to expect quitclaim deeds and to perform full due diligence.

County Civil Attorney Robert May told the Board of Supervisors the parcels will be offered by public auction under Arizona Revised Statutes and conveyed by quitclaim deed "as is," with starting bids generally set at 90% of assessed value. "There is no right of first refusal," May said, repeating guidance he said flows from state law and telling listeners the county cannot offer an adjacent-owner priority in an auction.

The study session followed public comments from residents who said they were promised a right of first refusal years ago and urged better public notice. Susan Anderson read a statement on behalf of Dr. Bonnie Tri asking the board to "reconsider the fact that the adjoining property owners do have the right of first refusal," and multiple speakers said a clear, widely available auction process is essential so neighbors have an opportunity to buy lots that form a privacy buffer.

Board and staff members emphasized that no final sales decision was being made at the meeting. County staff said they plan to begin with an initial group of 100 lots "in the next few months" as a test run to avoid overwhelming the recorder, assessor and treasurer offices; if that phase runs smoothly, staff said auctions could be held more frequently.

May cautioned that many lots carry recorded private restrictions—declarations of easements, covenants, conditions and restrictions (DECCNRs) filed in 1999—that may cloud title. "Whether they are enforceable may take court action," he said, advising interested buyers to consult title companies and real estate attorneys if they intend to build or otherwise change a lot's use. He added that a building permit issued by the county would not itself negate a privately held restriction: "issuance of any permit is not a defense to any valid and enforceable restriction, covenant, etc."

Real-estate and title professionals in the audience urged clearer public notice and available information. Teresa, from Steuart Title in Rio Rico, recommended the county consider modifying problematic restrictions before auctioning lots—she noted some deed language restricts the water company from providing service to certain parcels—and asked whether the county would allow prospective buyers to rely on percolation (septic) testing during due diligence. Staff responded that buyers may perform tests at their own expense and that utility companies often require permits or proof of a building permit to install service.

Sheriff David Hathaway and other residents who said they had tried for years to buy adjacent Vitari lots called for transparent, well-publicized auctions and an online map and schedule. County staff said they will publish parcel maps, describe the phased approach and maintain a list of registered interested parties; supervisors suggested additional public meetings after staff compiles baseline auction data.

The board did not vote on any sale or conveyance at the session. Next steps identified in the presentation include publishing parcel maps, verifying which lots staff recommends retaining for flood control or wildlife corridors, preparing auction notices for an initial tranche of lots, and returning to the board with a recommended auction schedule and any needed legal follow-ups.