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Bisbee council ends Sierra Cobre deal, orders $25,000 refund after developer fails to progress
Summary
Council voted unanimously to terminate the purchase-and-development contract with United Tiny Homes Inc. for Sierra Cobre Estates after the company made only a $25,000 partial payment and failed to demonstrate progress; City Attorney advised refunding the payment because the contract lacked penalty provisions.
The Bisbee City Council on May 5 voted unanimously to discontinue its contract with United Tiny Homes Inc. for the 17‑acre Sierra Cobre Estates subdivision and to return a $25,000 partial payment.
City Planner Melissa Hartman presented the matter and said the city had attempted to work with the company but had received no substantial progress; she provided email records to document the lack of performance. Hartman said the company made a $25,000 payment after staff demanded some payment to avoid earlier breach proceedings but no further payments or development activity followed.
Councilmember Karen Schumacher asked why the breach was not brought to council sooner; Hartman said she had continued communications and had hoped the company would produce a substantive update. City Attorney Joseph Estes advised returning the $25,000 because the city had not incurred costs that would justify retaining it and the contract contained no penalty provisions. Mayor Ken Budge noted the city still owned the property and said other potential uses, including senior housing, remained under consideration.
Councilmember Schumacher moved to discontinue the contract and return the $25,000; the motion passed unanimously.
What’s next: the property reverts to city control and staff will consider other proposals or uses for the Sierra Cobre site. The returned payment and contract termination conclude this agreement; no alternative buyer was identified at the meeting.
