Westcor prevails in bid to secure state land in North Scottsdale

Despite delays and legal wrangling by a competitor, Westcor has prevailed in its attempt to secure a 112-acre parcel of state-owned land near Scottsdale Road and Loop 101 in North Scottsdale.

Westcor, the oldest and most prolific retail developer in Arizona, and its investment partners submitted the winning bid of $32 million for a 99-year land lease at an April 30 auction held by the Arizona State Land Department.

The auction originally was scheduled in January, but was scuttled after the Thomas J. Klutznick Co. filed documents in court questioning the legality of the bidding process.

Content Continues Below

Klutznick, a developer based in Chicago, is building CityNorth, a huge mixed-use project just to the west of the auctioned site. That company, in partnership with the Related Cos., apparently hoped to extend that development to include the auctioned site. A judge dismissed Klutznick's claims, filed through the company's associated Northeast Phoenix Holdings, in February.

Westcor is planning to build Palisene, a large-scale mixed-use project, on the leased site.

Some industry observers thought Westcor, a division of Los Angeles-based Macerich, might forgo the auction after the company announced a strategic partnership with DMB Associates. DMB is the developer of One Scottsdale Place, another big mixed-use development just to the east of the auctioned land. But by securing the land lease, Westcor obviously is moving ahead with plans for both locations.

Westcor's partners on the Palisene project are WDP Partners and Landmark Land Co.

WDP partnered with Westcor on the Promenade at Casa Grande retail project. Its principals are former executives of Westcor who left the company after the Macerich acquisition. Landmark is a Maryland-based company that develops golf courses and luxury resorts around the world, including the Doonbeg Golf Club in Ireland, the La Quinta Resort and Club near Palm Springs, Calif., and the Palm Beach Polo and Country Club in West Palm Beach, Fla.

Proceeds from the auction will be directed to a fund that supports Arizona's public schools.