Westcor turns back state land for Palisene

A regional-mall site intended for Westcor's Palisene project is going back to the Arizona State Land Department. Westcor and the Land Department reached an agreement last week to end Westcor's 99-year lease of 112 acres of state trust land northwest of Scottsdale Road and Loop 101. "We're getting the piece back intact," state Land Commissioner Maria Baier said. "It's ready for the next healthy market." The property can be auctioned again as the commercial real-estate market recovers, Baier said. The settlement puts a halt to Westcor's 20-year plan for a mall and mixed-use development on the state land just west of Scottsdale Road in Phoenix. It stalls planning and development of roads, utilities and flood control for thousands of acres in the Paradise Ridge area. Westcor was the sole bidder four years ago to lease the 112-acre Palisene site for $32 million, with the obligation to invest $67 million for development improvements that would have served the broader area of state land northwest of Loop 101 and Scottsdale Road. Scott Nelson, Westcor vice president of development, said the property is some of the best-located land in the Valley but it lacks water, sewer, streets and flood control.

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