Westcor may give up land for high-profile Palisene project

A coveted mall site at Scottsdale Road and Loop 101 could be going back to the state. Westcor has deferred a $1 million lease payment until Dec. 30 on 112 acres of state trust land and is weighing whether it will retain a 99-year lease for the property, said Scott Nelson, company vice president of development. "We're working with the state to evaluate our options for Palisene," Nelson said of its shopping-center site, which is north of Loop 101 and west of Scottsdale Road in Phoenix. Westcor, a division of Santa-Monica, Calif.-based Macerich, has long had plans to build a shopping center on the leased state land. But a collapse in the retail sector has curtailed interest in the project. Westcor also has a partnership with Scottsdale-based DMB Associates to develop the retail portion of One Scottsdale, a mixed-use development northeast of Scottsdale Road and Loop 101. Westcor was the only bidder in April 2008 for the 112-acre Palisene site. It agreed to pay $32 million for a 99-year lease of the state trust land and invest $67 million in improvements for utilities, roads and drainage.

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