ARIZONA STATE LAND DEPARTMENT
1616 WEST ADAMS
PHOENIX, ARIZONA 85007

Pursuant to A.R.S. Title 37, notice is hereby given that the state of Arizona through its State Land Department (herein called ASLD), will sell at Public Auction to the highest and best bidder or bidders at 10:00 a.m. on Thursday, December 1, 2005, at the Arizona State Land Department, 1616 W. Adams, Lower Level Auditorium, Phoenix, Arizona, trust lands situated in Maricopa County to wit:                                                                                                                                                           

PARCEL 1:    TRACTS C; D; F; G IN STATE PLAT NO. 45, SECTION 6, CONTAINING 51.81 ACRES, MORE OR LESS. 

PARCEL 2:    TRACT E IN STATE PLAT NO. 45, SECTION 5, CONTAINING 17.65 ACRES, MORE OR LESS. 

PARCEL 3:    M & B IN E2SESW, SECTION 5, CONTAINING 7.29 ACRES, MORE OR LESS. 

PARCEL 4:    M & B IN SWNE, SECTION 8, CONTAINING 7.55 ACRES, MORE OR LESS. 

LOCATION:  NORTH AND EAST OF WESTWORLD, CITY OF SCOTTSDALE 

BENEFICIARY: PERMANENT COMMON SCHOOLS (INDEMNITY SELECTIONS) 

For a complete legal description of the land, prospective bidders are advised to examine the purchase application file as well as all pertinent files of ASLD. 

The land has been appraised as follows: 

Parcel 1:  $26,250,000.00 

Parcel 2:  $5,195,000.00 

Parcel 3:  $2,735,000.00 

Parcel 4:  $1,975,000.00 

OR for all four parcels in the aggregate, consisting of 84.30 acres more or less: $36,155,000.00.  There are no reimbursable improvements. 

The parcels will be sold either individually or in the aggregate, as more fully described herein. 

The above described lands are sold subject to existing reservations, easements, or rights of way. 

The ASLD does not represent or warrant that access exists over lands which may intervene respectively between the above parcel/s and the nearest public roadway.           

The complete file associated with the described land is open to public inspection at ASLD, 1616 W. Adams, Phoenix, AZ, from 8:00 a.m. to 4:30 p.m., exclusive of holidays and weekends.  Please direct any questions regarding this Public Auction sale to the Real Estate Division of ASLD at (602) 542-3000. This auction notice is available on the ASLD's web site at www.land.state.az.us. 

Pursuant to the provisions of Arizona Revised Statutes §37-231, the state of Arizona or its predecessor in title reserve and retain all rights and all forms of access to all oil, gas, minerals, hydrocarbon substances and gaseous substances or any other material which is essential to the production of fissionable materials as provided by the rules and regulations of ASLD and the laws of Arizona. 

TERMS OF SALE FOR INDIVIDUAL PARCELS:

(A)  At the time of sale the successful bidder or bidders must pay the following by cashier's check: 

PARCEL 1:  (1) 10% of the appraised value of the land, which is $2,625,000.00; (2) a Selling and Administrative Fee of 2% of the appraised value of the land, which is $525,000.00; (3) Reimbursable Estimated Advertising Fee of $625.00; (4) Reimbursable Appraisal Fee of $3,000.00; (5) Planning Expenses in the amount of $63,916.00 reimbursable to Westworld of Scottsdale; (6) Zoning Fees in the amount of $3,746.00 reimbursable to ASLD; (7) Certificate of Purchase Fee of $100.00.  The total amount due at the time of sale is $3,221,387.00 (less $3,625.00 if the successful bidder is the applicant for a total amount due of $3,217,762.00; or less $63,916.00 if the successful bidder is Westworld of Scottsdale, for a total amount due of $3,157,471.00). 

PARCEL 2:  (1) 10% of the appraised value of the land, which is $519,500.00; (2) a Selling and Administrative Fee of 2.5% of the appraised value of the land, which is $129,875.00; (3) Reimbursable Estimated Advertising Fee of $625.00; (4) Reimbursable Appraisal Fee of $3,000.00; (5) Planning Expenses in the amount of $21,774.00 reimbursable to Westworld of Scottsdale; (6) Zoning Fees in the amount of $1,276.00 reimbursable to ASLD; (7) Certificate of Purchase Fee of $100.00.  The total amount due at the time of sale is $676,150.00 (less $3,625.00 if the successful bidder is the applicant for a total amount due of $672,525.00; or less $21,774.00 if the successful bidder is Westworld of Scottsdale, for a total amount due of $654,376.00). 

PARCEL 3:  (1) 10% of the appraised value of the land, which is $273,500.00; (2) a Selling and Administrative Fee of 3% of the appraised value of the land, which is $82,050.00; (3) Reimbursable Estimated Advertising Fee of $625.00; (4) Reimbursable Appraisal Fee of $3,000.00; (5) Certificate of Purchase Fee of $100.00.  The total amount due at the time of sale is $359,275.00 (less $3,625.00 if the successful bidder is the applicant for a total amount due of $355,650.00). 

PARCEL 4:  (1) 10% of the appraised value of the land, which is $197,500.00; (2) a Selling and Administrative Fee of 3% of the appraised value of the land, which is $59,250.00; (3) Reimbursable Estimated Advertising Fee of $625.00; (4) Reimbursable Appraisal Fee of $3,000.00; (5) Certificate of Purchase Fee of $100.00.  The total amount due at the time of sale is $260,475.00 (less $3,625.00 if the successful bidder is the applicant for a total amount due of $256,850.00). 

ALL FOUR PARCELS IN THE AGGREGATE:  (1) 10% of the appraised value of the land, which is $3,615,500.00; (2) a Selling and Administrative Fee of 2% of the appraised value of the lands, which is $723,100.00; (3) Reimbursable Estimated Advertising Fee of $2,500.00; (4) Reimbursable Appraisal Fee of $12,000.00; (5) Planning Expenses in the amount of $85,691.46 reimbursable to Westworld of Scottsdale ; (6) Zoning Fees in the amount of $5,022.00 reimbursable to ASLD; (7) Certificate of Purchase Fee of $100.00.  The total amount due at the time of sale is $4,443,913.46 (less $14,500.00 if the successful bidder is the applicant for a total amount due of $4,429,413.46; or less $85,691.46 if the successful bidder is Westworld of Scottsdale for a total amount due of $4,358,222.00). 

(B) Upon the declaration as the highest and best bidder OR bidders, the successful bidder or bidders must notify the ASLD’s representative which of the following Options he/she/it/they elect(s) to pay:

1. The full balance of the amount bid for the land and the patent fee; OR

2. An additional amount which when added to the amount paid under (A)(1) above equals 10% of the amount bid for the land to be allocated to the principal, and agree to pay the balance of the amount bid for the land in annual installments with interest compounded daily at a fixed rate equal to (i) 6.00% and (ii) the rate per annum equal to the weekly average yield on United States Treasury Securities-Constant Maturity Series issued by the United States Government for a term of seven (7) years, as released on the Monday prior to the day of auction, by the Board of Governors of the Federal Reserve System in Federal Reserve Statistical Release H.15(519) and found at (http://federalreserve.gov/releases/h15/current/) amortized over a 25 year period. [By way of example, if the foregoing rate were calculated as of September 15, 2005, the rate would equal 6.00% plus 4.01%, for a total interest rate of 10.01%.]  Interest begins to accrue on the day of auction.  THE TOTAL AMOUNT WILL BE DUE AND PAYABLE AT THE END OF THE 7TH YEAR FROM THE DATE OF AUCTION; OR

3.  An additional amount which when added to the amount paid under (A)(1) above equals 25% of the amount bid for the land to be allocated to the principal, and agree to pay the balance of the amount bid for the land in annual installments with interest compounded daily at an annual adjustable rate equal to 4.50% over the 1 year LIBOR (London Interbank Offered Rate), as published in the Wall Street Journal, on the day of auction, and every year thereafter, as of November 29th, amortized over a 25 year period. [By way of example, if the foregoing rate were calculated as of September 15, 2005, the rate would equal 4.50% plus 4.16%, for a total interest rate of 8.66%.].  Interest begins to accrue on the day of auction.  THE TOTAL AMOUNT WILL BE DUE AND PAYABLE AT THE END OF THE 7TH YEAR FROM THE DATE OF AUCTION. 

(C)  Within 30 days after the auction date, if the purchase price for any Parcel or Parcels sold individually is (are) less than or equal to $5 million, the successful bidder must pay a Selling and Administrative Fee of 3% of the purchase price, less the amount paid under (A)(2) above.  If the purchase price for any Parcel or Parcels sold individually exceeds $5 million, the Selling and Administrative Fee will be the greater of $150,000.00 or 2.5% of the purchase price, less the amount paid under (A)(2) above.  If the purchase price exceeds $10 million, the Selling and Administrative Fee will be the greater of $250,000.00 or 2.0% of the purchase price, less the amount paid under (A)(2) above. 

(D) The ASLD Commissioner has determined that, when and if the successful bidder or bidders perform(s) all acts required to become entitled to a Certificate of Purchase or a Patent, a Broker Commission shall be paid from the Selling and Administrative Fee collected by ASLD pursuant to A.R.S. § 37-108 (A)(10)(a) to a broker otherwise eligible to receive a commission under Arizona Administrative Code: Title 12, Natural Resources: Chapter 5, Land Department: Article 4, Sales (R12-5-413).  The Broker Commission of $100,000.00 for Parcel 1; $50,000.00 for each of Parcels 2, 3 and 4; or $250,000.00 in the event all four parcels are sold in the aggregate shall be paid from the Selling and Administrative fee(s).  Any fee collected in excess of a brokerage commission paid shall be collected and retained by ASLD. No commission shall be paid to the broker until a Certificate of Purchase or a Patent has been issued to the successful bidder by ASLD. 

(E)  No Selling and Administrative Fee shall be collected by ASLD if the successful bidder or bidders at auction is the beneficiary of the land trust. 

BIDDING INFORMATION: 

(A)  At the discretion of the Commissioner, the lands may be offered at auction individually, in any order, AND/OR in the aggregate.  The bidding for each Parcel will begin at the appraised value of each Parcel.  The bidding for all four Parcels in the aggregate shall begin at the total appraised value of $36,155,000.00.  A bid for less than the appraised value of the land or by a party who has not inspected the land and/or the associated files and records of ASLD will not be considered. Additional bidding increments shall be a minimum of $100,000.00.  Bidding will be conducted orally.  Upon completion of bidding the Commissioner shall declare as the highest and best bid or bids that bid or bids which is (are) in the best interests of the Trust.  The time of sale shall be deemed to be the time of declaration of the highest and best bidder or bidders.  

(B) All bidders must sign an affidavit stating that they have undertaken due diligence in preparation for the auction. It is the bidder’s responsibility to research the records of local jurisdictions and public agencies regarding this property. 

(C)  Pursuant to A.R.S. §37-240.B, the successful bidder or bidders must be authorized to transact business in the state of Arizona within three (3) business days of the auction.  The successful bidder or bidders must sign an affidavit stating it is the successful bidder and sign a Certification Statement pursuant to A.R.S. Title 37 and the Rules of ASLD. 

(D)  If the successful bidder or bidders fail(s) to complete the payment as stated in the auction notice together with the additional required fees within 30 days from the auction date, all amounts paid at the time of auction by the successful bidder will be forfeited. 

(E)  In the event of forfeiture, the Commissioner may declare that the bid placed before the final bid accepted is the highest bid, and that the bidder has five (5) days after notification by ASLD to pay by cashier’s check all amounts due.  In the event of forfeiture, if the Parcels were sold in the aggregate to one bidder, AND the bid placed before the final bid accepted is less than the aggregate amounts bid for each Parcel individually, the Commissioner may declare that the highest bid accepted for each Parcel individually is the highest bid for that individual Parcel, and those bidders each have five (5) days after notification by ASLD to pay by cashier’s check all amounts due. 

BROKER INFORMATION:

In the event the potential bidder is represented by a broker, it is the responsibility of both the potential bidder and the designated broker to register with ASLD no later than three (3) business days prior to the date of auction.  Registration may be submitted for each Parcel individually and/or for all four Parcels in the aggregate; however, registration for each Parcel individually shall not constitute registration for all four Parcels in the aggregate, and vice versa.  Registration must be submitted on the ASLD's Broker Registration/Bidder Certification form in accordance with R12-5-413. Original signatures of Broker, Salesperson, and Potential Bidder must all appear on one form.  Facsimile copies will not be accepted by ASLD.  Each Designated Broker who has so registered with ASLD for this Auction will be required to sign an affidavit that he is licensed pursuant to A.R.S. §32-2101, et. seq., identifying his client as the potential bidder and affirming that he is not a principal of the potential bidder and that he procured the potential bidder for this Auction.  Broker Registration forms will not be accepted by ASLD for Public Auction No. 53-109338 after 5:00 p.m. on Monday, November 28, 2005. 

GENERAL INFORMATION:

The ASLD may cancel this auction in whole or in part at any time prior to the acceptance of a final bid. 

A protest to this sale must be filed within 30 days after the first day of publication of this announcement and in accordance with A.R.S. §37-301. 

Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the ADA Coordinator, at (602) 542-4634.  Requests should be made as early as possible to allow time to arrange the accommodation.

Disclaimer: This map is designed for general overview purposes only. Unless otherwise stated all depictions are approximate. Prospective bidders should review all information in the State Land Department’s records relating to the property and seek technical or legal advice as needed to assure the understanding of all legal descriptions, plat maps, surveys, and other documents relevant to the property. Contact ASLD, Real Estate Division at (602) 542-3000 for additional information.