Vistoso Purchase: The Game Continues

Dickering over property value goes public

The dickering over value between Romspen LLc, the owner of the Vistoso Golf Course, and The Conservation fund went public last week. Romspen attorney Pat Lopez stated in a published article that his client had "...pointed out several erroneous calculations made on the appraisal" of the property, errors that were not addressed. 

Earlier this month, Romspen rejected the offer from The Conservation Fund for the purchase of the property. Eventually, if purchased, the land would become a preserve maintained by Oro Valley. 

Romspen wants to be paid for what the land could be worth if it were rezoned

The "erroneous calculation" is the Romspen belief that the property should be appraised based on the land's value if it was rezoned as Romspen has requested. In other words, Romspen wants to be paid for what might happen as opposed to what actually is happening. That rezoning, if approved by Council, would not happen until next year at the earliest. Council approval is by no means assured. 

The Conservation Fund wants to pay the appraised value

Valuing the land on this basis "...would be contrary to UASFLA guidelines if the appraisers ventured further (without support) in speculating the property would have a 30%, or 50%, probability in obtaining a change in zoning use," according to Mike Ford, Southwest Director of the Conservation Fund. 

In other words, The Conservation Fund will not pay what something might worth in the future. They will pay what it is worth as it is currently zoned.

Posturing will continue

It is a "no brainer" that Romspen rejected the offer. They are a "lender of last resort." They obtain financially distressed properties through bankruptcy and then, through rezoning, add value to the land because it is now zoned for a different use. That is how they earn a profit. That is what they are trying to do here. 

As we have already noted in our prior posting: "The Game Is Afoot."

Romspen has options. The Conservation Fund has options. The group "Preserve Vistoso" has options. The Town of Oro Valley has options.

We will report as events play out.

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