The Kyrene School District Governing Board has approved a deal with the potential to generate more than $100 million in revenue for the district over 75 years.
The board leased the 28-acre parcel along the western side of Interstate 10, between Chandler and Ray roads. Kyrene had been working with a brokerage firm for two years in an effort to sell or lease the land.
Voters authorized the board to lease the property in 2013, and state statute permits leases of 20 years or more.
The district received multiple competitive offers, it said. On Oct. 27, the board accepted a letter of intent from ViaWest, a commercial real estate company, to lease the property for development.
Kyrene Governing Board President Mike Myrick says the deal gives Kyrene the most flexibility.
“A sale may provide a one-time cash infusion for the district, but a lease will be a steady revenue stream for years to come,” Myrick said. “The other advantage of a lease is that the property will revert to the district when the lease is up, providing opportunities for future decision makers to sell or develop the land, depending on the district’s needs at that time.”