A new resort on more than 100 acres in Paradise Valley will add substantially to the town’s annual $6 million in revenue from sales and bed taxes, said Town Manager Tom Martinsen.
"We’re very excited about this type of high-end resort coming to Paradise Valley," said Martinsen, who noted that 40 percent of the town’s annual budget comes from sales and bed taxes.
"We don’t know what the estimated annual income will be because we don’t know how many rooms they plan to build, but it will boost our revenues substantially," Martinsen said.
Paradise Valley, which has a population of 14,500, has no property taxes.
Marriott International told Paradise Valley and Scottsdale officials the company has completed the purchase of a 120-acre lot at the northwest corner of Lincoln Drive and Scottsdale Road for $74 million where it plans to build a luxury Ritz-Carlton resort.
The vacant lot, formerly owned by Salt Lake City-based Sinclair Oil Corp., covers 102 acres in Paradise Valley and 18 adjoining acres in Scottsdale.
‘‘We’re looking at a resort community with hotel and residential,’’ said Joy Berry, vice president of real estate in Marriott’s Newport Beach, Calif., office. ‘‘Residential is strong, and the resort market has come back very healthy. It’s a great location.’’
Town Councilwoman Jini Simpson said initial plans submitted by Marriott International to the council show that small clusters of individual homes may be built near the resort.
The Scottsdale portion of the development would probably house multifamily dwellings, including condominiums, Simpson said.
"To have a major, new resort open in our town will be a great boon to our financial condition," said Simpson, who played a leading role in talks with Marriott International.
"We don’t have all the figures yet, but we know it will create a stable, financial future for Paradise Valley," Simpson said.
She said the resort is the third planned for construction or redevelopment along Lincoln Drive. The former La Posada Resort is about to be redeveloped, and the Mountain Shadows Resort also is planned for major improvements.
"This will create a firstclass strip of high class resorts in Paradise Valley," Simpson said.
The only Ritz-Carlton hotel currently in the Valley is at 24th Street and Camelback Road in Phoenix.
Virginia Korte, president of the Scottsdale Area Chamber of Commerce, said having a Ritz-Carlton luxury resort in Paradise Valley would enhance Scottsdale as well.
"It will not only have great economic impact, but it will be a boost for Scottsdale’s image as a tourism town," Korte said.
The Paradise Valley Planning Commission is expected to review the proposed project in September and will be asked to approve a special-use permit, Simpson said.
A similar permit request will be submitted to the Scottsdale Planning Commission and subsequently to the City Council.