Airport partner selling land near Gateway

A business partner with Phoenix-Mesa Gateway Airport is auctioning a large chunk of land abutting the south side of the airport to pay off a debt.

Paragon Properties, which owns 600 acres along the southern border of the airport, and is a partner in an initiative including dozens of business on and surrounding the airport, filed for foreclosure and is selling off land to pay its debtor.

Airport authorities said Tuesday that while one of their business partners may be facing tough times, the numerous businesses that partner in development initiatives around the airport would go on.

Officials with Paragon when reached Tuesday afternoon confirmed the sale but said the property to be sold would be far less than the total land owned, disclosing only that a portion of the tract would be sold at auction to satisfy a creditor.

The company, which has an office in Cave Creek, is settling a $35.1 million debt tied with Gramercy Capital, a New York-based finance company. Calls to that office were not returned immediately Tuesday. A Phoenix law firm handling the auction declined to give comment Tuesday.

The notice of foreclosure that resulted in the land auction was filed with Maricopa County April 21, pending an auction date of July 31, said Zach Bowers of Ion Data, which publishes a foreclosure report.

When reached at Paragon's office, a worker who declined to give his name, confirmed that the company was seeking stimulus funds and would seek solar power opportunities on a large portion of the remaining land since only a portion of the land owned by Paragon was in foreclosure.

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Phoenix-Mesa Gateway Airport spokesman Brian Sexton said the airport authority was not interested in purchasing the land slated to be auctioned from the partner business.

"There's no interest in any way from the airport in purchasing the land," he said Tuesday, adding that the airport authority and a number of businesses had developed partnerships. "We have been working with Paragon regarding economic activities for aerospace use."

On the company's Web site, the 600 acres was part of a Foreign Trade Zone, designated for businesses that manufacture and ship large amounts of goods. The company cited hopes of building taxiways and hangers amid other industrial developments.

Sexton said the airport authority created a cargo development initiative called Arizona Direct to market the Gateway area as a shipping depot comparable to points in California, where goods are marketed and shipped to buyers.

"We still are partnering with property owners and businesses to market the area as a commercial cargo destination just like California," he said. "Just because they (Paragon) might be stepping out, Arizona Direct continues."