Scottsdale pays $4M for desert home, lets seller stay rent-free for life

Scottsdale taxpayers will soon be the owners of a secluded home surrounded by the city's expansive McDowell Sonoran Preserve, but only one resident will have the ability to live there.

The Scottsdale City Council on July 5 unanimously approved a $4 million purchase of the five-acre property — more than $1.4 million above the city's appraised value — including a provision in the contract allowing the seller to remain there for the rest of his life.

Shawn Murphy has owned the 2,600-square-foot house in north Scottsdale, near the popular Tom's Thumb Trailhead, since its construction in 1999, according to Maricopa County records. Located on a dirt road near 126th Street and Paraiso Drive, the house sits on a hillside, hidden from nearby trails by a towering boulder formation.

Murphy will not have to pay rent but will remain responsible for utilities maintenance and insurance, according to his contract with the city. Murphy can rent out the house up to six months at a time, the contract says.

Scottsdale officials call Murphy's property, which includes two lots about 100 feet apart, a "significant asset" in the city's efforts to assemble contiguous land for the McDowell Sonoran Preserve. The purchase is funded through a city sales tax set aside for desert preservation.

The purchase marks the first time Scottsdale has bought a house for inclusion in the preserve, and the city could opt to tear it down when it eventually assumes control from Murphy, Preserve Director Kroy Ekblaw told The Republic. Murphy could not be reached for comment, but public records associated with a Shawn Murphy at the same address, 22621 N. 126th St., indicate he is 59 years old.

While the city's appraisal of the properties suggested a $2.59 million value, an appraisal ordered by Murphy came in at $6.49 million — a significant discrepancy that Ekblaw says is a result of the site's unique location and lack of comparable properties.

Murphy's house may be the only home in Scottsdale guaranteed to never have neighbors. The nearest house is more than a quarter-mile away.

"It's fully surrounded by the preserve and ... the north end of the McDowell Mountains," Ekblaw said. "It's elevated with commanding views of the Verde Valley and the Continental Mountains."

Ekblaw said Murphy has been a good neighbor for the preserve, but city officials wanted to secure the site's long-term future.

"In some point of time, if they were looking to move, we might get a neighbor who doesn't share the same goals," Ekblaw said. "This puts to bed the issue of any future change. We're not faced with an unknown."

Preservation began in 1990s

The movement to create a desert preserve around the McDowell Mountains in north Scottsdale began in the early 1990s and solidified in October 1993, when the City Council dedicated nearly 3,000 acres of public land for desert preservation, according to city documents.

In May 1995, about 64 percent of Scottsdale voters supported a 0.2 percent sales tax dedicated to raising money to purchase more land within an initial 16,000-acre preserve boundary. The city has expanded the preserve to more than 30,000 acres.

Scottsdale has spent nearly $1 billion on land purchases, trail improvements and debt interest related to creating the preserve, Ekblaw said.

The city is now moving toward the creation of a Desert Discovery Center, potentially on preserve land at the Gateway Trailhead. Scottsdale contracted with an outside group earlier this year to help create a vision for the controversial project.

Supporters say it will provide new opportunities for tourism and education, while opponents question its impact and cost while calling for a public vote. The center will require additional approval from the council before construction could start.

Mayor defends home purchase

Scottsdale Mayor Jim Lane, one of the seven City Council members who approved the deal to buy Murphy's property, said the city wants to be "practical" about purchases of preserve land but also wants to avoid forcing a sale through eminent domain.

The $4 million price tag for Murphy's home and land works out to about $737,000 per acre.

"Did it bother me personally?" Lane said in an interview with The Republic. "Yes, it always bothers me when we spend additional money. But we don't like the idea of condemning someone's home for a park. I think we settled on a reasonable amount."

Lane said there's value in a completed preserve that doesn't skip over properties.

Scottsdale officials contacted Murphy a few years ago to gauge his interest in selling but did not start negotiations until about 18 months ago, Ekblaw said. The city is taking steps to enter escrow on the property, a process that could wrap up within the next 30 days, he said.