Pinal County

A GROWING HORIZON

With acres of undeveloped land and access to major modes of transportation, Pinal County is poised for major economic growth

By REBECCA L. RHOADES

Situated midway between Arizona’s two largest cities, Phoenix and Tucson, Pinal County has long lived in the shadows of its more wellknown neighbors — a drive-through county in which travelers only stop when they need to get gas. But recent growth in infrastructure and the commitment by major electric vehicle manufacturers have set the groundwork for an impending boom in commercial and residential development.

“Pinal County sits at the epicenter of two big cities and is the point of intersection where all infrastructure in the state comes through,” says Jackob Andersen, president and CEO of Saint Holdings, the developer behind some of the county’s largest land deals, including two massive industrial parks.

EASY ACCESS

When it comes to transportation, Pinal County is ideally suited for road, rail and air travel.

Located about 55 minutes from Phoenix and 35 minutes from Tucson, the county is at the confluence of two major highways: Interstate 10, the fourth-longest interstate in the U.S., which stretches from Santa Monica, California, to Jacksonville, Florida; and Interstate 8, which branches off of I-10 just southeast of Casa Grande and runs to San Diego.

“Ever since I-10 came into being, Eloy has reaped the benefits through truck stops,” says Jeff Fairman, economic development manager for the City of Eloy. “There must be nine different truck stops along the interstate in our city alone. They all have restaurants and some even have services such as barbershops.” January saw the opening of an Xpress Fuel travel center, which added about 50 jobs to the community and is expected to contribute $2.24 million annually in state and local tax revenues.

The main line of the Union Pacific Railroad connects Casa Grande to major ports and transfer points in Los Angeles and El Paso, Texas. It links 23 states, connects with Canada’s rail systems and is the only railroad serving six major destinations in Mexico. “Part of the reason Lucid Motors chose the develop in Casa Grande is that there’s already an existing automotive base in Sonora, Mexico, that can supply parts,” Andersen notes.

Finally, the county offers easy access to three major international airports. Phoenix Sky Harbor, Phoenix-Mesa Gateway and Tucson International are all within an hour’s drive from just about any location in the county. Phoenix-Mesa Gateway is also home to SkyBridge Arizona, the nation’s only joint U.S.-Mexico customs inspection facility, which streamlines shipments to and from Mexico.

As the county continues to grow, the number of vehicles coming in and out of, and passing through, the region is expected to increase dramatically. Gov. Doug Ducey approved new infrastructure investments, including $33 million to rebuild the Gila River Bridge on I-10 between Phoenix and Casa Grande. The project will widen the bridge to three lanes in each direction, paving the way for a full expansion of the highway.

“The only section of I-10 that hasn’t been widened is between Chandler and Casa Grande,” says Richard Wilkie, economic development director for the City of Casa Grande. “The additional lanes are going to make commerce so much easier.” Construction on the bridge is set to begin this year, with completion of all improvements expected by 2023.

Jackob Andersen Jeff Fairman

Elan Vallender Richard Wilkie THE PRICE IS RIGHT

The intense competition for land in Maricopa County has resulted in escalating building costs. “Prices in the

MANUFACTURING GROWTH: Gov. Doug Ducey joined elected officials and automotive manufacturing leaders in March to officially launch Drive48, an advanced training center in Coolidge that will bolster Arizona’s training efforts for high-tech jobs.

Valley are increasing exponentially right now,” says Elan Vallender, economic development director for the Town of Florence. “Land is definitely less expensive out here, and that’s a great draw.” Andersen notes that land prices in Pinal County are about 50% to 60% cheaper than in Metro Phoenix.

With thousands of acres of undeveloped land that is zoned for industrial use or can be quickly zoned heavy industrial, multiple shovelready industrial parks and robust infrastructure, including water, power, sewer and fiber, the region is primed for large-scale development.

“Most of the undeveloped land in Casa Grande is ready to go,” Wilkie says. “You come in here, and it’s either plug-and-play or it’s a short distance to connect to the utilities of your need.” A large portion of Pima County, including almost 10,000 acres in Casa Grande, the entire town of Superior and areas along I-10 in Eloy, have also been federally designated as opportunity zones, meaning that private investments may be eligible for capital gain tax incentives.

“Eloy is 113 square miles that stretch from State Route 87 to the northeast and almost to the reservation to the south, and our planning area is even larger than that, so we’re set with available land, quite frankly, for forever,” Fairman explains. “Because we’re a city, we also have a 100-year assured water supply for both residential and commercial development. That’s something a lot of places can’t offer anymore.”

HOUSING BOOM

The low cost of land also translates to lower housing prices. “There are a lot of people who are still interested in owning a little bit of land with their house and having a yard where their kids can play, but they’ve been priced out of Phoenix and Tucson,” Fairman says. Investments by large-scale employers, such as electric vehicle manufacturers Lucid Motors and Nikola, have also added to the area’s appeal, bringing in workers and their families who wish to live near their job sites.

Saint Holdings is currently developing a 4,000-home masterplanned community in Casa Grande, while other lots that have remained vacant for years are being snapped up by builders, including Shea Homes, Lennar, Richmond American and more. “We did more than 1,100 new single-family residence permits last year, and this year we’re on pace to beat that,” Wilkie says. “Lucid Motors has definitely been the beacon.”

Fairman adds that in Eloy, 90 vacant lots that had never been fully developed were recently picked up. “They’re building homes on all of those lots, three, four, five at a time,” he says, adding that Robson Ranch, a 55+ community in Eloy, has been adding 100 new homes a year.

“When companies are making site selections, they’re looking for the location, the land, the affordability of the land, the infrastructure, the workforce, connectivity to transportation systems and quality of life,” Wilkie says. Once overlooked, Pinal County is prepared to meet those demands.

INDUSTRIAL PARKS

fuel growth in Pinal County

With thousands of acres of flat open land ideally situated midway between Phoenix and Tucson, and with easy access to major highway, rail and air transportation, it’s no wonder that Pinal County hosts an abundance of industrial parks.

Ranging from built-out to shovelready to undeveloped, with lot sizes as compact as 1 acre for small business use to more than 50 acres for large manufacturing facilities, the region’s parks are primed to welcome an array of businesses, including distribution centers, industrial production, data centers, warehouses and even retail and hospitality.

Here are some of Pinal County’s top industrial parks that are expanding the region’s economic development opportunities.

Central AZ Commerce Park (CAZCP)

This 740-acre rail-served industrial park in Casa Grande is home to Lucid Motors and Tractor Supply Company. Strategically located near the confluence of interstates 10 and 8 and served by the Union Pacific Railroad, it is zoned for heavy industrial use. Lots are divisible from ±54 acres down to ±1 acre. Developer: Saint Holdings

Crossroads Industrial Center

Also known as the B2B Business Park, this 13-acre light industrial property in Casa Grande is shovel-ready with sewer and water. It is home to Canadian firm Jomi Engineering. Broker: Land Advisors

Donovan Kramer Sr. Airport Industrial Park

Approximately 40 acres, divided into 2- and 3-acre lots and zoned for heavy and light industrial use, are available at this Casa Grande park. All sites have thru-the-fence access to the Casa Grande Municipal Airport and are directly served by water, power and sewer lines. Developer: City of Casa Grande

Eloy Industrial Park

With 345 available acres divisible to ±4 acres in Eloy, at the intersection of Battaglia Road and Interstate 10, this park is home to Schuff Steel, Otto Industries, Republic Plastics and San Juan Pools. Brokers: Lee & Associates; Petersen Properties & Management

Inland Port Arizona (IPAZ)

Home to Nikola Motor Company, IPAZ is a 2,738-acre mega site on State Route 87 and the Union Pacific rail line in Coolidge. Twenty-one development-ready lots, ranging from 35 acres to ±900 acres are available. Developer: Saint Holdings

Interstate 10-8 Business Park

Zoned for industrial, commercial, hospitality, distribution and manufacturing, this 1,173-acre Class A business park in Eloy is bordered by Interstate 10 and the Union Pacific rail line. It is part of an Opportunity Zone and Foreign Trade Zone No. 75. Broker: Petersen Properties & Management

Pinal County Technology Park

One thousand shovel-ready acres in Casa Grande can be divided into 20-acre sites. Adjacent to the Union Pacific rail line, the land is zoned heavy industrial and is highly desirable for supply chain manufacturers. Broker: Land Advisors

Sunshine Industrial Park

Situated between Interstate 10 and State Route 84, just south of Sunshine Boulevard in Eloy, this 277-acre park is zoned for commercial and light industrial use. Twenty lots, ranging from 4 acres to 38.5 acres are available. Developer: Walton International Group

Santa Cruz Commerce Center

Located between the cities of Maricopa and Casa Grande, this Arizona Gold Certified site offers a mix of existing office/warehouse space, 45 acres of shovel-ready land-lease opportunities and built-to-suit projects. Developer: Ak-Chin Indian Community

Electric dreams

Pinal County is on the road to becoming the electric vehicle capital of America

By REBECCA L. RHOADES

In December 2020, just about a year after it broke ground, electric vehicle (EV) manufacturer Lucid Motors announced that it had completed the first phase of its 590-acre manufacturing plant in Casa Grande and that it’s on schedule to start mass production of its luxury Lucid Air sedan by the second half of 2021. The well-equipped vehicle features 406 miles of projected range and varies in price from $87,500 to $161,500.

In nearby Coolidge, Nikola, an upstart heavy-duty truck maker, is proceeding with construction of its greenfield facility with the goal of making battery electric (BEV) and fuel-cell (FCEV) semis by 2022, followed by hydrogen fuel-cell (HBEV) behemoths in 2023. The first phase of the $600 million, 1 million-square-foot factory on 430 acres will produce the BEV and FCEV Nikola Tre cabover trucks designed for hauls of less than 300 miles and 500 miles, respectively. The Nikola Two HBEV semi, will handle long hauls.

Further north, in Maricopa County, ElectraMeccanica announced in March that it would be building an assembly facility and engineering technology center in Mesa. The company produces the Solo, a three-wheeled car/ motorcycle hybrid, or electric autocycle, that starts at $17,499.

The announcement prompted the following statement by Gov. Doug Ducey: “Arizona has fast become the electric vehicle center of America thanks to our robust and growing workforce, vibrant innovation ecosystem and ideal business environment."

TEST DRIVE: The Nikola Tre FCEV cabover is targeted for distances up to 500 miles and is expected to address the majority of the North American regional market, especially use cases where additional freight hauling capacity and quick fueling are required by fleet operators.

EV CLUSTER

With Lucid and Nikola leading the charge, and ElectraMeccanica forming the vertex of an industrial triangle, Pinal County finds itself at the epicenter of an EV cluster that is expected to rapidly change the landscape of this otherwise quiet low-desert region. “Nobody wants to be the first in an unknown market — the risks are too high. But now we’ve proven ourselves,” says Richard Wilkie, economic development director for the City of Casa Grande. “Lucid was a startup company that could have gone anywhere — the company looked at 60 sites in 13 states — but it chose Casa Grande because we have the workforce and the infrastructure, and land is a lot more affordable here than in the Phoenix metro area.”

While Casa Grande and Pinal County in general have been in a holding pattern since 2016, when Lucid first announced its factory site at the Central Arizona Commerce Park, waiting for these manufacturing

facilities to be completed and start bringing money and workers into the area, the region is now beginning to see the results of this development.

Lucid plans to invest more than $700 million by 2028, expanding its plant to more than 5 million square feet and generating 4,800 jobs over the next decade. The company currently has approximately 750 employees, many of whom are already being trained at Drive48, a new instructional facility at Central Arizona College in Coolidge. Lucid also is expected to produce $32 billion in revenue for the city and county over 20 years.

Nikola, which anchors the Inland Port Arizona (IPAZ) improvement project, is expected to create more than 1,800 full-time jobs in the area.

Once commercial production nears onset, other automotive offshoots, such as suppliers and parts manufacturers, are expected to set up shop nearby. Jomi Engineering Group of Canada has already purchased a building in Casa Grande, where it will build roof components for Lucid.

MORE TO COME?

“I anticipate that more EV manufacturing and assembly and supply chain will start landing in our region,” says Elan Vallender, economic development director for the Town of Florence, which is located northeast of Coolidge. Each new job brings new families to the area, which in turn attracts housing, retail and entertainment to the cities in which the companies are located as well as to the surrounding region.

“The Nikola plant is directly on our city border,” says Jeff Fairman, economic development manager for the City of Eloy. “Everyone is always talking about boundaries and city limits, but most people don’t really care where the city limits are. They simply care about the resources, and we’ve got them, so we feel pretty good about it. We’re already working with some of Nikola’s suppliers and businesses that want to be close to them to kind of piggyback on their success, and from a residential standpoint, we’re selling homes in Eloy to people who will be working for both Nikola and Lucid, so that’s a direct impact to us.”

“People with big dreams and big projects are coming to Pinal County, and that’s exciting,” Fairman adds. “There’s never been a better time or a better opportunity — and I’ve never seen us more prepared to take advantage of that.”

READY FOR MANUFACTURING: Lucid Motors finished construction on AMP-1 in Casa Grande in December. It is the first greenfield, dedicated electric vehicle factory in North America. The company starts production of its Lucid Air this year.

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