SC Grand may cash in from ruling

The Sun City Grand Community Association Management board could get as much as $400,000 back from Maricopa County thanks to a ruling regarding the status of Grand’s Cimarron Center as a common area and not a commercial building.

The Arizona Court of Appeals ruled that the Cimarron facility of Sun City Grand Community Association, Inc. is a common area and should be assessed accordingly for property tax purposes.

The ruling may be appealed by Maricopa County to the Arizona Supreme Court no later than Aug. 27.

Grand officials believe, however, the courts will continue to rule in their favor.

“The county does have a right to take it to the Supreme Court but we are pretty sure we have it in our hand,” said Sun City Grand Controller Dale Woods. “I don’t think we’ll have any problems.”

In January 2004, the county assessed the Cimarron fitness and clubhouse facility as commercial property, which significantly raised the association’s property tax liability.

An appeal to the county and a subsequent Arizona Superior Court lawsuit were brought by the association in order to reclassify this valuation to that of a qualified common area. At issue was the county’s interpretation of the state legislature’s definition.

The association intends for the property to be used in its deed-restricted form by owners, residents and their guests, but also allows a small percentage for outside use with certain limitations.

The Superior Court entered judgment in the Association’s favor in June 2006, agreeing that “intended use” did not equate to “exclusive use.”

Maricopa County appealed the decision, which was again upheld this past June.

The court awarded the Association all excess tax previously paid on the Cimarron property plus $30,900 in attorneys’ fees and costs incurred on the original suit, as well as fees and costs of the appeal process. The association has paid approximately $370,000 in property taxes on the Cimarron facility since 2004.

Although the second ruling sounds promising for Sun City Grand, CAM board member Bill Sullivan warned “it’s not a done deal.”

“We’ve prevailed in two courts,” Sullivan said. “Whether Maricopa County appeals and takes it to the Supreme Court remains to be seen.”