FLAGSTAFF — The City of Flagstaff was notified by Greentree Hospitality Group, Inc. that they are cancelling the Purchase and Sale Agreement (PSA) for 32 acres of Highway Commercial property at the corner of Pulliam Drive and John Wesley Powell Boulevard.
The City entered into the PSA with Greentree for $5,576,725. The funds associated with the PSA were planned to provide improvements to the airport. The proposed Greentree development on the land included 15,000 square feet of office space for Greentree’s U.S. corporate headquarters, a 120-bedroom hotel and restaurant and event center. Greentree stated the cancellation was mainly due to significantly higher costs for construction and development than originally projected.
The City is currently evaluating next steps for the parcel. This may include the issuance of a new request for proposals for a suitable use or the analysis of other opportunities to benefit the City.