The Phoenix based Ellman Companies was the winning bidder at an auction in March selling of a 1,276-acre parcel of State Trust Land in the northeast corner of Fountain Hills.

Ellman paid $110.1 million for the property that was annexed into the town last summer.

Don Kile, who is heading Ellman’s Goldfield Preserve Development, just east of Fountain Hills on the other side of the Fort McDowell Yavapai Nation, said he is pleased to be able to purchase the property.

“We have an existing sizable investment in the Preserve and are quite bullish on the area,” Kile said. “We are really proud to be the successful bidder and look forward to working with the town and the citizens.”

However, Kile said it would be premature at this time to comment on any concept of how the development might unfold. He added that it might be several years before any construction is done at the site.

Fountain Hills Mayor Wally Nichols also said he is happy with the result of the auction.

“We are pleased there were two bidders for the land and would be happy to work with either one of them to develop the property,” Nichols said. “Ellman will be a good citizen for Fountain Hills and they are showing that with what they are doing with The Preserve plan.”

Ellman representatives traded bids with those from the Pivotal Group starting the bidding at $95 million. There were 30 different bids before they stopped at $110.1 million.

State Land Commissioner Mark Winkleman said the date for the auction of this land was long anticipated.

“We are excited to get this property into the private sector,” Winkleman said.

He noted it is the first land sale the department had done working with a municipality after annexation.

“The Town of Fountain Hills stepped up and went into uncharted waters with us,” Winkleman said. “The annexation development agreement allowed us to come away with a plan that made sense for everyone.

“This is a parcel that was originally designated for preservation and the town had to make some tough decisions, which I think was a correct decision.”

The annexation agreement between the town and the state calls for a maximum of 1,750 dwelling units on the property.

The Town Council has also approved zoning for the site that includes 698 acres for single family medium density housing, 179 acres for single family low density housing, 12 acres for commercial/retail, 42 acres for park space and 345 acres of open space. There is also a 30-acre site that would allow lodging.