Set in the pristine Tortolita Mountains, Saguaro Ranch was pitched as a development so exclusive that residents would come and go through a tunnel in a mountain.
The 1,035-acre site in Marana was supposed to be the end-all destination for luxury living in Southern Arizona with multimillion-dollar homes tucked away in the Sonoran Desert. But the planned development has become a destination for discontent.
In the last year at least 14 lawsuits have been filed in Pima County Superior Court against either Saguaro Ranch or its developer Stephen Phinny. The suits essentially fall into two categories: keeping open public access to the Tortolita Mountains, and claims of unpaid bills.
Only a handful of homes have been built in Saguaro Ranch, and the sheer number of suits, coupled with the declining housing market and economic recession, have left some to wonder if Saguaro Ranch may falter.
"I don't know if I'm surprised. The number of claims, especially the claims for non-payment, indicates the project is having tough times," said Jeffrey Greenberg, an attorney representing Courtland Gettel, who bought several lots in Saguaro Ranch and has filed several suits against Phinny saying the development was misrepresented to him. He has also sued for rental payments and compensation for improvements made to some of the lots.
Among those seeking payment this past year are Mechanical Maintenance, a subcontractor claiming $127,000 for labor and materials; Volvo Rents, which is claiming close to $23,000 for rental equipment; and Copeland Construction, a contractor claiming roughly $656,546.
Phinny declined requests for an interview, but he issued a statement through his attorney, Craig Keller.
"In the last eight years, over $100 million has been invested into the local economy by the development of Saguaro Ranch," the statement begins. "The amount in dispute considering all of the pending lawsuits is minuscule in proportion to the investment."
The statement goes on to say Saguaro Ranch disputes the claims, will resolve them in court and that in time the development will take off.
"The present economic conditions across our country create challenges for all developers," the statement says.
While the non-payment issues linger, so too do questions about public access to the Tortolita Mountains. When he pitched Saguaro Ranch to potential buyers, Phinny characterized it as an exclusive development with a single entrance point.
But the development includes an easement — a rocky, dirt road that pre-dates Saguaro Ranch — that many nearby residents have used to reach public lands or for walking, hiking and horseback riding. Phinny has claimed the dirt road, or at least the portion of it in Saguaro Ranch, is private, but nearby residents have claimed it's public.
The dispute has turned as hot as the desert sun with Phinny accused of laying down boulders to restrict access, according to court documents.
Theresa Chamberlain, a longtime resident of the area — but not of Saguaro Ranch — was arrested recently for using the road, and in turn she and others have sued.
"This is not just a lawsuit filed by a few landowners against a developer over private easement issues," she wrote in an e-mail. "This is a lawsuit filed by members of the public to protect a public easement that directly impacts the public's right/ability for access into the Tortolita Mountains and, Pima County's Tortolita Mountain Park."
Chamberlain's suit had an interesting side effect. It prompted Gettel, the owner of several Saguaro Ranch lots, to sue Phinny because the easement potentially makes the development not as exclusive as he was led to believe.
"The lots were marketed as exclusive," said Greenberg, Gettel's attorney. "He didn't feel like he got what he bargained for."
"I don't know if I'm surprised. The number of claims, especially the claims for non-payment, indicates the project is having tough times."
Jeffrey Greenberg
attorney for lot owner
