COOLIDGE, ARIZ (June 23, 2005) - The Coolidge Planning and Zoning Commission Wednesday unanimously approved plans for Pivotal Group's 3,214-acre Sandia community, a residential community that will set a new standard of quality and design for residential communities in the fast-growing Coolidge/north Pinal County region. The commission approved the community's planned area development (PAD) submittal.

"The special character of Sandia is unique, made possible by its location, master plan and architectural design," said Francis Najafi, chief executive officer of Pivotal Group, based in Phoenix. "There is nothing like its dynamic and bold Mexican contemporary architecture in the metropolitan area. Sandia's land-planning design encourages interaction and public and private uses, such as libraries, retail centers, performing venues and community centers, and are clustered based on usage, not ownership."

The Sandia site, located near Highway 87 and Curry Road in an unincorporated area of northern Pinal County, will include approximately 11,000 homes and feature more than 100 acres of parks, trails and open space. Plans are being considered by the City of Coolidge to annex the site.

Sites for three K-8 schools will be donated to the Coolidge Unified School District. A 40-acre site will be reserved for a high school.

The PAD sets land uses within the community and establishes infrastructure requirements and procedures for financing public facilities. The community's development agreement will go before the Coolidge Mayor and City Council within 30 to 60 days.

The first phase of the community, which will include 1,200 acres and 4,000 homes, could break ground by November 2005 and home sales could commence by the fourth quarter of 2006. A second phase, a 2,000-acre active adult community with approximately 7,000 homes, is planned for a future date.

The development of a large master-planned community will have significant impacts on the local economy in terms of construction jobs, housing sales tax revenue, sales tax revenue, payroll and the generation of new jobs within Sandia. Based on a study prepared by Scottsdale-based Applied Economics, the total construction impact benefit to Coolidge is estimated to be $2.2 billion through 2021. Nearly 1,000 people will hold jobs in construction, sales, service and support functions at Sandia during the 16-year construction and development process. Upon completion, more than 5,000 jobs are expected to be added to the local economy in order to provide goods and services to the residents of Sandia. At build out, it is estimated that tax payments to the city from various sources will exceed $20 million per year. In terms of the economic benefit from local spending annually upon the completion of the community, Coolidge can expect $752 million annually.

"The master plan and Mexican contemporary architecture will set a new development standard for the region," said Karl Polen, executive vice president of Pivotal Group.

"Our master plan incorporates elements of town-building," Polen said. "We're creating a town center with recreational amenities surrounding an artificial lake. Instead of building homes lakeside and locating retail space at the edges of the community, we looked inward and brought retail, public and recreational uses into the core of the community."

"At the heart of Sandia is a 35-acre town center that will serve as the focus of commerce and recreation for residents," Polen added. "By managing internal traffic flow, the town center will be easily accessible and able to meet almost all residents' daily needs."
The decision to select Mexican contemporary architecture stems from the ancient heritage of the region, represented by the Casa Grande Ruins National Monument and other villages left by prehistoric farmers.

"We were impressed by the history that has influenced Mexican architecture, from the simplicity of early monolithic architecture to the new colonial hacienda," said Russ Shasky, senior vice president of land development for Pivotal Group. "People will be drawn to it because there's nothing else like it in the region in terms of commercial home building."

The development team includes some of the top firms in the industry, including land planner Greey/Pickett Group, based in Scottsdale, Ariz.; Circle West Architects, based in Scottsdale, Ariz.; and the civil engineering firm of Wood Patel & Associates, based in Phoenix.

The site was purchased by Pivotal Group from Howard Wuertz, a long-time Arizona farmer who owns Sundance Farms, which plants diverse crops, including cotton, wheat, barley and watermelons. The name of the community, Sandia - the Spanish word for watermelon - is a reference to the land's farming heritage.

Farming since 1951, Wuertz perfected tillage and low-water irrigation techniques for farming in the Southwest and has patented specialized machinery to lay and bury drip-irrigation water lines.

"We are pleased with Pivotal Group's vision for Sandia, especially with our desire to give back to the community," said Howard Wuertz. "This exciting development enables the economics to deliver a quality lifestyle community for Pinal County."

Pivotal Group is an institutionally based diversified investment firm widely recognized for its history in creating high-quality residential, lodging and business environments. Its portfolio includes WestWing Mountain, a 1,312-acre master-planned community in Peoria, Arizona, which features a 300-acre preserve; the award-winning 6,500-acre Promontory, The Ranch Club in Park City/Deer Valley, Utah; Anthology, the 3,000-acre master-planned community in metro-Denver; 820-acre Cimarron Hills Golf & Country Club in greater Austin, featuring a Jack Nicklaus signature course; Esplanade Place, a luxury residential high-rise in Phoenix; the Century Plaza Hotel & Spa and the St. Regis Hotel in Los Angeles; the Ritz-Carlton Phoenix; Red Mountain Spa in Southern Utah; and 650 California Street in San Francisco's financial district.

For more information about Pivotal Private Equity, visit www.pivotalgroup.com