Park Place Update Edit page

As many of you know, the Park Place development located to our north side has been an ongoing item of concern over the past few years. Below is the most recent information on what's happening with the development, based on information from the Town of Fountain Hills.

As of early December, 2025, N-Shea Group, LLC, the developer of the Park Place mixed-use residential and commercial development on Avenue of the Fountains (and right north of our complex's west end), has sent the Town of Fountain Hills a notice of claim alleging council actions led to the cancellation of construction of phases two and three of the planned development.

The notice claims that the council and town staff failed in their professional duties related to discussions and actions surrounding recent efforts to move new construction forward. The claim alleges failure to act in good faith, failure to provide proper meeting notification, secret ex-parte communications with parties to the contract, engaging in arbitrary and capricious actions and failure to abide by the terms of a development agreement between the parties. It also claims the town failed to issue lawful approvals where requirements were fulfilled. The claim is asking for relief in the amount of $9,250,000, the stated value of a land sale to a potential partner in the development, as well as other potential losses to be determined by discovery.

In September 2025, the town council approved the extension of the permits as well as authorized the use of 2018 building codes. However, according to the claim, just prior to the September council meeting, town staff and recently appointed Town Attorney Jennifer Wright met separately and secretly with representatives of the co-developer/buyer of the property. The claim states this meeting occurred without notice to N-Shea, and without their participation or knowledge and for undisclosed purposes that remain unexplained.

The claim goes on to assert “obstruction” by the town attorney related to subsequent discussions and consideration by the town council, including requesting a new amended development agreement. According to the claim, the town’s actions and delays prompted the partner to void its contract with N-Shea, causing the developer to lose $9.2 million.

In November, N-Shea secured another potential partner in the Comrie Group that would serve as both lender and developer. However, the claim states both the town manager and the mayor were informed that Comrie Group would require an additional 12 months for due diligence to evaluate the project and take over the development role. At its November 18 regular session, the town council considered another extension for the permits and building code considerations through the end of the 2026 calendar year. The council denied that request on a 6-1 vote. According to the claim, this action “effectively killed the Comrie transition and eliminated a second opportunity to realize value from the project.” The claim also alleges the council actions contradict its own adopted strategic goals and policies within the Strategic Plan and Economic Development Strategy.

For background, the Town and the developer have a legally-binding development agreement in place for all three phases of Park Place, outlining the types of buildings to be built, parking requirements, height and massing of the buildings, and other town requirements. The only way that the proposed development of the subsequent phases can be changed is if the Council approves amending the development agreement. 

The first phase of Park Place has been completed, and both buildings are being occupied.  The second phase of the development consists of constructing a smaller, mixed-use building on the Avenue of the Fountains to Saguaro and a townhouse building that will be east/west facing adjacent to the hotel property. The final (third) phase will consist of a low-rise three-story apartment building at the southwest corner of Verde River and Paul Nordin Parkway to the south of Park Place and west of the Morningstar building.  The development agreement also calls for an art walk that would significantly mirror the appearance of the plaza areas of the Avenue of the Fountains (minus the fountains) with art nodes for public art.  This art walk area will be constructed by the developer PRIOR to the completion of Phase 3 of Park Place.

As yet, we do not know when construction will begin on Phase 2 or Phase 3 of the project.