The Whats and Whys of La Paz County

LA PAZ COUNTY, ARIZONA SUCH A MECCA FOR RVers AND WINTER VISITORS?

So many of their friends come to La Paz County each year for all of the Quartzsite events including The Rock and Mineral Show, The RV Show, The Craft Show, The Car Show, etc. They also just like to hang out with those friends and make many new ones. The area hosts a winter-long party created by the more than one million retirees and pre-retirees who can afford to make the winter escape from the crowded cities, blizzards, etc. There is so much to do, including off-roading on ATV’s, hiking, rock hounding, fishing, biking, golfing, boating, jet skiing, kayaking, etc. There is a major casino in Parker, the County Seat and others to the north in Laughlin and Las Vegas.

WHY DO CALIFORNIANS, IN PARTICULAR, VACATI0N AND/OR RETIRE IN LA PAZ COUNTY?

Many of them have been traveling to La Paz County for boating, fishing, hunting, and other activities for many years as their families were growing up. The Colorado River is especially attractive to California boaters who are looking for a vast expanse of fresh water and abundant beaching and camping spots. They can sell their highly appreciated homes, move to La Paz County, and have substantial cash left over. Many wish to escape from the crime, gangs, traffic, and massive urbanization which have turned their hometowns into places which bear little resemblance to what they were when they raised their families. This is especially true of the “inland empire” communities in Riverside and San Bernardino Counties, which just happen to be the nearest to La Paz County. Population growth is huge in these counties and is projected to continue for decades to come. They can enjoy a peaceful, less hectic, lifestyle and be only a 2 ½ to 4 hour drive from their children, grandchildren, and friends back in their hometowns. The 8 southern California counties contain approximately 4,400,000 million of these retirees and pre-retirees between the ages of 45 and 64. The total population of that 8 county area is approximately 22,000,000.

WHAT FACTORS ARE DRIVING LA PAZ COUNTY GROWTH?

Tourism and the retirement market is number one. The owner of an RV and marine supply store in Parker recently reported that September is his only slow month. A $220 million ethanol refinery is being planned for development at the intersection of Interstate 10 and Vicksburg Road, in central La Paz County. The developer states that employment during construction will total 400 and that permanent employment will total 175. They made a presentation to the La Paz County Board of Supervisors on September 17, 2007, during which they discussed a plan to double the size of the refinery. The same group is planning an industrial/business park next door and reports that they are talking with a wood products company, a sit-down restaurant and some trucking related companies. A large truckstop has recently opened just south of the industrial/business park, adjacent to the I-10 Freeway. Another truckstop is under construction in Quartzsite. Arizona Western College, headquartered in Yuma, is preparing to build a branch campus in Quartzsite, starting during 2007. The college has an alliance with Northern Arizona University, located in Flagstaff, which allows it to present courses from the University’s four year curriculum. Wal-Mart will reportedly start construction of one of its supercenters in Parker, the La Paz county seat, during the 3^rd Quarter of 2008. There are two major private prisons located about 15 miles west of Blythe. Their employees are buying homes in La Paz County in order to escape the more expensive housing in California. It has been reported that an additional 100 border guards are being assigned to the Blythe area. They may also wish to buy homes in Arizona. During July, 2007, General Motors announced that it will lease a 2,400 acre site from the US Army which is located within the Army’s Yuma Proving Grounds in southern La Paz County. GM will build and operate a $100-million hot-weather vehicle testing facility for its own use and will also pay $10.6 million to the Army so that it may build an additional facility to test heavy military vehicles. GM is relocating from its testing facility east of Phoenix since that facility has been surrounded by urbanization. The new facility will be operational in May, 2009. Two major dairies have been built and are now operating in central La Paz County, one is under construction, and two more are planned.

WHAT EXPOSES LA PAZ COUNTY TO TRAVELLERS FROM ACROSS THE U.S. AND CANADA?

Interstate 10 passes through the heart of the County. It is the most heavily traveled interstate highway in the western US. Arizona State Highway 72 and California State Highway 95 form one of only two routes between Phoenix and Las Vegas. It is not mountainous like the other route. The subject property fronts on Highway 72. HOW DO THE RETIREES AND

PRE-RETIREES OF TODAY DIFFER FROM THOSE OF THE PAST?

The brokers in the area report that today’s RVers and winter visitors are much more interested in buying an RV lot or homesite rather than renting a space in an RV park. They see this purchase not only for the pleasure which it will provide but as an investment for the long term. The older retirees were more satisfied to rent in an RV Park. Interviews with visitors to the Quartzsite RV Show have confirmed this trend.

WHAT IS THE TYPICAL RVer INTERESTED IN BUYING IN LA PAZ COUNTY?

They typically buy a lot which will accommodate an RV and is large enough to provide space for a manufactured or conventional home at a later date, and, even then, still have room for parking the RV on the site next to their home. The lot sizes will typically range from 4,500 square feet to 9,000 square feet. During the first few years, they will usually add one or more of the following structures – a canopy or carport to shade their RV, a small building to house their ATVs, bicycles, hiking gear, etc., a second building to house their laundry facilities and a craft room, and a third building to act as a family room/activity room, etc. This offers them the flexibility to create their own little homestead in the sun – something which they would not be allowed to do in almost any other part of Arizona – and certainly not in or near any of the urban areas. Over the past 20 years or so, approximately 6,000 or more of these larger lots have been developed in the Yuma area, just south of La Paz County. Over the years, approximately 85% to 90% of these lots have been improved with a manufactured home or a conventional home. As a result, very few are ever available for resale. We understand that resales have been in the $80,000 range. Yuma now discourages this type of development as they are looking for more of an urban feel to their city. Also, land in that area has become very too expensive for this type of development. A similar project, consisting of hundreds of lots, has been developed near Quartzsite and has been sold out for several years. Vacant lot resale prices are in excess of $100,000.