New pact firms up Gilbert Cactus Surf Park plans

By: Gilbert Sun News 

The long-awaited 25-acre recreational water park with a surf lagoon is looking to break ground in Gilbert this December and open in two years.

The project is on the Tuesday, May 2, council consent agenda for approval of two amendments.

The amendments include a reduction in water-credit needs and an updated development schedule to the lease agreement between the Town and Cactus Surf Park LLC.

According to Rocky Brown, Parks and Recreational business manager, Cactus Surf Park has improved the project’s design to “use 60% less water than before.”

The developer is required to bring its own water supply for the project and is doing so by using recovered water credits delivered through the town’s potable water system.

The project is required to hold five years of long-term storage credits at all times.

Cactus Surf projected to reduce its water need down to 100-acre feet annually from 200-feet annually. A golf course uses on average 485 acre-feet of water in a single year, according to the town.

Cactus Surf was able to drop the amount of water it needed by reducing the depths of the lagoons while keeping the same desired effect, Brown said.

He added that the updated designs were based on feedback from an August 2022 community meeting and comments from town staff.

The new schedule proposes that Cactus Surf begins the permitting process for a recovery well with the Arizona Department of Water Resources and do groundbreaking, both on Dec. 23.

Construction is scheduled to be done by July 30, 2025, with the opening on Sept. 30, 2025.

Gilbert first entered into a 50-year lease agreement with the original developer John McLaughlin, CEO of The Strand Resorts, in February 2019.

Under the agreement, The Strand project – estimated then to cost $60 million to build, –was to go in on 25 acres of town-owned land near Queen Creek and Higley roads adjacent to Gilbert Regional Park. It was scheduled to open in August 2020.

Council later agreed to delay the opening to August 2022.

The land, though, sat undisturbed and emails obtained by the Gilbert Sun News’ public records request showed that McLaughlin was having a hard time trying to get and keep financial backers on board.

In September 2021, the project was sold to the current owner and renamed Cactus Surf Park.

Council approved a revised agreement that included an opening date of April 2024.

The state-of-the-art water park complex touts amenities that include an inflatable water park, sand beach, outdoor cabanas, inflatable play structures, kayak, canoeing, paddle boarding and a restaurant.

Under the lease agreement, Cactus Surf Park is to begin rent payments to the town one month after opening for business.

Gilbert is to receive an annual lease payment of a minimum of $253,191 and anticipated annual profit-sharing revenue between $450,000 and $750,000 for 50 years.

These funds are expected to help Gilbert offset its costs of maintaining the 272-acre regional park.

At the time of the original deal’s approval, staff said the project will create 180 jobs and have a $317-million economic impact.

Another recreational water amenity also is seeing delays – the 37-acre, $280-million Cannon Beach project in southeast Mesa.

The project, which also has a surfing lagoon, broke ground in 2021 and has seen its opening date pushed back a number of times. A soft opening is now planned for end of this year or early 2024.