TUCSON, AZ (March 26, 2026) — Pima County supervisors have now decided how to use more than $20.8 million in net proceeds generated by the controversial Project Blue land sale, redirecting the money into a mix of economic development, neighborhood investment, environmental health, capital improvements, public records response, and utility assistance programs. The land sale tied to Beale Infrastructure’s proposed data center project closed on Dec. 24, 2025, and delivered a net deposit of $20,855,849 to the County.
The spending plan evolved over several weeks. County Administrator Jan Lesher first presented a framework to the Board on March 3, then returned with a revised proposal for the March 24 meeting after receiving feedback from supervisors. In the updated version, the County removed the earlier categories for “Special Programs and Projects” and “Contingency” and instead shifted that $2.5 million into three new buckets: public records request enhancements, utility assistance and weatherization, and code enforcement expansion.
Under the revised allocation, the largest share — $10.75 million — is earmarked for capital improvement projects. Those include Arthur Pack field lights, Presidio elevator modernization, countywide solar projects, the Canoa Ranch campground, and middle-mile field inspection, cultural monitoring, and historic preservation work. Another $3.12 million is set aside for economic development, while $2 million will go toward neighborhood reinvestment efforts. The County also designated $1 million each for environmental health initiatives and workforce development, along with $485,849 for intergovernmental relations.
The new additions to the final proposal reflect issues that have drawn growing public attention. The County proposes $1.017 million for public records request improvements, including a new request management system, implementation costs, and added staffing in the Clerk’s Office. Another $1.178 million is slated for expanded utility assistance and weatherization programs, while $305,000 would fund a new code enforcement officer and related startup costs for three years.
The decision closes one chapter in the long-running debate over Project Blue, the proposed data center campus southeast of Tucson that has generated months of public controversy over water use, energy demand, transparency, and land-use policy. Although opponents urged County leaders to halt the deal, Pima County closed on the land sale in December after the buyer waived certain conditions and proceeded with the acquisition. The project is moving forward on the county-owned site off South Houghton Road, north of the fairgrounds.
The focus has now turned from the land sale itself to the public benefits that can flow from it. Under the County’s spending plan, the proceeds will fund tangible community investments, from infrastructure improvements and environmental health initiatives to neighborhood reinvestment and utility assistance for residents across Pima County.
In practical terms, the allocation plan makes clear that Pima County intends to convert a politically difficult land sale into a broader countywide investment package. Whether that softens opposition to Project Blue remains to be seen. But the board’s action signals that, at least from the County’s standpoint, the proceeds are no longer being treated as one-time windfall money. They are positioned as a tool to fund visible public projects, improve government responsiveness, and support economic and neighborhood priorities across Pima County.
See the memo to Pima County Supervisors with recommended use of the proceeds here: Recommended-Use-Project-Blue-Land-Sales-Proceeds