Phrase refers to a song by Tool called
Aenima. Used appropriately it basically means:
"
I'll see you in Hell." or "I'll see you
at the End of the World."
Can be used as a compliment, or an insult, depending on its use. Maybe more prolonged use will define it more.
Jack, my friend, I'll see you down at Arizona Bay.
You just
broke up with me? Well, bitch, I'll see you down at Arizona Bay