Apache Junction council discusses extending development agreement for Meridian/Southern property amid water and drainage uncertainties

City of Apache Junction staff and council members discussed a proposed extension of a development agreement tied to roughly 160 acres at the southeast corner of Meridian Drive and Southern Avenue during a June 2 work session, but took no final action. Instead, staff said they will pull the item from consent and return with additional negotiations involving the developer.

City planning staff presented background on a development agreement approved by a prior council in February 2009 that authorized a large, planned mobile-home development on the parcel. Speakers said the 2009 agreement included the city’s obligation to accept and convey a defined historic peak flow through a drainage channel and that both drainage and assured water-supply constraints affect what can be built on the site. A staff speaker said the developer is now interested in pursuing single-family homes and that the proposed amendment would give the city and the new owner more time to work toward a "quality of product that we want."

Council members pressed staff on timing and risk. Council member Heck asked whether extending the agreement would simply "kick the can down the road," noting the agreement’s original 21-year term; another council member asked what it would mean if the extension allowed the developer to wait until 2040 to act. Planning staff and other city staff said they could conceivably allow a shorter extension; they also said the property’s current zoning and grandfathered entitlements mean the owner still has the right to pursue a manufactured-home park unless and until zoning or the development agreement is changed.

Staff and council discussed several technical constraints that would affect the type of housing that can be built. City staff explained that Arizona Water (the local water provider referenced in the discussion) does not currently hold an "assured water supply" for single-family development at the site. Staff advised council that obtaining an assured water supply is a lengthy, potentially litigious process handled by the Arizona Department of Water Resources and that the water provider would need to secure long-term renewable supplies (surface or reallocation arrangements) before single-family homes could be guaranteed. A staff representative said that process "could take years" and called approval of an assured supply "a total unknown."

Drainage was another material constraint. Staff said the 2009 agreement obligates the city to accept and convey a historic regional flow (the developer is obligated for a portion—discussed on the record as about 761 cubic feet per second—and the city for the remainder of a larger total cited during the session). The property also includes a 12-acre corner that was reserved for a future commercial node under the original rezoning. Planning staff said a conceptual plan for a roughly 700-space mobile-home park dates to the mid-2000s but that subsequent roadway changes (an on/off ramp) reduced the developable area and that a new development plan has not been submitted.

Given the unresolved water and drainage issues and the developer’s stated interest in single-family housing, staff recommended additional meetings with the developer and city staff to explore alternatives and possible conditions for an extension. Council asked staff to meet with the developer’s representative and return with options; staff said they would pull the item from the consent agenda and schedule a future work session where the developer may speak and negotiations can continue.

No formal extension vote was held at the work session. Staff indicated the next steps are to meet with the developer, consider possible conditions or a shorter extension, and return to the council for further direction or action.