Surprise council approves Lennar development agreement, accepts SA2 North water tank for Desert Oasis expansion

The Surprise City Council on Oct. 21 approved a development agreement with Lennar Communities and accepted the SA2 North water tank turnover to support a phase‑3 expansion of the Desert Oasis water supply facility.

City staff said the project will convert an existing tank previously envisioned for reclaimed water into potable storage, add booster pump station capacity, arsenic filtration, and an administrative building to support operations. Officials said the expanded facility will accommodate up to five additional wells and provide redundant supply connections for growing Special Planning Area 2 and adjacent developments, improving system resiliency.

Staff presented the overall project cost and the city's immediate financial contribution. The total project cost presented was approximately $26,000,000 for the combined work across participating developments; the city's near-term cash contribution to recoat and convert the tank was stated at roughly $1,000,079 with the city's share described as a reimbursable 4 percent. Staff also addressed inconsistent capacity figures presented in materials and clarified that after refurbishment the usable tank capacity will be about 1.7 million gallons.

"Ultimately, our financial contribution is gonna be this 1,000,079... our financial contribution is gonna be a 4% reimbursable share. And the good news at the end of this project, it adds a tremendous amount of redundancy and resiliency to this existing, water campus," a city staff presenter said.

Construction procurement is complete and staff estimated construction completion in 2027 to early 2028. Councilmembers praised staff and Lennar for partnering on a solution that uses existing infrastructure while sharing risk. The council approved the resolution on a unanimous voice vote.