Prescott Valley council adopts development agreement, major plan amendment and zoning change for Government Tank site amid heated public debate

Prescott Valley — The Town Council on Dec. 11 approved a development agreement with the Fane family and Asphalt Paving & Supply (AP&S) covering a proposed rock-harvest operation at the Government Tank site and adopted related changes to the general plan and zoning for roughly 39.7–40 acres by a 5–2 vote.

The agreement and two land-use actions drew an extended public hearing with dozens of residents offering testimony for and against the proposal. The council voted to authorize the mayor to sign the development agreement (resolution number 2025-2440) and to adopt a major general plan amendment (GPA 20-5-1) redesignating the parcel from Village PAD A-1 to industrial. The companion zoning ordinance to reclassify the property from RL-70 (residential, large lot) to IG (Industrial General, with a conditional use permit) was approved on first reading and placed for final passage.

The applicant’s attorney, Bill Alley, said the development agreement adds “predictability” and several mitigation commitments not otherwise available if mining proceeds under county or state jurisdiction. Alley noted commitments in the agreement that include: a limit on hours of operation (7 a.m. to 7 p.m., Monday through Saturday), enhanced dust control and imported (trucked) water for operations rather than drilling new wells, advance notice to property owners within 1,000 feet of any blasting events, dark-sky-compliant lighting, and evaluation of white-noise retrofit options for backup truck alarms where safe and permissible.

Alley and staff also described a land-donation component by which roughly 80 acres identified as West Fane Park parcels would be gifted to the town if the approvals are completed; the gift would be restricted for park/open-space uses and contains language addressing future tax abatements tied to any later municipal tax measures.

Opponents argued the project conflicts with the town’s 2035 general plan and voiced concerns about noise, blasting campaigns, dust (including silica exposure), potential impacts to groundwater and private wells, traffic on nearby roads and to the Stone Ridge neighborhood, and the long-term duration of aggregate extraction. Speakers representing the town of Dewey Humboldt urged Prescott Valley to consider its resolution opposing the quarry and cited ARS 9-4-61.06 regarding notifications to neighboring jurisdictions.

Supporters, including some business and developer representatives, said Government Tank is preferable to mining closer to existing neighborhoods at West Fane Park and that the development agreement imposes more local controls than otherwise would exist under county jurisdiction. Supporters also cited job retention at the existing processing site and the logistical and economic constraints of moving operations farther away.

Council members split over the financial and legal implications of the donation and tax-related clauses. Councilwoman Kiel and Councilmember Freund both spoke against the measure citing concerns about a clause that requires rebate of certain future taxes to the donor until the appraised ‘highest and best use’ value of the gifted land is reimbursed; both voted no. The development-agreement resolution passed 5–2. The general plan amendment likewise passed 5–2, and the zoning ordinance was approved with the conditional-use permit condition attached by the same margin.

What the agreement does and does not require The development agreement restricts drilling new wells on the Government Tank parcel and requires trucking water for on-site uses; it also limits blasting to campaigns (the agreement sets mitigation and notification requirements but does not state an absolute prohibition on all blasting). The agreement commits the operator to work with town staff on road improvements and on a private access road designed to reduce impacts on public streets.

Next steps Because the council approved the rezoning with conditions and the development agreement is a contractual commitment, the town and applicant must follow the stipulated administrative steps — including an appraisal and closing mechanics tied to the donation of West Fane Park parcels — before certain conveyances occur. Opponents signaled intentions to pursue additional processes available under Arizona law (including referendum routes). The council’s votes tonight finalize legislative actions but do not preclude future administrative reviews tied to conditional-use permit compliance and enforcement of agreement terms.