Council declines proposed development agreement for Highway 79 traffic signal

Representatives of PG 53 LLC sought council approval May 19 for a development agreement to fund a traffic signal at the intersection of Highway 79 (ADOT jurisdiction) and Hunt Highway, telling the council ADOT would not permit access from Highway 79 without a signal. The applicant's manager, Kevin Peterson, said private parties could cover two-thirds of the cost and asked the town to fund roughly one-third of an estimated $650,000–$700,000 signal project (the applicant's written proposal used a $1,000,000 figure and included contingencies).

Peterson framed the project as an investment that would unlock commercial development, generate tax revenue and support affordable housing: "We would be willing to take on the project construction cost and have the town contribute ... one third," he said. Council members pushed back, asking for exact cost projections, traffic-study validation and clearer contract terms about when and how the town would be reimbursed.

Council members voiced concerns about open-ended town exposure and whether ADOT's role and reimbursements had been fully settled. "I have to have more information of things... I'm hearing $600,000, $700,000; I'm hearing $1,000,000 plus," Council member Benzina said, asking for "hard numbers" before approving town participation. Other members said ADOT normally pays 50% for regional intersections and that the applicant's proposal shifted ADOT's expected contribution onto the town without sufficient safeguards.

After discussion, Council directed staff not to proceed with the proposed development agreement as written. The motion to instruct staff not to negotiate under those terms carried on a roll-call vote.

What's next: Staff and applicants may return with revised terms, a firm cost estimate and a plan that clarifies ADOT involvement, proposed reimbursement timing and protections to limit town liability.