Developer caught in the middle of water buyout
No water certificates being issued in Cave Creek until transfer of assets complete
by Brian DiTullio

CAVE CREEK – You can’t build without water, and one developer is caught in the middle of the town’s buyout of Cave Creek Water Company.

Tim Troy, of Bannack Construction LLC, sought approval of his final plat for a 12‑unit condominium project–located west of Basin Road, south of Cave Creek Road–at the May 17 Cave Creek Planning and Zoning Commission meeting. While the project was approved, it was conditional upon Troy receiving a certificate of assured water supply– something he can’t get until the red tape is cleared in the Cave Creek Water Company purchase.

According to a memo from town planners, Cave Creek “must adopt by resolution, the authority of water service provider for the area.” However, town staff were unsure when that resolution would be adopted by town council.

Jack Lavelle with the Arizona Department of Water Resources, the agency responsible for issuing assured water certificates, said on Friday that Troy’s certificate would issue as soon as his department receives the paperwork that the town officially is running Cave Creek Water Company.

Mayor Vincent Francia said the transfer depends on how fast the lawyers get that paperwork to council for approval, but noted final transfer of Desert Hills Water Company assets was approved at Monday’s meeting.           

“We will certainly try and get this done as soon as possible,” said Francia. “There’s no reason we wouldn’t honor the certificate.”

The motion to approve Troy’s final plat passed 5‑2, after a motion to continue failed 4‑3.

Commissioner Steven Lamar motioned for the passage, saying it wasn’t fair for the town to hold up the project because of circumstances beyond Troy’s control.

Town Planner Ian Cordwell informed the commission that the final plat wouldn’t come before town council until the water certificate was issued, anyway, and recommended passage with the stated condition and other stipulations attached to the proposal.

On Monday, Troy’s issue came up in front of town council as a discussion item. Cliff Neal, a manager with the Central Arizona Groundwater Replenishment District, the body responsible for operating the Central Arizona Project, said membership in that district is key to getting ADWR approval. Council  approved a motion requiring applicants/developers to file with Neal’s organization.

However, Neal told The Desert Advocate after the vote that even though Troy has cleared one hurdle, it still doesn’t help with the current change in ownership of Cave Creek Water Company.

Yet another issue with Troy’s project is something new for the town to deal with. The water lines, which will be owned by the town, are to be located underneath a private roadway, meaning if there is a problem with those lines, the town would have to pay for the repair of a private road.

Vice chair Ted Bryda was not happy with this situation, but noted things are changing and the commission needs to formulate a policy.

“It has to be addressed in the future,” said Bryda. “We must clean that up.”

In a related issue, Chair Bob Williams pointed out the commission is approving an increasing number of projects where a majority of the infrastructure is private and the promise to maintain it comes from homeowner associations and the like.

Williams stated that the commission and other town leaders are going to have to figure out a way to keep these organizations accountable; otherwise, the day will come when the town will find out that nothing has been maintained.

“And then you’ll have a real problem,” said Williams.