Colorado River Commission & 7-States Meeting Inside Info: Arizona

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make it easy for individual landown- ers to build small subdivisions that rely on unmonitored, unproven wells and allow larger developers to sell homes without guaranteeing a long- term supply of water. The potential for new growth to drain resources'is significant: One prominent Las Vegas. home builder wants to develop five master - planned communities near Kingman; with more than 127,000 -new homes, they would double Mohave County's cur- rent population. That worries many people, who fear the demand on largely unknown water supplies and a failure to address the is- sue will crush growing communities. "The economic viability of rural Arizona is at risk if we don't do some- thing," said Rep. Thin O'Halleran, R- Sedona. Measuring the cost to rural commu- nities is difficult because the most se- rious consequences, water shortages or water -quality problems linked to a proliferation of septic tanks, may not surface for years. Meanwhile, most towns and counties encourage growth, just as their urban counter- parts do, but without the protection provided by groundwater laws. "INADEQUATE WATER': Developers pay no heed The chief protection is the assured water - supply rule that is applied in Maricopa, Pima, Pinal and Santa Cruz counties and in part of Yavapai County. It's a simple rule: Prove that a subdivision has access to a sustain- able water source for 100 years or don't build. That provision nearly didn't make it into the 1980 laws but stands now as "the most significant part of the code," said Kathleen Ferris, an attorney and former legislative staff member who helped write the laws and revisited the issue last year for the Arizona Policy Forum, a Phoenix -based research and education group. It makes good sense, she said, and protects home buyers. In rural Arizona, builders still must submit plans to the state Department of Water Resources for a determina- tion of whether the water supplies would last 100 years. The difference is, if the state finds the proposed source inadequate, builders can ignore the finding and build anyway. And they do. A review of state records by The Ari- zona Republic found that 60, or 35 per- cent, of 171 applications processed by the state's Assured and Adequate Wa- ter Supply Office since 2001 were re- turned to the applicant with an "inade- quate water supply" finding. There were more than 4,100 prospective homes included in these applications. In 2004 alone, 45 percent of the pro- posals lacked proof of a long -term wa- ter supply. Yet most of the projects proceeded or will go ahead. That doesn't mean there won't be water when the homes are built or that the wells won't flow for decades. But it also is possible that a fu- ture homeowner will be forced to look elsewhere for water. The law requires the developer to disclose the state's finding in the public report issued by the state Real Estate Department, but only on the initial sale. If the land changes hands again, the seller isn't obligated to tell the next buyer that there's no guarantee of wa- ter. Once the Department of Water Re- sources issues the first and only find- ing, "there's no enforcement capability from this agency," said Doug Dunham, who oversees the agency's Assured and Adequate Water Supply Office. The second or third buyer. could ask either the Water Resources or Real Es- tate departments for information, but the burden is on the buyer. The law's loopholes are well- known. Dunham said an increasing number of applications arrive with no backup ma- terial at all. The builders simply sub- mit the paperwork and fees and await the conclusions, which allow construc- tion to move ahead. AMBITIOUS PLANS: Big projects, water In some cases, developers - don't eventry to hide what they are doing. In February, Ron Freeman Investments, the West Hills, Calif., developer behind LakeMeadRanchos north of Kingman, submitted an application for review. that could be built just outside the Prescott city limits and the hundreds, if not thousands, of proposed homes near Chino Valley, Cottonwood and un- incorporated areas near Sedona. Co- chise County officials expect a similar burst of development near Benson. And nothing so far compares with what may happen in Mohave County, where as many as 200,000 homes could be built over several decades. One rea- son for the rush is the shortage of avail- able land on the Nevada side of the Colorado River. Developers want to build bedroom communities for people willing to commute to Las Vegas. Mohave County Planner Kevin Da- vidson said it's possible there won't be as many homes built as lots sold. Some people are buying land as an invest- ment, and he suspects many lots will remain vacant indefinitely. But there are other projects in the county that proven developers are planning: ■ Las Vegas -based Leonard Mar - dian won approval from Mohave County to build a 21,000 -acre master - planned community in the White Hills area northwest of Kingman. Almost 35,000 homes for more than 80,000 peo- ple could be built. 0 Rhodes Homes, another Las Vegas builder, filed plans for five mas- ter- planned communities, varying in size from about 9,500 homes to more than 46,000. In all, the company wants to build 127,874 homes, mostly be- tween Kingman and a new bridge that will span the Colorado River below Hoover Dam. The state has not yet determined whether these projects have adequate water. Rhodes hired Arizona's former chief hydrologist, Greg Wallace, to help prove that the area can sustainthe new homes, businesses and golf courses. Some, earlier studies suggested there are significant reserves in the area, but the state maintains that not enough information is available to know for sure. "There's not a lot of data up there," said 'lbm Whitmer, water resources planning manager for the Department of Water Resources. "That makes it difficult. We don't know a lot about the depth of the water yet." WIMCAT SUBDIVISIONS: A way to bypass zoning laws Planned subdivisions that undergo a review give state and local officials some idea of what to expect as new homes are built. "Wildcat subdivi- sions," which legally exploit a loop - hole in the law to avoid reviews and zoning laws, offer no such hints. Those _ subdivisions, small developments that are built when parcels are split into five or fewer lots, have flourished in rural Arizona, from Pima and Co- chise counties up through Yavapai and Mohave counties. From a planner's or water manag- er's perspective, wildcat projects, or "lot splits" as they are known, can be a greater threat to resources than subdi- visions built without an adequate -wa- ter certificate from the state. The lat- ter at least must comply with rules about streets and utilities. Subdivision laws don't apply to par- cels split into five or fewer lots. In many cases, the streets aren't paved and homes are hooked to septic tanks, which can begin to seep into the groundwater over time. Water is often supplied from unmonitored wells that draw on the regional water supply at an unknown rate. In some areas, a pri- vate water co- operative provides wa- ter, but even those can operate with an unmonitored well. Lot splits also tend to occur in clus- ters; a 640- acre.parcel can be split by different owners until it yields more than 300 2 -acre lots, creating a wildcat subdivision as big as one that is regu- lated. "In Arizona, it's buyer beware," said Kenneth Spedding, director of com- munity services for Yavapai County . Lot -split subdivisions have mush- roomed in that county, where wide swaths of undeveloped private prop- erty remain available for sale. In 2004, landowners splitting parcels on their own created more than 6,000 lots. Spedding is projecting more than 7,000 will be created this year. The county examined its records m detail three years ago and found more than 2,000 home sites created by lot - splitters, compared with about 200 In "wildcat subdivisions," like this one north of Prescott Valley, land is split over and over again, avoiding zonh WILDCAT SUBDIVISIONS So they sell 5 lots, and so on, and so on... "Wildcat subdivisions" allow builders to avoid zoning laws. In many,ruraI areas state law allows a property to be divided it many as five lots before subdivision regulations apply. To get around requirements for streets, utilities, water systems anc infrastructure, the land is subdivided repeatedly in steps. How it works: OSaysomeone a Individual land- ®Those aMinimumlot buys a 640 -acre owners can divide owners then sizes vary but are section of land. their 128-acre lots split their usually about 2 That owner into five pieces., parcels five acres. So each divides it into The original square ways. Now parcel can be five 128 -acre mile is now 25 lots there are 125 divided at least one lots and sells of just over 25 lots of slightly more time before 'four to other acres each. Lots are more than 5 building, resulting buyers. sold again. acres. in 250 lots. submitted as part of a formal subdivi- sion. Spedding said the 10-1 ratio hasn't changed. "Some folks don't want to live in a formal-type subdivision," he said. "The lot splits create different living opportunities for folks and help with affordability." ON THEIR OWN: Buyers are vulnerable But lot splits create hardship for homeowners and the county when there's trouble. The county can't main- tain roads, can't build infrastructure and can't help someone when a storm washes out a long, gravel driveway. , Lot splits also offer little consumer' protection, which means a buyer can buy land and not find out until later that it lacks services. Without those protections written into law, many home buyers could be risking their futures without knowing all the facts. For example, few of about two dozen Chino Valley -area residents recently interviewed seemed aware of the state protections or lack of them. Seeking a, country lifestyle, most bought homes with the understanding that they would have to drill wells or hook up to small water systems. +F� Because these 250 pieu not subdivisions under the law, the owr may find themselves responsible for w, septic-tank, power lines and even main stretches of road. The law generally re( the seller to disclose those things to a t But after the initial sale of a single parc lack of a long -term water supply legalh not have to be disclosed in subsequent Jim Wambold/The Arizor But they didn't know, or hadn't even thought about, how long those supplies might last. One homeowner lamented that the surge of new wells in the area had caused water levels to drop, forc- ing him to drill deeper. Everyone else was nervous about the potentially neg- ative effect that the area's growth would have on the water supply. Seb and Vivian Garote and Rod and Carol Crider are typical. The Garotes, who used to live in Scottsdale, bought a home about five years ago in Chino Valley, where lot splits carve up the landscape like a vast checkerboard. They're still waiting for the roads to get paved. But after a shaky start, the small private water company that serves them keeps the taps run- ning, although they pay considerably more than they did in Scottsdale. They understand that although water seems plentiful now, that could change, and they are uneasy about the growth. "We hear about all the new houses that are supposed to be going in," Vivian said. "I don't know about that." The Criders bought a house in Paul - den a little over five years ago, leaving Phoenix for a quieter existence. Since then, they have watched their corner of northern Yavapai County fill with more home buyers seeking the same rural lifestyle. They drilled their own wet' haven't had trouble with water ye they see the signs advertising neN divisions and have heard the new Prescott bought a nearby ranch plans to drill wells on it and expo water to the city. That, Carol sail folks on edge, fearful of what wil pen-to their community. "I wish Prescott would put a lh their growth," Rod said. "Soon." But ,cities and towns see the s' of unregulated subdivisions the wary eyes, aware that if resi served by wells or private co -or out of water, they'll look to the ne municipal government for help. From the roof of the Prescott I 'fbwn Hall, it's easy to see hov could happen. Just beyond the limits, not even half a mile in cases, lies a wide expanse of lo' homes. They're built on larger lc required by Yavapai County, ; easy to distinguish them from su sions in Prescott Valley. "It's a real challenge," said Tarkowski, Prescott Valley's manager. "There's a very large of groundwater consumed by wells. They're out there pumpini ter, but we don't know for how lc