By Mark Cowling | Casa Grande Dispatch
By a vote of 5-2, the Florence Town Council agreed last week to convey the town’s right to provide water south of the Central Arizona Project canal to hous- ing developer George Johnson.
Johnson told the council last month that he needs the water rights to develop his Florence Ranch — a community of 6,000 homes, a “dude ranch” and destination boutique spa — on 1,112 acres at the intersection of Arizona 79 and Florence-Kelvin Highway. He would provide sewer services to the development.
Town officials said the town cannot extend utility lines to the area, and a separate water and sewer solution was needed.
The “no” votes came from Vice Mayor Tom Smith and Councilwoman Vallarie Woolridge. Woolridge said she still believes the town should control its own utilities.
Smith said there were several parts of the agreement that “I’m not fond of,” and he has also heard from several citizens who overwhelmingly disapprove. “I’ll stand by my voters,” Smith said.
Mayor Tom Rankin said he would like to see the agreement approved. “What I see is a great, vast improvement to the town of Florence.” He added later that Johnson is “a proven commodity.”
Councilman Tom Celaya addressed what he said were mis- conceptions about the deal with Johnson. Celaya said it will not affect existing water rates, nor will it affect the water supply “more than any other development out there.” Celaya doesn’t believe the town is in a position to build the basic infrastructure to stimulate that kind of development.
As for the project’s detractors, Celaya asked, “Do you plan on living out there?” If not, “then it’s not going to affect you at all,” he said. But “as far as an economic driver, this has a lot of potential.”
“I think it’s going to be a real asset for Florence,” Bill Hawkins said. As for a private company providing water, Hawkins said almost every town in Pinal County has private water. “It’s not something that’s unheard of.”
Johnson already provides water and sewer to Florence residents who live in Anthem at Merrill Ranch through his Johnson Utilities company. The council vote was for an operator agreement with another Johnson company, Southwest Environmental Utilities LLC.
Rankin pointed out that if not for Johnson’s water, Anthem residents wouldn’t be living there today.
Tara Walter asked Johnson if he could insert a buyback provision in the contract, allowing the town to buy the utilities if construction wasn’t completed in five to 10 years or if he no longer controlled the company for any reason.
Johnson said the contract already gives the town the right of first refusal to buy his company. Walter asked about setting the price, but Johnson replied, “I can’t tell you what the expenses are. … I can’t put a price on it now.”
Ruben Montaño said several residents who live south of the canal fetch water from the town’s tank on Park Street, and “here’s our first opportunity to have an infra- structure. … You can’t have growth without infrastructure.”
He and Rankin said it’s an opportunity to draw new residents, shoppers and businesses. “I think we took a step in the right direction for improving the quality of life in Florence,” Rankin said.
The council’s vote isn’t the only approval Johnson needs to provide water in the southern town limits. He must also receive approval from the Central Arizona Association of Governments and the Arizona Corporation Commission.
The 25-year contract approved provides the town a fee equal to 5 percent of the utility’s retail revenues, paid quarterly. It specifies that the town and the utility agree that the town shall provide all solid waste services to all portions of Johnson’s development and to any future areas annexed into town.
The town also has the right of first refusal to buy the utility’s operations and facilities, “with the purchase price to be determined by a fair market valuation study conducted by the town.”
