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Fri, July 30

Intergovernmental Agreement with Prescott will allow Prescott Valley to annex land; Prescott to preserve area of Granite Dells, expand airport

The Town of Prescott Valley on Thursday, June 10, approved an Intergovernmental Agreement (IGA) with the City of Prescott that will commit Prescott to provide water and sewer service to 642 acres of land located north of Highway 89A and west of Glassford Hill Road owned by Arizona Eco Development LLC (AED).

The IGA is an element of a larger agreement between Prescott and AED that preserves land in the Granite Dells and near the Prescott Regional Airport, according to a news release.

The IGA between the town and Prescott allows for the 642 acres to be annexed into Prescott Valley, as requested by AED, rather than into Prescott. The 642 acres make up a large portion of land in Section 33 that is currently surrounded by Prescott Valley.

The terms of the larger agreement between AED and Prescott include AED transferring to Prescott 475 acres of land in the Dells and 270 acres near the airport. This will serve to preserve a portion of the Dells as open space and allow for Prescott to expand the airport. AED will also exchange 375-acre feet of surface water rights from Watson Lake for 753-acre feet of potable water from Prescott’s water supply. This Prescott water supply, part of a decades-old reservation of water rights, will be used for developing AED’s remaining property in the Dells and the 642 acres in Section 33 (once it is annexed by Prescott Valley). All of the wastewater generated by the development will be reclaimed by Prescott and permanently recharged into the underground aquifer.

When Prescott Valley annexes Section 33 as anticipated by the IGA, it will exercise the same local authority as other areas of the town except for providing water and sewer service (which will be done by Prescott). Prescott will charge and collect its own water and sewer fees.

On the other hand, Prescott Valley will receive the State Shared Revenues allocated for any residents in Section 33 (i.e., a share of state income tax, sales tax, vehicle license tax and vehicle registration fees apportioned to incorporated cities, towns and counties). Application of municipal development standards in Section 33 will facilitate controlled growth rather than allow for proliferation of septic systems and exempt wells typical of unplanned development.

It is expected that the Prescott City Council will consider approval of its agreement with AED at its final meeting in June (including adoption of the IGA with Prescott Valley at the same meeting).

To read the full agreement please visit

Information provided by the Town of Prescott Valley.

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