A number of housing projects in unincorporated Pima County are being "held hostage" because of a city dispute over providing water to a controversial Painted Hill development, County Administrator Chuck Huckelberry says.
In a memo sent out late Friday, Huckelberry recommends the Board of Supervisors ask the City Council to change its water policy in order to provide service to now-stalled subdivisions on the southwest side.
An update to Tucson Water's policies that would free up the flow of water to those developments is on hold, partly pending resolution of the Painted Hills issue. But despite that, Sandy Elder, Tucson Water deputy director, said many developers' plans are still moving forward.
The county approved development plans for the 284 acres of scenic Painted Hills property just west of the city limits, but the supervisors didn't want the site developed, so they asked the city to deny water service to the property.
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The landowner, Dallas Police and Fire Employees Pension Fund, intended to develop homes on 87 acres and preserve the rest as open space. The county approved zoning for the homes with the caveat that the developer find a water source.
The landowners tried to get the city to annex the land near where West Speedway and Anklam merge, which would have forced the city to provide water service. But the council refused.
Then they tried suing the city, but state courts upheld the idea that the city doesn't have to provide water service outside the city, even if it serves nearby properties.
It got even more complicated when the landowners drafted a bill for the state Legislature to force the city to provide water service. The bill was held in the Senate.
In the middle of the flap, the City Council approved a new water service policy in August 2010 that defined the Tucson Water service area, and led to the current problem for other, less controversial, developments.
Revisions to that 2010 policy were approved by an advisory committee in December but have been on hold because of the pending legislation.
Assistant City Manager Andrew Quigley said the mayor and council need more time to consider the advisory committee's recommendations.
"The Mayor and Council directed staff to suspend the development of a revised water service policy until there was a public discussion, and most likely resolution of the Painted Hills matter," Quigley said in a letter to Huckelberry.
Meanwhile, developer Tony Marrs has been planning a 448-home subdivision near Drexel Road and Ajo Way. His land doesn't have Tucson Water service, although neighboring lands do. He and other developers also paid for part of the expanded wastewater facility.
"The policy has effectively halted all new planning, re-zoning and development" in the southwest county, Marrs wrote in a letter to Supervisor Sharon Bronson.
"Development of the Marrs property and other similar properties should not be held hostage while negotiations regarding the Painted Hills property continue," Huckelberry said in a memo to the supervisors.
Elder said Tucson Water is working with Metro Water on possible service to the Marrs properties.
He said the advisory committee's recommended policy changes would solve Marrs' problem.
Huckelberry wants the board to ask the city to change its water service policy to provide service to properties like Marrs'.
"The presently adopted Tucson Water policy does not support rational regional planning for water service," Huckelberry said in the memo.
Contact reporter Becky Pallack at bpallack@azstarnet.com or 573-4346. On Twitter @BeckyPallack.
