Apache Junction approves $1.63M flood control basin, explores shifting permit authority to council
APACHE JUNCTION, ARIZONA — December 11, 2023

Apache Junction approves $1.63M flood control basin, explores shifting permit authority to council

Apache Junction council approved liquor license and flood control basin projects while directing staff to investigate CUP authority restructuring and address mobile home park rent crisis and water department service issues.

Apache Junction Council Approves Flood Basin and Liquor License; Moves to Reclaim CUP Approval Authority from Planning Board

Apache Junction City Council on December 5 unanimously approved a $1.63 million flood control project and a Series Six bar liquor license, but the meeting's most consequential moment came when Council Member Tess Nesser requested a structural shift in how the city grants land-use permissions—moving final approval of Conditional Use Permits from the Planning & Zoning Commission back to the elected City Council, where it sat before 1990.

The liquor license approval, despite the applicant lacking building permits and complete architectural drawings, triggered immediate questions from Council Member Peter Heck about staff's apparent change in position between a November 21 continuance and the December 5 vote. The flood control basin project, by contrast, garnered no dissent—a rare moment of alignment on infrastructure that also revealed the financial discipline city engineers achieved by securing competitive bids well below engineer estimates.

Most significantly, the public comment period exposed three emerging crises demanding council attention: aggressive rent increases at a senior mobile home park forcing elderly residents into homelessness; poor customer service at the municipal water department; and widespread resident anxiety about the proposed 300,000-home regional development plan.

Key Speeches

"Historically years ago it was up to the city council to approve conditional use permits. That was changed in 1990. The reason I ask that this be placed on the agenda for any thought or discussion is because I think we're a different city than we were 33 years ago, and we're going to become an even different city with all the growth that's coming. I'm not convinced that the proper place to give that permission for conditional use permits is with a Planning & Zoning Commission—an appointed recommending body—rather than with us, the city council." — Council Member Tess Nesser

"The engineer's cost estimate was $6 million for the project. We had six bids that came in—three of them were around the $3 million mark. The low bid came in at a little over $3.2 million...we were kind of thinking of a doomsday scenario and we might have to come up with some additional funds. But it didn't [come in higher]." — Emil Schmidt, City Engineer

"The only kind of real part of this I take any issue with is two weeks ago where was this proposal? You know, 'You guys have got to continue this. There are some issues going on.' But here we are two weeks later, nothing's changed, but now all of the sudden it's, 'Hey, we'll take care of everything.' I mean, what's changed in the two weeks that made us that encouraged us to continue this for two weeks, but now I'm listening to a completely different side of staff on how to handle the situation?" — Council Member Peter Heck, on the liquor license approval

"My partner is a very successful bar operator. He's got Sleepy Whale in Chandler. He's got several restaurants and bars in Phoenix, Surprise, Gilbert, and a few others. So he's always complied and will always comply. We would never think about cutting any corners, you never even think about doing any work without a permit. That's a non-option I can assure you that." — Mr. Tolka, applicant's business partner, regarding First Water Cocktail Bar

"With the new ownership of the park, in the past 30 months there have been three lot monthly lot space increases which amount to, every two years if I figured it out right, 92 percent—almost $100 every two years. In addition to that, a year and a half ago we now have to pay for water $338 a month. Two ladies got forced out...I can't see paying two and three and a half times what I paid when I bought into the park in May of 2017...I hope to live and die in that park, and I just don't see being forced out or kind of being bullied as I feel we are right now." — Jim Grant, Husky Hollow mobile home park resident

Timeline

Liquor License Item:

Flood Control Basin Item:

CUP Authority Discussion:

Public Comment:

Opposition

To Liquor License:

Most compelling council concern: Heck's observation that staff had recommended continuance on November 21, citing building safety issues, yet two weeks later with "nothing changed" staff recommended approval. No explanation provided for the reversal.

Support

For Liquor License:

For Flood Control Basin:

Project Details

Liquor License – First Water Cocktail Bar

Superstition Basin Flood Control Project

Vote Breakdown

Liquor License – First Water Cocktail Bar

Resolution 23-38 – Superstition Basin Flood Control Project

Consent Agenda (Including Ceremonial Resolution for Sergeant Andrew Southard)

Outcome & Next Steps

Liquor License: The Series Six bar license for First Water Cocktail Bar was approved unanimously, contingent upon the applicant obtaining all required building permits, architectural/engineering drawings, and a final Certificate of Occupancy before commencing alcohol service. The city retains enforcement authority; the applicant cannot serve liquor until the city grants the C.O. City staff (Rudy Esus, Development Services) will review and inspect the building permit application when submitted, with an estimated two-week turnaround for initial review, assuming minor alterations only. The applicant's partner acknowledged engineer delays and stated engineering approval is imminent.

Flood Control Basin: Resolution 23-38 was approved unanimously. The Intergovernmental Agreement with Pinal County Flood Control District now goes to the County Board for approval. Upon County Board sign-off, the contractor will receive Notice to Proceed (expected January 2024). The 180-day construction timeline aims for completion before the 2024 monsoon season. The city is obligated to pay $1,633,545 (50% of the $3.2M low bid) and will assume all future operation and maintenance of the basin.

Conditional Use Permit Authority: Tess Nesser successfully moved this governance question onto the agenda. No vote was taken; instead, the council directed City Manager and City Attorney Jennifer to return within "a few weeks" (target: early-to-mid January, since no January council meeting is scheduled) with options for restructuring which CUPs require Planning & Zoning Commission recommendation only versus those requiring final City Council approval. Options discussed: (1) transfer all CUPs to council final approval; (2) surgically amend the commercial zoning matrix to route multifamily-in-commercial and other major use conversions to council while retaining minor items (signs, temporary uses) at P&Z level. Council expressed strong sentiment that elected officials, not appointed boards, should decide significant land-use policy in a rapidly growing city.

Mobile Home Park Rent Crisis: Chip Wilson directed City Manager and City Attorney to investigate federal grant opportunities for affordable senior housing and to engage in conversation with Husky Hollow mobile home park management. Jim Grant testified that the 55+ senior park has experienced three rent increases in 30 months totaling ~92% ($100/month every two years), plus a new $338/month water charge. Two elderly residents have already been forced out. The council acknowledged the crisis and requested staff follow-up.

Water Department Customer Service: Chip Wilson and City Manager directed a review of AJ Water Department customer service standards with staff (implied Director Mike). Jeremy Jackson testified that residents calling with billing inquiries face an accusatory tone; his mother-in-law was reportedly hung up on when attempting to pay her water bill via phone.

Controversies & Context

Liquor License Timing and Staff Position Reversal: The approval despite incomplete permits sparked tension. Peter Heck observed that on November 21, staff had recommended a two-week continuance, citing building safety concerns and lack of progress. Two weeks later, with no permit submissions received and drawings still incomplete, staff pivoted to recommend approval, asserting that contingent approval (with C.O. enforcement) was normal practice in larger metros. The disconnect prompted Peter Heck to ask what had changed. City Attorney Jennifer clarified that Series Six (quota) licenses can legally remain dormant for 12–18 months at other locations within Pinal County before a physical building is ready, and that the city's C.O. authority provides adequate control. However, the reversal underscored a deeper tension: was staff capitulating to applicant pressure, or had council members simply misunderstood the city's enforcement levers on November 21?

CUP Authority and Growth Governance: Nesser's push to reclaim CUP authority from Planning & Zoning reflects anxiety over Apache Junction's transformation. The city is now fielding CUP applications for multifamily residential in commercial zones—a major land-use shift not contemplated when P&Z authority was granted in 1990. Rudy Esus noted that historical CUPs involved churches in residential zones, cell towers, and dispensaries—relatively minor compatibility issues. Now, CUPs are the vehicle for converting entire blocks to mixed-use, multifamily development. Tess Nesser and Peter Heck both argued that such decisions should rest with elected officials accountable to voters, not appointed commissioners. The council's direction to staff to explore surgical restructuring (moving only major decisions to council) suggests a compromise may emerge.

Mobile Home Park Affordability Crisis: Jim Grant's testimony revealed a systemic problem not unique to Apache Junction but acute in Husky Hollow: investor acquisition, followed by aggressive rent increases exploiting elderly residents on fixed Social Security (3.2% COLA vs. 10%+ rent hikes). Two residents have already been displaced. At age 78 on a fixed income, Grant fears homelessness. The council's response—directing investigation of grants and management engagement—is reactive. Arizona has no statewide rent control; most relief programs are local and underfunded. Chip Wilson openness to exploring federal assistance suggests awareness that this is a political liability if left unaddressed.

Regional Growth and 300,000-Home Proposal: George Schroer's angry public comment flagged a broader concern: proposed regional development (Superstition Vista and beyond) would add 300,000 homes to Apache Junction and surrounding communities over years. Schroer called it a "temper tantrum" and predicted it would benefit only land trusts and developers, not residents. He also warned that the North-South Corridor (Route 505) remains unfunded ($400 million deficit projected by ADOT) and will likely bypass Apache Junction, leaving the city as a "district of Mesa." Council Member Solar's earlier report confirmed the $400M funding gap and 10–15 year timeline for Route 505. The tension reflects competing visions: growth advocates (some council members, developers, economic development boosters) vs. residents fearing sprawl, infrastructure collapse, and loss of community character.

Water Quality and Customer Service: Donna Carr raised concerns about fluorine in well water, microplastics in rainwater, and air pollution (visible soot clouds in Phoenix). Jeremy Jackson's complaint about AJ Water Department's accusatory tone and hang-ups signals broader dissatisfaction with municipal service delivery under growth stress. The city's direction for a customer service review may indicate the department is understaffed or inadequately trained for the volume and tone expected.

Resolution Copper Project Status: Brian Sapala (Resolution Copper, Economic Development Manager) provided an update: the project remains in regulatory limbo, awaiting final Environmental Impact Statement republication and a Ninth Circuit Court ruling. Currently employs 300+ workers (90% from within 40-mile radius, including Apache Junction). Projected to create 2,000–3,000 jobs during a 5–10 year construction phase. The company has invested $62M in the 40-mile radius over two years, $2M specifically in Apache Junction. The project expanded its corporate giving program from $50K to $500K annually and now offers scholarships and STEM partnerships (Arizona Diamondbacks, ASU Athletics, Arizona Coyotes). Apache Junction is positioned to benefit from housing demand if construction begins, given its proximity (less than 30 minutes, minimal freeway/stoplights). However, the project's timeline remains uncertain; Sapala emphasized that federal and congressional support is critical to moving past the current permitting stall.

Duration

Other Notable Items

Commemorative Resolution for Sergeant Andrew Southard: Chip Wilson presented a formal resolution and framed proclamation honoring Sergeant Andrew Southard, an Apache Junction High School graduate and US Army Special Forces member (160th Special Operations Aviation Regiment) who died November 10 in a helicopter crash during a Mediterranean training mission. The city's flags flew at half-staff. A copy of the Governor's recognition was also presented to the family. The resolution passed as part of the consent agenda (7-0).

Pinal County Flood Control District Partnership and Competitive Bidding Success: Emil Schmidt's presentation highlighted a rare fiscal win: the city's partnership with Pinal County Flood Control District on the Superstition Basin project yielded a low bid of $3.2M, 53% below the $6M engineer estimate. Schmidt's candid remark—"maybe we need to make a quick trip to Vegas"—underscored the luck of competitive bidding in a tight construction market. The project's 180-day schedule and pre-2024 monsoon completion goal position it as critical infrastructure for downtown development.

Resolution Copper Economic Development Briefing: Sapala's presentation framed the Superior copper mining project as a major East Valley economic engine. While permitting remains stalled, the project's $62M regional investment and 300+ current employees (with 2,000–3,000 projected during construction) signal long-term growth anchoring Apache Junction's residential and commercial expansion. The city's proximity to Superior (less than 30 minutes) makes it a logical housing hub for construction workers.

Traffic and Infrastructure Updates: City information officer Al Bravo reported that Idaho Road reconstruction (south of US-60) is scheduled for completion this week, with Baseline and Idaho intersection converting to a three-way stop beginning Friday. Public Works and Parks/Rec were commended for executing the Holiday Festival and Tree Lighting on December 2 with successful traffic management and cleanup.