by Lynh Bui – Mar. 19, 2009 11:37 AM
The Arizona Republic
Five Star Development has a 100-year water supply for its luxury developments planned in the northeast Valley, but which water supplies to tap – ground or surface – and how it will be delivered are still a big questions.
The challenge is finding a water source and transport system for the project that won’t tax groundwater supplies in Scottsdale and the northeast Valley.
The developer has secured certification of adequate water supplies from the state Department of Water Resources. However, it doesn’t want to touch the limited groundwater reserves and it hasn’t decided how to get the surface water delivered.
Five Star Development Resort Communities plans to build the Ritz-Carlton resort and residences in Paradise Valley. It also has proposed in nearby Scottsdale a luxury development with a $90 million boutique hotel and high-end retail. Both projects fall in the service area of Arizona American Water Company, a private utility.
The utility uses wells – a limited resource – to provide water for customers in Paradise Valley and parts of Scottsdale, but some fear continual groundwater pumping will strain the area’s supplies. The company could turn to its allotment of surface water, which is a renewable resource, but Arizona American doesn’t own facilities in the area to treat it.
The company is considering building a surface-water treatment plant or working with Scottsdale to have the city treat and transport Arizona American’s allotment of surface water, said Troy Day, vice president of operations for Arizona American.
“We don’t think pumping more groundwater is the best idea or solution for this project,” Day said. “There have been some groundwater declines in the area.”
The stress of those water declines has started to appear in north Scottsdale, where fissures have begun to form, said Marshall Brown, Scottsdale general manager of water resources.
Earth fissures typically develop when groundwater is pumped faster than it can be replenished. The rapid drop in the water table dries out surrounding land and the fissures create tension cracks that rise to the surface, creating openings so big that they can split a building.
Scottsdale has a treat-and-transport service to provide Carefree with water, Brown said. A similar arrangement could be made with Arizona American.
“Obviously, they would need to pay” for the use of the city’s facilities and services, Brown said.
If Scottsdale treats the surface water, which likely would be done through the city’s Chaparral Water Treatment Plant, it’s unclear how that water would get to Five Star’s projects because pipes don’t exist to connect the two.
Scottsdale City Councilman Ron McCullagh said he’s not willing to see Scottsdale “bail out” Arizona American or the developer by treating their water, but he also doesn’t want to see groundwater being used.
He said continual groundwater pumping could draw up a plume of contaminated water from a Superfund site into wells the city uses to provide water to Scottsdale residents.
McCullagh, who also is an Arizona American customer, said any option could increase rates for the utility’s customers. Day said the company goes by a “growth pays for growth policy.”
“Our primary goal with growth and development is to not negatively impact current customers,” Day said.
Jerry Ayoub, Five Star’s president and chief executive officer, said the company is dedicated to paying for infrastructure additions and upgrades needed to treat water for its projects.
In the end, it could be a benefit to all Arizona American customers, Ayoub said, as those improvements could include increasing water storage and improving old pipes in the system.
“There is a misconception that we’re going to strain the current source,” Ayoub said. “We’re not taking water designated for Paradise Valley or Scottsdale. We’re paying for the infrastructure. We’ll do whatever it takes to make sure it is done right.”
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