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WHEN RECORDED, RETURN TO:
City of Mesa
Attn: Real Estate Department
20 East Main Street, Suite 500
Mesa, Arizona 85201
DEVELOPMENT AGREEMENT
DA25-00017
This
Development
Agreement
(DA25-00017)
(“Agreement”)
is
dated
_________________ and is between the City of Mesa, an Arizona municipal corporation
(“City”) and _____________________________, a(n) ______________________ (“Owner”).
City and Owner are collectively referred to herein as the “Parties,” or individually as a “Party.”
RECITALS
A.
Owner owns the real property in Mesa, Arizona generally located north of
Redberry, south of the Thomas Road alignment, west of 82nd Place, and east of 80th Place
consisting of approximately ten (10) acres, as legally described in Exhibit A and depicted on
Exhibit B (the “Property”).
B.
Owner acquired the Property from City by being the highest bidder in an online
auction for the sale of the Property and, following the auction, City and Owner entered into that
certain Purchase and Sale Agreement and Escrow Instructions regarding the Property dated
______________, 2026 (“Purchase Agreement”). The Purchase Agreement required, as an
element of City’s conditions to close, that Owner enter into this Agreement.
C.
Owner is required, pursuant to Mesa City Code Title 9, Chapter 6, and Title 9,
Chapter 8, as applicable, to install onsite and offsite improvements, including extending City
sewer lines to the Property and connecting to City’s wastewater system. To meet the sewer
improvement requirements, Owner would be required to either extend sewer lines from the
Property and continuing west, through multiple private properties and a tract with various
washes, to connect to City’s wastewater system on Ridgecrest, or extend sewer lines from the
Property and continuing east on Redberry to connect to City’s wastewater system on Hawes
Road, which would require Owner to install a lift station (the “Sewer Improvements”).
D.
Mesa City Code Section 9-6-2(F) and Section 9-8-4, as applicable, allow the City
Manager to reduce, defer, or approve alternatives to the Sewer Improvements based on an
individualized finding that there are special conditions involving topography, land ownership,
adjacent development, parcel configuration, or other relevant factors, and that the Sewer
Improvements will substantially impair the ability for development due to such conditions.
E.
The City Manager has found that there are special conditions associated with the
Property, including the nearest suitable and existing wastewater mains are located on Ridgecrest
and Hawes Road, each a linear distance of approximately 1,200-1,400 feet from the Property,
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and either requiring the sewer line to cross private properties and through a tract with washes, or
the installation of a lift station; the Property’s size and minimal demand for wastewater services;
and the limited availability of future customers along the alignment. The City Manager has
further found that requiring Owner to complete the Sewer Improvements will substantially
impair the ability of Owner to develop the Property due to the special conditions.
F.
To encourage and allow for the development of the Property, and for the reasons
stated herein, City finds that alternatives to the Sewer Improvements are in the best interests of
City. To that end, the Parties agree that, in lieu of the Sewer Improvements, Owner may install a
septic system to serve the wastewater needs of the Property, as set forth in and subject to this
Agreement.
G.
The Parties desire to enter into this Agreement for the purpose of setting forth the
terms and conditions under which the above-described alternative to the Sewer Improvements is
approved and intend this document to be a “Development Agreement” within the meaning of
A.R.S. § 9-500.05.
AGREEMENT
Now, therefore, in consideration of the foregoing recitals, which are incorporated herein
by reference, and the mutual promises set forth in this Agreement and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties state,
confirm, and agree as follows:
1.
Agreement Runs With and Binds the Property. All provisions of this Agreement,
including the benefits, burdens, and obligations of the Parties, run with and bind the Property and
are binding and enforceable upon, and will inure to the benefit of, the Parties and their successors
and assigns.
2.
Term. This Agreement will become effective on the date this Agreement is
recorded in accordance with Section 5.1 (“Effective Date”) and will continue in full force and
effect until automatically terminated upon the earlier of twenty (20) years after the Effective
Date, mutual agreement of the Parties, or termination as otherwise provided in this Agreement.
3.
City Obligations. As authorized by Mesa City Code Section 9-6-2(F) and Section
9-8-4, as applicable, as an approved alternative to Owner designing and installing the Sewer
Improvements, City agrees to allow the onsite wastewater needs of the Property to be served via
a fully contained onsite septic wastewater treatment system approved and permitted by the
Maricopa County Environmental Services Department, contingent on the Property being
developed as a single residence development and subject to the other requirements of this
Agreement (the “Septic System”). City, at Owner’s request, will provide notice to Maricopa
County Environmental Services Department (and any other required department or entity) that
Owner is permitted to construct the Septic System on the Property to serve the onsite wastewater
needs of the Property.
4.
Owner Obligations.
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4.1.
Current Zoning; Compliance with City Requirements.
A.
On the Effective Date, the Property is located within the Rural
Residential placetype with a Sustain growth strategy, as designated by the Mesa 2050 General
Plan, and is zoned Single Residence-35 (“RS-35”), as designated by the Zoning Ordinance.
Owner, at its sole cost and expense, may apply to rezone the Property and such rezoning will be
reviewed for, among other things, consistency with City’s General Plan. All requests to rezone
the Property are subject to the approval of the Mesa City Council, which the Mesa City Council
may grant or deny in its sole and absolute discretion.
B.
Owner must comply with all requirements of the Mesa City Code
applicable to the Property and to the development of the Property, except as explicitly modified
by this Agreement, including the Zoning Ordinance (Mesa City Code Title 11); the Land
Division Regulations (Mesa City Code Title 9, Chapter 6), including the Desert Uplands Design
Standards; the Sanitary Sewer Regulations (Mesa City Code Title 8, Chapter 4); the completion
of street improvements, water line extensions, and all other onsite and offsite improvements; and
payment of the water and wastewater capacity fee as required by Mesa City Code Title 8,
Chapter 10, Section 8-10-13.
4.2.
Use of Septic System for Onsite Wastewater Treatment. In lieu of the
Sewer Improvements, Owner, at its sole cost and expense, may install and the Property may be
served by the Septic System. Except for the Septic System described in this Agreement, no other
septic is permitted on the Property. Owner must permit, install, operate, and maintain the Septic
System in full conformance with the requirements of both the Maricopa County Health Services
Department and the Arizona Department of Environmental Quality, as applicable. For the
avoidance of doubt and without limiting the foregoing, the Septic System must comply with all
requirements set forth in Title 18, Chapter 9 of the Arizona Administrative Code and all
redundancy requirements, including that each lot within the Property must have its own tank,
drain field, and space available for a backup septic system. The Septic System may only be used
to accept flows from the Property to the exclusion of any other wastewater flows. Owner
acknowledges and agrees that the approved alternative to the Sewer Improvements and the
ability to serve the wastewater needs of the Property via the Septic System are contingent on the
Property being developed as a single residence development.
4.3.
Failure of Septic System. If the Septic System fails, Owner may replace
the Septic System at Owner’s sole cost and expense with an onsite septic system that is
materially the same as the original in size and capacity, and that is approved and permitted by
both the Maricopa County Health Services Department and the Arizona Department of
Environmental Quality, as applicable.
4.4.
Dry Lines; Future Availability of Wastewater Services to the Property.
A.
Owner must design and install all onsite plumbing, including the
Septic System and dry sewer lines, in a manner that facilitates the future connection of the
Property with City’s wastewater system once wastewater services are available at the Property.
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The design of the dry sewer lines will be subject to City review and approval. In order for City to
locate the service end for future connection of the Property to City’s wastewater system, Owner
acknowledges and agrees that as part of the permitting process for the development of the
Property, Owner will submit to City for City approval the construction documents for the
proposed development of the Property (collectively, the “Construction Documents”).
Construction Documents include the construction callouts describing the end of the service line
consistent with City of Mesa Engineering Standards (including the location, which must be
immediately adjacent to the right-of-way for the street and compatible with the proposed depth
of the wastewater service connection). In addition, the service end must be installed in
accordance with the approved Construction Documents and be marked with an electronic marker
per MAG Standard Detail 440-1.
B.
Owner further acknowledges and agrees that upon City providing
written notice to Owner that City wastewater services are available at the Property, Owner will
connect to City’s wastewater system and stop using the Septic System within sixty (60) days
from the date Owner receives such notice. If Owner is required to connect the Property to City’s
wastewater system, Owner further acknowledges and agrees that Owner must comply with the
Mesa City Code and all other City regulations that apply. Thereafter, City will provide
wastewater service to the Property.
5.
General Provisions.
5.1.
Recordation. This Agreement must be recorded in its entirety in the
Official Records of Maricopa County, Arizona, not later than ten (10) days after its full
execution by the Parties.
5.2.
Notices and Requests. Any notice or other communication required or
permitted to be given under this Agreement must be in writing and will be deemed to have been
duly given if: (a) delivered to the Party at the address set forth below; (b) deposited in the U.S.
Mail, registered or certified, return receipt requested, to the address of the Party set forth below;
or (c) given to a recognized and reputable overnight delivery service, to the Party at the address
set forth below. The recipients and addresses set forth in this section may be modified by a Party
at any time by such Party designating in writing by notice duly given pursuant to this section.
City:
City of Mesa
20 East Main Street, Suite 750
Mesa, Arizona 85201
Attn: City Manager
With a copy to:
City of Mesa
55 North Center Street
Mesa, Arizona 85201
Attn: Development Services Department Director
and:
Mesa City Attorney’s Office
20 East Main Street, Suite 850
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Mesa, Arizona 85201
Attn: City Attorney
Owner:
With a copy to:
Notices will be deemed received (i) when delivered to the Party; (ii) three (3) business days after
being placed in the U.S. Mail, properly addressed, with sufficient postage; or (iii) the following
business day after being given to a recognized overnight delivery service, with the person giving
the notice paying all required charges and instructing the delivery service to deliver on the
following business day. If a copy of a notice is also given to a Party’s counsel or other recipient,
the provisions about governing the date on which a notice is deemed to have been received by a
Party will mean the date on which the Party, and not its counsel or other recipient, to which a
copy of the notice may be sent, is deemed to have received the notice.
5.3.
Choice of Law, Venue, and Attorneys’ Fees. The laws of the State of
Arizona will govern any dispute, controversy, claim, or cause of action arising out of or related
to this Agreement. The venue for any such dispute will be Maricopa County, Arizona, and each
Party waives the right to object to venue in Maricopa County for any reason. Neither Party will
be entitled to recover any of its attorneys’ fees or other costs from the other Party incurred in any
such dispute, controversy, claim, or cause of action, but each Party will bear its own attorneys’
fees and costs, whether the same is resolved through arbitration, litigation in a court, or
otherwise.
5.4.
Default. In the event a Party fails to perform or fails to otherwise act in
accordance with any term or provision hereof (“Defaulting Party”), then the other Party (“Non-
Defaulting Party”) may provide written notice to perform to the Defaulting Party (“Notice of
Default”). The Defaulting Party will have thirty (30) days from receipt of the Notice of Default
to cure the default. In the event the failure is such that more than thirty (30) days would
reasonably be required to cure the default or otherwise comply with any term or provision in this
Agreement, then the Defaulting Party must notify the Non-Defaulting Party of such and the
timeframe needed to cure such default, and, so long as the Defaulting Party commences
performance or compliance and gives notice of additional time needed to cure within the
required thirty (30) day period and diligently proceeds to complete such performance or fulfill
such obligation, then the time to cure the default will be extended; however, in no circumstances
will the cure period exceed ninety (90) total days. Any written notice must specify the nature of
the default and the manner in which the default may be satisfactorily cured, if possible.
5.5.
Remedy/Equitable Relief. The Parties agree that damages alone are not an
adequate remedy for the breach of any provision of this Agreement. In the event Owner fails to
perform or fails to otherwise act in accordance with any term or provision hereof, City will be
entitled, subject to any cure period set forth in this Agreement, to immediately seek enforcement
of this Agreement by means of specific performance, injunction, or other equitable relief,
without any requirement to post bond or other security. Owner agrees not to oppose or otherwise
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challenge the appropriateness of equitable relief or the entry by a court of competent jurisdiction
of an order granting equitable relief, in either case, consistent with the terms of this Agreement.
The specific performance remedy provided in this section will be cumulative relief and will not
be a limitation on City’s other remedies including the right to seek contract damages under this
Agreement.
5.6.
Preservation of State Shared Revenue. Notwithstanding any other
provision of, or limitation in, this Agreement to the contrary, if pursuant to A.R.S. § 41-194.01
the Arizona Attorney General determines that this Agreement violates any provision of state law
or the Constitution of Arizona (including A.R.S. § 42-6201 et seq.), City and Owner must use all
and best faith efforts to modify the Agreement so as to fulfill each Parties rights and obligations
in the Agreement while resolving the violation with the Attorney General. If within thirty (30)
days of notice from the Attorney General pursuant to and under the provisions of A.R.S. § 41-
194.01(B)(1), City and Owner cannot agree to modify this Agreement so as to resolve the
violation with the Attorney General, this Agreement will automatically terminate at midnight on
the thirtieth (30th) day after receiving such notice from the Attorney General, and upon such
termination the Parties will have no further obligations under this Agreement. Additionally, if the
Attorney General determines that this Agreement may violate a provision of state law or the
Constitution of Arizona under A.R.S. § 41-194.01(B)(2), and the Arizona Supreme Court
requires the posting of a bond under A.R.S. § 41-194.01(B)(2), City may terminate this
Agreement, except if Owner posts such bond, if required; and provided further, that if the
Arizona Supreme Court, determines that this Agreement violates any provision of state law or
the Constitution of Arizona, City or Owner may terminate this Agreement and the Parties will
have no further rights, interests, or obligations in this Agreement or claim against the other Party
for a breach or default under this Agreement. The computation of time set forth in Section 5.13
will be superseded by the computation of time utilized by the Arizona Attorney General’s Office
for alleged violations of A.R.S. § 41-194.01.
5.7.
Good Standing; Authority. Each Party represents and warrants that it is
duly formed and a legally valid existing entity under the laws of the State of Arizona with
respect to Owner, or a municipal corporation in Arizona with respect to City, and that the
individuals executing this Agreement on behalf of their respective Party are authorized and
empowered to bind the Party on whose behalf each such individual is signing.
5.8.
Assignment. Neither Party may assign this Agreement without the prior,
written consent of the other Party. Any purported assignment of this Agreement in violation of
this section will be void, and not voidable.
5.9.
No Partnership or Joint Venture; Third Parties. It is not intended by this
Agreement to, and nothing contained in this Agreement will, create any partnership, joint
venture, or other arrangement between the Parties. No term or provision of this Agreement is
intended to, or will be for the benefit of any person, firm, or entity not a party hereto, and no
such other person, firm, or entity will have any right or cause of action hereunder.
5.10. Waiver. No delay in exercising any right or remedy will constitute a
waiver thereof, and no waiver of any breach will be construed as a waiver of any preceding or
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succeeding breach of the same or any other covenant or condition of this Agreement. A waiver
will not be effective unless it is in writing and is signed by the Party asserted to have granted
such waiver.
5.11. Further Documentation. The Parties agree in good faith to execute such
further or additional instruments and documents and to take such further acts as may be
necessary or appropriate to fully carry out the intent and purpose of this Agreement.
5.12. Fair Interpretation; Construction. The Parties have been represented by
counsel in the negotiation and drafting of this Agreement and this Agreement will be construed
according to the fair meaning of its language. The rule of construction that ambiguities will be
resolved against the Party who drafted a provision will not be employed in interpreting this
Agreement. Words in the present tense include the future tense, words in the plural number
include the singular number, and words in the singular number include the plural number. The
term “including” means “including but not limited to” or “including without limitation.” All
references to laws or regulations mean such laws and regulations as amended or replaced.
5.13. Computation of Time. In computing any period of time under this
Agreement, the date of the act or event from which the designated period of time begins to run
will not be included. The last date of the period so completed will be included unless it is a
Saturday, Sunday, or legal holiday, in which event the period will run until the end of the next
day which is not a Saturday, Sunday, or legal holiday. The time for performance of any
obligation or taking any action under this Agreement will be deemed to expire at 5:00 p.m.
(Phoenix, Arizona time) on the last day of the applicable time period provided in this Agreement.
A “business day” means a City business day which is any day Monday through Thursday except
for a legal holiday.
5.14. Conflict of Interest. Pursuant to A.R.S. § 38-503 and A.R.S. § 38-511, no
member, official, or employee of City will have any personal interest, direct or indirect, in this
Agreement, nor will any such member, official, or employee participate in any decision relating
to this Agreement which affects his or her personal interest or the interest of any corporation,
partnership, or association in which he or she is, directly or indirectly, interested. This
Agreement is subject to cancellation pursuant to the terms of A.R.S. § 38-513.
5.15. Entire Agreement. This Agreement, together with the recitals (which are
incorporated herein by reference) and the following exhibits attached hereto (which are
incorporated herein by reference), constitute the entire agreement between the Parties:
Exhibit A:
Legal Description of the Property
Exhibit B:
Depiction of the Property
All prior and contemporaneous agreements, representations, and understandings of the Parties,
oral or written, are superseded by and merged in this Agreement.
5.16. Time of the Essence. Time is of the essence in this Agreement and with
respect to the performance required by each Party hereunder.
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5.17. Severability. If any provision of this Agreement is declared void or
unenforceable, such provision will be severed from this Agreement, and this Agreement will
otherwise remain in full force and effect.
5.18. Amendments. Any change, addition, or deletion to this Agreement
requires a written amendment executed by both Parties. Within ten (10) days after any
amendment to this Agreement, such approved amendment will be recorded in the Official
Records of Maricopa County, Arizona.
5.19. Proposition 207 Waiver. Owner hereby waives and releases City from any
and all claims under A.R.S. § 12-1134 et seq. including any right to compensation for reduction
to the fair market value of the Property, as a result of City’s approval of this Agreement. The
terms of this waiver will run with the land and will be binding upon all subsequent landowners
and will survive the expiration or earlier termination of this Agreement.
The balance of this page is blank; signatures are on the following two (2) pages.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth
above.
“CITY”
CITY OF MESA, ARIZONA,
an Arizona municipal corporation
____________________________________
By:
Scott Butler
Its:
City Manager
STATE OF ARIZONA
)
)
ss.
COUNTY OF MARICOPA
)
The foregoing instrument was acknowledged before me, a notary public, this ___
day of ______________, 2026, by Scott Butler, the City Manager of the City of Mesa, an
Arizona municipal corporation, who acknowledged that he signed the foregoing instrument on
behalf of City.
Notary Public
My Commission Expires:
________________________________
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“OWNER”
___________________________,
a(n) ________________________
____________________________________
By:
Its:
STATE OF
)
)
ss.
COUNTY OF
)
The foregoing instrument was acknowledged before me, a notary public, this ___
day of ______________, 2026, by _______________________, as __________ of
____________, a(n) ___________________, who acknowledged that he/she signed the
foregoing instrument on behalf of Owner.
Notary Public
My Commission Expires:
________________________________
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EXHIBIT A TO THE DEVELOPMENT AGREEMENT:
LEGAL DESCRIPTION OF THE PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF
MARICOPA, STATE OF ARIZONA AND IS DESCRIBED AS FOLLOWS:
The Southeast quarter of the Northwest quarter of the Northeast quarter of Section 32, Township
2 North, Range 7 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona;
EXCEPT all coal and minerals as reserved in Patent recorded in Book 339 of Deeds, page 508,
records of Maricopa County, Arizona.
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EXHIBIT B TO THE DEVELOPMENT AGREEMENT:
DEPICTION OF THE PROPERTY