Prescott tables massive 120 AFY water request for mixed-use development

Prescott tables massive 120 AFY water request for mixed-use developmentThe Prescott Water Issues Subcommittee delayed action on a water service application for a 50-acre medical and residential project, citing concerns over the city's strict semi-annual water allocation limits.

IDDM, LLC requested 60.29 acre-feet per year (AFY) of new water for the Willow Lake District, appealing a rule that limits single requests to 50% of the available budget.

The project's total estimated demand is 120.29 AFY, which relies on an existing 60 AFY agreement from 2019 that is set to expire in six months.

Prescott's semi-annual non-residential water budget is capped at 25 AFY, meaning the total project demand equals more than two years of the city's commercial allocation.

The subcommittee tabled the application, directing the developer to extend the expiring agreement to protect the initial 60 AFY before seeking additional capacity.

The Prescott Council Subcommittee on Water Issues tabled a major water service application on September 1, 2026, after determining the project's estimated water demand far exceeded the city's available non-residential water budget. Developer IDDM, LLC submitted an application for 60.29 acre-feet per year (AFY) to support the Willow Lake District, a 50-acre mixed-use development at Willow Creek Road and Haas Boulevard. The proposed site includes a medical plaza, retail space, a hotel, and residential units. According to city staff, the project's total estimated demand is 120.29 AFY. The site currently holds a 60 AFY allocation under a 2019 water service agreement for a previously planned development known as Whispering Rock. Because the newly proposed Willow Lake District represents a significant change in land use, city legal staff warned that approving the new application could void the existing 60 AFY agreement, which is already set to expire in February 2027. The sheer volume of the request raised concerns among committee members. Under Prescott's amended 2022 Water Management Policy, the city allocates only 25 AFY for non-residential projects every six months. The policy prohibits any single project from taking more than 50% of the available budget unless the developer successfully appeals the rule by demonstrating significant economic benefits to the city. "I've never seen a 120-acre-foot request for a project that uses up two years' worth of our budget all at once," said Member Garing. "I'm hesitant about the amount of water required." Dr. Edward Johnson, representing the applicant, argued that the project would serve as a rural healthcare innovation hub, bringing next-generation technologies and medical residencies to the region. Despite the economic pitch, the subcommittee unanimously voted to table the request. The chair advised the developers to work with the city's legal and community development departments to extend their existing 2019 development agreement to secure the initial 60 AFY before requesting additional capacity. In contrast, the subcommittee smoothly advanced a separate water service application for a 16-acre medical campus proposed by the Yavapai Community Hospital Association. That project requested 18.02 AFY, and the committee recommended it for full city council approval, noting it also required an appeal of the 50% rule but remained within more manageable limits.