Sedona Mayor Vetoes Controversial Red Rock Resort Expansion Over Water Rights Dispute

Sedona Mayor Scott Jablow vetoed a city council decision on December 12 to expand the Red Rock Resort into 3,422 acres of mostly Coconino National Forest land west of Sedona. The mayor cited ongoing disputes over water rights and environmental concerns related to wastewater treatment and land development, according to city officials.

Councilman Pete Furman expressed concerns about potential sprawl during the discussions, while Councilmember Scott Christianson clarified that annexation did not imply immediate development rights but was necessary to proceed with infrastructure plans. Christianson also highlighted ongoing disputes with the Red Rock Ranger District regarding authority over the land, citing an intergovernmental agreement (IGA) that the district has questioned.

The Sedona City Council had voted 6-1 on December 10 to annex 3,422 acres of mostly Coconino National Forest land west of Sedona, known as the Dells, to facilitate access to a wastewater treatment plant and enable future development, according to city records.

Mayor Scott Jablow, along with Furman and Councilmember Kathy Kinsella, opposed near-term development of the Dells property, citing environmental and water rights concerns. The Red Rock Ranger District has maintained an effective moratorium on land exchanges since 1998, often requiring congressional approval for such actions, sources confirmed. The district has also deemed the IGA inapplicable for constructing the wastewater treatment plant, complicating the city’s plans, Christianson noted.

The Dells property lies adjacent to sensitive riparian areas and Oak Creek, raising environmental protection issues. Kinsella emphasized the importance of bringing the land under city jurisdiction to protect what she described as “one of the few really untouched and pure lands” in the region. Furman advocated for limiting development to prevent uncontrolled sprawl, urging the council to “stuff this genie back in the bottle,” according to meeting transcripts.

On December 10, the council directed staff to pursue a $22 million plan over two to three years to develop recharge wells and establish a water supply for the Dells area. The plan includes abandoning 200 acres of existing irrigation and constructing up to four additional recharge wells, officials said. The Arizona Water Company’s current infrastructure does not extend to the Dells, requiring new water facilities to support any development, Interim Vice Mayor Brian Fultz explained. He added that the assured water supply from recharge wells makes advanced water purification (AWP) economically unfeasible at this time.

The council evaluated five wastewater treatment options ranging from $22 million for two recharge wells to $161 million for an AWP facility capable of purifying recycled water to federal and local drinking standards. The selected option advances recharge wells without committing to full AWP, leaving future exploration open, city documents show. The city currently operates a well at the wastewater treatment plant administration site, but it is insufficient to serve the Dells property.

The annexation vote clears the way for master planning of the Dells land, which could include a new maintenance facility, a transit center, and potential residential development. However, Christianson stressed that the city does not own the land and cannot develop it directly following annexation. The master planning process remains pending after water and wastewater infrastructure decisions, according to city officials.

Historical water projects in the area include a 2017 proposal by Arizona Water Company for a 1.5 million gallon underground water tank in Mystic Hills near State Route 179. The project faced opposition from residents concerned about property values and neighborhood compatibility. Initial plans to build above-ground tanks on Coconino National Forest land were opposed by environmental groups, prompting the company to shift the project to a city-owned site. The company purchased a one-acre lot on West Mallard Drive in 2012 for the project, which included operations facilities atop the reservoir. The project has remained on hold pending city planning and zoning decisions following public opposition.

The annexation and associated infrastructure projects remain subject to ongoing negotiations with the Red Rock Ranger District and environmental reviews due to the property’s proximity to Oak Creek and riparian habitats. City officials have acknowledged the complexities of balancing development needs with environmental protection and regulatory constraints.

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