12.5. DEVELOPMENT AGREEMENTS.

• Jurisdiction: Arizona

12.5. Development agreements.

12.5.1. Authority of municipalities.

Arizona law expressly authorizes municipalities to enter into development agreements (A.R.S. § 9-500.05) and retail development tax incentive development agreements (A.R.S. § 9-500.11).

A.R.S. § 9-500.05(A) (a development agreement must be authorized by ordinance or resolution; development agreements may relate to property within and outside the incorporated area of the municipality; if the property is outside the municipality, the development agreement does not become effective until the property is annexed)

A.R.S. § 9-500.05(B) (a development agreement must be consistent with a municipality's general and specific plans that apply to the property covered by the development agreement on the date the agreement is executed)

A.R.S. § 9-500.05(C) (mutual consent of the parties is required to amend or cancel a development agreement)

A.R.S. § 9-500.05(D) (a development agreement must be recorded with the county recorder no later than ten days after execution by the municipality, and is binding on the parties to the agreement and their successors in interest and assigns)

A.R.S. § 9-500.05(F) (a municipality may provide for enforcement of speed limits, vehicle weight restrictions and other safety measures on a private road located in any development in the municipality that is open to or used by the public provided that property owner that has been granted a development agreement, owner of protected development right, or owner of any other residential or commercial development subject to municipal supervision gives written consent.

A.R.S. § 9-500.05(G) (a decision by the governing body involving a development agreement may not be enacted as an emergency measure and is not effective for at least 30 days after final approval of the development agreement)

A.R.S. § 9-500.05(H) (a development agreement may address any matter relating to the development of property, including land use restrictions, provisions for infrastructure, phasing or time of construction, phasing or timing of annexation, and duration of the agreement)

Schires v. Carlat, 250 Ariz. 371, — P.3d — (2021) (a city's economic incentive development agreement with a private university violates Article 9 Section 7 of the Arizona Constitution—the gift clause—where the economic impact provided by the university in exchange for the city's financial contribution is "anticipated indirect benefit" and not a contractually enforceable "promise to...