Parched from p 18 what they want and what they are getting into, but not always. One of Angelo’s clients was looking for a property in the desert where individuals could easily drive their ATVs across the open trail system without having to trans- port them. In that case, the property owner didn’t mind buying land which re- lied on a well and water access concerns were not a surprise. Other homebuyers would rather turn on the tap and have water flowing out without extra work. Under state law, it’s up to a seller to fully disclose any condition of the property that negatively affects its value. The seven-page “Seller’s Property Disclosure Statement” provided by the Arizona Association of Re- altors itemizes dozens of required facts, in- cluding the source of water. It does not require sellers to detail how much water is available. A notice in the statement advises po- tential buyers that if the property is served by a well or private water provider, “the Arizona Department of Water Re- sources may not have made a water sup- ply determination.” The real estate industry has borne the brunt of blame among residents and some- times officials in Rio Verde Foothills and in other unincorporated enclaves across the county. There are lots of different types of real estate agents. Some agents may sell one or two homes a year as a part-time gig, while others sell hundreds annually. The Arizona Department of Real Estate is responsible for investigating any illegal subdivision activity across the state, such as when the land is split more than six times by the same owner. Louis Dettorre, Commissioner of the Arizona Department of Real Estate, did not respond to multiple interview requests for this story. Regulated subdivisions, those bigger than six lots, have to demonstrate to the state water department that a would-be development has 100 years of water supply before they can be approved. The master- planned Trilogy community in Rio Verde is a case in point. There, lots are being snapped up by homeowners who want properties with utilities that are more turnkey. Those homes might have swimming pools as op- posed to relying on hauled water to fill a pool every month. Rio Verde Foothills residents are seek- ing water for 99 years so they don’t get a big investor to buy up land and change the fabric of the landscape without their con- sent. Demand for real estate in Arizona is hotter than ever. “Phoenix is like the center of the [real 20 estate] universe right now. With all growth in the infrastructure and the pandemic it just seems to be that everybody is focused on this place to move here,” Angelo said.”They are trying to get out of the con- gestion of these really big cities and they are moving here.” That means, in practice, bidding wars Zee Peralta for available homes are more common than not. Buyers might not have time to read the fine print before submitting a bid and clos- ing on a home. If a home has a well, there must be an inspection so homebuyers would be aware of that, no matter who the Realtor might be, Angelo said. “Most people in Phoenix don’t under- stand this [water issue] as well as some an- other area,” he said. “You have Trilogy out there which is absolutely beautiful and EP- COR handles their water. Then across the street, you are going to have a well. I guess you have cases where buyers think, the utilities are at my property. There are times when there is no water and no power. I guess there is a little bit of buyer beware in all of this.” Living Beyond Our Means Rio Verde Water co-owner John Hornewer has customers across the county, but primarily in Rio Verde Foot- hills. He settled there after enjoying motor- cycle tours across the barren desert in the late 1990s. Rio Verde Water sells water for about 4 cents per gallon, so a household that uses 5,000 gallons — possible for those without lush irrigation — and each month the bill is $200. But he expects the price of water to skyrocket as the drought intensifies and has watched cities raise the price of whole- sale water for years. “Our lifeline is going to be cut off, so we have to secure outside water,” Hornewer said. “They [real estate developers] are go- ing to keep building homes with or without assured water, which is kind of amazing to me. There are a lot of people who moved out here who knew nothing about the wa- ter situation.” During times when water is plentiful, cities are not hard-nosed about restricting water haulers from selling their water to individuals outside city limits, he said. “Enforcement is going to become an is- sue and cities are going to look out for their own citizens,” Hornewer said. Some members of the Rio Verde Foot- hills community have pushed for EPCOR, a private water business that drills wells and sells groundwater across Arizona to step in as the company did for communities just north of Phoenix. EPCOR, headquartered in Edmonton, Canada, is a major publicly-traded utility owned by investors with operations in Ari- zona, New Mexico, and Texas. As such, the company is beholden to both its customers and investors alike. Asking EPCOR to expand water ser- vices to Rio Verde Foothills would be the “easy button,” Hornewer said. EPCOR would need to ask for permis- sion from the state to service Rio Verde Foothills, just like it did for the New River and Desert Hills communities. That would empower EPCOR to control future water rates, not the community-created entities of rural cooperatives or a water improve- ment district. EPCOR asked the Arizona Corporation Commission to let it raise water rates on New River and Desert Hills residents. A decision is pending. The company claims that its solution in that community was not “temporary.” “We don’t view the pump station as a temporary solution,” said Rebecca Sten- holm, EPCOR USA director of public af- fairs, in an email. EPCOR is regulated and the state “re- views our current costs and any infrastruc- ture costs that were necessary to provide service before determining what rates we Rio Verde Water co-owner John Hornewer delivering water to one of his rural customers. are to charge,” Stenholm said. The company doesn’t set retail prices water haulers charge to residents, only the wholesale rate of water. As for whether the company would consider expanding to Rio Verde Foothills, it’s not “quite as simple as installing a pipe- line,” she said. “We would need permission from the Arizona Corporate Commission and Rio Verde Foothills would need to have a source of water that is not already part of our dedicated water resources for existing customer groups,” she said. “We haven’t been asked to explore any costs at this time and without knowing where the water would come from, it’s hard to project the numbers. But certainly, a significant cost to build the infrastructure that would be needed to treat and carry the water.” As it stands, there are three potential outcomes for the Rio Verde Foothills com- munity as a microcosm of Arizona’s water woes. One: Maricopa County could ignore their pleas for a decision on whether to al- low a water improvement district to be created. Two: the county could decide to deny their petition for a new district and oppo- nents would propose alternatives. Three: EPCOR could step in as a new corporate water provider. The outcome remains unclear, but if the stalemate with Maricopa County doesn’t stop, hundreds could face a very parched future. “There’s no question that we’ve been living beyond our means,” Hornewer said. FEB 3RD– FEB 9TH, 2022 PHOENIX NEW TIMES | MUSIC | CAFE | FILM | CULTURE | NIGHT+DAY | FEATURE | NEWS | OPINION | FEEDBACK | CONTENTS | phoenixnewtimes.com
