The size of Cottonwood may expand by 65.8% if the owners of a proposed development off State Route 89A have their way and the city expands its boundaries.

By a unanimous 5-0 vote on Tuesday, Aug. 18, the Cottonwood City Council authorized staff to proceed with the annexation of the 280-acre Spring Creek Ranch as well as Coconino National Forest land — 11 square miles in all.

Councilwoman Tosca Henry and Councilman Ruben Jauregui were excused from the meeting.

Even though the city is proceeding with annexation, it does not mean the Spring Creek Ranch project itself has been approved. There will be several steps over the next year in which the owners of the project will have to come before the city, including a possible major amendment to the city’s General Plan.

This also means there will be plenty of opportunities for additional public input.

According to a city report, this annexation would include a large tract of Coconino National Forest land located between the current Cottonwood city boundary and the Spring Creek Ranch parcels as those parcels are not currently contiguous to the city of Cottonwood. The annexation area would begin at the city’s north boundary near Dead Horse Ranch State Park and extend north, then east around the north side of state trust land to connect to the Spring Creek Ranch prop­erty to the south.

As currently proposed, Spring Creek Ranch would include 1,500 lots — with the majority, if not all, being manufac­tured homes. Additionally there are plans for 400 apartment units, a maximum of 200 RV spots and a 200-unit assisted care living facility, a recreational facility, a small store and one to two restaurants as well as 58 acres of open space with a 2.5-mile pathway along the creek.

If approved, the project would be developed in phases over five to seven years based on supply and demand. The manufactured homes would be owned by the home buyer but they would rent the land on which it sits. There would be no age restrictions and short-term vacation rentals would not be allowed.

The report goes on to state that annexation would allow for development of additional housing and visitor accom­modations between Sedona and Cottonwood. The private water and sewer facilities built for Spring Creek Ranch could potentially become part of aself-sustaining public utility system serving future developments on nearby land, including the adjacent ArizonaState Trust Land.

The city would bear the cost of police and fire service to the development but not the National Forest land. However, Cottonwood would not bear the cost of local streets or water/sewer systems. The exception may be the $825,000 the city previously spent on the private Spring Creek Ranch water system many years ago, unless that money is recouped through nego­tiations with the developers. State law requires the city to adopt a10-year plan for provision of services in conjunction with the annex­ation, the report states.

Cottonwood Community Development Director Scott Ellis said at this time the city is unable to annex the state trust land, which is adjacent to the land being proposed for annexation. But he said this does position the city to annex the state land in the future.

In regard to the USFS land, Ellis said virtually nothing changes, it just simply would fall within the city limits. As for the state trust land, he said the state may be interested in annexation if services were provided and the land could potentially be developed, thus increasing its value. The majority of any sale of trust lands goes into Arizona’s education fund, and because of that the state seeks to get top dollar before any sales are made.

LisaBorowsky, vice president of Spring Creek Holdings, attended the meeting and said the ideaof seeking annexation from Cottonwood was suggested by amember of the Yavapai County Board of Supervisors.

In the current applica­tion with the county, the project would include self-sustaining water and sewer facilities. But ideally, the Borowskys would prefer to take another route.

“We have been looking at our available options for wastewater treatment,” she said. “We don’t want to be in the business of operating awater company or awaste­water treatment company, So, we are looking to partner with a municipality, specifi­cally with Cottonwood.”

Borowsky also discussed the possible economic impact their project would have on Cottonwood if annexation were to occur. If all 1,500 units were sold for $100,000 apiece, that would equate to $5.25 million in sales tax for the city. In addi­tion, rent tax on the land spaces and apartments could generate another $575,000 ayear for the city. That’s in addition to tax dollars gener­ated by the RV park and on-site store and restaurants.

“We would really love to be part of Cottonwood,” Borowsky said. “I think it’s a really good fit for us and a benefit to the city.”

Borowsky later said that since there is no guarantee annexation will be approved by council, they still plan to appear before the Yavapai County Planning and Zoning Commission. They were originally scheduled to appear in March but that has now been delayed until Sept. 19. However, Borowsky said it could be delayed until November or even later.

Mayor Tim Elinski said council received 130 emails and staff received numerous phone calls from Verde Valley residents opposed to the project and annexation. Several spoke at the meeting, expressing concerns involving increased traffic on 89A, the density of Spring Creek Ranch, the impact on open space, fear the 89A corridor will be another State Route 260 and questions of whether the proposed housing will be affordable.

“You’re putting a city next door to my house,” one woman said.