Government Tank Rezone and Amendment Change

PVCA Objects to:

Rezoning of Property to Allow Mining Within Town Limits

and

Major Amendment Change to the Prescott Valley General Plan

PVCA is advocating for Preserving our Community's Well-being, the Environment, and Livability

Introduction

On August 15, 2025, Fain Enterprises, Inc. filed a Zoning Map Change application for a “rock and gravel borrow pit to source hard rock” at the new Government Tank location close to the Prescott Country Club, Dewey-Humboldt, Raven Ridge, Blue Hills, and Stoneridge (southern area) communities. The Major Amendment, Zoning Map Change proposal, will be considered for approval by Prescott Valley Planning and Zoning Commissioners starting on November 3, 2025, as it begins the process for approval.

The proposed Major Amendment to rezone 40 acres (Yavapai County Assessor parcel 402-14-004) from Residential Single Family Limited zoning to Industrial zoning, to allow a new aggregate gravel mining operation, does not conform to either the 2035 General Plan or the Town Code.

The proposal has not provided sufficient evidence, per se, that it represents an improvement to the General Plan, which is required for a Major Amendment.

The primary purpose of zoning laws is to protect and enhance the overall welfare of communities. They are designed to prevent incompatible land uses—for instance, placing industrial operations adjacent to residential areas—thereby supporting orderly growth and ensuring neighborhood stability. Zoning laws also safeguard property values by discouraging unsuitable land uses that could negatively affect an area’s desirability, while fostering consistent and predictable development patterns.

Across communities, zoning laws exist to protect the character and safety of neighborhoods, balancing economic growth with the welfare of residents.

While the demand for construction materials is undeniable, the cost of permitting disruptive industrial activities in or around any residential zone is far too high. Allowing gravel quarry mines in residential areas threatens public health, environmental integrity, property values, and the social fabric of neighborhoods.

Background

On February 10, 2022, Town Council entered Executive Session to consult with its attorneys regarding existing sand and gravel operations adjacent to Fain Park. Simultaneously, the Town of Prescott Valley expressed opposition to extending an existing sand and gravel operation on two parcels located directly adjacent to Fain Park and Stoneridge Drive. Both parcels, owned by the Fain Family Limited Partnership, are in unincorporated Yavapai County. Prescott Valley did not renew a previously authorized right-of-way permit that would have allowed transporting materials mined across the Town’s rights-of-way, including portions of Fain Park.

Subsequently, in their July 2023 application, Fain Enterprises, Inc. sought a new 40- acre parcel (minor amendment) from low density to Industrial designation (R1L-70 to M1 zoning) for the purpose of conducting a rock harvesting operation. The project, titled “Government Tank Borrow Pit,” was described as a rock and gravel site intended to supply aggregate materials for use in roads, highways, and other construction projects. Fain Enterprises, Inc. indicated their preferred practice would be to drill, blast, and crush materials on-site and haul with over-the-road trucks to their asphalt/concrete plant at 2400 Glassford Hill Rd. The project narrative describes the proposed location as containing five million tons of usable materials.

In October 2023, Fain Enterprises, Inc. held a Neighborhood Meeting to present the proposed mining operation. The community and neighboring areas expressed significant opposition to the proposed changes. By November 2023, community members initiated an official petition drive to consider the proposal a General Plan Major Amendment.

 At the December 14, 2023, Council meeting, Town Manager Gilbert Davidson announced that the applicant for the new sand and gravel operation had asked for a pause. The pause did not deter residents and in January 2024 they were successful in the petition drive resulting in the Rezoning Proposal being classified as a Major Amendment. In addition, advocates delivered over seven hundred letters to Arizona Attorney General Kris Mayes, asking that state officials review state and local statutes that govern mining operations.

The Town has stated that if the rezoning of the Government Tank parcel is not approved, Fain Enterprises, Inc. will expand their existing operation (behind the Cal-Ranch store) in their current location by the Stoneridge and Victorian Estates communities.

Given our concerns, in addition to the specific reasons for non-compliance and non-conformance outlined below, the Rezoning Proposal fails to satisfy the required approval criteria and therefore should not be granted approval.

Non-Compliance with Arizona Revised Statute § 9-462.01 - Zoning regulations

(F.) All zoning and rezoning ordinances or regulations adopted under this article shall be consistent with and conform to the adopted general plan of the municipality, if any, as adopted under article 6 of this chapter. In the case of uncertainty in construing or applying the conformity of any part of a proposed rezoning ordinance to the adopted general plan of the municipality, the ordinance shall be construed in a manner that will further the implementation of, and not be contrary to, the goals, policies, and applicable elements of the general plan. A rezoning ordinance conforms with the land use element of the general plan if it proposes land uses, densities, or intensities within the range of identified uses, densities, and intensities of the land use element of the general plan. (emphasis added.)

Non-Compliance with Prescott Valley Town Zoning Code, Chapter 13

The Major Plan Amendment and Rezoning Proposal fails to meet the Town Zoning Code objectives listed below and therefore warrants denial.

Purposes and objectives of and conformance to this Chapter:

2. Conserve and protect land and building values in the Town.

3. Preserve the esthetic [sic] beauty of the community.

5. Promote the public health, safety, comfort, morals, and welfare of the Town; Provide the economic and social advantages derived from orderly and planned

land use.

B. This Chapter is intended to:

4. Protect residential, commercial industrial and civic areas from the intrusion of incompatible uses.

7. Promote safe, fast, and efficient movement of people and goods without sacrificing the quality of Prescott Valley’s environment.

10.Preserve the natural beauty of Prescott Valley’s setting.

11. Stabilize expectations by providing a basis for wise decisions regarding future development of Prescott Valley.

C.  No property shall be used, and no building shall be constructed, altered, placed, or used except in conformity with this Chapter, and this shall include any addition to any nonconforming use. (Emphasis added.) [1]

[1] Prescott Valley Town Code, Chapter 13, 13-01-010, Purposes and objectives of and conformance to this chapter. Amended by Ordinance No 2024-947, 12/11/2024

https://codelibrary.amlegal.com/codes/prescottvalleyaz/latest/prescottvalley_az/0-0-0-43189

Non-Conformance to the 2035 General Plan

The Rezoning Proposal does not conform to the 2035 General Plan as outlined below. Courts have the authority to invalidate zoning actions that are inconsistent with voter-approved General Plans, under a legal standard referred to as the "consistency doctrine."

The Town and the applicant have not explicitly demonstrated, in conformance to requirements below, how any gravel pit quarry, where hard rock will be processed on site and crushed, is an improvement to the General Plan.

Chapter 2, General Plan Administration

…In that regard amendments shall only occur after careful review of the request, findings of fact in support of each amendment, and public hearings by the Planning and Zoning Commission and Town Council. The findings of fact required shall include (but are not limited to):

·        That each amendment will result in acceptable means of mitigating impacts through subsequent zoning action of the development process, to not adversely impact the community as a whole, or a portion of the community.

• That each amendment is consistent with the Vision, Guiding Principles, Goals and Policies of the General Plan.

Amendments to the General Plan may be initiated by the Town or by formal application by the owner(s) (or their agents). Applicants must demonstrate that the proposed change is an improvement to the General Plan. (emphasis added). [2]

Chapter 5, Growth Character Areas

Growth Character Areas - Bounding the edge of the Town character area is the “Country” character area. This area includes activities and uses consistent with a rural lifestyle and low-intensity development, including ranching, equestrian, resort, rural residential, and open space. The strategy underlying these character areas is to establish a predictable and concentric pattern of development intensity and design features that best reflect the “Town and Country” attributes enjoyed by today's Prescott Valley citizens. [3]

[2] Town of Prescott Valley, 2035 General Plan, 2022, Chapter 2, General Plan Administration Element, Section 2.3 General Plan Amendments, 2.3/p 8

[3] 2035 General Plan, Chapter 5, Growth Areas Element, Section 5.3.1 Growth Character Areas, p 25

Rationale:

▸ Adjacent to compatible future Stoneridge development to the west.

▸ Proximity to proposed Prescott Country Club bypass and existing Old Black Canyon Highway.

▸ Proposed trail through Clipper Wash floodplain offers open space linkage opportunities. Village PAD A-1.[5]

The PAD is intended to:

• Ensure orderly and thorough planning and review procedures that will result in high quality urban design and to encourage a variety in architectural design techniques including, but not limited to, variations in building style, lot arrangements, and site planning.

• Establish procedures that would reduce inequities occurring when strict application of zoning regulations pertaining primarily to small lots are applied to large lots.

• Permit flexibility in design so that developments would produce maximum choice in the types of environments, living units, and commercial installations and facilities available to the public, and produce an efficient, aesthetic, and desirable use of open space.

• Produce an environment of stable character in harmony with the surrounding areas and developments. Zoning districts compatible with the PAD or Village PAD designations include zoning districts compatible with designated land uses. [6]

Approval of the gravel pit industrial rezoning is inconsistent with its documented environmental commitments, objectives, and referenced policies listed below.

 2035 Commitment to the Environment - Linked with the image of Prescott Valley as a growing, vital city is a tangible image that stems from the Town’s physical attributes. Prescott Valley has a natural environment endowed with long vistas, mountain views, clean air, and wildlife. The distinctive features include Glassford Hill and the Agua Fria Rive [sic], along with the backdrop of the Mingus Mountains to the northeast and the Bradshaw Range to the south provide clear evidence that the natural environment is an integral part of the growing community.[7]

GOAL: LU-A3 Ensure that new development is compatible with surrounding land uses, the circulation network, the availability of public facilities, and existing development constraints.[8]

POLICIES: LU-A3.1 Recognize the need for existing and future residential areas to be separated from adjacent non-residential uses by providing appropriate buffers be developed and maintained. Buffers shall be required as conditions of approval and may consist of landscaping, sound barriers, building setbacks or open space.[9]

LU-A3.2 Prohibit uses that lead to the deterioration of existing residential neighborhoods, or adversely impact public safety or the character of an existing residential neighborhood.[10]

[5] 2035 General Plan, 6.9/p 65

[6] 2035 General Plan, Chapter 6 Land Use Element, 6.8 Land Use Designations, Planned Area Development or Village Planned Area Development, p 58

 [7] 2035 General Plan, Chapter 6, Land Use Element, Section 6.2 Looking Towards the Future, p 35

[8] 2035 General Plan, 6.10 Guiding Principles, Goals and Policies, p 73

[9] 2035 General Plan, 6.10/ p 73

[10] 2035 General Plan, 6.10/p 73

LU-A3.3 Assure that the type and intensity of proposed land uses will be compatible with that of the immediate neighborhood.[11]

LU-A3.6 Use off-site impact standards to ensure non-residential activities will not adversely affect land with zoning that permits residential or other sensitive uses.[12]

LU-A3.7 Minimize hazardous conditions by ensuring users of hazardous materials are located away from residential areas and that all users of hazardous materials meet applicable building, fire and other safety codes and regulations. [13]

[11] 2035 General Plan, 6.10/p 73

[12] 2035 General Plan, 6.10/p 73

[13] 2035 General Plan, 6.10/p 73

Non-Conformance to General Plan Amendment Application Form Requirements 

The proposal does not meet the threshold set forth in the following application requirements:

That the amendment will result in acceptable means of mitigating impacts through subsequent zoning action of the development process, so as to not adversely impact the community as a whole, or a portion of the community. That the amendment is consistent with the Vision, Guiding Principles, Goals and Policies of the General Plan. Applicants requesting an amendment to the General Plan must prove that the proposed change is an improvement to the General Plan. (emphasis added.) [19]

[14] 2035 General Plan, Land Use Element, 6.10 Guiding Principles, Goals and Policies, p 77

[15] 2035 General Plan, 6.10/p 77

[16] 2035 General Plan, 6.10/p 77

[17] 2035 General Plan, Chapter 9 Environmental Planning and Water Management Element, 9.10 Guiding Principles, Goals and Policies, p 140

[18] 2035 General Plan, 9.10/p 140 

[19] Town of Prescott Valley, Development Services, Planning Applications, What is a General Plan? General Plan Amendment Application

https://www.prescottvalley-az.gov/departments/development_services/planning_zoning.php#outer-91

Contract Zoning (Quid Pro Quo)

 Beginning in late August 2025, meetings with Fain Enterprises, Inc., Asphalt Paving & Supply, Inc. (AP&S), along with Executive Town staff and Mayor Palguta, were being held where new rezoning incentives were offered. Attendees were told that if the Government Tank rezoning is approved, Fain Enterprises will donate land they own around Fain Park to the Town. Conversely, if rezoning is not approved, land around Fain Park will not be donated to the Town but rather damaged by continued mining operations.

This potential offer constitutes an unlawful quid pro quo arrangement. Some Courts have ruled that when a particular rezoning classification is assigned to a land parcel, it is unconstitutional for the municipal government to provide rezoning in return for a promise not to do something that otherwise would be permitted under the local land use law.

Public benefit negotiated as a condition of receiving a rezoning classification, rather than as part of a pre-established plan, is unlawful. In addition, when an offer of a “gift” from a developer is made contingent upon the approval of a rezoning proposal, there are ethical and fundamental fairness issues that destroy public trust in government. Contract Zoning may give an undue private advantage to developers instead of prioritizing sound land use planning.

Nonetheless, offering a bilateral contract does not, per se, satisfy the explicit requirement of an improvement to the General Plan.

Dewey-Humboldt Resolution in Opposition to Aggregate Mining Operations

As a community stakeholder, the Town of Dewey-Humboldt issued a formal Resolution [20] opposing aggregate mining operations at the Government Tank location. They are urging Prescott Valley to deny this request to preserve the health, safety, welfare, and long-term vision of the community and they cited the following reasons for their opposition:

·        Aggregate mining operations are industrial in nature and generate substantial noise, dust, traffic, and vibration impacts incompatible with existing rural residential neighborhoods and surrounding land uses.

·        The proposed amendment and rezone would significantly degrade air quality and public health due to increased dust and particulate matter associated with mining and hauling activities.

·        Aggregate mining operations risk irreversible damage to the land, including potential impacts to surface water, groundwater resources (such as residential wells), and wildlife habitat.

·        Approval of this request would set a precedent for incompatible industrial encroachment into rural residential areas within the Town of Dewey-Humboldt.

Residents in the Blue Hills community of Dewey Humboldt, many of whom live close to the Government Tank location, rely on wells and septic tanks. They have raised valid concerns regarding potential adverse impacts of the proposed quarry borrow pit operation on local water quality and sanitation systems.

[20] Town of Dewey-Humboldt, Resolution No. 2025-219, Resolution Opposing Town of Prescott Valley GPA 25-001 (APN 402-14-004)

https://www.dhaz.gov/DocumentCenter/View/5942/Resolution-2025-219-PV-GPA-25-001

Failed Inspections, Violations, and Citizen Complaints

Between 2019 and 2024, Arizona Department of Environmental Quality (ADEQ) identified Asphalt Paving & Supply, Inc. (AP&S) deficiencies and issued multiple Notices of Violations and Letters of Opportunity to Correct Deficiencies as follows:

09/12/2019 (NOV)- Failure to file ADEQ annual emissions inventory questionnaire for 2018.

10/06/2020 (NOC) - The crushing and screening spread was incorrectly permitted and does not qualify for the Crushing and Screening General permit.

11/17/2020 (NOC) - The results of the DOCS observations from emissions at the silo were 26.46% and 35% opacity which is above the permitted limits. Visual observations and the results of the DOCS observations confirmed that the facility was not operating the baghouse in a manner to control emissions. Visual observations and photos indicated emissions were from the pressure relief valve, which bypasses the baghouse and emitted directly into the atmosphere.

11/07/2023 (NOV) - Excessive dust was observed coming from the concrete batch plant. The concrete batch plant is not equipped with a baghouse. The Concrete Batch Plant is not listed in the facility's current permit.

ADEQ marked this violation as: A significant risk to any person, the public health, safety or welfare or the environment. Consent Order #A-02-24 was issued 1/29/24. The violations required the installation of a baghouse due to emissions violations as the mine operator failed to notify the State that they added concrete producing equipment.

Complaints filed by citizens are as follows:

08/21/2020 - Lots of noise and dust coming from site

09/28/2020 - Noise up to 60db and no water trucks seen to keep down dust

11/4/2020 - No water trucks observed in 4 weeks. Dust is bad and blows towards houses and cars covered in it.

Public Health and Safety Risks

Asphalt Paving & Supply, Inc. (AP&S), the mine operator, has indicated plans to excavate to depths of 50 to 100 meters and utilize blasting techniques. The proposed 4.5-mile haul road is expected to generate dust and airborne particulates as it traverses established residential areas and near Bradshaw Middle School.

The very nature of gravel quarry mining makes it inherently incompatible with nearby residential living as outlined below.

·        In addition to noise pollution and traffic dangers, mining activities release fine particles known as PM10 and PM2.5, which pose severe health risks, especially for children, seniors, and those with respiratory conditions.

·        Prolonged exposure can lead to asthma exacerbations, lung disease, and cardiovascular problems.

·        Borrow pits can negatively affect groundwater by allowing pollutants to enter, jeopardizing its cleanliness. Substances like chemicals, heavy metals, and sediments from the pits pose a risk of contamination.

·        Improperly managed gravel pits can pose significant environmental risks, notably leachate pollution in regions with shallow water tables.

·        Activities such as blasting and heavy machinery operation may induce vibrations capable of causing structural damage to nearby homes, schools, and infrastructure, which can lead to substantial repair costs and community inconvenience.

·        Rezoning to accommodate quarry development has the potential to pose significant health risks to residents who anticipate a secure and tranquil living environment.

Environmental Degradation

Listed below are a few of the environmental impact risks of gravel pit quarry mining. A comprehensive Environment Impact Assessment must be completed and made available to the public prior to the consideration of any new gravel pit site.

·        Safe drinking water is put at risk.

·        Quarries often penetrate deep into the earth, potentially disrupting aquifers and contaminating local water supplies with sediments, chemicals, and fuel spills.

·        The “open pit” quarry operation at Government Tank will alter the watershed, which typically captures storm water and directs it to the aquifer. Instead, runoff water may be redirected and drained to Lynx Creek, potentially reducing local well water sources and ultimately being directed into Lake Pleasant reservoir via channelization, where SRP would manage it.

·        Alluvial gravel pits can cause water quality issues by creating a pathway for surface pollutants to reach the groundwater, increasing the risk of contamination from chemicals, heavy metals, and sediments.

·        Altering local water levels and pH, disrupting groundwater flow, and introducing sediment that can increase turbidity.

·        Removing gravel can interrupt natural groundwater flow paths, which can alter local water levels and impact water availability.

·        Gravel mining results in habitat loss due to the removal of topsoil, trees, and vegetation, destroying habitats for birds, mammals, and pollinators essential to neighborhood biodiversity.

·        In addition to dust, volatile chemicals used in mining can further degrade air quality, compounding health, and climate issues.

·        The removal of vegetation and alteration of land contours increase runoff and soil erosion, heightening the risk of local flooding after heavy rains.

Introducing such hazards into spaces where families live and children play is unacceptable, especially when residential zoning was initially intended to precisely safeguard against these risks.

Decline in Property Values

Quarry pit mining proximity lowers property values, as studies show homes near mining sites sell for much less than those farther away. Buyers are put off by pollution, noise, and unattractive scenery, making it hard for homeowners to relocate. Mining prospects also discourage investment in community development, schools, and businesses, hindering growth.

Diminished Quality of Life

Community well-being should be central to land use decisions. Major Amendments to the General Plan that disregard this principle undermine public confidence.

·        In addition to economic considerations, rezoning areas for gravel quarries adversely affect residential environments by introducing ongoing industrial activity, which disrupts the tranquility of neighborhoods.

·        Activities such as outdoor recreation, gardening, and everyday enjoyment of one’s home may be impacted by increased noise, dust, and changes to visual landscapes. Studies indicate that living near a quarry is associated with elevated levels of anxiety and depression, particularly when residents perceive limited ability to safeguard their homes and families.

Zoning is meant to provide stability and predictability. If Major Amendments and mining can be granted at will, residents can no longer rely on these protections, leading to uncertainty, decreased civic engagement, and greater resistance to all change.

Precedent and the Slippery Slope

Once a residential area is compromised for one industrial purpose, it becomes easier to justify further incursions. Approving industrial zoning for gravel pit rock extraction establishes a problematic precedent for future quarry operations within town boundaries, potentially leading to ongoing related zoning considerations. Land Use zoning is highly dependent on “compatibility with adjacent uses”. Rezoning just “one” parcel can very well lead to rezoning the adjacent parcels, opening the door to further industrial incursions.

In a Town Staff Report dated November 10, 2025, from Stacy Bristow, Development Services Interim Director, in reference to the 2035 General Plan, she writes, “The change of this area to Industrial would allow for a variety of small-, medium- and large sized industrial and compatible office-and-support commercial uses that may be more intensive with Town approval.”  This cumulative effect can irreversibly transform once-thriving neighborhoods into industrial and commercial corridors and must not be allowed.

Disruption of Community Cohesiveness

The existing Stoneridge gravel pit operation vs. the new Government Tank location has pitted communities against each other. This is profoundly harmful as it fosters an environment of mistrust, animosity, and conflict. When communities are pitted against one another, it undermines social cohesion and disrupts the sense of unity that is essential for a harmonious society. Moreover, it weakens the collective strength of the community, making it more vulnerable to external threats and less capable of addressing shared challenges. Eventually, such divisions erode the social fabric, hinder progress, and impede the development of a peaceful and inclusive society.

Our Appeal

The Major General Plan Amendment and Zoning Map Change to rezone 40-acres for industrial gravel pit quarry mining does not align with the intent and spirit of the 2035 General Plan that was approved by voters. Nor does it comply with other listed requirements of the Town Zoning Code, and Arizona Revised Statutes, including ARS §13-2917, a public nuisance that is injurious to health and offensive to the senses and an obstruction to the free use of property that interferes with the comfortable enjoyment of life and property by a considerable number of persons.

The decision to find a new location for the gravel quarry, precipitated by Prescott Valley leadership, has resulted in significant disagreement and division. Tensions and anguish are heightened within the community, and it has divided local communities. The costs—public health dangers, environmental degradation, economic losses, water sustainability concerns, and damaged community spirit—dwarf any potential short-term gains.

For all these reasons, we adamantly oppose the rezoning proposal and urge its denial. Prescott Valley Citizens Alliance opposes all mining operations within Prescott Valley and the unincorporated areas within town boundaries. Opposing rezoning for gravel quarry mines in residential areas is not a stand against progress, but a stand for prudent stewardship. It is a defense of the right to a healthy, safe, and peaceful home environment.

Communities flourish when residents know their neighborhoods are protected and valued. Town Government and leaders must find other more acceptable solutions to this concerning issue.

We ask that the promise of residential zoning integrity be upheld and that Fain Enterprises, Inc., pursue other sustainable solutions outside of Prescott Valley boundaries.

Respectfully submitted,

Sandy Graham

Sandy Graham, on behalf of the PVCA Board of Directors