Southern Ariz. Home Builders Ass'n v. Town of Marana
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The Supreme Court held that the Town of Marana violated Ariz. Rev. Stat. 9-463.05 by assigning the entire cost of upgraded and expanded wastewater treatment facilities to future homeowners through development impact fees.
\Applying the Home Builders Ass'n of Central Ariz. v. City of Scottsdale, 187 Ariz. 479 (1997), the court ruled that the development impact fees bore a presumption of validity and that section 9-463.05 was satisfied because the development fees resulted in a beneficial use to the development. The court of appeals affirmed. The Supreme Court vacated the judgment of the court of appeals and reversed the trial court, holding (1) in applying section 9-463.05 as amended, the court of appeals erroneously applied from City of Scottsdale a presumption of validity to the Town's assessment of development fees; and (2) the Town violated section 9-463.05 by making future development bear 100 percent of the cost of acquiring the wastewater treatment facility and bearing nearly all of the cost of upgrading, modernizing, and improving the facility.
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