Winslow’s long-planned levee project will likely need to return to Congress for additional funding after updated cost estimates came in far higher than originally authorized, City Manager David Coolidge told the city council Tuesday night. The update came during the March 10, council meeting and highlighted both the scale of the project and the long timeline still ahead before the city could see relief from FEMA floodplain requirements that currently affect large portions of Winslow. Coolidge explained that the levee project was initially funded when it moved through the federal Infrastructure Investment and Jobs Act process, with a base allocation of about $101 million. With discretionary authorization, the maximum amount available under the current approval is approximately $140.6 million. However, updated engineering estimates completed last October placed the certified cost of the project at approximately $175.7 million. Because the estimated price now exceeds the authorized funding level, the project will eventually need to go back to Congress for reauthorization to secure the additional funding required for construction. Coolidge said the city cannot request that additional funding immediately because federal water infrastructure legislation is authorized on a two-year cycle. Winslow and Navajo County will likely have to wait until the next Water Resources and Development Act cycle in 2028 to request additional authorization. In the meantime, design and engineering work will continue so the project remains on track for a potential construction start in 2030. Coolidge clarified, “The project is not stopping, we’re continuing to work on it. It’s continuing to be designed and engineered for the purpose of going out to bid and beginning construction in 2030.” The city and county will also begin a value-engineering process in May to determine whether costs can be reduced enough to bring the project back within the current authorization. Coolidge said doing so would require cutting roughly $35 million from the estimated cost. Even under the current timeline, he said, construction would likely finish around early 2032 followed by about a year for federal recertification before FEMA floodplain maps could be updated. Following that recertification the burden of costly mandatory flood insurance will be lifted from Winslow residents. City Manager Coolidge also warned the council about legislation moving through the Arizona Legislature that could significantly affect municipalities, particularly a proposal that would freeze local utility rate increases. He said House Bill 4030 and its companion House Concurrent Resolution 2052 would place a moratorium on municipal fee and rate increases until June 30, 2030. “That one’s really scary for us,” Coolidge said. Coolidge said cities rely on adjusting utility rates to meet bond obligations tied to water and wastewater infrastructure and warned that without that flexibility municipalities could end up violating bond covenants and effectively defaulting on those obligations. Public concern about large-scale development in Winslow also surfaced during the call to the public portion of the meeting, where residents again raised questions about the possibility of data center development tied to the Atlas Global project south of the city. The issue has been gaining attention in recent meetings, including the previous council meeting where three residents spoke about the potential impacts of data centers. During Tuesday’s meeting, longtime resident Vicki Shaefer urged the council to be more transparent about whether a data center is being planned as part of the Atlas Global development. She said she reached out to council members after seeing a LinkedIn post from Atlas representative Dan Lupien that she believed suggested a data center project was already being discussed. “Several weeks ago, I emailed each of you after seeing a LinkedIn post by Dan Lupien strongly implied that a data center was already in the works for Winslow,” Shaefer said. “Not a single council member responded but the mayor did, stating she had no knowledge of the data center.” Shafer said she later contacted Atlas directly and was told that while no specific data center contract has been finalized, the concept remains part of the broader development vision. Atlas Global maps presented on the company’s website show large data center development slated for the area just south of the Southside neighborhood. The planned area development agreement governing the larger project allows up to 25% of the project site to be devoted to data centers. The agreement also places limits on water usage, stating that water consumption associated with data centers can never exceed 10% of the rate approved when the council signs off on those facilities. All water used for the project must pass through municipal infrastructure so the city can monitor usage. Shafer told the council she supports economic development but believes the public deserves clearer answers about what may ultimately be built in the area. “I’m asking for three things,” she said. “One, transparency. Please stop parsing your words apparently to avoid the topic of a data center. The citizens of Winslow deserve to know whether the contract with Atlas Global and what the development really entails. Two, a town hall. Hold an open public forum where residents can hear directly from city government and Atlas Global; we can ask questions and voice our concerns. Three, a clear position.” Council members did not respond during call to the public because Arizona open meeting law limits how elected officials can address topics raised by speakers that are not on the agenda. Later in the meeting, the council took up a zoning ordinance related to marijuana dispensaries. The ordinance proposed amending city code to allow drive-thru service at marijuana dispensaries. The item was initially listed on the consent calendar but was pulled for discussion by Vice Mayor Jim MacLean, who said he had concerns about the change. Coolidge explained the city’s current prohibition dates back to earlier state law that banned drive-thru marijuana service. Since then, the state has changed its policy to allow it but Winslow’s ordinance had never been updated. MacLean said he opposed allowing drive-thru marijuana service because of concerns about impaired driving. “In my opinion, allowing for drive through services to me, anything that would encourage or enable any kind of altered state while driving is not really wise,” he said. Mayor Roberta Cano argued that marijuana is often used for legitimate medical reasons and that drive-through access would be a benefit to pharmacies generally, including a potential dispensary. Coolidge added that one marijuana corporation interested in opening a dispensary in Winslow has a drive-thru component as part of its business model and would be more likely to move forward if the city code is updated. The council ultimately approved the ordinance, bringing Winslow’s code into alignment with state law and allowing dispensaries to operate drive-through service if they locate within the city. Immediately afterward, the council conducted its annual review of the city’s marijuana regulations and determined that no additional changes were needed. In other business, the council: * Approved an intergovernmental agreement establishing mutual aid for emergency assistance with the following agencies: Holbrook Fire Department, Holbrook Volunteer Fire Department, Holbrook Police Department, Holbrook EMS, Winslow Fire Department, Winslow Police Department, Action Medical, Sun Valley Fire Department, Navajo County Sheriff’s Office, Navajo County Emergency Management, Arizona Department of Public Safety, Arizona Department of Forestry and Fire Management, Arizona State Fire Marshal, Guardian Air, Air Methods/Native Air, Tri-R Towing, Puerco Valley Fire District and Blue Ridge Fire District. * Approved an ordinance allowing food trucks to remain in commercially zoned areas for more than 96 hours. * Approved abandoning a city owned parcel of land at the intersection of Desmond Street and North Park Drive measuring 0.166 acres to Circle K Stores, Inc.
