Arizona Revised Statutes

Ariz. Rev. Stat. § 9-515 (2026)

Purchase of existing utility plant and property; valuation; appeal

✓ current as of May 2026
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A. When a municipal corporation and the residents thereof are being served under an existing franchise by a public utility, the municipal corporation, before constructing, purchasing, acquiring or leasing, in whole or in part, a plant or property engaged in the business of supplying services rendered by such public utility, shall first purchase and take over the property and plant of the public utility.

B. The property and plant shall become the property of the municipal corporation upon payment by the municipal corporation of the fair valuation thereof within eighteen months after the determination of the valuation in the manner hereinafter provided.

C. The fair valuation of the public utility shall be the equivalent of the compensation to be paid for the taking of private property for public use as provided by article 2, chapter 8 of title 12, and the amount shall be determined by one of the following methods:

1. By agreement between the municipal corporation and the public utility.

2. By arbitrators chosen in a manner agreed upon at the time by the municipal corporation and the public utility.

3. By a court of competent jurisdiction determining the compensation for the taking of private property for public use as provided by article 2, chapter 8 of title 12.

D. The municipal corporation and the public utility shall have right of appeal as provided by article 2, chapter 8 of title 12.

Notes of Decisions
Cited in 11 cases, 1962–2019 · leading case: City of Surprise v. acc/lake Pleasant, 437 P.3d 865 (Ariz. 2019).
City of Surprise v. acc/lake Pleasant, 437 P.3d 865 (Ariz. 2019). · cites it 8× “Section 9-515(A) provides that before “constructing, purchasing, acquiring or leasing” a facility for customers who are already served by a public utility, the municipality “shall first purchase and take over the property and plant of the public utility.”
Town of Marana v. Pima Cnty., 281 P.3d 1010 (Ariz. Ct. App. 2012). · cites it 11× “” ¶ 25 In response, the Town first argues that the County failed to raise any argument regarding A.R.S. §§ 9-515 and -516 in the superior court and these claims are therefore waived.”
City of Casa Grande v. Arizona Water Co., 20 P.3d 590 (Ariz. Ct. App. 2001). · cites it 9× “Is this condemnation action subject to the requirements of § 9-5 lj? ¶ 14 The City alternatively argues that, even if § 9-514 generally applies, the statute is inapplicable to this situation because it undertook the condemnation under the authority of either A.R.S. § 9-515 or §…”
Sende Vista Water Co., Inc. v. City of Phoenix, 617 P.2d 1158 (Ariz. Ct. App. 1980). · cites it 7× “When a municipal corporation and the residents thereof are being served under an existing franchise by a public utility, the municipal corporation, before constructing, purchasing, acquiring or leasing, in whole or in part, a plant or property engaged in the business of…”
Spencer D. Stewart, Et Ux. v. Comm'r of Internal Revenue, 714 F.2d 977 (9th Cir. 1983). · cites it 2× “” Ariz.Rev.Stat.Ann. § 9-515 (1977) 3 . This sum may be determined in *980 three ways: by agreement between the city and the utility; by arbitrators agreed upon by both; or by a court in a condemnation proceeding.”
City of Mesa v. Salt River Proj. Agric. Improvement & Power Dist., 373 P.2d 722 (Ariz. 1962). · cites it 2× “§ 9-522 authorizes the acquisition by the exercise of eminent domain of a utility undertaking or a part thereof subject to the requirements and restrictions of A.R.S. §§ 9-515 through 9-518. A utility undertaking is defined by A.”
Arizona Water Co. v. City of Bisbee, 836 P.2d 389 (Ariz. Ct. App. 1991). · cites it 6× “It then moved for partial summary judgment. At the hearing, the city made an oral motion for summary judgment, which the trial court later granted.”
City of Phoenix v. McCullough, 536 P.2d 230 (Ariz. Ct. App. 1975). · cites it 2× “Subject to the requirements and restrictions of §§ 9-515 through 9-518 ... acquire, by ..”
Desert Waters, Inc. v. Superior Court, 370 P.2d 652 (Ariz. 1962). “Subject to the requirements and restrictions of §§ 9-515 through 9-518, within or without its corporate limits, * * * acquire, by gift, purchase or the exercise of the right of eminent domain, a utility undertaking or part thereof, and acquire in like manner, rights in land or…”
Spencer D. & Mary Jane Stewart v. United States, 739 F.2d 411 (9th Cir. 1984). “Ariz.Rev.Stat.Ann. § 9-515 (1977). Had negotiations been unsuccessful, the City would have condemned the property.”
Copper Country Mobile Home Park v. City of Globe, 641 P.2d 243 (Ariz. Ct. App. 1981). “Subject to the requirements and restrictions of §§ 9-515 through 9-518, within or without its corporate limits, construct, improve, reconstruct, extend, operate, maintain and acquire, by gift, purchase or the exercise of the right of eminent domain, a utility undertaking or part…”
— Ariz. Rev. Stat. § 9-515(A) — 2 cases
Town of Marana v. Pima Cnty., 281 P.3d 1010 (Ariz. Ct. App. 2012). “” ¶ 25 In response, the Town first argues that the County failed to raise any argument regarding A.R.S. §§ 9-515 and -516 in the superior court and these claims are therefore waived.”
City of Surprise v. acc/lake Pleasant, 437 P.3d 865 (Ariz. 2019). “Section 9-515(A) provides that before “constructing, purchasing, acquiring or leasing” a facility for customers who are already served by a public utility, the municipality “shall first purchase and take over the property and plant of the public utility.”
— Ariz. Rev. Stat. § 9-515(C) — 1 case
City of Surprise v. acc/lake Pleasant, 437 P.3d 865 (Ariz. 2019). “Section 9-515(A) provides that before “constructing, purchasing, acquiring or leasing” a facility for customers who are already served by a public utility, the municipality “shall first purchase and take over the property and plant of the public utility.”
— Ariz. Rev. Stat. § 9-515(C)(3) — 1 case
City of Surprise v. acc/lake Pleasant, 437 P.3d 865 (Ariz. 2019). “Section 9-515(A) provides that before “constructing, purchasing, acquiring or leasing” a facility for customers who are already served by a public utility, the municipality “shall first purchase and take over the property and plant of the public utility.”
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