2005 Arizona Revised Statutes - Revised Statutes §28-7701 Agreements with private entities; limitations
A. The department may request competing proposals from private entities by advertising as prescribed in section 28-6923 and may enter into written agreements with private entities relating to both of the following:
1. The construction of transportation facilities by private entities.
2. The lease of transportation facilities constructed pursuant to this article by the department to private entities.
B. To facilitate the development of transportation facilities, the agreements with private entities prescribed in subsection A of this section may provide for any of the following:
1. The lease of state highway rights-of-way.
2. The lease of airspace over and under state highways.
3. The granting of easements of necessity.
4. The issuance of permits or other authorization for the private entities to construct transportation facilities supplemental to existing state transportation facilities.
C. An agreement with a private entity entered into pursuant to this section shall provide for all of the following:
1. State ownership of the transportation facility constructed by a private entity.
2. Lease of the transportation facility to the private entity for a period mutually agreeable to the department and the private entity.
3. Notwithstanding section 28-7094, reversion to this state of the transportation facility constructed by the private entity after the expiration of the lease at no expense to this state, as consideration for the lease granted by this state.
4. Reimbursement by the private entity to the department or any other state agency for costs incurred after the written agreement is finalized, including the costs of planning, environmental impact assessment, design, maintenance, police services and any other service rendered.
5. Authorization for the private entity to impose and collect tolls for the use of a transportation facility constructed by the private entity.
6. During the term of the lease, the private entity shall apply toll revenues to:
(a) Capital outlay costs for the transportation facility plus interest and principal repayment for any debt incurred.
(b) Costs associated with operations, toll collection and administration of the facility.
(c) Payment to this state for reimbursement of the costs of maintenance, police and other services if these services are performed by this state pursuant to the written agreement with the private entity.
(d) A reasonable return on investment to the private entity.
D. The board shall not approve more than two proposals under this article.
E. On negotiation of an agreement pursuant to this section, the department shall make a copy of the agreement available at a public hearing at a location convenient to the private entity's project and for at least fifteen days before the public hearing. The notice of the public hearing shall be published in a newspaper that has a circulation of at least fifty thousand copies and that is regularly distributed in the county or counties in which the private entity's project is located. The notice of the public hearing shall announce the availability of the agreement and where a copy of the agreement may be obtained or reviewed and shall state that comments may be submitted in writing to the department within thirty days of the availability of the agreement. The department may revise or renegotiate the agreement based on the public comments it receives.
F. After compliance with subsection E of this section, the board may give final approval to the project, project design, connections of the roadway and agreement prescribed in this section and may authorize the director to execute the agreement. The department shall make the agreement submitted for the board's final approval available to the public and shall give public notice of the availability of the agreement at least fifteen days before the meeting of the board at which the approval will be considered. The public notice shall be published in a newspaper that has a circulation of at least fifty thousand copies and that is regularly distributed in the county or counties in which the private entity's project is located and shall specify where a copy of the agreement may be obtained or reviewed.