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Data centers may be the backbone of the digital economy, but getting them approved on the ground is anything but seamless. In this episode, we unpack the growing tension between surging demand for data infrastructure and the realities of local zoning and land use regulation—where megawatts meet municipal code.
From intensive utility demands and transmission constraints to water usage concerns, noise, and community skepticism, data center projects often face a uniquely complex entitlement path. We explore why jurisdictions are grappling with how to classify and regulate these facilities, and how outdated zoning frameworks struggle to keep pace with hyperscale development.
We also dig into the politics: why neighbors push back, how elected officials respond, and what it takes to position a project as compatible—even beneficial—to the surrounding community. Along the way, we break down practical strategies for navigating rezoning, securing use permits, and building a defensible record that can withstand scrutiny.
Whether you’re a developer, land use attorney, planner, or policymaker, this episode offers a candid look at the friction points—and opportunities—shaping the future of data center siting.
The pursuit of land use entitlements comes with risk. For partners Adam Baugh and Jason Morris, the risk was worth the reward as they converted a local bar into a swanky law office complete with a putting green and a speakeasy. The redevelopment of this 40-year-old building is a masterclass in adaptive reuse execution. Said best, “I’m sure the sports bar served better wings, but we dispense way better advice.” Join us in the journey of this office flip.
By Adam Baugh
AI is having a moment in commercial real estate—and like most “next big things,” it’s being oversold in some rooms and underutilized in others. For those of us working in land, zoning, and development across Arizona, the reality sits somewhere in the middle: AI is a powerful tool, but it’s not a substitute for judgment, experience, or local knowledge.
Let’s start with what it does well.
AI can meaningfully compress timelines in the due diligence phase. Tasks that used to take days—reviewing title reports, summarizing leases, pulling comps, or scanning municipal code—can now be done in a fraction of the time. In fast-moving submarkets like Phoenix, that matters. Speed can be the difference between getting a deal under contract or explaining to your client why someone else did.
It also improves the front end of decision-making. AI can ingest large datasets—demographics, absorption trends, infrastructure plans—and surface patterns that might otherwise go unnoticed. That’s useful in site selection and early underwriting, where you’re trying to answer a basic question: “Is this worth chasing?” The ability to run multiple scenarios quickly—adjusting rents, costs, or exit assumptions—adds another layer of discipline to the process.
And there’s a cost component. By automating repetitive work, AI can reduce reliance on outside consultants for initial screening and analysis. That doesn’t eliminate the need for lawyers, engineers, or planners—but it does allow teams to focus those resources where they add the most value. For smaller developers working in places like Mesa or Glendale, that can help level the playing field.
But let’s be clear about the limitations.
AI is only as good as the data behind it. If the inputs are incomplete, outdated, or just wrong, the output will be too—only faster and with more confidence. That’s a real risk in Arizona, where entitlement processes, zoning interpretations, and even political dynamics can vary significantly from one jurisdiction to the next.
More importantly, AI struggles with nuance. It doesn’t sit in pre-application meetings. It doesn’t read the room at a neighborhood meeting. It doesn’t know when a project that works on paper is going to run into resistance because of traffic concerns, school capacity, or a council member’s priorities. Those are the realities that shape outcomes here, and they don’t show up cleanly in a dataset.
There are also legal guardrails. AI can flag issues in contracts or title documents, but it doesn’t replace legal analysis. Real estate deals often hinge on small details and context—things that require interpretation, not just pattern recognition.
The bigger concern, frankly, is over-reliance. There’s a tendency to treat AI outputs as answers instead of inputs. That’s a mistake. In land and development, a bad assumption early in the process doesn’t just stay on a spreadsheet—it gets capitalized into the deal.
The takeaway is straightforward. AI is a force multiplier. It can make good teams faster and more informed. It can help you screen more opportunities and spend time where it counts. But it won’t entitle your project, it won’t build community support, and it won’t make the hard calls for you.
In Arizona, where local context drives so much of the outcome, the winners won’t be the ones who rely on AI the most—they’ll be the ones who use it well.
In this episode, we break down the concept of proportionality appeals in the land use context and why they have become an increasingly important tool for developers and property owners. When cities and towns impose conditions on development approvals—whether through exactions, infrastructure requirements, or other mitigation measures—the law requires those conditions to remain proportional to the impacts of the project.
Drawing on the U.S. Supreme Court’s landmark decisions in Nollan v. California Coastal Commission and Dolan v. City of Tigard, we explore the constitutional limits on government exactions and how the principles of “essential nexus” and “rough proportionality” shape local land use decisions. We also discuss how those standards apply when challenging permit conditions and what developers should consider before filing a proportionality appeal.
Whether you are a developer, planner, municipal official, or land use attorney, this episode offers practical insights into when a condition crosses the line—and how proportionality appeals can help restore balance between legitimate public interests and private property rights.
Tune in as we unpack the legal framework, real-world implications, and strategic considerations behind one of the most important doctrines in modern land use law.
Changing the status quo can be hard for neighbors to accept, and it often drives NIMBY reaction to new development. Smart developers know the value of hiring a Neighborhood Outreach Specialist. Hear how Tom Bilsten navigates community outreach and makes it an early step for development success.
This article originally appeared on AZ Big Media.
As Arizona continues to experience sustained population growth, shifting capital markets, and evolving municipal priorities, land use entitlement strategies are becoming more nuanced—and more critical—than ever. Based on trends we are seeing across jurisdictions statewide, here are six land use and development predictions likely to shape Arizona in 2026.
Cities and towns will place greater emphasis on water availability, power delivery, and roadway capacity at the entitlement stage. Developers should expect more detailed conditions related to off-site improvements, utility coordination, and phased development triggers—particularly for industrial, data centers, and large-scale residential projects.
PAD zoning will remain the preferred entitlement vehicle for complex or mixed-use projects. Municipalities value the flexibility PADs provide, while still allowing cities to negotiate design standards, buffering, and phasing. In 2026, we expect PADs to be used not just for innovation, but as a baseline entitlement approach for larger projects.
Public opposition—whether well-founded or not—continues to influence entitlement timelines. Cities are increasingly encouraging (and sometimes informally requiring) enhanced neighborhood outreach prior to hearings. Developers who invest early in clear messaging and factual responses will gain a meaningful advantage.
Rather than broad upzoning, municipalities are focusing density in strategic locations—near freeways, employment centers, and commercial corridors. Projects that clearly demonstrate compatibility, transitions, and infrastructure readiness will be best positioned to secure higher densities.
While the state legislature has been working to accelerate municipal review times, the entitlement process is not getting simpler. Jurisdictions are strengthening up their Administrative Reviews before they start their formal, substantive reviews. Other cities are requiring more information upfront (e.g. traffic study approval) before you can even apply. In Mesa, AZ, city staff is proposing changes to the code that make site plan amendments more uncertain (and longer delayed) by granting council oversight which is seemingly contrary to new laws adopted by the legislature in 2025. Add in a little more NIMBY-ism and voila…your entitlement case just became my kids’ college funding plan.
In 2026, the gap will widen between well-prepared entitlement applications and those that attempt to run cases solo, or attempt to resolve issues during public hearings rather than before submittal. The sifting of projects will set apart applications professionally managed by local land use counsel.
Bottom Line: Successful development in 2026 will depend just as much on pushing entitlement limits as it does by aligning with adopted plans, infrastructure realities, and community expectations. Strategic zoning, early coordination, and disciplined messaging will remain key to securing approvals across Arizona.
Author: Adam Baugh is a land use and zoning attorney and partner at Withey Morris Baugh. He is an experienced problem-solver with a talent for removing obstacles that impede development.
Boys love their toys…but where can you put them? Jason Phillips at Wesley Development cracked the code in the development of the Toy Barn, a luxury storage condo project meant for all your biggest toys.
Recent shootings and other public discord have affected us all. How do we disagree better? County Supervisor Mark Stewart and former Councilwoman Kathy Tilque still have hope.
Turning dirt to development is hard enough, but try converting a golf course into a new subdivision and the whole world loses their mind. Against all odds, the impossible became possible over a three-year slog. As the saying goes, where there is a will, there is a way.
This article originally appeared in the Phoenix Business Journal.
A proposed 422,000-square-foot data center and office campus in Chandler’s South Price Road Corridor will move ahead for city approval, despite concerns raised by Chandler planning staff that the envisioned project does not meet land use needs for the area.
The developer, New York-based Active Infrastructure, has proposed a Price Road Innovation Campus on a 40-acre property located at 3380 S. Price Road in Chandler.
The Chandler Planning and Zoning Commission heard a rezoning request and preliminary development plan Oct. 15, after city staff recommended denial of the project.
However, following a discussion that exceeded two hours, the commission voted 5-1 to recommend that City Council approve the proposed rezoning and development plan project at its Nov. 13 meeting. The commission added stipulations including a redesigned site plan layout that creates a more “campus-like environment” using the site’s water feature as a campus focal point.
Rick Heumann, chairman of the planning commission, cast the lone vote against the measure.
The proposed campus includes an artificial intelligence data center and five buildings for offices and research and development. The additional buildings do not yet have confirmed tenants.
The Oct. 15 planning meeting included comments from attendees in favor of and against the proposal. Former U.S. Sen. Kyrsten Sinema, now the president and CEO of the Arizona Business Roundtable, spoke at the meeting in favor of the project.
“I would urge Chandler to approach the AI revolution the way you approached the semiconductor revolution,” she said. “Think about tomorrow, three years, five years down the road. Not the language from 10 years ago, which didn’t even encompass the idea of the AI technology that we face today.”
The data center site selected by Active Infrastructure has sat vacant since 2019, and a 369,000-square-foot building on the property is unoccupied.
The corridor has been planned as a major employment hub for the city since 1982, said David de la Torre, planning manager for Chandler. Major employers in the area include Intel, Wells Fargo, Northrop Grumman and Iridium.
Growth policies for the area are focused on reserving the corridor for knowledge-based industries and preserving and expanding campus-like environments.
“Staff finds that data centers provide significantly lower numbers of jobs after construction is complete compared to the high-value employment industries that are targeted for the corridor,” de la Torre said.
Knowledge-based industries include technology, biomedical, aerospace and renewable energy, he said.
A nearby city-operated water reclamation plant causes a stench at the site, de la Torre noted, which can be mitigated with the right configuration of buildings on the site.
Adam Baugh, a partner with Phoenix-based Withey Morris Baugh PLC and representative for the developer, told the commission that the project is much more than its proposed data center.
The campus is projected to be a $2.5 billion investment that will create more than 1,200 construction jobs and more than 700 permanent jobs, he said.
“We’re bringing modern technology that drives new industries and uses to this area, that create the jobs that you’re looking for,” he said.
The campus is proposed to be constructed in three phrases. The first includes the data center and a 50,000-square-foot office building.
The second phase includes construction of two additional 42,000-square-foot buildings, and the third phase will be construction of a 66,000-square-foot building and a 71,000-square-foot building.
“The 9-acre data center here unlocks the remaining 31 acres of this property,” he said, adding that the envisioned data center is the kind that will attract industries to bring new operations into the area.
“You’re not getting just a data center. You’re getting a significant degree of employment on the remaining property. But if I don’t have a data center, I can’t deliver the other buildings.”
Part of the potential development agreement is a stipulation that the developer will cover the cost of failing to attract new jobs to the site, in part through annual payments if construction deadlines are not met.
Rich Zacher has nine (development) lives. Listen as we go down memory lane with one of our favorite guests.
Every superhero has an origin story and so do our zoning attorneys. Whether begging for a job, stalking your future employer, or asking your mom to make an intro…it requires creativity to launch a coveted zoning career. Listen as we reflect back on starting a career in land use and zoning law.
This article originally appeared in Az Business Magazine’s WESTMARC Supplement.
Anyone who’s played Jenga knows that one shaky or misplaced wooden block can send a tower tumbling down. The right pieces in optimal places, however, can build solid, high-reaching structures. The West Valley has long recognized and prepared for exponential growth throughout the region. Much like players in a Jenga game, infrastructure, transportation and housing must all work in tandem to support expansion, and West Valley leadership is playing a steady game.
Alex Pollack created a data-driven analytical approach to contracting. Could it be useful in land use entitlements?
Referendum laws are designed to empower citizens by allowing them to challenge legislative decisions through a public vote. However, in recent years, these laws have been increasingly misused by out-of-state union groups as a tool to block zoning changes and halt new developments. This trend has raised concerns that referendum laws are being weaponized to obstruct economic development rather than serve as a check on government power. Listen in as this experience plays out in real time with VAI Resort.
This article originally appeared in Gilbert City Lifestyle.
For Adam Baugh, building relationships rooted in likability and trust is the foundation of success – in business, community, and life. A dedicated Gilbert resident and attorney, Adam’s journey into civic leadership began when he joined the boards of the Gilbert Chamber of Commerce. Those roles opened the door to meaningful connections and inspired a deeper commitment to community engagement.
Anatomy of a zoning case Part 3: Building a winning strategy during the entitlements phase.
Arizona’s House Bill 2447 takes effect on December 31, 2025, and it’s set to reshape how cities and towns handle site plan and development reviews.
Under the new law, municipal staff must review and approve certain development applications—like site plans, plats and design reviews—administratively, without a public hearing. The law requires that municipalities adopt objective standards for review, which must be clearly defined, measurable, and free from personal interpretation.
When the development process is fraught with uncertainty, relying on strategic relationships can help you avoid unforeseen pitfalls. Listen as Scott Isham, Chief of Staff for Maricopa County District 4 Board of Supervisors, helps guide development to a Yes…and shows us how to be a big time movie star.
Turning the desert into a $7 billion development project is no easy task. Billed as a “city within a city,” Halo Vista will feature 2,300 acres, 28 million square feet of mixed-use development capacity, and up to 8,960 residential units as well as industrial, retail, and office spaces. Craig Henig of Mack Real Estate Group joins us as we discuss how this truly is a story of dirt to development.
The path from dirt to development is evolutionary. Some doors close while new ones open. Hear Shelby Duplessis’s story from engineer to developer, to motivating female empowerment.
This article originally appeared in the Arizona Republic.
A tool that was once nearly unheard of in opposing development has become so common in Arizona that some zoning attorneys are telling their clients to delay closing on their land until the threat has passed.
A decade ago, organizing enough opposition to force a controversial zoning decision to go to the ballot was reserved for only a few of the most high-profile cases.
2024 was a riot. No really…some of our cases caused a riot. Recapping 2024 with our good friend Matt Mancini, Partner at 3 Engineering.
This article originally appeared in Dwell.
It’s been two years since Culdesac Tempe, the self-proclaimed “first car-free neighborhood in America,” opened with a goal of making walkability its centerpiece. With the first phase finished last year, the high-profile development continues to unfold on a 17-acre site along a light rail line in an established neighborhood about 15 miles east of downtown Phoenix. The $200 million project now includes 288 apartment units with about 300 tenants, reeling residents in with appeals of a healthier, more eco-friendly lifestyle, built-in community with ample amenities, and accessible transit to Tempe and the greater metro area.
Anatomy of a Zoning Case Pt. 2: Building an effective neighborhood outreach campaign.
Find out why getting your zoning attorney and civil engineer on the same page is a game-changer for any project. We’re breaking down how teamwork between these pros can save time, cut headaches and keep things moving smoothly. With Darrell Wilson of Colliers Engineering & Design.
Anatomy of a zoning case Part 1: Don’t sleep on the pre-filing strategy.
This article originally appeared in the Phoenix Business Journal.
The city of Glendale has paved the way forward for the $1 billion VAI Resort.
Glendale’s City Council unanimously approved a zoning case for the nearly 70-acre development at its Nov. 26 meeting without discussion.
The approvals included rezoning 66 acres to an updated planned area development that will support the resort’s plans. That will replace the Centerpoint PAD that was approved in 2020.
Council also updated the city’s general plan to designate 10 acres owned by the VAI Resort for commercial uses. Read more...
Making news is our jam, and the Phoenix Business Journal is your insider’s guide to the world of development. Join us as we navigate the crossroads of land deals and breaking news —because in our world, even dirt has a story to tell.
From band camp to development junkie…with Jason Larson of IDM Companies. How a random encounter at Disneyland led to an unexpected and successful career in land development.
More than 200 attendees made their way to south Phoenix’s Desert Willow Conference Center Wednesday for the 2024 BEX Private Development Summit.
While Desert Willow was a new venue, event attendees were treated to the same diversity of topics, panelists and data they have come to expect from a BEX industry conference.
Ten years ago, many people made the West Valley their second, third or fourth choice when locating businesses and development, according to Jason Morris, founding partner of Withey Morris Baugh.
“Clearly, a decade later, we see it as the No. 1 choice in many categories,” Morris says. “This is due in large part to major infrastructure projects which created the backbone for successful development.
In addition, the population growth, education choices and significant employers really shifted people’s perceptions.”
Buckeye Mayor Eric Orsborn recounts a 2015 story that perfectly illustrates how the perception of the West Valley has dramatically evolved in less than a decade.
“Then-Phoenix Mayor Greg Stanton was celebrating an investment the City of Phoenix was making in Buckeye,” Orsborn recalls. “Mayor Stanton said, ‘One day, we’re all going to be suburbs of Buckeye.’ And everyone laughed because — at that time — it was funny to hear the mayor of Phoenix say something like that.”
But Buckeye might get the last laugh.
It’s hard to think of anyone who has made a more distinctive mark on land use development and master planning in Arizona than John Graham. From the creation of Valley Partnership to McDowell Mountain Ranch and many more, John’s fingerprints and projects are seen across Arizona. Enjoy lessons from an industry scion.
Insight and perspective from an excellent civil servant – former Mayor, business executive and state leader – Jenn Daniels.
2024 legislative update on housing bills, resignations, and Adam messes up another word…again!
This article originally appeared in AZBEX.
There’s nothing fast, cheap or easy about bringing a development project from concept to completion. From choosing a site, to designing to project, assembling a development team, procuring approvals and permits, assembling financing, et cetera, there are countless challenges and speed bumps to delay progress and add to costs before the build team turns the first shovel of dirt.
This article originally published in the Phoenix Business Journal.
An abandoned golf course at the southeast corner of 59th and Southern avenues in Phoenix’s Laveen Village could get a new lease on life, after years of intense talks between the property’s owner and community residents.
“It’s not fair to call it a golf course,” said Adam Baugh, zoning attorney and partner at Withey Morris Baugh PLC. “There are very few trees, all the golf carts were stolen and the clubhouse is in disrepair. All that occurred before my guy bought it.”
Why does it feel like every good development project gets stalled by city traffic departments? Don’t let your projects get backed up. If you want approvals, you need to hire the best traffic engineers early. Listen as Dawn Cartier, president of CivTech, and Sarah Simpson, president of United Civil Group share their insight in this lively conversation.
Digital streaming, online computing, and AI technology have dramatically changed the way we store data and design modern industrial buildings. Jackie Orcutt from CBRE shares how it has changed her land brokerage practice…and Adam reveals his mastery of the English language.
This article originally appeared in the Phoenix Business Journal.
proposed luxury apartment community just east of Biltmore Fashion Park that has met steep opposition is a step closer to being built after some design changes.
The Camelback East Village Planning Committee unanimously approved a 60-unit apartment community — taking up a smaller footprint than the original proposal — to be built at the Camelback Lakes office complex on the north side of Camelback Road.
A proposal to replace an underutilized parking garage is expected to be heard by Phoenix City Council in June, said Jason Barclay Morris, zoning attorney for Withey Morris Baugh PLC.
This article originally published in the Phoenix Business Journal.
About 240 acres is being set up for a sprawling industrial and manufacturing campus in Queen Creek.
Located east of Phoenix, the large property is currently operating as a plant nursery at the southeast corner of Crismon and Germann roads.
The longtime property owner and operator, the Vlachos family of V&P Nurseries, is in the process of adding to the existing industrial zoning on the site to allow for the development of a major manufacturing park with varying building heights.
Read more…
Two of our favorite City Managers – Patrick Banger and Kevin Phelps – share why Glendale and Gilbert are some of our favorite places to develop.
What should you do when your use is allowed and the municipality doesn’t want it? A huge mistake is assuming the zoning clears the path to develop. Even when zoned, obstacles may still exist with city staff, local politicians, and the process. Here are our suggestions.
We found some surprising nuggets sitting down with Connor Devereux of CoStar Group in recapping the 2023 year and development sector trends.
Looking back on some of the highlights (and absurdities) from the World of Zoning in 2023, along with Santa’s zoning wish list for 2024.
Could Accessory Dwelling Units (ADUs) be the key to solving Arizona’s housing shortage? Jared Amzallag and Zander Diamont of Minimal Living Concepts discuss their challenge-laden journey to build simple, modern accessory units to meet a variety of lifestyle needs. The result is seamless, all-in-one solutions for their clients.
This article originally published in the Phoenix Business Journal.
Paradise Valley Town Council has given the green light for a new look to a boutique hotel.
Scottsdale-based Walton Global Holdings LLC received unanimous approval Jan. 11 for a special-use permit to move forward with its redevelopment of the Smoke Tree Resort.
Walton will now move forward “as fast as possible” with the demolition of the 5-acre site on the southwest corner of Scottsdale Road and Lincoln Drive. Walton will rebuild the site into an 82-room resort that will include an on-site restaurant, cocktail bar and café as well as a spa and resort-style pool. The main building will have 77 of the hotel rooms while the other five will be in single-story casitas. Plans also call for an underground parking garage.
This article originally appeared in the Phoenix Business Journal.
The buildout of one of the largest pieces of land left to be developed in Gilbert’s Heritage District could be spaced out in phases.
Heritage Park, a nine-building, mixed-use development planned by Phoenix-based developer Creation Equity, is headed back to Gilbert Planning Commission on Jan. 3 for minor design revisions and possibly a new timeline.
The project, reported to cost around $300 million, received approval in early 2022 to be developed in a single phase across nearly 12 acres on the southwest corner of Juniper Avenue and Gilbert Road. Creation has since filed updated plans that split the timeline over two phases.
Pivotal Group has moved forward with plans to build an office-retail village in Phoenix with several changes in its latest version.
The locally based developer was endorsed by the city’s Planning Commission to build The Central Park, an 18-acre office campus with shops, restaurants and homes at Central Avenue and Indian School Road, between Midtown and Uptown, the Phoenix Business Journal reported. It would replace a vacant lot.
Stay informed and up-to-date on the latest developments in land use and zoning law with insights and analysis from our experienced team of attorneys.
Read Our Blog