Ariz. Rev. Stat. § 28-7048 – Lease of areas above and below highways; exceptions

A. The director may lease to any public agency, as defined in section 11-951, or to a private person or entity the use of areas above or below state highways, subject to reservations, restrictions and conditions the director deems necessary to assure adequate protection of the safety and integrity of highway facilities and to secure the safety of motorists. Before entering into the lease, the director shall:
1. 1. Determine that the proposed use by a lessee is not in conflict with the zoning regulations of the local government concerned.
2. 2. Make the lease pursuant to procedures prescribed by the board.
3. 3. Make a lease with a private person or entity only after competitive bidding.
B. The transportation board may reject any or all bids or call for additional bids if in the opinion of the board the bids submitted are not in the best interest of this state. The board shall not accept a bid that does not yield at least a fair rental value for the property to the state highway fund.
C. The department shall deposit, pursuant to sections 35-146 and 35-147, the revenues derived from the leases in the state highway fund.
D. The authority granted to the director by this section does not include the right to lease public rights-of-way to public service corporations, and this section does not affect any rights of public service corporations to use public rights-of-way or to obtain permits or easements associated with public uses of public rights-of-way.
E. This section does not apply to the use of highway rights-of-way for telecommunication facility installation pursuant to article 14 of this chapter.