Oro Valley Council Moves Quickly To Close Data Center Zoning Loopholes

Council votes to expedite changes to the Town Code
The Oro Valley Town Council voted 6-0, with one abstention, on October 7 to begin an expedited process to amend the Town's zoning code to prevent data centers from being permitted automatically in any zoning district. The action follows concerns that existing zoning provisions might allow data centers without specific regulations governing their development. As LOVE reported earlier this week, Oro Valley currently lacks development regulations written specifically for large-scale data centers.

Barrett seeks immediate action to close potential loopholes
Vice Mayor and Mayor-elect Melanie Barrett, who requested the agenda item with Mayor Joe Winfield, said she had become aware of possible loopholes in the Town Code that could allow data centers in several zoning districts. She compared the situation to the recent Board of Adjustment proceedings involving the interpretation of existing zoning provisions. Barrett also indicated that there might already be parties interested in pursuing data center development under the current code. She urged Council to act quickly, preferably before the current Council leaves office, to prevent developers from taking advantage of potential ambiguities.

A two-stage approach to regulating data centers
Barrett proposed addressing the issue in two stages. The first would clarify that data centers are not permitted by right in any Oro Valley zoning district. This means a developer could not rely solely on existing zoning permissions to establish a data center. The second stage, which Barrett suggested leaving to the incoming Council, would involve a more comprehensive review of potential regulations addressing noise, water consumption, electricity demands, and other impacts. She also suggested following similar regulatory efforts underway in Tucson and Pima County.

Council establishes an aggressive timetable
Barrett's motion directs that the Planning and Zoning Commission hold a special meeting on or before October 27, followed by a special Town Council meeting on October 28 to consider the proposed amendment. The motion also calls for a temporary moratorium on data center development to the extent legally possible while the review proceeds. Councilmember Murphy seconded the motion, which passed with six votes in favor and one abstention. Following the vote, staff raised concerns about meeting the required public notification deadlines, including notifying property owners in the C-1, C-2, and Technological Park zoning districts. The Council did not change the schedule.

The decision does not permanently prohibit data centers
The Council's action begins the process of changing the Town Code. It does not immediately establish new zoning restrictions or permanently prohibit data centers in Oro Valley. Rather, the proposed amendment would prevent data centers from being permitted automatically under existing zoning classifications. Whether the Town should eventually allow such facilities, where they might be located, and what development standards should apply remain questions for future consideration.

Oro Valley moves to establish the rules before development proposals arrive
The October 7 decision moves Oro Valley beyond simply considering whether its code needs revision. Council has now directed that a specific amendment be prepared and reviewed within three weeks. If the proposed timetable is met, the current Council will have an opportunity to act before the newly elected Council takes office. The broader discussion of whether data centers are appropriate for Oro Valley, and under what conditions, would then become a matter for the new Council to address.
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Council Adds Funding To Vistoso Pond To Get The Job Done Right

Council resolves questions raised at September meeting
The Oro Valley Town Council voted unanimously at its October 7 meeting to allocate an additional $500,000 to complete improvements surrounding the 2.5-acre pond at Vistoso Trails Nature Preserve. The decision follows the September 16 meeting, when confusion over project funding, construction responsibilities, and the proposed grant prompted Council to request a comprehensive update before proceeding. At that meeting, Council learned that although funding had previously been directed toward irrigation and pathways, the necessary grading and other improvements were not fully funded or included in the existing construction contract. The October 7 decision addresses that gap and allows the Town to complete the pond and its surrounding improvements as a coordinated project.

Residents urge Council to finish the job
Eleven residents and community representatives addressed Council, urging members to complete the improvements without further delays. Speakers expressed concern that postponing landscaping and pathways could leave portions of the pond area unfinished for another year or longer. Several warned that stopping and restarting construction would increase costs and expose unfinished grading to erosion. Joe Bell, speaking on behalf of residents who helped establish the preserve, urged Council to complete the essential improvements while the contractor was already on site. Preserve Vistoso board member Sue Maurer expressed similar concerns. Councilmember-elect Rosa Dailey encouraged Council to fund the remaining construction and offered to help organize donations of plantings for the area.

Pond construction is ahead of schedule
Town Public Works Director and Town Engineer Paul Kiesler reported that construction began in July and remains ahead of schedule. The original contract calls for completion by May 11, 2027. Before recent storm damage, staff anticipated completing the pond by the end of January. Kiesler now expects pond construction could be completed around mid-February. Work already completed includes removal of the old concrete bulkhead, abandoned equipment, and portions of the old pond liner. Grading and preparation for installation of the new liner are underway.

Additional $500,000 will complete the surrounding improvements
Kiesler explained that the original pond project, including the memorial and parking lot, had a budget of approximately $2.5 million and is currently about $17,000 over budget. The additional pathways, grading, irrigation, and turf needed to complete the restoration were not fully funded. He estimated that completing these improvements would require approximately $425,000 and recommended allocating $500,000 to provide a contingency for unforeseen expenses. Doing so while the contractor is already on site will reduce overall project costs and avoid potential damage to newly completed work.

Council agrees to fund the work now rather than wait
Vice Mayor Melanie Barrett moved to allocate the additional $500,000, with Councilmember Mary Murphy seconding the motion. Barrett explained that completing the work while the contractor was already on site would help ensure the project's success. Murphy agreed, noting that delaying the work would only increase costs. Councilmember Joyce Jones-Ivey urged Council to finish the improvements as quickly as possible. The motion passed unanimously, 7-0. The funding will come from the Capital Fund contingency. Kiesler said the additional work could still be completed by May 2027, depending on weather conditions for installing the turf.

Council pursues additional funding for preserve restoration
The pond restoration is only one part of the effort to restore the 202-acre Vistoso Trails Nature Preserve. Since acquiring the property, the Town has spent or allocated more than $4.7 million for improvements. The adopted budget provides $366,056 for additional improvements this fiscal year, $200,000 annually for the following two years, and $100,000 annually for the next seven years. The Town has also secured $191,000 in restoration grants. 

IIn a related action on October 7, Council unanimously directed staff to revise the proposed Land and Water Conservation Fund grant application, removing the now-funded pond improvements. The revised application will consider additional recreational improvements, including restroom renovations, trail improvements, and benches. The grant could reimburse the Town for up to half the cost of eligible projects. Work on projects included in the application cannot begin before grant approval, a process that could take more than a year. Staff will return to Council with a revised proposal and updated cost estimates before submitting the application.
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Council Tables State Lands Annexation... Focus on Ina and Oracle

A unanimous pause and a redirection of focus

Last week, the Oro Valley Town Council voted unanimously, 7-0, to pause further staff work on the potential annexation of 888 acres of Arizona State Trust Land near Tangerine and Thornydale roads. Instead, Council directed staff to focus on annexation opportunities near Oracle and Ina roads. Key factors in Council's decision included uncertainty about whether the annexation would generate sufficient long-term financial benefits, concerns that nearby commercial development in Marana would capture much of the new residents' retail spending, and the Arizona State Land Department's insistence that the Town annex both the northern and southern parcels rather than pursue only the southern parcel.

Long-term financial benefits of this annexation are uncertain
Staff estimated that development of the 888 acres could generate approximately $24.5 million in one-time revenues from construction sales taxes, permit fees, and other development-related charges, along with approximately $3.1 million in annual recurring revenues. Developers would construct most of the infrastructure, but the Town would assume responsibility for maintaining certain public roads, with maintenance costs estimated at approximately $1 million over ten years. These were preliminary estimates rather than a comprehensive long-term financial analysis. Council members questioned whether the additional revenues would justify the Town's ongoing responsibilities for roads, public safety, water and other municipal services.

Marana would likey capture much of the retail spending
Councilmember Joyce Jones-Ivey questioned how much of the sales tax revenue generated by new residents would actually benefit Oro Valley. With substantial commercial development already underway in neighboring Marana, particularly along Tangerine Road, residents of the proposed development could do much of their shopping outside Oro Valley. That would reduce the financial benefits of adding nearly 2,000 housing units to the Town. Jones-Ivey expressed doubt that the limited commercial development proposed within the annexation area would generate enough revenue to offset the costs of providing municipal services. She concluded that she had not heard sufficient evidence to support moving forward.

State Land Department require annexation of both parcels...but only one is potentially attractive
Another significant factor was the Arizona State Land Department's position that the approximately 300 acres north of Tangerine Road and 540 acres south of Tangerine Road must be considered together. Mayor Joe Winfield had previously suggested prioritizing annexation of the southern parcel while placing the northern parcel at a lower priority. However, Town staff reported that the State Land Department would not support separating the properties. The department considers the entire 888 acres a single package. This left Council with the choice of pursuing annexation of both parcels or putting the entire proposal on hold. Council chose the latter.

Although LOVE previously raised water availability as a consideration in this annexation, Town Water Utility Director Peter Abraham explained that the proposed development is included in the Town's recently approved 100-year assured water supply designation, which is based entirely on groundwater availability and does not depend on CAP water deliveries.

Result: Staff to focus on commercial annexation opportunities
Council's decision does not foreclose the possibility of annexing the State Trust Land in the future. Rather, it places the proposal on hold while the Town focuses on potentially more immediate revenue opportunities. For now, staff will turn its attention to pursuing the annexation of three commercial centers near Oracle and Ina roads. These properties could generate approximately $1.6 million annually in additional sales tax revenue without the extensive development and infrastructure requirements associated with the State Trust Land. However, annexation will require the consent of property owners, an obstacle that has complicated previous efforts.

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Bits and Pieces

Naranja Drive traffic restrictions next week

Motorists traveling on Naranja Drive between First Avenue and La Cañada Drive should expect delays on Monday, October 12, and Tuesday, October 13, as the Town conducts road improvements under its Pavement Preservation Program. Traffic will be restricted to one lane through the construction area. Access to nearby neighborhoods will be limited, although streets with only one entrance from Naranja Drive will remain accessible. Residents are encouraged to use Lambert Lane or Tangerine Road as alternate routes. Traffic officers will assist motorists at the intersections of Lambert Lane with First Avenue and La Cañada Drive. Visitors to the Oro Valley Library should enter through the Town Hall parking lot off La Cañada Drive. The Naranja Drive multi-use path will also be an active construction zone and should be avoided. For additional information, contact the Town's Public Works Department at 520-229-4850. (Source: Town of Oro Valley Media Release)

Oro Valley seeks residents to fill nine board and commission vacancies

The Town of Oro Valley is accepting applications from residents interested in serving on its volunteer boards and commissions. These groups advise the Town Council on matters ranging from land use and development to parks, water resources, and historic preservation. The Town reports nine current or upcoming vacancies across five boards and commissions.

• Historic Preservation Commission: 2 vacancies
• Parks and Recreation Advisory Board: 3 vacancies
• Planning and Zoning Commission: 2 vacancies
• Stormwater Utility Commission: 1 vacancy
• Water Utility Commission: 1 vacancy

Applicants must be Oro Valley residents, be available to attend scheduled meetings, and complete the Town's Community Academy during their term. Appointments are generally for two or three years, depending on the board or commission. Positions will remain open until filled. Interested residents can click here to learn more and submit an application. (Source: Town of Oro Valley Media Release)

Pusch Ridge Golf Course reopens October 24 after a successful season
The Pusch Ridge Golf Course is preparing to reopen for its sixth season since its 2021 revival, with October 24 as the projected opening date. According to the Friends of Pusch Ridge Golf, the nine-hole course hosted 20,858 rounds last season, attracting residents, visitors, and golfers of all ages. The organization is expanding its marketing efforts to 17 local hotels and resorts and 13 apartment communities. A $49 visitor package includes nine holes of golf, a cart, rental clubs, and golf balls. Meanwhile, volunteers continue improving the course's environmental features, including butterfly gardens and 27 bird nesting boxes installed to date. The group expects to complete Audubon Cooperative Sanctuary certification next spring. A celebration golf tournament is scheduled for November 20. For more information, visit Friends of Pusch Ridge Golf.  (Source: FOPRG Newsletter)

Proposition 431: Time To Vote On Oro Valley’s Path Forward

Time to vote on OV’s future!
Whether you’ve received your mail-in ballot or are heading to the polls on November 3, you’ll encounter something new to consider, Proposition 431. This is OV’s Path Forward, a 10-year General Plan created by residents over the past three years.

The plan prioritizes what residents value most
Like previous General Plans, OV’s Path Forward emphasizes the aspects of living in Oro Valley that residents value most. It prioritizes safety, conservation of scenic views and the natural desert landscape, as well as quality parks and roadways.

It also sets a roadmap for our future
The plan offers more specific guidance than previous plans, which is expected as the Town continues to mature. It also addresses resident expectations, including support for attracting more retail and restaurant options, responsible water use, and sound fiscal management.

And produces tangible results in our community
The plan includes 286 specific, measurable actions for the Town to implement over the next 10 years. Previous General Plans have led to noticeable outcomes such as Oro Valley’s public art program, the widening of La Cholla Road, improvements to Naranja Park, and increased conservation efforts for saguaros and significant native trees.

New projects featured in this plan include the creation of gathering spaces, support for mixed-use developments, and enhanced transparency and community engagement related to water management and Town finances.

Your vote matters!
Voting on the General Plan is the most significant way to shape the future of Oro Valley. This is the only Town planning effort that requires voter approval. Your vote will help determine the goals, policies, and actions that guide the Town over the next decade.

Read the plan
If you haven’t already, please take some time to review the full list of priorities before casting your vote. You can read the plan at OVPathForward.com or find a display copy at the Oro Valley Public Library, the Community and Recreation Center, or the lobbies of the Community and Economic Development Building and the Administration Building at Town Hall.

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Board Upholds “Sanatorium” Interpretation. Opens Door For Assisted Living And Memory Care On Vacant Parcel North of Safeway

Board decided what is permitted, not what will be built
The Oro Valley Board of Adjustment on Monday upheld the Town Planning and Zoning Administrator’s interpretation that the term “sanatorium,” a permitted use under the Rancho Vistoso Planned Area Development, can include assisted living and memory care. The decision does not approve a development on the vacant parcel immediately north of Safeway. It answers only the zoning question of whether those uses can fall within the PAD’s existing “sanatorium” designation.

The Board upheld staff’s interpretation after relatively little discussion. Members did not issue findings or explain why they agreed with staff’s reading of the PAD. 

A permitted use is not an approved project
This does not mean that a “sanatorium” is being built there. It means only that assisted living and memory care may be proposed because the Rancho Vistoso PAD permits those uses under the term “sanatorium.” Any actual development proposal would still have to go through the Town’s normal development review process. Staff would first review the proposal for compliance with applicable zoning and development requirements. The applicant would then be required to hold at least two neighborhood meetings, and the project would undergo review of issues including traffic, landscaping, walls and architecture. If the applicant seeks a rezoning or amendment to the PAD, Town Council approval would be required.

Click to enlarge

A difficult parcel with a long history
The approximately eight acre commercial parcel has been the subject of development proposals before. LOVE first wrote about plans for what we called “tiny homes” in 2021. That eventually became the Avilla Homes proposal for single story rental housing. Residents raised concerns about converting commercial land to residential use, compatibility with nearby homes, and especially access and traffic. The parcel is hemmed in by existing development and has limited ways to move traffic in and out. In January 2024, the Town Council unanimously rejected the Avilla proposal. LOVE later wrote that the Avilla experience showed how sustained resident involvement can shape the review of a difficult development site.

The traffic problem extends well beyond this parcel
Those access concerns are part of a much larger transportation issue surrounding Rancho Vistoso Boulevard, Woodburne Avenue and the northern Safeway entrance. Town staff has already identified the area as needing improvement. Public Works Director Paul Keesler told the Council earlier this year that the Woodburne and Safeway northern access area has experienced roughly five to six crashes a year. The Town had budgeted about $747,000 in roadway impact fee funding for changes that included lane reconfiguration, increased left turn storage and median reconstruction. Staff later reconsidered that plan as additional development proposals emerged in the area.

Sprouts proposal adds another piece to the puzzle
One of those proposals is Vistoso Marketplace, a planned commercial center across Rancho Vistoso Boulevard that is expected to include a Sprouts Farmers Market as its anchor. The project caused staff to look at the entire area rather than simply repair the Woodburne intersection. By August, staff was recommending that a future traffic signal be placed at the Safeway northern entrance, directly across from the proposed Vistoso Marketplace access. Keesler told the Council that a signal at that location is warranted even under existing traffic conditions. The parcel involved in Monday’s Board of Adjustment hearing sits immediately beside an intersection the Town is already trying to redesign while another significant commercial development is being planned across the street.

Monday answered only the first question
The Board of Adjustment settled a narrow issue. Under the existing Rancho Vistoso PAD, assisted living and memory care qualify as a permitted “sanatorium” use. It did not decide whether a particular facility should be built on this parcel or whether a future site plan will adequately address traffic, access and compatibility with surrounding properties. Those questions remain for another day. Given the history of this parcel, a proposed Sprouts development across Rancho Vistoso Boulevard and the Town’s ongoing work on the surrounding roadway system, that future review may prove far more consequential than Monday’s zoning interpretation. 

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Council Considers Addressing Land Use Code and Data Centers

Oro Valley considers getting ahead of the issue
Tomorrow, the Oro Valley Town Council will consider whether to begin reviewing the Town Code as it relates to data centers. As it stands now, Oro Valley does not appear to have development regulations written specifically for large-scale data centers. That leaves the Town relying on existing zoning categories and development standards for a type of use that can differ significantly from a conventional office, warehouse or industrial building. At a minimum, we expect that Council will consider whether the code should be clarified or amended so that any future proposal is evaluated under standards that reflect Oro Valley’s community values.

Southern Arizona communities are doing the same
Oro Valley is not alone. Local governments across Southern Arizona have been examining the same issue. Marana adopted specific data center regulations in 2024 and is now considering additional requirements dealing with noise and decommissioning. Tucson adopted regulations for large-scale data centers in August 2026 following a year-long review. Pima County is currently developing its own zoning-code text amendment, including standards for development, design and noise mitigation, after the Board of Supervisors initiated the process in 2025.

A land use with unusually large land and community impacts... but not as much economically

The issue is a complex one. Large data centers can occupy dozens or even more than 100 acres and contain hundreds of thousands or more than a million square feet of buildings. They can require extraordinary amounts of electricity, in some cases enough to power roughly 100,000 homes, while water use can vary considerably depending on the cooling system employed. They can also require substations, backup generators and extensive mechanical equipment. Construction can create hundreds or thousands of temporary jobs and generate significant construction sales tax revenue. However, once operating, these facilities may provide relatively few permanent jobs compared with their size and investment. Significant property tax revenue can also be generated by a data center. That revenue, however, would not go directly to the Town of Oro Valley because the Town does not levy a property tax. Thus, communities must weigh potential tax and economic benefits against concerns involving water, power infrastructure, noise, building scale, nearby residential uses and the amount of land devoted to a relatively low-employment use.

Barrett advocated for a proactive data center zoning review during her campaign
During her election campaign, Mayor-elect Melanie Barrett made her position clear. “I am against Data Centers in or adjacent to Oro Valley,” she wrote, adding that, if elected, she would “...review our Town Code to see what can be done to address this issue proactively.” Barrett cited concerns about water and energy demand, limited long-term employment and potential effects on Oro Valley’s quality of life. She also pointed to the large State Trust Land parcels adjoining Oro Valley as areas that could someday attract interest from data center developers. (Source: Melanie Barrett campaign website.)

Setting the rules before a proposal arrives
Wednesday’s discussion does not put a data center proposal before the Council, nor does it commit the Town to any particular regulation. It begins a more basic conversation about whether Oro Valley should establish the rules before such a proposal arrives. Given what neighboring jurisdictions are already doing, reviewing the Town Code now gives Oro Valley an opportunity to decide in advance where, if anywhere, large data centers should be permitted and what protections should be required for residents, water resources and the character of the community.

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