Following is my letter from the Jan 31, 2007 Explorer News.
Oro Valley residents deserve better.
I was proud to have been part of a group of concerned Oro Valley citizens in forming our organization Stop Oro Valley Outrageous Giveaways, known as SOVOG. Our purpose was to allow the citizens of our community to vote whether or not they believed Vestar, a Phoenix-based commercial developer, should receive an incentive in the amount of $23.2 million of our future sales tax revenue, by developing the 114-acre parcel at the southwest corner of Oracle and Tangerine roads. After four court cases, we achieved our goal.
Although we were quite concerned that Vestar could not, or would not divulge any of their prospective tenants, we were assured the development would be “unique” and something to make Oro Valley citizens proud to have in their community. SOVOG attempted, as best we could, to caution our neighbors we were buying a “pig in a poke.”
Sadly, (from our perspective), Vestar convinced enough of the voters they were going to get a marvelous shopping mall with retailers not found anywhere around here. Within the last week Vestar (finally) announced their tenants for Phase 1. None in the SOVOG group was surprised by the list. Disappointed? Yes. Chagrined? Yes. Outraged? Yes; but not surprised.
What are we getting for our $23.2 million? How about a 175,000 square-foot Wal-Mart Supercenter? Sure, there are those among us who will be happy to save some money, as Wal-Mart is well known to offer low prices because of their buying power from overseas vendors. Who does Wal-Mart compete against? If you said Target, Home Depot, Office Max, Ross and just about every single retailer presently serving Oro Valley, you’d be correct.
What happens when you spend your money at Wal-Mart, or any of the other retailers Vestar has brought in, including Best Buy, Cost Plus, Linens & Things, Petco or Danny’s Car Wash? The chances are you’re not spending it at any of the retailers who have been serving Oro Valley, in many cases, for 10 years or more. And, how about this? For every $10,000 spent at our existing retailers, Oro Valley gets $200 in sales tax. But, buy your pet supplies at Petco, not Petsmart or your computer at Best Buy, not Target or Office Max or Radio Shack or anything at Wal-Mart, and Vestar pockets $90 of the $200 tax.
The term for this lost business from our existing retailers to those coming to Vestar’s “ill-conceived” Marketplace is known as “cannibalism.” How much of the business will be cannibalized has not been determined. However, unfortunately, it will be too much, and therefore, who gains, and who loses?
The answer is easy. Vestar gains! The losers are our existing retailers, our town and we, the taxpayers, who got “snookered” in by Vestar and certain members of the council who could not see the ramifications of their actions.
Try and remember this come the next election in the spring of 2008.
Art Segal,
Oro Valley
