Monday, March 8, 2010

Did Anyone Notice The Amended Oro Valley Agenda For Tonight's Special Session?

In case anyone is interested and may have missed the amended agenda for tonight's Special Council Session. (See left column of blog.)

DISCUSSION AND POSSIBLE ACTION REGARDING A REQUEST FROM EVERGREEN STEAM PUMP, L.L.C. AND BASIS SCHOOL, INC. FOR PAYMENT IN KIND AND/OR PHASED PAYMENT OF PERMIT AND DEVELOPMENT IMPACT FEES ON A PORTION OF THE STEAM PUMP VILLAGE DEVELOPMENT.


This could be an important item as to Oro Valley's future.

10 comments:

Nombe Watanabe said...

Does this mean that someone will get some use out of the so called historic ranch? I would bulldoze the entire area and sell it to the school for one dollar.

Or is this the commercial area?

Better a school than yet another Burger King.

cyclone1 said...

This is regarding Steam Pump VILLAGE not Steam Pump RANCH. The SPV is the commercial development just north of the ranch.

John Martin said...

It seems to me that this is nothing but an EDA (Economic Development Agreement) under another name. While its purpose might be considered more laudable than deferring sales taxes for a retail development, it does raise questions. The town previously nixed such tax-incentive deals and never instituted a formal policy for considering future ones. Is BASIS alone worthy of an exception? Would this be in addition to financing BASIS under a newly reconstituted IDA (Industrial Development Authority)? A key argument for tax-incentive deals was that they spurred economic development (sale taxes, impact fees). The council rejected that argument when it ended the practice more than a year ago. Does building a school count as economic development? It won't generate sales taxes or impact fees (if this proposal goes through).

boobie-baby said...

Has anyone bothered to read the actual agenda item?

It's not so much an IDA as an opportunity to bring one of the country's most highly-rated charter schools to the community. If built, the school would be a magnet for students (and parents) who would end up shopping and spending in Oro Valley (although it might drain some students away from the other public high schools).

It's worth considering and not dismissing outright as being the equivalent to the EDA's that have been pilloried on this blog. Let's hear what the propopsal is and whether it ends up being either revenue-neutral or revenue-plus for the Town.

artmarth said...

I won't say anything other than we agree (I think for the 1st time) with boobie-baby.


From what we know, the issue that will be discussed this evening makes a lot of sense.

We'll know soon enough.

OVDad said...

Since agreeing is fun, I am happy to say that I actually agree with Art.

Nombe Watanabe said...

Sell Steam Pump RANCH, use the money to build the school. Then rent the school building to BASIS and put the rent money into the town. Hey, I should be running for office.

artmarth said...

The Council just voted unanimously to approve the agreement with Evergreen that will help in bringing the Basis School to Oro Valley.

Details to follow.

John Martin said...

I did not mean to suggest I was "dismissing outright" the potential value of having a school like BASIS in Oro Valley. I only sought to raise the issue of "flexibility" when it comes to defining economic development.

More than a year ago, owing to popular anger over the Vestar, Hilton and Oracle Crossings EDAs, the council ended EDAs. Tonight, we see the council working out an agreement it believes will enhance Oro Valley's economic competitiveness (BASIS as an inducement for more families to move or spend here or for more companies to locate here).

My point: If the town doesn't care to fund outside groups like TREO or MTCVB, then it must retain certain tools to achieve economic development goals on its own.

EDA's can help in that regard, though only if used wisely in voters eyes. Obviously voters disagreed with the Vestar EDA and certain former council members paid a price. But, tonight, the council saw fit to OK an inducement to bring BASIS to town, and, in the eyes of many on this blog, that would appear to have been a judicious use of such "economic development tools."

I believe the town should create a formal EDA policy and be open to evaluating proposals on a case-by-case basis in the future. The council would first have to lift its self-imposed EDA ban. Then again, maybe tonight's vote accomplished just that.

Oh, and according to the BASIS agreement, the town will receive some real estate in exchange. Seems revenue-neutral.

Zev Cywan said...

John,
Having followed the Turken vs Gordon 'gift clause' legal action taken in Phoenix and having also attended the AZ Supreme Court Hearing relative to it, my understanding of a few of the issues are as follows:

1)That the decision to enforce the spirit of the 'gift clause' in the Arizona Constitution will not apply retroactively to those EDAs which had already been in effect.

2)That EDAs might be okay if a tangible exchange of value is included in the agreement i.e. in this instance if the land 'grant' value is equal or greater than the waived fees.

3)One of the questions one of the Supreme Court Judges asked the plaintiff's attorney in the hearing was [whether or not he felt that an EDA might be a violation of the 'gift clause' and/or other related clauses if such EDA were to be granted to a
an institution of learning such as a University, et al]. The plaintiff's attorney seemed to indicate that he would consider that such an EDA granted to an institute of learning most probably would not fall under the restraints of the 'gift clause'.

4)It appears that, going ahead, there still remains questions as to how to define the 'exchange of equal tangible value'relative to an EDA.

5)It appears that the EDA agreement
being worked out by Basis, Evergreen, and the Town of Oro Valley is being carefully formulated based on the 'intent of the gift clause' as there appears to be an 'equal exchange of tangible value' involved.

DISCLAIMER: THE ABOVE ARE LAY DEDUCTIVE OPINIONS AND I AM NOT OF LEGAL AUTHORITY. Zev Cywan

Though I personally, for a variety of reasons, am a bit dubious as to the location proffered in this situation, I would say that Basis and Evergreen should be able to analyze that factor much better than I. I am VERY pleased that Oro Valley will have such a school held in such high esteem!