In August, Phoenix based Vestar sold the Oro Valley Marketplace to Town West Realty of Tucson. The purchase price was $45 Million. That's $87/sqft for 518,000 square feet.
Town West is leasing the empty Dick's Sporting Goods location to Ashley Furniture . They are considering building a hotel and a complex to support it. We shall see what develops. Literally!
Tax subsidies don't work
It's not surprising to us that Vestar sold the property. The ten-year Oro Valley sales tax subsidy paid Vestar (equal to 45% of sales tax revenues generated by the Marketplace) expired last December. Without the subsidy, one granted and approved by the voters, the Oro Valley Marketplace was not economically sustainable.
Vestar promised us the world..and they gave us Walmart
Actually, Vestar also gave us, as promised, a movie theatre. Otherwise, none of the retail stores in the Oro Valley Marketplace match the "upscale shopping experience" that Vestar promised in the glossy postcards they sent to all. These were sent when residents were voting on what was called at that time: "The Outrageous Giveaway." You can search LOVE to learn the history.
In July, LOVE posted an analysis of the 10-year history of the Oro Valley Marketplace and its impact on our community. It is definitely worth reading.
Now, it is time to move on.
Good luck Town West. Your success is our success.
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