"550" State Land Annexation Back on the Table (Part 2 ): Many Unanswered questions

Yesterday we reported on the presentation by consultant Mark Longaker, the State Land Department’s new annexation process, and council concerns about such. Today we discuss other  unanswered questions and concerns raised by the Town Council about whether annexing these State Lands makes sense for Oro Valley.

Where will the water come from?
Several Council members questioned whether Oro Valley has sufficient water to support annexing and developing the State Trust Land. Vice Mayor Melanie Barrett noted the property would rely entirely on CAP water, which could increase rates for all residents. Water Utility Director Peter Abraham said full build-out would require roughly 1,000 acre-feet per year [See bases of estimate after article] and flagged uncertainty after 2026 when the current Colorado River drought-contingency plan expires. He added that the Town’s infrastructure could serve the property, but future CAP cuts could make that service unsustainable.

Is this annexation economically feasible?
Several Council members questioned whether annexation would make financial sense. Councilmembers Jones-Ivey, Nicholson, and Murphy pointed to prior analyses indicating the project would be viable only with substantial commercial/retail development. They observed that nearby Marana centers already meet most retail demand, leaving limited room for new stores. Nicholson added that local sales tax is about 44% of Town revenue, while residential growth alone generates limited ongoing income. Without sufficient retail, the Town could face added service costs without offsetting revenue.

Click to enlarge

Environmental and sensitive-lands considerations
Council members raised concerns about the site’s environmentally sensitive features. Barrett cited the large number of saguaros, ironwoods, and washes mapped on the property and said any plan would likely need a low-density “finger” pattern similar to nearby Marana to preserve natural corridors. Earlier work under an Environmentally Sensitive Lands Overlay (ESLO) identified core resource areas and resource-management zones that would significantly limit where construction could occur.

Are there State Lands on Oracle better suited to the Town? Shouldn't the town identify and pursue these first?
Councilmember Josh Nicholson suggested exploring other State Land parcels—particularly along Oracle Road—where utilities and existing retail make development more practical. He argued those sites could generate revenue without the environmental and infrastructure challenges of the 888-acre tract near Tangerine Road.

Why act now?
Councilmember Murphy questioned the urgency to proceed, noting Marana has shown no interest in the property and there is no immediate development pressure. She favored waiting until financial conditions, water availability, and public sentiment clearly support such an expansion.

Shouldn’t the town first consider the financial prospect and resident interest to annexing this property before opening conversation with the State?

Vice Mayor Barrett and Councilmember Murphy said the sequence in the new State Land Department process should be reversed. They argued that public engagement and an updated fiscal analysis must occur before requesting a Planning Authorization Letter (PAL) or hiring consultants. Both cautioned against spending Town funds before residents are heard and the economic implications are clear, reminding colleagues the last attempt faced strong opposition over density, traffic, and environmental impacts. Members also noted the Town would be navigating an untested, jurisdiction-led process with uncertain outcomes and potential procedural conflicts with the State.

Council wants more confidence that State Land annexation process has really changed and will remain that way

There was no formal Council direction to pursue annexation further. Members agreed that too many questions remain—about the process’s stability, the Town’s water capacity, and fiscal viability—to justify moving ahead now. The topic may be revisited after the State clarifies its administrative approach and there is more evidence from other jurisdictions or updated local analyses.

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Note: Oro Valley’s current Central Arizona Project (CAP) allocation is about 10,305 acre-feet per year. The estimated 1,000 acre-feet of water needed for full build-out of the State Trust Land would represent roughly 10% of the Town’s total CAP supply. Water Utility Director Peter Abraham said this estimate assumes that the entire area would eventually be developed, using typical Oro Valley per-acre water demand rates for mixed residential and limited commercial uses. He also assumed the property would rely entirely on CAP water—not groundwater—and that current CAP allocation levels remain stable. Abraham noted that nearly all of Oro Valley’s existing CAP supply is already committed to current customers, meaning such an annexation would reduce the Town’s flexibility during future CAP shortages or to support other growth areas.

"550" State Land Annexation Back on the Table (Part 1)

Council talks State Lands… again
The Oro Valley Town Council discussed the 852 acres of State Trust Land west of town. Discussion of annexing this property has been dormant for years because the State Land Department was understaffed. In addition, no council identified a compelling reason to pursue annexation on the state’s terms, since there was no lasting economic benefit to the Town. There was also significant community opposition when the idea was last publicly vetted. (Past LOVE coverage.)

Consultant says: Things have changed
Consultant Mark Longacre of WLB Group, an LJA Engineering company, told the Council that recent changes at the Arizona State Land Department make it worthwhile for Oro Valley to take another look at annexing the 550 acres south of Tangerine Road. Longacre’s firm was retained by the Town specifically to research background information, refresh prior work from about eight years ago, and participate in the October 15 study session—nothing beyond that.

 "The properties currently under consideration for annexation

by the Town of Oro Valley are the two State Land‐ owned sites

indicated on the map below, referred to as Tangerine North

(302 acres), and Tangerine South (550 acres)."

Towns now have more say in permitted uses
In the past, consultants worked directly for the State Land Department, which controlled planning and zoning of State Trust Land it intended to sell. Longacre told the council that the process has shifted in favor the the annexing community. The State now prefers that consultants work directly for the local jurisdiction—in this case, the Town of Oro Valley—to guide entitlement and planning. The State remains involved in an advisory role. Longacre called this a “culture shift” that gives local governments more control over how the land is planned and developed, making it a reasonable time for the Town to reconsider annexation.

Winfield puts on the brakes: What is the change, really—and will it last?
Mayor Joe Winfield questioned the legitimacy and permanence of the State Land Department’s new approach. He asked whether the change is grounded in formal legislation or is simply an internal administrative decision. If it’s merely administrative, a future administration could reverse it, leaving the Town exposed after investing time and money. He noted Oro Valley has seen similar setbacks before, such as the Arroyo Grande effort.

Consultant: administrative—and untested
Longacre confirmed the new process was introduced under the current governor’s administration, not by statute, and he did not know whether it is formally documented or codified. He agreed that this uncertainty poses a risk and suggested seeking written assurances or an agreement from the State Land Department to ensure continuity regardless of future political changes.

No track record yet
Several Council members expressed concern that neither Longacre nor the State Land Department has experience with the new jurisdiction-led entitlement model. With no track record to guide the process, the Town would be navigating an untested system with uncertain outcomes and possible procedural conflicts between the Town and the State.  Longacre admitted that his firm have no direct experience with the new process and have not yet seen it in practice, though he claimed to just beginning a similar engagement with another jurisdiction and does not know whether the approach will endure over time.

Tomorrow
Needless to say, council members had many questions regarding the annexation and its feasibility.  More on their concerns tomorrow.

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Bits and Pieces

Dispose-A-Med this Saturday at the Target Plaza
Dispose-A-Med
Saturday, October 26
10 AM to 2 PM
Oro Valley Target
10555 N Oracle Road

Bring your unused or expired prescriptions and over-the-counter medications. They will dispose of them for you. They accept only pills. They no longer accept liquids, syringes, or inhalers. Please keep pills in their original containers.

Bins will be provided for you to drop off the medications.

Do not bring batteries, household hazardous waste, or veterinary medications.

Mayor Winfied offers: "State of the Town"
Mayor Winfield addressed the Chamber of Commerce last week. He gave his "State of the Town" speech. His speech featured the town's strategic plan, a plan he observed was build from the General Plan. Also speaking at the event were the town economic czar, JJ Johnston: Kristy Diaz-Trahan, Parks and Recreation Director; and Police Chief Chief Danny Sharp.  The Greater Oro Valley Chamber of Commerce hosted this fundraiser  at the El Conquistador resort. You can watch and read his remarks here.

State Lands Annexation is back
"The Arizona State Land Department is planning to renew talks with Oro Valley next month regarding the annexation of 885 acres of state trust land on either side of Tangerine Road." according to the Arizona Daily Star. This happens after the department told the town on July 31 that they were too busy to pursue annexation discussion with the town. What could have happened to change their minds so quickly?

According to the article, a representative of the Department stated that they had not been talking with Marana about this annexation. Why, indeed, would they even say that? Would it be, perhaps, that they explored the idea with Marana and found out that Oro Valley is the only town that can possibly deliver water to this area? LOVE, of course, will follow this as it develops.

The question is: How big do you want your town?

Its a seller's market for Oro Valley's homes
Long Realty's October report observes that Oro Valley is now a seller's market for homes under $1million. For most years, Oro Valley homes have been a buyer's market. This is a good time to sell if you want to get out of town. 

Guest View: Jim Tripp ~ The tip of the iceberg: Annexation of 885 acres of State Trust Land at Tangerine and Thornydale is a pilot project for 9.3 million acres of trust land

Since last August, I have been researching the Arizona State Land Department (ASLD) proposal to put approximately 3100 houses (with their associated cars and people) on the proposed annexation of 885 acres of State Trust Land at Tangerine and Thornydale.

I read the plan and wondered: "Why isn't the CAP Water Board trying to block this development, which will require 860,000 gallons of water day? The Colorado River is already over-allocated, which has led to us being under a Drought Contingency Plan."

Two conflicts of interest uncovered
Oh. Lisa Atkins is the Board President of CAP (Central Arizona Project) as well as Commissioner for ASLD. That would explain it. Although her position at CAP is not a paid position, she does have a conflict of interest as Commissioner of ASLD and CAP Board President. Ironically, Atkins said at "sunset" meetings for the ASLD that any attempt to merge ASLD with another related State department would inevitably lead to conflict of interest because control over different but related natural resources inevitably leads to conflict of interest!

So who is her Deputy Commissioner, I wondered? It’s Wesley Mehl of Tucson. According to the Tucson Sentinel in an article from July 2015, "Mehl is the son of developer, David Mehl, who along with brother George built the La Paloma resort in the Catalina Foothills, and the Dove Mountain development in Marana." That would explain why we are continuing the residential housing boom during deepening drought.

Sacrificing water and ignoring conflicts of interest
But maybe it's all worth it if it improves funding for K-12 education. That's what they said at the public meetings. In fact, they justified the whole project on the basis of a constitutional mandate to sell Trust Land for the benefit of K-12 education.

So I checked that out. Arizona ranks 48th out of 50 in public education funding, and K-12 education is by far the biggest single expenditure in the State budget. The Trust Fund has billions in it, but it costs billions every single year to fund public education. Maybe we need to sacrifice water and look the other way at conflicts of interest if it will help K-12 education.

The math doesn’t add up
So I estimated that the Trust land might sell for something like $100 million, which would perhaps yield 3-4% ($3-4 million dollars per year) on the $100 million. But the plan adds 1,767 K-12 students, at a cost of about $15 million per year (to stay in 48th place), for a net loss of $11-12 million per year.

Why is the Marana School District (where the Oro Valley annexation is taking place) allowing this? Because they will get their $8500 per year per student from the General Fund, even if those students drain the General Fund at $11-12 million per year. State taxes will have to be raised or other services curtailed, to make up this deficit. What an irony, given that the whole point of Trust Land sales was to provide enough money so that K-12 education would never cost taxpayers a dime as Arizona moved from Territory to State!

Marana School District CFO never reviewed the site plan
I contacted Don Contorno, Chief Financial Officer of Marana Unified School District, who wrote a letter of approval to Oro Valley for taking on the students. He wanted to know where I got the outlandish number of 1,767 K-12 students, and I told him that it was from the published Site Specific Plan. He sheepishly confessed that he never read the plan and assumed the area would be developed like Sky Ranch.

A “Model” for future development
ASLD and Oro Valley have not publicized that this is a pilot project to be rolled out for the entire 9.3 million acres of trust land, with a stated goal of speeding development by transferring zoning rights from citizens to developers via "zoning banks."

LOVE readers and residents of Sky Ranch, Tangerine Crossing, and Dove Mountain need to present a united front now and in the future.

You can view a detailed slide presentation HERE

Please visit my Facebook page (MyLand.YourLand.AZ)   HERE
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Jim Tripp has a Bachelor’s degree in Biological Sciences from Cornell University and a Ph.D. in Molecular and Cellular Biology from Oregon State University. Prior to retirement, he was employed as a Federal Regulations Analyst for Wisconsin Power and Light and as a Research Scientist at UC Santa Cruz and Berkeley National Labs. He has over 30 scientific publications to his credit.

State Lands Project Breeds Hot Emotions

Emotions run 'hot'
Opposition to the proposed annexation and rezoning of "State Lands" were strongly stated at the Town Of Oro Valley neighborhood meeting on the project of September 13.  Watch one resident's comments on the project.

At that meeting, Oro Valley Planner Bayer Vella told the audience that the decision on the annexation and rezoning of this property would be the responsibility of the incoming town council.  His comment met with enthusiastic approval by attendees.

On Friday, in his "State of The Town" address, Mayor Hiremath confirmed that annexation and rezoning is up to the incoming council.


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Source: takebackov.com

Guest View: Love Contributor ~ Mayor Hiremath omits important details on the Tangerine State Trust Land annexation

An article in the January 3rd Explorer, “Recent Oro Valley land changes to remain in place” discussed the attempt by the Political Action Committee, Keep OV Green, to take the General Plan Amendments passed during the December 6th town council meeting to the voters via a referendum.

One of those amendments was the Tangerine North General Plan Amendment (annexation of 321 acres of State Trust Land north of Tangerine -- between Moore Road and Tangerine).

The Explorer article contained the following comment regarding that annexation:

“Hiremath wasn’t even sure why Keep OV Green chose that property to focus on, because developers may not choose to be annexed into Oro Valley. Pima County and Marana also have the property in their respective general plans.”

Mayor Hiremath’s comment omits important details about prior Council actions for the Tangerine 550. (550 acres at the NW corner of Tangerine and Thornydale). Oro Valley has a serious interest in this land, which now seems to be why the land north of Tangerine is important. Both these parcels of land will be designated as one large Master Planned Community (approximately 871 acres).

The Paper Trail

August 28, 2012: Councilmember Hornat met with the Arizona State Land Department concerning the 550 acres of State Land at Tangerine and Thornydale. (This is evidenced in the letter below from the State Land Commissioner, dated February 27, 2013).

October 2012: The Town of Oro Valley approached the City of Marana with an “Annexation Request” regarding the Tangerine 550. (This is evidenced in the letter below from the City of Marana dated October 1, 2012).

February 2013: State Land Commissioner, Vanessa Hickman, sent a letter to Councilmember Hornat, dated February 27, 2013, outlining three specific items required in order for Oro Valley to move forward with the annexation. Those items are:

1) A no-objection letter from the Town of Marana
2) A waiver of town ordinance requirement for fencing of open range livestock grazing
3) An agreement not to enact or apply ordinances or regulations prohibiting mining on the State Land

Mayor Hiremath is not being fully transparent nor is this as innocent as the mayor would like us to believe. Although Marana has this land in their General Plan, it is false to say that they remain in the picture. I have recently followed-up with the City of Marana and they still support the decision in their letter of 10/1/12 to allow Oro Valley to annex the property.

Letter from the Town of Marana

Letter from the State Land Commissioner