Councils Have Done Much To Build The Oro Valley Business Base But Results Have Not Happened

Economic Development continues at a slow pace

In March, the town issued seventeen single family residency permits. Also in March, there were few new business projects listed by the town. In total, businesses that are coming to Oro Valley are the same types of businesses that we reported in February.  We concluded then that most businesses that are opening in Oro Valley are focussed on serving the adult community (Read: "Oro Valley is an Adult Community")

Town Councils have tried to do much over the years to bring businesses to Oro Valley

"Rooftops strategy"

The Hiremath led councils embarked on a "grow the rooftops" strategy. The result of that strategy can be seen today with La Posada, a senior living that is is being built north of the CDO Wash, behind Home Depot. Yes. That project will bring more people to our community. But will it bring more businesses to the community or will it simply add to traffic in the area?

Two Economic Development Directors

The Winfield Council now has its second Oro Valley Economic Development Director. Neither the first Director nor the current Director have brought any significant business to our community with one exception, that being Leonardo Electronics. That company, however, has yet to break ground, though the project was announced in December of 2021. (Source: March Town of Oro Valley Economic Development Status Report.)

Easing requirements in economic enterprise zones

The Council, at the urging of former town manager Mary Jacobs and the then current Economic Development Director, eased the permitting codes ("EEZ"). That council approved blading the desert in Innovation Park to create "shovel-ready lots." The hope was that businesses would come to Oro Valley. After all, Oro Valley has an easier permitting process and land that is ready for construction. Well, that hasn't happened either.

A friendlier Planning and Zoning Department

Jacobs, under the Winfield Council, attempted to make it a bit easier for Developers to build in Oro Valley by putting the Planning and Zoning Department under the Director of Economic Development. The goals of Economic Development Department and Planning and Zoning Department are not the same. The Economic Development Department  seeks to build the commercial base of our community. The Planning and Zoning Department is supposed to make sure that whatever is built is built within code specifications. Their job is to protect the community, not to grow it.  Today, the Planning and Zoning Department tries to negotiate between residents and developers, rather than simply doing their code [and Genera Plan] enforcement job.

An example of this relates to the request of the Oro Valley Church of the Nazarene [OVCN] to rezone land next to the church at Concordia and Buena Vista so that they can build a major sports complex. The residents are united against this proposal. They have been steadfast in their position that there is no compromise that will result in their supporting that facility in that area. Yet, many times, the Planning and Zoning Department has talked with the residents, urging some sort of compromise. That is not the Planning and Zoning Department's job. Their job is to process the application in the same manner in which all such applications are processed. 

"Choose Oro Valley" Website

The town created a website that won an award from the Arizona Association of Economic Development. That website is chooseorovalley.com. The focus of that site is to attract bioscience companies, like Roche. It is quite comprehensive. One can see available sites and buildings and tax incentives. It displays Oro Valley's key industries.

The site falsely states that "the population of Oro Valley is balanced across all age segments." We know it is not balanced. Any business with a serious intent is going to look at the 2020 Census Data, like we did, and see that that statement is false. Indeed, even the town’s own Parks and Recreation Master Plan acknowledges that “…the town exhibits an unbalanced distribution among major age segments.”  We are an over 55 community.  Putting false information on the web sit reduces the credibility of all the information on the site.

Shovel ready sites

The first of the two Economic Development Directors convinced the Council that the reason Oro Valley was not being selected by companies was that the town had no “shovel ready sites.” These are sites that are graded without a specific site plan.  So, the town approved blading the desert in Innovation Park to do just that. This happened in September 2020.

Working with the State of Arizona

The town also receives leads from the State. None of these have panned out to date. Many of these leads seem to have more of an industrial need. Something Oro Valley doesn't want. It's important to face reality. Everybody wants clean businesses in technology. What makes Oro Valley unique? We don't know.

From Oro Valley Marketplace to Oro Valley Village Center

Last year the Council approved a bold revisioning of the failed Oro Valley Marketplace. It is call the Oro Valley Village Center. It is being revisioned on the premise that the area needs to build its own population density in order to support businesses in the center. The vision is for hotels and apartments, adding more density to the town. Nothing has happened to the Center since the approval.

The “Business Incubator”

In December of 2020  the University of Arizona opened a “business incubator” in Innovation Park to house startup companies . The hope is that one of the startups will take hold and flourish in Oro Vally, It is too soon to tell if this initiative will pay off.

Council's recent "Economic Vitality" revisit produces nothing new

Last week the Town Council held a study session on its strategic plan. "Economic Vitality" is one area they discussed. As Vice Mayor Barrett noted, the study session was an update of the existing strategy. The session was not a discussion on how to replace it.  The focus of the plan is to do the same things that the town has been doing to meet the following goals:

• Support local businesses
• Attract employers in key business sectors
• Attract commercial businesses to our centers
• Increase visitors (Via $400,000 annually given to  "Visit Tucson" to generate 28,000 hotel room nights. That's $14.29 per night.

To date, these actions have failed to produce significant tangible results

Town Councils have done much to build the business base in this town. Perhaps it is the impact of the Pandemic. Perhaps it is the impact of the three-year economic meltdown that has happened since the Pandemic. Regardless, the town has yet to see results in their efforts to bring significant new business to the community.

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Oro Valley Business Economic Development Scorecard

Bits and Pieces

Fight identity theft:Free document shredding event tomorrow 

"The Town of Oro Valley, in partnership with AARP, will hold a free document shredding event for Oro Valley residents on Saturday, November 19 at the Oro Valley Marketplace (12155 N. Oracle Road), from 8 a.m. to noon or until trucks are full. Residents can bring up to five medium-sized boxes that will be shredded on-site. Shredding confidential documents helps fight identity theft. For questions related to this event, please contact Constituent Services Coordinator Jessica Hynd at jhynd@orovalleyaz.gov or 520-229-4711. (Source: Town of Oro Valley Media Release) 

Oro Valley website economic development web site wins award from Arizona Association for Economic Development 

 ORO VALLEY, Ariz. (Nov. 14, 2022) – The Town of Oro Valley is pleased to announce that its new economic development website, chooseorovalley.com, was recently awarded a Golden Prospector award from the Arizona Association for Economic Development. The Golden Prospector awards were established to encourage and recognize excellence in economic development. (Source: Town of Oro Valley Media Release) 

Vistoso Trails Nature Preserve safety improvements in progress

Vistoso Trails initial site cleanup including weed, invasive grasses and dead tree removal, trail accessibility and restoring restrooms to working condition is in the constuction pahse Significant work is required to ensure public safety and access. Through October, the Town has spent $130,067 (37% of budget) and is expecting to complete the project on budget ($350,000 from the Community Center Fund) at this time. The project has experienced delays due to pest infestation and an increased scope of work. (Source: 22-11-15 Town of Oro Valley Budget and and Finance Commission meeting) 

Westward Look Drive Improvements entering procurement phase. . . budget overrun expected 

As part of the Westward Look annexation, the town agreed to reconstruct Westward Look Drive from Ina Road to Vista Oest. This includes removing and replacing extruded curb, adjusting manholes and water valve covers. The budget for this project is $539,625 (General Fund. Through October, the Town has spent $50,107 (9% of budget) The design for this project is complete and the project is currently in the procurement phase. "The construction contract was awarded to Sunland Asphalt Company; however, at the request of the Westward Look Resort management and due to other title issues, construction has been significantly delayed. Due to the delay, the Town must now go out to bid again, which is expected to be higher than the original bid and exceed the budget by approximately $150,000." (Source: 22-11-15 Town of Oro Valley Budget and and Finance Commisssion meeting)

Bits and Pieces

Two Oro Valley Residents Provide Help With Senior Placement

We came across a local business, ABC Senior Placement Advisors.  It is owned and operated by Rancho Vistoso residents Andrea and Martin Blatberg.  They run a "... placement service that advises the elderly and their families on long-term care options."(Source)

During our conversation with Andrea she noted that people don't know what to do or who to talk with when independent living is no longer an options.  "Many people have moved to Oro Valley to retire", she noted "and have no family support system."  Thus, the need for someone to help with the care situation.

We asked Andrea what she thought of the care facilities in Oro Valley.  She observed that Oro Valley has a number of facilities such as Spendido and a growing memory care commuity. What Oro Valley does not have is care homes.  "Care homes...offer personalized service to small groups of adults. These residential homes provide lodging, meal services and assistance with daily living activities." (Source)
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Oro Valley Business Happenings: National Chains

Fry's parent company: "Kroger’s new Simple Truth brand of natural products has been a “home run” with shoppers, Rodney McMullen, President, told analysts. He said sales of the company’s Simple Truth have been so strong that the retailer is planning to launch 75 new items in addition to the 450 currently offered in the brand."  Private label product, which we see all over or Fry's store, is 24% of Kroger's overall sales, including fuel.

"Target announced plans to acquire DermStore Beauty Group, an online retailer. Target has been buying up a number of smaller specialty businesses lately in an effort to expand its presence in niche markets. Earlier this year it acquired Chefs Catalog and the assets of Cooking.com in two separate transactions to create a subsidiary. The company said it plans to keep the DermStore.com website."

" CVS [which will be locating the in the Town Centre]  has launched Essenceofbeauty.com, a website and mobile application for its Essence of Beauty bath and body products."

(Source: PLMA eScanner)
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Hail To The Chief Of Police

“Words alone seem inadequate to express what Chief Sharp has contributed to our Town,” added Oro Valley Mayor Satish I. Hiremath, DDS. “Not only has he created a safe environment in which our residents, businesses and visitors can thrive, but he has also taken the time to teach our children the values of respect, honesty and integrity through public safety. While Chief Sharp is humble and doesn’t seek recognition for his accomplishments, I cannot think of a better individual to receive this award.”

(Source: Oro Valley Press Release announcing that the Greater Oro Valley Chamber of Commerce awarded Chief Sharp with its 2013 legacy award)
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Hail To The Police Department

 “As much as the Catalina Mountains have become a symbol of Oro Valley, so too has the Oro Valley Police Department. Our Community’s reputation for public safety extends far beyond jurisdictional boundaries. Thanks to OVPD, public safety is part of Oro Valley’s brand.”  

(Source: Quote of Mayor Hiremath that appears on the cover of the Oro Valley Police Department 2012 Annual Report.)
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Oro Valley Y-T-D Crime Statistics Updated

Year-to-date, Larceny is 77% of all Oro Valley part one crimes.  View Oro Valley's latest crime statistics here.
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Voters Say Oro Valley's Needs Not A Priority

Last month, we encouraged all to take an online survey of potential county projects that would be funded by county bonds.  The survey has been completed. 17,000 votes were cast.  Not one Oro Valley project was in the top 25.  Not to worry. County Administrator Chuck Huckleberry doesn't think that the survey results actually mean mean much.
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The Oro Valley Business Accelerator

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Yesterday, in our posting "Oro Valley Seeks $38 Million in 2014 County Bond Funds", we reported that the town in seeking $15 million in 2014 Pima County bond funds for a "business accelerator" to be located in innovation park.

There is an "accelerator" located in southeast Tucson, located at the former IBM site. It houses xx businesses, all in some stage of start-up. Its a "long haul" to get there, even from mid-town Tucson.  So, an "accelerator", located in Oro Valley, makes logistical sense. One located in Innovation Park, makers logical sense.

What Is "Business Acclerator"
An accelerator is a physical building where business that are "growing up" work in separate spaces but share common services and facilities.  These businesses are past the pure start-up phase of growth. They are entering the "scale-up" phase.

For example, the proposed Oro Valley accelerator would be located on town land in innovation park. This was land that was discussed as a municipal operations center a few years ago.

The accelerator would "...make the following services and shared facilities available to startup companies: office space, lab space, shared access to reception, IT, bio-specimens collection and repository, conference rooms, video and teleconference facility, training suites, video production for investigator training and/or human subject enrollment, research site monitors, administrative support (book-keeping, payroll, HR), and consultation on regulatory strategy, market analysis and business planning."(Source-P41)

The Goal Of An Oro Valley "Accelerator"
The goal of the Oro Valley accelerator is to bring "...small bioscience and high-tech companies, that have made it through the start-up phase" to the town."   (Source-P41)

What An Accelerator Can Bring To Oro Valley

• Businesses that are in the early stage of development:  Typically, these are technology or biotech companies, exploring the commercialization of concepts developed in a lab, perhaps as the University.
• Innovating Ideas. Accelerator businesses usually are focused on commercializing innovative ideas; not on simply creating another "me-too" product for the marketplace.  Innovative thinking generally brings excitement and creativity to a community.
• Innovative people:  Innovative ideas come from innovative people.  Their arrival in Oro Valley will add to Oro Valley's talent pool.
• "Angel" investment funds:  Angel Investors are the second stage of financing a business. They invest after "friends and family" money has been invested and, generally, after the concept that is being developed has demonstrated some viability.  Generally, these businesses still represent significant investment risk: 19 of 20 fail.  
• Valuable jobs:  Angel investment funds are used to create a feasible, prototype product or service. Feasible means that it has been tested and that there is some indication that it will be commercially viable.  Producing this product or service required people.  Thus, jobs for Oro Valley.
• A few very successful, growing companies: Who knows, if 1 in 20 do succeed then, over time, there will be a few growing businesses who will move out of the accelerator into their own facility.  These successful companies will likely be financed by venture capital companies (Stage 3 financing).  This could bring further growth to Oro Valley.

What It Costs Oro Valley
The accelerator concept is in it's early stages of development.  "The Town’s Budget for 2013/14 includes a feasibility study for this project, " noted Town Manager Greg Caton in an email to us. "At this time, we do not anticipate that the Town would need to contribute financially to facility on an ongoing basis," Caton further noted.  "Companies utilizing the facility pay rent. We need to conduct fiscal analysis to determine potential lease rates and other opportunities for revenue. Additionally, we will need a comprehensive analysis of the anticipated expenditures...this is a capital project and that the project, or the entities involved, with cover the ongoing operations and maintenance."

Our Analysis:

According to Fernando Martinez, Director of the University of Arizona Bio5 Institute: "The Town of Oro Valley is central to the most significant bioscience cluster in Arizona. It is here where scientific collaboration, technological innovation and business opportunity thrives. As home to almost a dozen leading bioscience and hi-­‐tech companies, Oro Valley enjoys a diverse business environment."

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