Council Acts: Oro Valley Village Center Ready To Go

The way is clear to remake the Oro Valley Marketplace
The remake of the Oro Valley Marketplace can now begin. Last night, the Town Council unanimously approved the final clearances needed to break ground. The project will have two expansive apartment buildings housing a total of 504 units, a hotel and a recreation area.

Approval cleared two motions

Clearing the way required that the council approve two resolutions: First, relinquished the rights to two "right-of-ways." Second, approved a recreation area that will be developed solely by the developer. The final design of that recreation area is a bit fluid and will be "worked out" with town staff.

A phased approach to building the recreation area

Town West secured approval to advance the project by working through the final "sticking point". That point was the town's refusal to pay for part of what was to be an "entertainment center."  To work around this, Town West offered a scaled-down recreation area. It is one that can be expanded to the original concept. However according to Town West, that will only happen if the Town of Oro Valley invests in under-grounding the wash that runs through that area. That would cost the town $6 million, according to Vice Mayor Barrett, speaking at the meeting. 

Nothing will happen quickly

Developer representative Keri Silvyn said that it will take 18 months before any of the three planned buildings is ready for occupancy. The first building to be occupied will be a hotel because town council specified in its initial project approval last year that a hotel must receive a Certificate of Occupancy before any apartment can be occupied. Town West will complete the two apartment complexes, one on Tangerine and the other on Oracle, within a few months of that. 

Click here to learn more about the plan for building the center.  

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Town West Unveils Plan To Get The Oro Valley Village Center Going...Eliminates Risk To Town

Plan requires a "scaled down" entertainment center

Last night, the owner of the Oro Valley Marketplace, Town West, unveiled a plan to allow them to begin transforming the Oro Valley Marketplace into the Oro Valley Village Center. That transformation includes construction of one hotel and two apartment complexes. The plan hinges on the Town Council granting approval for a modification in the development of the Entertainment Center.

Town West plans to create a downsized version of the entertainment center in what they call “Phase 1” [See panel right] such they it can meet recreational space prerequisites for the already approved apartment buildings. They collaborated with town staff to devise this proposal and the Town Staff has recommended its approval.

Change needed because Town Council rejected EDA

The requested change stems from the Town of Oro Valley's Council refusal to assume responsibility for undergrounding the wash that runs through the entertainment center area. According to the Town West, that cost would have been paid by the construction sales taxes that the town will earn from the project. The Town Council was repeatedly informed that the complete entertainment center couldn't be constructed without the town participating in what Town West refers to as a "private:public" partnership.

The town staff with the assistance of Town Outside Attorney Jonathan Rothschild had previously negotiated a deal with the developer under the direction of former town manager Mary Jacobs, but the Town Council rejected it in an executive session earlier in the summer. Keri Silvyn of Lazarus and Silvyn PC, representing Town West, stated, "We were informed over the summer that the Town Council was not interested in an EDA." As a result, they collaborated with staff to develop an alternative plan for the entertainment center, allowing them to proceed with construction. 

Phased approach eliminates financial risk to town
The phased approach to building the entertainment center eliminates the risk to the town presented by the original plan. Town West will build the two apartment complexes and a hotel without any Town involvement. If, after that, the town sees success in the project, the council can decide if it wants to underground the wash to accommodate the addition of another hotel and food court-type concepts in the entertainment district.

Phased approach in no way changes council mandated stipulations
The Town Council made twenty-three stipulations for the construction of the facilities in the Oro Valley Village Center when it approved the project last year. The proposed phased approach to building the entertainment center in no way impacts any of those stipulations. Thus, the project will be built in exactly the manner the town approved.

Center is simply not viable as it is

James Horvath, Managing Partner of Town West, expressed deep concerns about the viability of the center in its current state. He said that most businesses are struggling to stay afloat. Only Olive Garden is performing adequately, while the rest of the businesses are facing difficulties. The owner of Tuk Tuk Thai, an Oro Valley resident, has contemplated reducing operating days due to poor business performance.

Planning and Zoning Commission approves change but...

We acknowledge the dedication of those who serve on town commissions and boards. However, it's worth noting that some commission members spent an excessive amount of time attempting to redesign a project they were supposed to vote on. Their primary decision was whether to allow the entertainment center to be built in phases, which, after a lengthy discussion with some members admitting their lack of knowledge about the project, received a 6-0 vote in favor of the change, with one abstention.

Phasing not the only change requested

Another decision the council needs to make concerns the requirement that the entertainment center include a couple of restaurants around the same time as the construction of the apartments. The details are not entirely clear, but the Planning and Zoning Commission decided to waive this requirement.

No guarantee of when construction will begin even if change is approved by council

If the Town Council approves this change at the upcoming regular council meeting next week, construction can commence on the center. Nevertheless, even with that approval, there is no certainty of immediate progress due to the current economic climate and prevailing high interest rates. The project owner informed the Town of Oro Valley planning and zoning commission last night that they cannot guarantee a specific construction timeline. They emphasized the urgency of progressing since they are currently paying taxes on a property generating no revenue. Town West General Manager James Horvath underscored, "We cannot commit to any timeframe.”

Development of the entertainment center beyond phase 1 is unlikely without town financial support

Town Staff and the applicant made it clear at the meeting that development of the entertainment center beyond phase 1 is highly unlikely... unless the town agrees to undergroud the wash... which, perhaps a future council will do.

More to follow next week when the Town Council hears this matter

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Bits and Pieces

Former Vistoso Golf Course is now "Vistoso Trails Nature Preserve"

The Oro Valley Town Council selected a name for the former Vistoso Golf Course preserve. They did so a this past Wednesday's town council meeting. 

There were 1,500 unique names submitted by more than 2,500 residents in a contest to name the former course. The council selected from among the top three as voted by town residents. The name, Vistoso Trails Nature Preserve," received the the most resident votes and was the final selection of council.

Oro Valley Village Center (aka Oro Valley Marketplace) visioning continues
Town West returned to the Oro Valley Town Council Wednesday night to seek guidance as they prepare to resubmit their plan for the Oro Valley Village Center to council. They were seeking guidance on the height of the two hotels. 

According to Keri Silvyn, Town West attorney, the hoteliers (Springhill Suites Marriot and Hilton Hampton Suites) require four floor buildings. That means a height of 49 feet plus 10 added feet for architecture. That brings the height 10 feet greater than the PAD permits. All council members were in favor of the increased height. 

The discussion then turned to the location of one of the hotels. Most members favored putting that hotel on Oracle as opposed to it being Tangerine. The other hotel will be in the entertainment area. 

Town West will continue the process, resubmitting their proposal to town staff. According to Silvyn, the development conforms with all other PAD requirements.

Sharp to speak at OVSBC meeting next week

Mayoral candidate Danny Sharp will be the guest speaker on May 25 at an Oro Valley Social & Business Club (OVSBC) gathering. The event is from 5-7pm at the Fork and Fire Grille in the Oro Valley Marketplace. The event is $20 cash at the door and includes food and music. Cash bar. OVSBC supports local restaurants, small businesses and Veterans/First Responders. This is not a candidate fundraising event.

Oro Valley invites community to Naranja Park groundbreaking ceremony 

ORO VALLEY, Ariz. (May 17, 2022) – The Town of Oro Valley is ready to break ground on the Naranja Park Expansion Project, a multi-million-dollar investment that will bring new amenities to this already established park. Community members of all ages are invited to attend the groundbreaking ceremony, which will be held Tuesday, May 31 from 9 to 10 a.m. at Naranja Park (810 W Naranja Drive). The groundbreaking will feature remarks from Parks and Recreation Director Kristy Diaz-Trahan and Mayor Joe Winfield. Following the ceremony, families are invited to stay and play at Naranja Park with free commemorative kites made specifically as a keepsake for the event.. (Source: Town of Oro Valley Press Release)

Town unveils third mural

There's a new mural in Oro Valley. According to Town Manager Mary Jacobs, "The mural was inspired by the beautiful starry nights in Oro Valley and the beautiful desert colors." The mural is on the concession stand in Riverfront Park. The town's other murals are at James D Kreigh Park and the Oro Valley Marketplace.

Town of Oro Valley accepting applications for Planning and Zoning Commission vacancy 

 ORO VALLEY, Ariz. (May 19, 2022) – The Town of Oro Valley is accepting applications to fill an immediate vacancy on the Planning and Zoning Commission.  To serve on an Oro Valley commission, members must be residents of Oro Valley, be able to attend the designated meetings and complete the Town’s Community Academy within their term. Planning and Zoning Commission members serve two-year terms. Those interested in applying can visit the application process on our website. The vacancy will remain open until filled. The Planning and Zoning Commission holds public meetings and makes recommendations to the Town Council on matters relating to the General Plan, zoning code amendments, rezoning and other land use requests. The commission meets on the first Tuesday of every month at 6 p.m. in the Oro Valley Council Chambers.

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Guest View: Mike Zinkin – The darker side of Town government

As previously reported on LOVE, as if the antics of Town Manager, Mary Jacobs, aren’t bad enough (ignoring adopted Town Council Policies, convincing the current Council to set records for fiscal “management” including the highest budget in Town history, two sets of 3% employee raises in 12 months during a pandemic, and $50 million in added bond debt, and, most important, adding a veil of unprecedented secrecy with all the Executive Sessions)…we have recently discovered additional information on another high-ranking member of the Town Staff.

Town Attorney has possible Conflict-of-Interest
Some business associations on the part of the Town Attorney have recently been uncovered.

LOVE readers are aware of the “secret” proposed Economic Development Agreement between the Town and Town West regarding the Oro Valley Village Center (formerly Oro Valley Marketplace). The Executive Session on this topic during the January 19, 2022 meeting was cancelled when some Council members realized that any agreement with Town West was premature since there has been no approved action for the properties. The Town Attorney, Jonathan Rothschild, along with the Town Manager, have something proposed, but the details are being kept a secret.

Here's the problem. The principal characters with Town West are the Humberto Lopez family (HSL Properties), the Horvath family, and their attorney Keri Silvyn. It turns out that Rothschild has financial ties to all of them. In 2011, when Mr. Rothschild was running for the Mayor of Tucson, all the above-named individuals contributed to his campaign. [Click on the below attachment to enlarge it]

Possible lingering effects
Now you might say, “That was over 10 years ago, so what’s the big deal?” The problem is that Mr. Rothschild has had a prior relationship with the people who are the principles in any agreement that the Town might enter into with Town West. Will there be any lingering effects from those past campaign donations? Will Rothchild’s decisions on the Town West deal be in the best interest of the citizens of Oro Valley or will he be beholden to what’s in the best interest of the Lopez family and the Horvath family?

The Council is aware of these campaign contributions, thanks to communications sent to them from Oro Valley citizens.

Accordingly, Mr. Rothschild should recuse himself from any communications and/or dealings with Town West.

Decisions need to be made on what’s best for the residents of Oro Valley.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

"Bye-Bye" Best Buy

Oro Valley store is of many Best Buy store closings

Best Buy has been closing stores across the nation and now the Oro Valley Marketplace store is the latest victim. It is scheduled to close March 5. "The COVID-19 pandemic delivered a brutal haymaker to America’s brick-and-mortar stores, which were already badly bruised by their online opponents." (Source)

The closing comes a time when Oro Valley Marketplace owner, Town West, is presenting plans to town council to "reimagine" the marketplace. One of the main reasons they are doing so is that in-store retailing chains, like Best Buy, are "reimagining" themselves into fewer, smaller locations with fewer in-store personnel.

Even free rent can't keep Best Buy in the Marketplace

According to Keri Silvan of Lazarus and Silvyn PC, representing Town West: "We have been explaining this situation in all of our public hearings as there is not enough population around the Marketplace to support" a regional shopping center.

Indeed, Town West has worked diligently to keep the this big box retailer in the fold. 

Silvan told us: "Town West has been working closely with Best Buy Corporate to keep them on the site. Town West has offered reduced rent and even free rent to give time for Best Buy to remain until the re-imagining of the center starts to take hold. What we have been told by Best Buy Corporate is that this is the worst performing store in their portfolio and even with rent forgiveness, they are having to close."

Future of Oro Valley Marketplace is on the town council's radar

At this point, the Oro Valley Marketplace is looking like one of the many shabby malls across the nation. To an extent, Best Buy's exit is yet another reason why the Oro Valley Marketplace needs a reawakening. 

You will have your opportunity to opine on this at the Oro Valley Town Council meeting of February 16. 

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