On Thursday, Mayor Winfield will deliver a “State of the Town” address. We suspect that a key focus of his remarks will be on the town’s economic viability.
Oro Valley cannot simply raise sales taxes to boost revenue. This makes economic development and careful fiscal management essential to the town’s long-term financial health. Over time, Oro Valley must continue to revitalize its economy to sustain the revenue needed for its services.
Oro Valley has tried many things in the past to spur economic development. Some things have worked. And some have not.
Oro Valley has long pursued diverse strategies to drive economic development, in its efforts to sustain financial viability. From accelerating business approvals to expanding housing options, the town has explored multiple pathways to attract businesses and residents alike. Some approaches, like developing sports tourism and maintaining a strong public safety record, have shown tangible benefits. Others, such as efforts to streamline planning or create shovel-ready business sites, have encountered challenges. Here's what's been tried over the years. Click the links to learn more about each.
1. Streamlining development approvals
The EEZ (Economic Expansion Zone)
This strategy aimed to speed up development in Innovation Park by simplifying the approval process for businesses in Innovation Park; notably removing neighborhood meetings and Planning and Zoning Commission reviews. Although intended to reduce delays, it hasn’t led to noticeable new developments in Innovation Park, suggesting limited effectiveness.
Integrating the Planning and Zoning Department with Economic Development
Former Town manager Mary Jacobs made an organizational change that attempted to allign planning and zoning and economic goals by placing the Planning and Zoning Department under the Economic Development Department. This has created a situation in which planners also become mediators between developers and residents.
2. Preparing infrastructure for building
Shovel-Ready Lots in Innovation Park
By preparing land for quick business setup, the town hoped to attract companies ready to establish themselves. Despite the investment, the initiative hasn’t drawn interest from businesses, partly because available lots don’t meet the scale or accessibility requirements many businesses desire, such as highway access or larger parcels. After all, in reality, more of all is 10 miles from interstate 10 whether you travel west or south.
3. Housing expansion
Increasing rooftops
Based on the idea that more housing would attract businesses to serve a larger population, this approach has expanded Oro Valley’s residential community but hasn’t attracted significant business diversity beyond healthcare and other personal services. This trend highlights that more rooftops alone do not meet business attraction goals.
Adding multifamily dwelling units (apartments)
A similar approach focused on increasing rental options to attract employees for potential high-paying jobs. However, demand is currently lukewarm; For instance, the Linda Vista rentals have had substantial vacancies, suggesting that the need for upscale apartments may be overestimated.
4. Tourism and sports attractions
Use Parks and Recreation facilities to attract visitors to the town
Oro Valley has invested in sports venues to attract visitors, and while there’s limited town data, activities like aquatics events do bring non-residents to the area. Sports facilities have had success in driving local economic activity, particularly in hospitality and dining sectors.
Make Oro Valley a destination or visitors
Recently, Oro Valley took over as its own Destination Marketing Organization, aiming to bring more tourists directly rather than relying on regional efforts. Early efforts, including partnerships for sports events and planning public art tours, are underway, but it’s too soon to assess the overall impact.
5. Expansion through annexation
Annex for growth
Oro Valley has used annexation to incorporate nearby areas, both residential and commercial. Commercial annexations bring tax revenue and support public services, while residential expansions provide initial fees but may add long-term service costs without corresponding revenue.
6. Developing a knowledge economy
Incubate businesses
Through a partnership with the University of Arizona, the Oro Valley Innovation Center serves as a business incubator. The aim is to foster startups that remain and grow within the community, though progress is gradual due to the incubation timeframe and risk of external acquisitions relocating businesses.
7. Public Safety as an economic incentive
Maintain strong public safety
Oro Valley’s reputation for safety is a draw for both residents and businesses, exemplified, years ago, by Rancho Vistoso’s willingness to be annexed for dedicated police coverage. Public safety remains a foundational element of Oro Valley’s appeal.
8. Digital promotion and policy adjustments
Build an award-winning website for businesses to explore the town
The “Choose Oro Valley” website serves as a digital face for the town’s economic efforts, recognized for excellence in design and functionality, aimed at attracting potential investors and residents. We have no idea if this generation significant leads. But it appears to be a good start.
Amend the General Plan to switch from residential to a commercial and back
Historically, General Plan amendments allowed for changes in land use. These are changes that allow the land to be used in a manner that was not approved by the voters. These changes are made in response to whatever the current market supposedly supports. The approach has shifted under different administrations, with fewer amendments in recent years, reflecting an adherence to the voter approved 2016 general plan.
1. Streamlining development approvals
The EEZ (Economic Expansion Zone)
This strategy aimed to speed up development in Innovation Park by simplifying the approval process for businesses in Innovation Park; notably removing neighborhood meetings and Planning and Zoning Commission reviews. Although intended to reduce delays, it hasn’t led to noticeable new developments in Innovation Park, suggesting limited effectiveness.
Integrating the Planning and Zoning Department with Economic Development
Former Town manager Mary Jacobs made an organizational change that attempted to allign planning and zoning and economic goals by placing the Planning and Zoning Department under the Economic Development Department. This has created a situation in which planners also become mediators between developers and residents.
2. Preparing infrastructure for building
Shovel-Ready Lots in Innovation Park
By preparing land for quick business setup, the town hoped to attract companies ready to establish themselves. Despite the investment, the initiative hasn’t drawn interest from businesses, partly because available lots don’t meet the scale or accessibility requirements many businesses desire, such as highway access or larger parcels. After all, in reality, more of all is 10 miles from interstate 10 whether you travel west or south.
3. Housing expansion
Increasing rooftops
Based on the idea that more housing would attract businesses to serve a larger population, this approach has expanded Oro Valley’s residential community but hasn’t attracted significant business diversity beyond healthcare and other personal services. This trend highlights that more rooftops alone do not meet business attraction goals.
Adding multifamily dwelling units (apartments)
A similar approach focused on increasing rental options to attract employees for potential high-paying jobs. However, demand is currently lukewarm; For instance, the Linda Vista rentals have had substantial vacancies, suggesting that the need for upscale apartments may be overestimated.
4. Tourism and sports attractions
Use Parks and Recreation facilities to attract visitors to the town
Oro Valley has invested in sports venues to attract visitors, and while there’s limited town data, activities like aquatics events do bring non-residents to the area. Sports facilities have had success in driving local economic activity, particularly in hospitality and dining sectors.
Make Oro Valley a destination or visitors
Recently, Oro Valley took over as its own Destination Marketing Organization, aiming to bring more tourists directly rather than relying on regional efforts. Early efforts, including partnerships for sports events and planning public art tours, are underway, but it’s too soon to assess the overall impact.
5. Expansion through annexation
Annex for growth
Oro Valley has used annexation to incorporate nearby areas, both residential and commercial. Commercial annexations bring tax revenue and support public services, while residential expansions provide initial fees but may add long-term service costs without corresponding revenue.
6. Developing a knowledge economy
Incubate businesses
Through a partnership with the University of Arizona, the Oro Valley Innovation Center serves as a business incubator. The aim is to foster startups that remain and grow within the community, though progress is gradual due to the incubation timeframe and risk of external acquisitions relocating businesses.
7. Public Safety as an economic incentive
Maintain strong public safety
Oro Valley’s reputation for safety is a draw for both residents and businesses, exemplified, years ago, by Rancho Vistoso’s willingness to be annexed for dedicated police coverage. Public safety remains a foundational element of Oro Valley’s appeal.
8. Digital promotion and policy adjustments
Build an award-winning website for businesses to explore the town
The “Choose Oro Valley” website serves as a digital face for the town’s economic efforts, recognized for excellence in design and functionality, aimed at attracting potential investors and residents. We have no idea if this generation significant leads. But it appears to be a good start.
Amend the General Plan to switch from residential to a commercial and back
Historically, General Plan amendments allowed for changes in land use. These are changes that allow the land to be used in a manner that was not approved by the voters. These changes are made in response to whatever the current market supposedly supports. The approach has shifted under different administrations, with fewer amendments in recent years, reflecting an adherence to the voter approved 2016 general plan.
Here's what's really worked
Over the past decade, Oro Valley has experienced notable population growth. Combined with significant inflation and the taxation of internet purchases, this population growth has increased town sales tax and state shared revenues. Yes. We think that many people moved here did so because of the Town's terrific public service presence. We have not seen, however any significant new businesses that offer . What we have seen is something that should've been anticipated: An increase in medical and personal service businesses.
Tomorrow we take a look at Oro Valley's current community and economic development plan, a plan that was put in place five years ago. It is a bit different from what the Town did historically.
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