The current economic development strategy is a departure from the past… it's a targeted approach
The current Oro Valley Comprehensive Economic Development Strategy (CEDS) represents a targeted approach, marking a clear departure from past economic strategies. It is a strategy of which LOVE and his readers have been critical. It is a strategy that was developed under the leadership of prior town manager, Mary Jacobs.Though we have a new town manager, Jacobs' community and economic development strategy is still the prevailing strategy of the town is the prevailing strategy of the town. In fact, its implementation is a major objective of the town council's most recent strategic plan. This is the last year of its planning horizon, and a new or updated economic development plan will be required as the town also develops a 10-year general plan.
The current CEDS seeks to achieve the following:
Attract Bioscience and Technology employers through partnerships and incentives
The CEDS takes a unique approach by targeting specific business sectors for employment growth, focusing on emerging industries such as electronic vehicle battery storage, think films technology, optics, and destination marketing. This aligns with previous efforts to collaborate with the University of Arizona on talent development while offering incentives to attract primary employers. There has been success in this area with companies such as Sigma Tech, Polycharge, Nikon Research Corporation and Simpleview locating in Oro Valley.
Align residential development with workforce requirements
Aligning residential development with workforce needs is a new concept. When this was discussed with the Council, there was much debate about whether a bioscience and technology-focused workforce would prefer homeownership or apartment living. During those discussions, the council was repeatedly informed that younger workers, seen as the primary target group, often favor apartments over homes. A larger question however, was one that was never discussed.
Attract Bioscience and Technology employers through partnerships and incentives
The CEDS takes a unique approach by targeting specific business sectors for employment growth, focusing on emerging industries such as electronic vehicle battery storage, think films technology, optics, and destination marketing. This aligns with previous efforts to collaborate with the University of Arizona on talent development while offering incentives to attract primary employers. There has been success in this area with companies such as Sigma Tech, Polycharge, Nikon Research Corporation and Simpleview locating in Oro Valley.
Align residential development with workforce requirements
Aligning residential development with workforce needs is a new concept. When this was discussed with the Council, there was much debate about whether a bioscience and technology-focused workforce would prefer homeownership or apartment living. During those discussions, the council was repeatedly informed that younger workers, seen as the primary target group, often favor apartments over homes. A larger question however, was one that was never discussed.
There is some question as to whether the employees of these companies want to live in Oro Valley. It's not that Oro Valley is not a great place to live. But let's face it. There really isn't any nightlife here and young people, especially those who are single, may well prefer to live in Tucson.
This CEDS strategy element may reflect an effort to justify increased apartment development.
Leverage natural and cultural resources to stimulate tourism
To boost retail and tourism, CEDS seeks to leverage Oro Valley’s natural and cultural resources, linking tourism with retail and the arts in a cohesive strategy. This broader approach contrasts with past efforts, which primarily emphasized sports and outdoor activities to attract visitors. The current strategy includes a broader range of community activities and seeks to create economic benefits for both residents and tourists. There are no metrics that we found can be used to determine if the strategy element is working.
Annex selectively to attract high-tech businesses
The CEDS employs a selective annexation approach, focusing on parcels that support economic development goals in technology and innovation. This approach includes infrastructure initiatives, such as dark fiber and utility expansions, to attract high-tech businesses. This strategy is a shift from past annexation strategies, which were more general, incorporating both residential and commercial areas to increase revenue. However, the only annexation that has taken place in the past five years is the annexation of the Westward Look resort. This is an extension of a past strategy to annex areas that bring commercial business revenues to the town.
Streamline development approvals and update zoning codes for predictable business processes
The CEDS includes measures to streamline development approvals while retaining resident input. The strategy aims for zoning adjustments, form-based codes, and procedural modifications to improve efficiency across departments, with some updates already presented to the council. Unlike the previous Economic Expansion Zone (EEZ) approach, which was limited to Innovation Park, this CEDS element applies updates town-wide, aiming to maintain community standards while enhancing predictability for businesses. .
Leverage natural and cultural resources to stimulate tourism
To boost retail and tourism, CEDS seeks to leverage Oro Valley’s natural and cultural resources, linking tourism with retail and the arts in a cohesive strategy. This broader approach contrasts with past efforts, which primarily emphasized sports and outdoor activities to attract visitors. The current strategy includes a broader range of community activities and seeks to create economic benefits for both residents and tourists. There are no metrics that we found can be used to determine if the strategy element is working.
Annex selectively to attract high-tech businesses
The CEDS employs a selective annexation approach, focusing on parcels that support economic development goals in technology and innovation. This approach includes infrastructure initiatives, such as dark fiber and utility expansions, to attract high-tech businesses. This strategy is a shift from past annexation strategies, which were more general, incorporating both residential and commercial areas to increase revenue. However, the only annexation that has taken place in the past five years is the annexation of the Westward Look resort. This is an extension of a past strategy to annex areas that bring commercial business revenues to the town.
Streamline development approvals and update zoning codes for predictable business processes
The CEDS includes measures to streamline development approvals while retaining resident input. The strategy aims for zoning adjustments, form-based codes, and procedural modifications to improve efficiency across departments, with some updates already presented to the council. Unlike the previous Economic Expansion Zone (EEZ) approach, which was limited to Innovation Park, this CEDS element applies updates town-wide, aiming to maintain community standards while enhancing predictability for businesses. .
Is there an OV Factor when it comes to construction question?
Perhaps some streamlining is necessary. Although we hate to use anecdotal information, about a month ago a comment appeared on the social media platform Reddit. It was entitled: “Are Construction companies refusing to work in Oro Valley?” Two contractors—a home builder and a remodeling company—independently stated they avoid working in Oro Valley due to the building department’s inspectors, who allegedly demand costly requirements beyond the building codes. They claim these demands add thousands of dollars to project costs, which they hesitate to pass on to clients, resulting in lost sales. Contractors say they would need to overcharge to account for what they call the “OV factor,” making Oro Valley projects financially unviable.
The CEDS marked a significant departure from Oro Valley’s previous economic development plans. Past strategies focused on rooftops, shovel-ready lots, broad annexations for growth, and public safety as an economic driver. In their place, CEDS introduced a targeted, industry-focused approach and we have seen some success and attracting target sector businesses.
The questions now are: What tangible results of the CEDS strategy has Oro Valley experienced in the past five years in other areas? Second, should Oro Valley continue with this strategy or is it time to develop a new approach?
What's next?
These are questions that will be answered as the Town begins to plot its financial future, a future without substantial bond funding, without outlandish federal giveaways, and [hopefully] without the luxury of seeing increases in sales taxes because of inflation.
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