What is the easiest way to make a windfall profit in Oro Valley? Just ask the town to hand over land for next to nothing. Believe it or not, that can happen if the town owns a right-of-way (ROW) next to your property—one that it no longer needs or plans to use. If the town agrees to vacate it, state law says they can’t charge you more than what they originally paid—usually a minimal amount, far below market value. Once it’s yours, you can combine it with your existing property and sell it at full market price, potentially making a significant profit.
Our guess is that this is exactly what Chris Phillips of Phillips Company LLC hopes the town will help him do. Phillips isn’t new to Oro Valley—he’s a resident and has done business with the town before. As manager of DC La Canada LLC, he once owned the dirt lot next to the town’s community center parking lot. In 2022, he traded that land for another piece of property.
Several years ago, Phillips acquired three state-vacated ROW's at public auction. He now wants to acquire three town owned ROWs that are adjacent to these lots [Panel Right]. Speaking at last week’s town council meeting, Paul Keesler, Director of Public Works, sought advice from the town council. He said that Phillips wants to combine the three vacated ROWs with vacated land he acquired from the state. The stated reason is to create larger, more developable properties.
Town staff says the land is not needed for public works purposes
Keesler explained that the requested ROW parcels were originally intended for grade-separated interchanges that are no longer needed, and the town has no objections to vacating them, provided that council approval is obtained. He noted that the existing 300-foot ROW along Tangerine Road is sufficient to accommodate future infrastructure needs, including road expansion, drainage, and slope management, making the requested parcels unnecessary for town operations.
Council made it clear: Town must have a compelling reason to vacate land it owns
At the town council meeting, Vice Mayor Barrett expressed strong reservations about vacating the right-of-way (ROW) parcels, stating, “I think we should not give up vegetated natural open space that’s owned by the people of Oro Valley… without an understanding of what will happen to it and what the reason for it is.” She emphasized the importance of protecting the town’s natural open spaces and was hesitant to support the request without clear public benefits. Barrett indicated she might consider the proposal if the applicant provided a detailed site plan showing how the development would generate revenue or improve infrastructure. However, she remained concerned about enlarging the applicant’s property for potential resale or speculative purposes. She stressed that any decision should align with the town’s long-term interests and preserve its open spaces. All council members agreed with her.
These will be very difficult lots to develop
While the town does not oppose the ROW vacation, two key town officials emphasized the significant hurdles the applicant would face in making the land suitable for development.
According to Paul Keesler, Director of Public Works, developing the combined parcels will be challenging due to significant elevation differences, steep slopes, drainage issues, and zoning compliance requirements. He explained that the land sits 10 to 20 feet below Tangerine Road, necessitating extensive grading and drainage solutions, while the site’s natural vegetation and slopes would require costly mitigation efforts. Keesler also pointed out that the preliminary site plan sketches submitted by Phillips do not even remotely meet town code requirements, meaning the project would likely require variances or amendments.
Town Planning Director Bayer Vella echoed these concerns, stating that he is “under no pretension whatsoever that these parcels will be able to achieve code compliance. They won’t. Each one would require numerous exceptions…These are very, very challenging parcels to develop, and that’s probably an understatement.”
Next steps in this ROW vacation process
The next step is for the applicant to submit a detailed site plan that includes a discussion of what it will take for the project to be code compliant. The proposal should also include how the development will benefit the town and its residents.
Our guess is that town council will never hear about this again. However, if they do, there will be a public meeting in which residents can participate.
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