Council initiates new zoning process for Town Centre landThe Oro Valley Town Council voted last week to initiate a general plan amendment to land that the town owns on Oracle Rd. The land is adjacent to and south of Town Centre. It is on the east side of Oracle Road where Pusch View Lane ends. The amendment would set new limits on building heights, reduce the scope of residential development, expand open space and recreation uses, and allow for additional commercial frontage along Oracle Road. The amendment affects areas designated as 3 and 4.
Barrett sought to protect views and preserve commercial use
Vice Mayor Melanie Barrett requested the Council take up this item. She noted that the existing zoning for the property still allowed a 75-foot hotel, which she believed would be out of scale with the area and could affect mountain views. She also expressed concern that removing the current ground-floor commercial requirement might result in Area 3 being developed entirely as residential, contrary to the Town’s past strategic vision of encouraging commercial activity along Oracle Road.
As part of the amendment, the Council directed staff to create new commercial areas along Oracle Road. Labeled as Areas 5 and 6, these sites are immediately south of Area 2. That area includes retailers like CVS and Jersey Mikes. The intent is to extend the existing commercial frontage, taking advantage of the visibility and access along Oracle. Councilmembers viewed this as an opportunity to strengthen the Town’s commercial base while leaving the larger back portions of the property for open space and recreation.
Amendment addresses resident concerns voiced in 2019
The land has seen rezoning in the past. In 2019, the Council approved a rezoning of Area 4 to allow for 77 single-story homes on small lots with strict height limits and large areas of open space. The 2019 rezoning created quite a bit of community reaction where concerns were voiced about the loss of open views, increased traffic, and the scale of new development at the base of the mountains. Nonetheless, the rezoning was approved. According to Barrett speaking at that time, she favored limiting heights and preserving views in order to protect the scenic quality of Oro Valley’s mountain backdrop.
Town acquired this land as a gift, after failed Richmond American project
The Town came to own Areas 3 and 4 in 2020, when the Rooney family donated the property following a failed effort to develop it. Richmond American Homes had received approval in 2019 but found that the costs of extensive grading and large retaining walls made the project financially unworkable. After that collapse, the family transferred the land to the Town, leaving it to Council to determine the long-term future of the site.
Town could sell some of this land, generating millions for general fund
Mayor Joe Winfield commented during the discussion that the Town could “sell the property, let developers do their job,” and then use the proceeds to support the Town’s general fund. The Town has authority to sell property it owns without voter approval so long as it is not restricted for a public purpose and the sale is approved by Council.
Assuming that Area 4 is rezoned largely for open space and recreation, the amount of land the Town could sell is reduced to the Area 3 and the new Area 5. Together, these areas total roughly 20 to 30 acres with direct frontage on Oracle Road. Comparable sales along Oracle Road suggest commercial frontage can bring $400,000 to $600,000 per acre, while interior mixed-use parcels trade for $150,000 to $300,000 per acre. Based on those figures, the value of the marketable land falls to an estimated $15 million to $20 million, with the balance of Area 4 providing community benefit as open space rather than direct revenue.
From initiation to community review
The Council’s action only begins the rezoning process. Next, Town staff will hold neighborhood meetings to gather community input. The proposal will then move to the Planning and Zoning Commission for a public hearing and recommendation. A final decision rests with the Town Council, which will consider the plan again after these reviews and before any future development or possible sale of the property.
From initiation to community review
The Council’s action only begins the rezoning process. Next, Town staff will hold neighborhood meetings to gather community input. The proposal will then move to the Planning and Zoning Commission for a public hearing and recommendation. A final decision rests with the Town Council, which will consider the plan again after these reviews and before any future development or possible sale of the property.
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