Council initiates discussion on attracting "Big-Box" RetailFor some time now, Vice Mayor Melanie Barrett and Councilmember Josh Nicolson have discussed the need for Oro Valley to attract at least a medium-sized, if not a large, big-box retailer. At their request, Town staff presented an update at last week’s Council meeting outlining current recruitment efforts.
The discussion made clear that there are several challenges
Oro Valley could face in attracting these retailers, including assembling sufficiently large parcels, addressing potential infrastructure and grading costs, pursuing General Plan amendments or rezoning if required, and possibly negotiating incentives. None of these issues were described as insurmountable, and to a large extent they fall within the policy authority of the Town Council. However, each raises questions about timing, process, and ensuring that public involvement remains central to any decision.
No Big-Box Retailer in the pipeline
Staff reported that while the Town staff wants to attract medium and large retailers, there are currently no confirmed big-box retailers in the pipeline and no such project under review. The Town’s goal is to maintain approximately three qualified retail leads at any given time, and staff indicated that four qualified retail leads exist overall. However, none involve a medium or large big-box retailer. Mayor Winfield added that the Town does not publicly identify potential retailers during early conversations because doing so could affect negotiations, land values, or competitive positioning.
Staff claims of a direct outreach strategy seem contrary to prior council dicussion
Community and Economic Development Director Paul Melcher explained that the Town conducts “cold-call outreach,” meaning staff contacts targeted retailers directly and provides site information, recruitment materials, and pre-application assistance. He did not specify which retailers have been contacted. At a prior Council meeting, in response to a question from Councilmember Nicolson, Melcher said staff has not contacted Costco directly. No specific retailer was identified as currently engaged.
Staff foresees land size constraints and entitlement uncertainty
Staff outlined several structural challenges. Medium to large retailers typically require 18 to 22 acres or more, high traffic volumes, and locations at major intersections — conditions that are increasingly difficult to meet in Oro Valley, where most readily developable commercial land has already been built. Remaining parcels may involve costly grading, drainage or wash constraints, infrastructure extensions, multiple property owners, or the need for General Plan amendments and rezoning. Staff noted that timing is often critical in site selection, meaning uncertainty in the entitlement process can put Oro Valley at a competitive disadvantage when retailers compare locations.
Sales tax rebate incentive discussed... lessons from the Oro Valley Marketplace experience
The discussion also acknowledged that incentives can be part of large retail recruitment, including infrastructure reimbursements, permit fee reimbursements, expedited review, and potentially sales tax–based incentives through an Economic Development Agreement. Any agreement must comply with Arizona’s Gift Clause and demonstrate a clear public benefit. Oro Valley has prior experience with retail tax incentives, most notably with the Oro Valley Marketplace project nearly two decades ago, which included a sales tax rebate component returning a portion of sales tax revenues to the developer over a defined period. Despite that arrangement, the Marketplace struggled financially for years, raising broader questions about the effectiveness and risks of retail tax incentive agreements.
Pre-Entitlements Proposed — Public Input Emphasized
The most significant policy concept discussed was whether the Town should consider “pre-entitling” certain commercial parcels for medium or large retail uses. This could involve initiating General Plan amendments or rezoning in advance of a specific retailer applying, and potentially negotiating Economic Development Agreements earlier in the process. Staff suggested that this approach could provide greater certainty and reduce timing risk for developers. Vice Mayor Barrett cautioned, however, that the Town must not short-circuit public input, emphasizing that community participation remains critically important in Oro Valley. Mayor Winfield indicated that any proposal involving pre-entitlements would need to return to Council as a separate agenda item for full discussion.
No Big-Box Retailer in the pipeline
Staff reported that while the Town staff wants to attract medium and large retailers, there are currently no confirmed big-box retailers in the pipeline and no such project under review. The Town’s goal is to maintain approximately three qualified retail leads at any given time, and staff indicated that four qualified retail leads exist overall. However, none involve a medium or large big-box retailer. Mayor Winfield added that the Town does not publicly identify potential retailers during early conversations because doing so could affect negotiations, land values, or competitive positioning.
Community and Economic Development Director Paul Melcher explained that the Town conducts “cold-call outreach,” meaning staff contacts targeted retailers directly and provides site information, recruitment materials, and pre-application assistance. He did not specify which retailers have been contacted. At a prior Council meeting, in response to a question from Councilmember Nicolson, Melcher said staff has not contacted Costco directly. No specific retailer was identified as currently engaged.
Staff foresees land size constraints and entitlement uncertainty
Staff outlined several structural challenges. Medium to large retailers typically require 18 to 22 acres or more, high traffic volumes, and locations at major intersections — conditions that are increasingly difficult to meet in Oro Valley, where most readily developable commercial land has already been built. Remaining parcels may involve costly grading, drainage or wash constraints, infrastructure extensions, multiple property owners, or the need for General Plan amendments and rezoning. Staff noted that timing is often critical in site selection, meaning uncertainty in the entitlement process can put Oro Valley at a competitive disadvantage when retailers compare locations.
Sales tax rebate incentive discussed... lessons from the Oro Valley Marketplace experience
The discussion also acknowledged that incentives can be part of large retail recruitment, including infrastructure reimbursements, permit fee reimbursements, expedited review, and potentially sales tax–based incentives through an Economic Development Agreement. Any agreement must comply with Arizona’s Gift Clause and demonstrate a clear public benefit. Oro Valley has prior experience with retail tax incentives, most notably with the Oro Valley Marketplace project nearly two decades ago, which included a sales tax rebate component returning a portion of sales tax revenues to the developer over a defined period. Despite that arrangement, the Marketplace struggled financially for years, raising broader questions about the effectiveness and risks of retail tax incentive agreements.
Pre-Entitlements Proposed — Public Input Emphasized
The most significant policy concept discussed was whether the Town should consider “pre-entitling” certain commercial parcels for medium or large retail uses. This could involve initiating General Plan amendments or rezoning in advance of a specific retailer applying, and potentially negotiating Economic Development Agreements earlier in the process. Staff suggested that this approach could provide greater certainty and reduce timing risk for developers. Vice Mayor Barrett cautioned, however, that the Town must not short-circuit public input, emphasizing that community participation remains critically important in Oro Valley. Mayor Winfield indicated that any proposal involving pre-entitlements would need to return to Council as a separate agenda item for full discussion.
The last time staff recommended any pre‑entitlement action was a few years ago at Innovation Park. Council approved a measure to allow developers to grade sites early to attract “shovel ready” projects. That effort produced no results.
No Action Taken; Further Discussion Likely
No formal action was taken. For now, staff will continue recruitment efforts. Any specific retailer proposal, incentive package, or change to the entitlement process would require future Council review and public input.
No Action Taken; Further Discussion Likely
No formal action was taken. For now, staff will continue recruitment efforts. Any specific retailer proposal, incentive package, or change to the entitlement process would require future Council review and public input.
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