A campaign video posted on mayoral candidate Mark Napier’s site states that “The Oro Valley Marketplace is not living up to its potential due to failed leadership and no long-term vision for its development.” The claim is not substantiated. It is simply an assertion. The video gives the impression, especially to those who do not know the Marketplace’s history, that the empty storefronts, and there are many, are the fault of the current Town Council.
History says otherwise
LOVE has documented the Marketplace since its inception. Indeed, LOVE’s founding grew out of the efforts of residents who opposed Town financial support for the center. They did not like the agreement the Town made with the developer, Vestar. Vestar was to receive an estimated $23.2 million in rebated sales tax revenue over the center’s first ten years.
These residents fought to place that choice on the ballot so residents could approve or reject it. Bedazzled by the promise of an “upscale” mall like La Encantada in the foothills, and with the support of the Paul Loomis-led council, 58% of residents, in March 2006, voted in favor of the Town’s financial support for the center. They did not get that upscale mall. A subsequent Arizona Supreme Court ruling sharply restricted such arrangements by requiring that public payments provide direct and proportionate public benefits.
The Marketplace was troubled from the beginning
LOVE chronicled this history through 2019. We concluded that the Marketplace was doomed from its inception because it was not an economically feasible venture. Even with ongoing government support, it was, at best, only marginally successful. The only council that could be blamed for its failure, if any council could be blamed, would be the council in office when the decision was made to financially support the center in 2005. Indeed, the Marketplace would never have been built at that time had it not been for the financial support to which the Town had agreed.
The Marketplace struggled throughout its history. There were always vacant storefronts. No upscale stores located there. Its gross revenues fell far short of the plan. After ten years, the center had generated $16.4 million in sales tax revenue for Vestar. That was far less than the projected $23.2 million. Store after store failed. Remember Dick’s Sporting Goods? Best Buy? Ashley Furniture?
During most of those years, from 2010 to 2018, the Town was overseen by the Hiremath Council. That council included current council candidate Rhonda Piña and Joe Hornat, a vocal Napier supporter. The Hiremath Council did nothing to fix the plight of the center. And, really, what could it have done?
The Winfield Council inherited the problem
By 2019, the first full year of the Winfield Council, there were 22 open businesses and 23 empty storefronts. By October, the Marketplace had a new owner. Vestar sold the Oro Valley Marketplace to Town West Realty. The reported purchase price was $45.15 million.
Town West presented a new vision
Town West had a vision. It planned to transform the Marketplace from a primarily retail center into a mixed-use development. Town West believed that only a mixed-use development could provide the density needed to make the shopping center successful. The Town Council agreed. From 2022 to 2023, Town staff and the council worked with Town West to shape the redevelopment into a plan that could revitalize the Marketplace.
Council shaped it the Oro Valley way
The initial proposal from Town West contemplated approximately 730 apartments in two six story buildings. They sought numerous exceptions from the Town’s existing height and setback requirements. These exceptions were not consistent with the Town’s General Plan. Nor were they consistent with what residents wanted. The initial plan included a “public-private partnership” that would have required the Town to underground a wash and build and maintain an entertainment center.
After much work, the final agreement allowed 320 apartments in two three-story buildings, with the buildings limited to 39 feet. It also included a hotel. The agreement added an important condition: The agreement added an important condition: The hotel in Area 4 must receive its certificate of occupancy before certificates of occupancy may be issued for any apartments in Area 4. The initial recreational amenities would be the responsibility of the developer rather than becoming a Town-funded obligation. If the project succeeds, the council can later decide whether it wants to underground the wash to accommodate another hotel and food-court-type concepts in the entertainment district.
Redevelopment is now moving forward
Drive through the Marketplace and you can see that construction is in progress on the north side of the property. It includes one of the two approved apartment buildings, the hotel, intersection and pedestrian improvements, and the neighborhood park. Surf Thru Car Wash is ready to go on the south side. There is also a new restaurant where Red Lobster used to be.
Napier should explain his alternative
If Napier does not see that as leadership, then we ask: What would he have done, and would it have achieved a better result? We believe that question is legitimate. We see a center that is being revitalized and is on the move again. We see a center whose redevelopment plan was shaped with the input and effort of Town staff and council. We see that as leadership.
But Napier’s video does not agree. So we wonder: What would he have done differently to make this redevelopment a reality? Would he have approved six-story apartment buildings? Would he have approved 720 apartments? Would he have committed millions of dollars in Town money upfront to fund the entertainment center?
Those are legitimate questions Napier ought to answer instead of simply trying to rewrite history.
- - -
