Oro Valley Does Not Plan To Purchase Vistoso Course From Romspen

This is the third of three reports on The Town of Oro Valley's video response to more than 1,000 resident questions on the proposed Vistoso Golf General Plan Amendment.  Monday, we focused on the "benefit of certainty" Romspen believes the amendment provides. Yesterday, we reported Romspen's belief that the proposed amendment will stabilize, perhaps enhance property values in the area. Today, we present Oro Valley's Parks and Recreation Director's Kristy Diaz-Trahan's discussion of the town's parks and recreation plan.

Please note that all three posting present what the individual said. They are presented without LOVE comment.
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Diaz-Trahan: 
No plan to purchase Vistoso Golf Course

Oro Valley's Parks and Recreation Director Kristy Diaz-Trahan stated that the town has no intention of purchasing the Vistoso Golf Course.

This statement was a response to a question created by town staff as a summary question from residents.

The question:  Why doesn't the town purchase the Vistoso Golf property as a public park?

The response: “At this point, we do not anticipate acquisition of additional facilities. We need to address buildout and maintenance of existing facilities first."

Diaz-Trahan: 
Rancho Vistoso's parks and recreation facilities are dictated by the Rancho Vistoso PAD
Diaz-Trahan read section 1.1.A of the Rancho Vistoso PAD. That section states that Rancho Vistoso “...is envisioned as a totally self-sufficient community, including residential uses of all types, neighborhood and community shopping and retail, schools, parks, churches, natural open space, a resort hotel, town center, and adult community and office park.”

Diaz-Trahan:
Vistoso Community web site says there are numerous areas for community enjoyment

New Park at Moore and Rancho Vistoso Blvd

She also referenced the Vistoso Community web site. That site states that "There are numerous natural areas throughout the Rancho Vistoso community for the enjoyment of all residents. A system of nature paths traverses the community north to south. Our major thoroughfares include bike-ways to encourage non-motorized modes of transportation. There are 11 parks in Rancho Vistoso, including 10 neighborhood parks that are owned by the Vistoso Community Association (VCA) and maintained with our assessments."

She noted that one of these parks, Honey Bee Canyon, is owned by the Town of Oro Valley; and that there is a new "large" park (see above) that will be coming online. That will double the number of parks in Rancho Vistoso that are owned and maintained by the Town of Oro Valley parks in Rancho Vistoso to two.

Parks and Recreation master plan is being prepared
The Oro Valley Parks and Recreation plan is in the process of update. Diaz-Trahan expects to present the first phase of this plan to the Oro Valley Town Council on May 20.

Grant question not answered
One of the questions that residents asked was what the town has done or could do to obtain grants to purchase the land. The video did not include a response to that question.

Romspen: "Amendment Will Stabilize Property Values"

This is the second of three reports on The Town of Oro Valley's video response to more than 1,000 resident questions on the proposed Vistoso Golf General Plan Amendment.  Yesterday, we focused on the "benefit of certainty" Romspen believes the amendment provides. Today, we focus on Romspen's belief that the proposed amendment will stabilize, perhaps enhance property values in the area. Tomorrow, we will present Oro Valley's Parks and Recreation Director's remark that the town will not purchase the property.

Please note that all three posting present what the individual said. They are presented without LOVE comment.
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A "one of a kind amenity"
Romspen Managing Director Peter Oelbaum addressed the question of the impact on existing property value of the proposed Vistoso Golf general plan amendment. "“Instead of living on a dead golf course with no visibility as to what may happen in the future, people’s homes will be part of a revived community to enjoy, truly, a one of a kind amenity.”

             Video: Romspen Discusses Property Value

Oelbaum believes that the proposed 115 acre multi-use trail will be attractive to many future home buyers.

 To be used by many
“Any study that we have seen says that golf courses are used by less than 25% of the residents that live around them. An amenity, such as we are discussing, could be used by everyone."

His rationale: "There are many more buyers… who would prefer to be beside a multi use path, a fitness trail... an open space providing opportunities to react with nature. In truth, there are more people out there who enjoy nature than there are golfers.”

A best path for restoring property value
Oelbaum believes that the proposed general plan amendment is the best path to mitigate and restore future property value.

He asks residents to compare "home values with a dead golf course and all the uncertainty of all that may happen in the future [to home] value with partial redevelopment that will provide certainty for the future; and [will have] a cherished amenity that can be used by everyone, not just golfers or trespassers.”

Property value impact of proposed residential facilities not discussed
Romspen did not address the impact on existing home values of the proposed high density residential homes or of the proposed senior living facility.

Watch Oelbaum's remarks in the panel above.
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Romspen: "Amendment Will Give Residents Certainty"

The Town of Oro Valley posted a 48 minute video. The video responds to resident questions on the proposed Vistoso Golf General Plan Amendment. The town synthesized the more than 1,000 comments into eleven topics (see panel below).
There's plenty of "meat" to report on this. So, we've segmented our reporting into three posts. This first two posts focus on the answers from Romspen. the landowner. The third focuses on the town's parks and  recreation plan in relation to the Vistoso Golf property.

Please note that all three posting present what the individual said. They are presented without LOVE comment.
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Plan approval puts uncertainty to rest
To many, the most difficult part of the Vistoso Golf situation is the uncertainty it presents. What happens to the land is in "limbo." The Rompsen proposed amendment brings certainty. There will be residential property in six areas, on 87 of the 202 acres. The remaining 115 acres will be a continuous greenbelt pathway system, donated to a yet to be identified entity.  This system runs around the perimeter of the property.

The only uncertainty left then is what entity will be responsible for maintaining the pathway system.  It could be The Town of Oro Valley, a homeowner association, a conservation trust or other not for profit group. It will not be Romspen.

Eleven Topics

Alternative: Land returns to the desert
Romspen also made it clear what will happen to the land if the amendment is rejected. The alternative, they said, is for the land to lay fallow and to gradually return to desert condition. They will only maintain it to prevent fire hazard. Romspen also made it clear that the land is private property and that those using it now are trespassing. Perhaps they will find a way to enforce this. In addition, though they did not mention this, they will be free to try bring this general plan amendment to future councils.

Won't even make them "whole"
Financially, Romspen claims that the amendment and subsequent land development will not make the company "whole" on this investment. This in contrast to our analysis. They did not provide any substance to back up their comment.  Romspen acquired the course as part of a foreclosure on eight courses. This would indicate that they secured ownership at a value which is the debt owed. Generally, this value is far less than the fair market value of the land.
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Tomorrow: Romspen Managing Director explains how proposed amendment will stablize area property values.
Wednesday: Oro Valley's Parks and Recreation Director Kristy Diaz-Trahan discusses that the towns parks and recreation plan does not include the purchase of this land.

Our "Two Cents": Vistoso Golf Course is Romspen's Sugarplum

Update: Romspen asserted the following in a video posted by the town on April 28: They are a mortgage company. They are not land speculators. They acquired the property in a foreclosure of debt in 2012. That foreclosure included 8 other golf courses, all of which continue to operate. The Vistoso Golf Course sustained substantial losses and was closed in 2016. The also assert that this general plan amendment will not "make them whole" on this investment.
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Today is the last day for residents to opine online on a proposed general plan amendment that would convert the Vistoso Golf Course to high density residential use.

We thought we’d get our “two cents” in.

Oro Valley did not create Rancho Vistoso 
To a great extent, Rancho Vistoso created Oro Valley, because it made the town much bigger, extending its northern boundaries from Tangerine to the mountains.

Rancho Vistoso existed before Oro Valley. It was then and is now a master planned community. It has its own codes. It has its own vision. It has many homeowner associations that watch over it.

Oro Valley was lucky to induce Rancho Vistoso to join the community. And Rancho Vistoso joined because of improved police presence. They did not join because of Oro Valley’s zoning codes and procedures.

What happens in Rancho Vistoso should be a Rancho Vistoso decision unless...
Given the history, it is clear that the decision on whether the Vistoso Golf property should become homes and a senior care facility should entirely be the decision of the residents of Rancho Vistoso. The rest of us don’t live there. We don’t share their wonderful view of the Catalinas. We don’t travel their roads.

But, indeed, we might share their vision.

Their vision is for the Vistoso Golf Course property to be an open space for the entire community to enjoy. It would be the only town run park in Rancho Vistoso. One that all of us could enjoy.

That vision, of course, is contrary to what course owner, Romspen, wants.

Vistoso Golf Course is Romspen's "Sugarplum"
What Romspen wants, their vision, is for the town to grant a general plan amendment that will certainly make Romspen,, the owner, rich. And that is what they are counting on.

They’ve counted on the town making them rich starting the day they bought the property.

“In 2015, Romspen Cub Holdings acquired a golf course in Tucson Arizona. Romspen Club Holdings is operating and preparing the property for future sale and the potential creation of development tracts of land within the property…” (Source: Page 39 of the 12/31/15 annual report to shareholders.) Romspen never planned to operate a golf course when they purchased the property in 2015. Indeed, they planned to either sell the land or develop it. Selling or developing it requires that the zoning and general plan land use be changed.

They are counting on the The Town of Oro Valley to make their dream come true. Buy the property at a price that is less valuable than the value of the land once it is rezoned for an entirely different use.

Sound familiar? It’s what land speculators do. It's been happening in Oro Valley forever.

Romspen expects you to make them rich. And they do it by asking you to rezone the property so that they can sell it to someone who will split it into little lots and build lots of residences.

Miles to go before we rest
While this amendment is being considered, the town is creating a parks and recreation master plan, one that may well designate the Vistoso Golf land as a preserve or a park, designations that fit current zoning.  This would require the town to acquire the property in some fashion. Perhaps get grants. Perhaps find a wealthy individual who wants to leave a legacy for our community.  Perhaps convincing Romspen to settle for a decent tax write-off.

Yep. Lots to consider when it comes to the Vistoso Golf Course.

Town Staff Decides To Proceed On Vistoso Golf Amendment Virtual Session

Online information sharing session starts tomorrow
Tomorrow the town is "hosting" on online forum to present a general plan amendment on the Vistoso Golf Course. We posted about Monday. We asked then: Does this fulfill the requirement that a pre-submittal, in-person neighborhood meeting be held prior to formal submittal of a General Plan Amendment and/or rezoning application.

The town thinks it does.

Winfield agrees it will accomplish objective of getting public input
We asked Mayor Winfield why the “town” pushing the amendment process forward in these challenging times when we can not have the required in person neighborhood meeting before submission on April 30 of the Romspen GP Amendment?  Why not extend the filing deadline until at least one in person neighborhood meeting can take place?  You can read his response in the panel.

Town: Planning and Zoning Administrator has the authority to decide what "input" is
The town provides the following response to the same question, providing detail for moving forward.

"The Zoning Code enables the Planning and Zoning Administrator to approve alternative methods of public outreach when warranted. With the ongoing COVID-19 social distancing requirements, an alternative method and schedule is necessary and the best solution under the existing circumstances.

The Planning & Zoning Administrator has the authority to approve a customized process and approach as part of the Public Outreach Plan (POP) as provided below:

22.15.D.4. The POP must incorporate the neighborhood meeting requirements noted in subsection F of this section. The applicant may propose an alternative process if it is designed to include key stakeholders in a meaningful way, and is consistent with subsection A of this section, Purpose, and the public participation and notification policy. Any alternative proposal will be subject to Planning and Zoning Administrator approval. At a minimum, the POP must contain educational and issue identification and resolution elements, as defined in the public participation and notification policy. ((O)16-02 , 2016; 6/11 supplement, 2011.)

Staff has arranged a means for residents to learn and share comments/concerns about the upcoming General Plan amendments in a decidedly low tech and easy manner. The pre-submittal public outreach process in April will involve an online informational video, initial public question and comment period and video response.

In person neighborhood meetings will be postponed till August and September – assuming public health concerns are alleviated. Over the summer, there will be web based opportunities to participate. The aim is to keep the process moving forward and utilize low tech means that are easy to use. This also alleviates some of the concerns from residents about not being in Town over the summer.

The Town is obligated by State Law to act on General Plan amendments in the same year that they are submitted. Town Council does have the option to continue this item if it is apparent that more public participation is needed."
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Major Change In Land Use Will Be Requested For Vistoso Golf Course

From recreational land use to residential
Romspen Mortgage Investment Fund ("Romspen") the owner of the shuttered Vistoso Golf Course, has a buyer for 38 acres of the 206 acres of the course.

The buyer, Spectra Properties, based in Memphis, is primarily a retail center developer. Spectra has 69 retail center properties located in smaller towns and cities. They have three retail centers in Arizona.

For memory care and assisted living facilities
Spectra has entered the memory care and assisted living business, with one facility operating in Conroe Texas. Spectra is proposing to build an upscale assisted living and memory care on 38 acres of the property, most on what was the driving range.

Click to enlarge

According to Preserve Vistoso: "Currently the plan shows 2 buildings on the driving range but [Romspen] said he would like the option to add a third between Siena and the buildings shown in red on the diagram. Independent Living units would be built to the east of the driving range in the yellow area." The 2-building approach is Spectra's prototype.

Romspen does not have a buyer for the rest of land, 6 acres of which are zoned for high density residential.

Romspen has a lot of convincing to do
The 2016 General Plan calls for this land to be used for recreational purposes. The Rancho Vistoso PAD has it designated as such. The town council will have to approve a General Plan Amendment to change this designation to any other land use. That will require a 5 person council majority, If that is approved, the PAD change will require a 4 person council rezoning approval. Prior to all this, there will have to be a number of public meetings.

It's a long road and probably for Romspen [and Spectra], a road that we believe will not be approved by this council. That is because the four newest members of this council pledged to not amend the General Plan. However, people, especially those in politics, have been known to change their minds. Even if this council does not approve it, there will be future councils.

Preserve Vistoso wants this land to remain recreational use
preservevistoso.org wants the former Vistoso Course designated as preserve land in the 2020 Parks and Recreation Master Plan. If that happens, it will be an added barrier for future councils to overlook. (Source)

Guest View-Micheal Bilodeau: Preserve Vistoso Wants More Community Engagement in Oro Valley Parks and Recreation Study

Preserve Vistoso wants more Rancho Vistoso Community Engagement in Oro Valley Parks and Recreation Study
Preserve Vistoso will ask Oro Valley to schedule a community engagement meeting in Rancho Vistoso as part of the Parks and Recreation study by Pros Consulting firm.

The Town of Oro Valley commissioned PROS Consulting to do a comprehensive needs assessment and master plan for Oro Valley Parks and Recreation and recommend an overall plan for the future.

Rancho Vistoso residents are more than 25 percent of the population of Oro Valley...
...but Parks and Rec has not scheduled any of its five community engagements in our area. We should have a meeting for Rancho Vistoso residents to discuss our ideas and needs and have equal input in the future of the Town’s parks and recreational facilities.

Closed Vistoso Golf Course owner may seek zoning changes
Preserve Vistoso was founded in 2019 to give Oro Valley residents a voice in what happens to former Vistoso Golf Course, which closed in 2018. The property is owned by Romspen Investments, a Canadian non-bank lender. Preserve Vistoso understands that Romspen Investments plans to file for zoning changes with the Town of Oro Valley in the next few weeks.

Preserve Vistoso wants the former golf course to become a nature preserve...
...and community trail for the entire community. Members of Preserve Vistoso have met with the State of Arizona Parks and Trails to confirm that grants are available to purchase and maintain properties like the closed Vistoso Golf Course.

The former golf course has spectacular mountain scenery, more than six miles of paved trails, restrooms, existing parking areas, and a pond. The area also could protect an existing wildlife corridor as well as petroglyphs found on the course.

The course is embedded in and surrounds the community

An opportunity for Oro Valley to add Parks and Recreation land
Oro Valley is nearing build out and the Town is significantly below the national average when it comes to parks and recreational space. Preserve Vistoso wants to partner with the Town and like minded individuals and organizations to change that. We are exploring all options.

Michael Bilodeau,
President
Preserve Vistoso
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Preserve Vistoso is a non-profit (501c3) with more than 1,000 members.  Preserve Vistoso is asking people who support their cause to join their contact list to stay up to date on the community meetings happening over the next few months.  Go to PreserveVistoso.org to learn more.  Click the JOIN button to add your name to their contact list.

First "What The People Want" Deep Dive Brings Vistoso Golf To Forefront

Special interest marks first meeting
The Town of Oro Valley launched its first dive into learning what people want when it comes to Parks and Recreation. The deep dive occurred last Thursday at an open meeting session in town hall.  It was a first step in building the 2020 Parks and Recreation Master Plan. There were about a hundred people attending. We will report more about this meeting in a subsequent posting.

One of the things that we were looking for were the special interest groups at the meeting. This time it was the "Perserve Vistoso" people. They represent the residents of the Golf Course at Vistoso.

Golf Club at Vistoso residents want open space
The Golf Club at Vistoso closed in 2018. It closed because Oro Valley is overcapacity in golf facilities. Since that time, the land has been sitting, waiting for something to happen. It was a course built by Conley Wolfswinkel, the developer of  much of the Rancho Vistoso master planned community." It was owned by his sons. The Golf Club at Vistoso opened in 1995 and was designed by [golf pro] Tom Weiskopf." (source) The course simply could not remain competitive in what is a very competitive market.

Preserve Vistoso's concern is possible rezoning that may take place in the defunct Vistoso golf course; rezoning that would allow for development.

They are not advocating that the town should purchase the land or possibly operate a golf course.

One speaker at the meeting made their intent clear:

"I hope this study will underscore that Rancho Vistoso needs a large recreational area where we can enjoy the outdoors without having to dodge traffic. The former Vistoso Golf course could become an asset for our outdoor loving community. It has beautiful mountain views." (Source: Preserve Vistoso email)

Romspen wants to make money
The thing that stands in their way is that the property is now owned by an investment fund,

Romspen Mortgage Investment Fund ("Romspen"). Romspen purchased the property in 2014.  As of the summer of 2018, when the course closed, they had invested $9.5 million in it. (source)

Romspen needs to salvage a bad investment. They can do this by converting the land use from golf to residential. According to the Preserve Vistoso web site, Romspen is "... pursuing rezoning a substantial portion of the property for residential development.... to rezone 109 acres of the 208 acre property from recreational to a combination of low, medium, and medium-high density residences."

This step alone has the potential to put millions in profit in Romspen's pocket.

Romspen will have to "run the gantlet" to make land use change happen
There is more than "land rezoning" required. This will require a General Plan Amendment. That will required a 5 person council majority to approve the amendment. Then, it will required a 4 person council rezoning approval. Prior to all this, there will have to be a number of public meetings.

It's a long road and probably for Romspen, a road that will not be approved by this council. But, there will be future councils. Getting the plan designated as preserve land in the 2020 Parks and Recreation Master Plan will be an added barrier for future councils to overlook.