Board Of Adjusment Grants Variance For Building In Front of Oro Valley Hospital

January request for town to vacate land adjacent to property never given so...
In January, we reported that the Phillips Company asked the Oro Valley Town Council to vacate three small pieces of right-of-way at intersections along Tangerine Road. The company had purchased adjoining parcels at Rancho Vistoso Boulevard, First Avenue, and Innovation Park Drive from ADOT after the state abandoned plans for freeway interchanges. Town staff told Council that the three excess right-of-way parcels were not needed for future road use. Still, Council members said they could not consider giving up the land without a site plan and more detail. So, they did not approve vacating these adjoining parcels.

Applicant changes course... sought setback variance so they can  build a medical facility
Undeterred by this, Phillips Company shifted direction. Instead of seeking a right-of-way vacation of the adjacent town property, Phillips filed a request with the Board of Adjustment for a variance to develop the 1.19-acre parcel at Tangerine and Innovation Park Drive, across from Oro Valley Hospital. The property is zoned Hospital in the Rancho Vistoso PAD. Because the lot is much smaller than the zoning assumes, the code’s standard setbacks (100 feet in front, 75 feet in back, and 50 feet on the sides) left no buildable area.

Variance request details
Phillips asked the Board of Adjustment for reduced setbacks to allow construction of a 7,700 square-foot medical office for one of the three sites. They wanted:

• 30 feet front setback (Tangerine side)
• 25 feet rear setback
• 42 feet side setback (Innovation Park side)
• 10 feet side setback (west, adjacent to town-owned right-of-way and a wash)

The company also sought relief from the 660-foot access separation rule to permit a gated, emergency-only exit onto Innovation Park Drive.

Board of Adjustment approved request last week with one condition...
On September 23, the Board of Adjustment reviewed the case. Town staff recommended approval, finding that the parcel’s unusual size and shape created a genuine hardship under the five variance criteria set by state law. Golder Ranch Fire had no objections. After discussion, the Board approved the variances, with the added expectation that the applicant continue coordinating with Oro Valley Hospital on emergency access,

It is up to town staff to enforce that condition

Town staff cannot change or override the Board’s decision, but they are responsible for enforcing it. If the applicant does not follow through with coordination with Oro Valley Hospital, staff can require proof before issuing permits, withhold final approvals or occupancy, or pursue zoning violations. In short, while Council plays no role, staff ensures that the Board’s conditions are met.

What about the other two parcels?
The Rancho Vistoso Boulevard and First Avenue parcels were part of the original January right-of-way vacation request but have not returned for Council or Board action. As of now, the only Phillips parcel with an approved path forward is the Innovation Park site.

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This article follows up on our January report about the Phillips Company’s request for right-of-way vacations along Tangerine Road, updating readers on the company’s new approach and the Board of Adjustment’s recent decision.

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Oro Valley Land Giveaway? Balancing Public Property and Private Profit

Turning public land into private gain
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.

Expanding property through town land acquisition
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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