Town West Unveils Plan To Get The Oro Valley Village Center Going...Eliminates Risk To Town

Plan requires a "scaled down" entertainment center

Last night, the owner of the Oro Valley Marketplace, Town West, unveiled a plan to allow them to begin transforming the Oro Valley Marketplace into the Oro Valley Village Center. That transformation includes construction of one hotel and two apartment complexes. The plan hinges on the Town Council granting approval for a modification in the development of the Entertainment Center.

Town West plans to create a downsized version of the entertainment center in what they call “Phase 1” [See panel right] such they it can meet recreational space prerequisites for the already approved apartment buildings. They collaborated with town staff to devise this proposal and the Town Staff has recommended its approval.

Change needed because Town Council rejected EDA

The requested change stems from the Town of Oro Valley's Council refusal to assume responsibility for undergrounding the wash that runs through the entertainment center area. According to the Town West, that cost would have been paid by the construction sales taxes that the town will earn from the project. The Town Council was repeatedly informed that the complete entertainment center couldn't be constructed without the town participating in what Town West refers to as a "private:public" partnership.

The town staff with the assistance of Town Outside Attorney Jonathan Rothschild had previously negotiated a deal with the developer under the direction of former town manager Mary Jacobs, but the Town Council rejected it in an executive session earlier in the summer. Keri Silvyn of Lazarus and Silvyn PC, representing Town West, stated, "We were informed over the summer that the Town Council was not interested in an EDA." As a result, they collaborated with staff to develop an alternative plan for the entertainment center, allowing them to proceed with construction. 

Phased approach eliminates financial risk to town
The phased approach to building the entertainment center eliminates the risk to the town presented by the original plan. Town West will build the two apartment complexes and a hotel without any Town involvement. If, after that, the town sees success in the project, the council can decide if it wants to underground the wash to accommodate the addition of another hotel and food court-type concepts in the entertainment district.

Phased approach in no way changes council mandated stipulations
The Town Council made twenty-three stipulations for the construction of the facilities in the Oro Valley Village Center when it approved the project last year. The proposed phased approach to building the entertainment center in no way impacts any of those stipulations. Thus, the project will be built in exactly the manner the town approved.

Center is simply not viable as it is

James Horvath, Managing Partner of Town West, expressed deep concerns about the viability of the center in its current state. He said that most businesses are struggling to stay afloat. Only Olive Garden is performing adequately, while the rest of the businesses are facing difficulties. The owner of Tuk Tuk Thai, an Oro Valley resident, has contemplated reducing operating days due to poor business performance.

Planning and Zoning Commission approves change but...

We acknowledge the dedication of those who serve on town commissions and boards. However, it's worth noting that some commission members spent an excessive amount of time attempting to redesign a project they were supposed to vote on. Their primary decision was whether to allow the entertainment center to be built in phases, which, after a lengthy discussion with some members admitting their lack of knowledge about the project, received a 6-0 vote in favor of the change, with one abstention.

Phasing not the only change requested

Another decision the council needs to make concerns the requirement that the entertainment center include a couple of restaurants around the same time as the construction of the apartments. The details are not entirely clear, but the Planning and Zoning Commission decided to waive this requirement.

No guarantee of when construction will begin even if change is approved by council

If the Town Council approves this change at the upcoming regular council meeting next week, construction can commence on the center. Nevertheless, even with that approval, there is no certainty of immediate progress due to the current economic climate and prevailing high interest rates. The project owner informed the Town of Oro Valley planning and zoning commission last night that they cannot guarantee a specific construction timeline. They emphasized the urgency of progressing since they are currently paying taxes on a property generating no revenue. Town West General Manager James Horvath underscored, "We cannot commit to any timeframe.”

Development of the entertainment center beyond phase 1 is unlikely without town financial support

Town Staff and the applicant made it clear at the meeting that development of the entertainment center beyond phase 1 is highly unlikely... unless the town agrees to undergroud the wash... which, perhaps a future council will do.

More to follow next week when the Town Council hears this matter

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Oro Valley Village Center Public Hearing At Tonight’s Town Council Meeting

Four zoning exceptions to be considered
Tonight, The Oro Valley Town Council will continue the hearing of the Oro Valley Village Center (“OVVC”). That is the new name of the revisioning of the Oro Valley Marketplace.  

Making OVVC a reality as is currently proposed requires that the Council do things:  One is to approve four exceptions to town code. The other is to enter into an agreement the developer, Town West, to partner in building and maintaining a proposed Entertainment Center. 

The table in the panel below right shows what is being proposed for each of the four areas in which code exception approval is sought:

 

• Area 1: 248 Apartments which will be 49 feet in total height 
• Area 2: Either a 105 room hotel with a drive thru or 72 apartments. The hotel will be 59 feet high 
• 
  Area 3: A three story building that may include retail/restaurant and/or 48 apartments. It also has a recreation area with (yet another) splash pad, wading pool, playground and shade structure, turf area, 1 acre public park, courtyard, and overflow parking. Note: These amenities are dependent on the town’s participation
• Area 4: 152 apartments, 128 hotel rooms and a drive-through. 

The purpose of tonight’s hearing is to hear and to approve or not approve the four exceptions. There is no hearing regarding an economic development agreement.

According to the town staff report, the OVVC proposal can only move as proposed if all of the following code exceptions are approved:

• Change the type of open space in the central wash area (Development Area 3) from reconstructed open space to recreational open space
• Use the ESL Mixed-use Flexible Design Option as the applicant is proposing four potential apartment areas  (All Development Areas)
• Amend the PAD to permit customized zoning allowances for building heights (Panel left)
• Grant site use changes that encompass the four (4) Development Areas within the center, one (1) of which (Area 2) has two proposed options

Yet, according to Town Staff: An economic development agreement regarding the Entertainment Center is essential for the the OVVC plan is to proceed as proposed

According to the town staff report: “The applicant has made it clear that development of the Entertainment District is subject to a future Town participation agreement. If alternative methods to meet recreation area requirements for the apartments are proposed in the future, the Master Development Plan will require reconsideration by Town Council.”

To date, there is no such participation (economic development) agreement

There is no drafted economic development agreement between the Town West regarding the Entertainment District.  According to Keri Silvyn, the lead attorney representing Town West:  "Town West, during the planning stages of the project, realized that the cost of developing the entertainment district was beyond that which the private development could absorb. As such, discussions began early on with town officials to explore the idea of a public/private partnership to finance and bring to reality this unique entertainment, dining and recreational space. The details would still need to be worked out, but the costs of construction would be shared between Town West and the town, as would maintenance responsibilities. The details have yet to be discussed."

Silvyn continued: "Town staff has asked us to work on the zoning first and then we would work on the public private partnership details. The idea here is that the Town is investing in unique public facilities that would provide new and interesting entertainment, dining and recreational spaces." 

The amount of the town's investment could be up to $10 million, according to several independent sources.

Council has discussed a participation arrangement or at least the framework for it

The Town Council met in Executive Session on November 4 to discuss a "draft economic development agreement with Oro Valley Lifestyle Center LLC (Town West)". Since there is no such agreement we wonder what was the purpose of this meeting? We asked Mayor Winfield to provide information on this but he has not done so as of the time of this publication.

Things have changed

What seemed like a tentative agreement on OVCC at the May study session seems to changed. What is being requested today is different from what was discussed then. There is no longer mention of prestigious hotel chains clamoring for a site. There are more apartments requested. The Entertainment Center is ‘up in the air.’. All of this should make for a very interesting discussion tonight.

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Guest View: Mike Zinkin – The darker side of Town government

As previously reported on LOVE, as if the antics of Town Manager, Mary Jacobs, aren’t bad enough (ignoring adopted Town Council Policies, convincing the current Council to set records for fiscal “management” including the highest budget in Town history, two sets of 3% employee raises in 12 months during a pandemic, and $50 million in added bond debt, and, most important, adding a veil of unprecedented secrecy with all the Executive Sessions)…we have recently discovered additional information on another high-ranking member of the Town Staff.

Town Attorney has possible Conflict-of-Interest
Some business associations on the part of the Town Attorney have recently been uncovered.

LOVE readers are aware of the “secret” proposed Economic Development Agreement between the Town and Town West regarding the Oro Valley Village Center (formerly Oro Valley Marketplace). The Executive Session on this topic during the January 19, 2022 meeting was cancelled when some Council members realized that any agreement with Town West was premature since there has been no approved action for the properties. The Town Attorney, Jonathan Rothschild, along with the Town Manager, have something proposed, but the details are being kept a secret.

Here's the problem. The principal characters with Town West are the Humberto Lopez family (HSL Properties), the Horvath family, and their attorney Keri Silvyn. It turns out that Rothschild has financial ties to all of them. In 2011, when Mr. Rothschild was running for the Mayor of Tucson, all the above-named individuals contributed to his campaign. [Click on the below attachment to enlarge it]

Possible lingering effects
Now you might say, “That was over 10 years ago, so what’s the big deal?” The problem is that Mr. Rothschild has had a prior relationship with the people who are the principles in any agreement that the Town might enter into with Town West. Will there be any lingering effects from those past campaign donations? Will Rothchild’s decisions on the Town West deal be in the best interest of the citizens of Oro Valley or will he be beholden to what’s in the best interest of the Lopez family and the Horvath family?

The Council is aware of these campaign contributions, thanks to communications sent to them from Oro Valley citizens.

Accordingly, Mr. Rothschild should recuse himself from any communications and/or dealings with Town West.

Decisions need to be made on what’s best for the residents of Oro Valley.

---
Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Bits and Pieces

Oro Valley Village Center Developer Town West is a "member" of a close community of investors and developers known to Oro Valley

Town West Realty is proposing the "reimagining" of the Oro Valley Marketplace. Town West operates other facilities and centers in town including the Del Oro shopping center. That is located on the north east corner of Oracle and Orange Grove. Town West specializes in revitalizing facilities. Town West contributed $6,500 to Council Member Solomon's 2018 election campaign.

Town West Realty is also involved in a partnership with HSL Properties and Iridius Capital. Together, they purchased the La Encantada Mall in September for $165 million. Town West Realty will manage the mall. 

Iridius Capital invests in Avilla Homes. NexMetro, a Phoenix Based company with national reach, is seeking a rezoning of two commercial properties in Oro Valley to residential use in the area of Tangerine and Rancho Vistoso Blvd. 

HSL Properties sold  the town 45-holes of golf and what was a clubhouse, now the community center, to the town in 2015. Currently, they operate the El Conquistador Resort and apartment facilities in Oro Valley. The principals of HSL were also the major contributors to the campaigns of the former council majority, the same majority that approved the purchase. Love has published many articles regarding their involvement in Oro Valley. They contributed $12,000 to the campaigns of Rodman, Solomon, and Greene in 2020.

Remembering Christina Taylor Green

Christina Taylor Green is a nine year old who was murdered in the assassination attempt on Congresswoman Giffords on January 8, 2011. It was a Saturday. It was morning. It was at Safeway at Ina and Oracle. Christina had gone there to meet one of her heroes, Giffords.  A noble idea that met with tragic timing.

"The only girl on her Canyon del Oro Little League baseball team The Pirates. Christina-Taylor played second base and wanted to be the first woman to play in the Major Leagues. She came from a family of baseball players. Her grandfather, former major-league pitcher Dallas Green, was team manager for the Philadelphia Phillies when they won the World Series in 1980. Her father, John Green, is a scout for the Los Angeles Dodgers." (Source)

The baseball field on which she played is next to the Kreigh Park play area. Appropriately, it is called "Green Field." The scoreboard was dedicated by the Los Angeles Dodgers "Dream Foundation.". The scoreboard is in need of a bit of work, as seen in this photo. 

Town's Water Wasting Continues

The Town of Oro Valley, winner of last years LOVE water waster award, finished the year strong, wasting more than 36,249,000 gallons or 111.19 acre feet in calendar 2021. That's enough water to supply 432 typical Oro Valley homes for a year.

Napier Says Oro Valley Marketplace Lacks Vision and Leadership… But Is He Right?

Does Napier's claim "hold water"?
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.

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Oro Valley Village Center: Tonight, Town Council Targets On Locking-In What Is Proposed

Motion to assure that the development of the Oro Valley Village Entertainment District as proposed in up next

Tonight, in special session, The Oro Valley town Council will likely reach a decision on the rezonings required to revitalize the Oro Valley Marketplace as presented by developer Town West. Last Wednesday, the Council approved two rezoning motions. These motions were approved based on what happens with the “Entertainment District.” This is a feature that will be located in a strip in the middle of the complex. It is currently zoned for natural open space. 

The “Entertainment District” is central to the deal

Rezoning the Entertainment District was the third of the four rezoning requests. The developer wants the Town Council to approve what they see as a simple rezoning: Rezoning the property from natural open space to recreational open space. 

The Council did not see it as a simple a decision. This is because the developer has told them that everything that they approve could change if the Entertainment District, as the developer has presented, does not come to fruition.

It is critical for developer to get this approval because this will allow the developer to use that land to satisfy the town’s zoning recreational requirements for the apartments that are planned to be built.

Town West seeks a “Public-Private Partnership” for the “Entertainment District”

It is possible that the Entertainment District won’t come into existence as presented because the developer wants the town to invest in it. Town West has proposed a “Public-Private Partnership” under which the town would pay for part of the Entertainment District and  also the maintenance of it. Some have estimated that the building cost to the town of the partnership could be up to $10 million. This will be a substantial expenditure, especially given that the town is faced with a massive overrun on the cost of building out Naranja Park.

Millions on the table

At risk, in all of this, is what the developer asserts is a significant major financial impact on the town and the county (panel right).

Thus, getting the Entertainment District “figured out” and “agreed-upon” is very important, because it is the lynchpin of this entire OVVC project.

The partnership would be codified in an economic development agreement. There is no such agreement today. Given the tens of millions that the town is now investing in parks and recreation facilities, there is a question of how much more investment the town should make.

The motion at hand provides certainty for all parties

Knowing all this, Vice Mayor Barrett proposed a motion to move the project forward, but at the same time, to specify exactly what the conditions are for the building of the project. A decision on this motion should be made tonight.

Here is the essence of the motion:

• Requires that a mixed-use facility be built on the Entertainment District; and that that mixed use must include a hotel
• The hotel must receive a certificate of occupancy before apartments in the Village district are occupied
• The Entertainment District must be built before occupancy of any apartments (because the entertainment district is going to be used to satisfy the apartment requirement for recreational space. The same is not required of hotels.)
• The amenities that will be in the Entertainment District will be determined based on a public participation process. The amenities so determined must be approved by Town Council.

The motion also defines specific maximum heights of apartments in the various areas of OVVC.

Essentially, the motion places the Entertainment District at the center of the construction of the revitalized Marketplace. Town West has emphasized the Entertainment District in all presentations to the Town Council. Town West said that the Entertainment District would be the most distinguishing feature of the Oro Valley Village Center and that it would be a draw to bring the community together. Thus, it is an essential part of the future success of OVVC. Barrett, through this motion, wants to make sure it happens.

The special session tonight is 6 PM in the Oro Valley Town Council Chambers.

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Town Council Will Soon Consider a Multi-Million Dollar Agreement with Town West on the Oro Valley Village Center

Oro Valley to consider investing millions in the Oro Valley Village Center

In the near future, the Oro Valley Town Council will meet to discuss an economic development agreement (EDA) with Town West, the company that wants to reimagine the Oro Valley Marketplace.  The agreement will cost the town tens of millions of dollars. It would be bet on the part of the town that the Oro Valley Village Center will be successful. The cost and details of the town's investment are not known. Council will discuss it in an Executive Session. Residents will only know about it once it is a done deal.  We do know that town staff and outside counsel have been working on this agreement since at least January of 2022  (as reported in LOVE) and that the cost will be at least $10million, but likely more.

The town's investment would occur before the Oro Valley Village Center is built

We believe that the agreement calls for the town to build and maintain the center's entertainment center. Oro Valley will get a park to maintain, and yet another splash pad, so that Town West can meet recreation requirements for the apartments and hotels that have been approved to build. The town would likely be making its investment before Town West builds anything.

There is a project similar to the Oro Valley Village Center that is being built nearby

Construction has begun on Uptown, a reimagined center on the site of the former Foothills Mall. The Uptown vision is impressive.  It's a 51-acre development located on the site of the Foothills Mall. It is  being built by the property owner, Bourn Companies. Uptown will have shops, restaurants, apartments, a hotel, an entertainment stage, an event lawn, a splash pad, video screens, and a public market. It is being marketed as a lifestyle experience. It is entirely privately funded. The County and its residents are at no risk.

Council does not have to approve the EDA

Any economic development agreement would put the Town of Oro Valley at risk regarding the Oro Valley Village Center project. The town would be putting money into a venture that may fail or that may never really happen. Uptown will be done long before anything significant happens at the old Marketplace. The council is not under any obligation to approve an EDA.

Will this EDA be like "The Outrageous Giveaway"… sinking money into a rathole?

The town went down the EDA road some years ago when it comes to that property. The town invested $15million in refunded sales tax dollars in the Oro Valley Marketplace. The town was promised much and got little. As we wrote on our fifth anniversary in 2012:

The "Outrageous Giveaway" is an agreement between the Town and a Developer where the town gave away half of Oro Valley's sales tax revenues to the Developer for 20 years in return for having an upscale shopping center.  The Developer, Vestar, had mailed thousands of glossy, expensive postcards (like Steve Solomon's expensive postcards) which purported benefits that turned out to be lies (like Steve Solomon's expensive postcards).   Voters, giddy with the prospect of a beautiful upscale center and a movie theatre, approved the agreement.  Instead of LaEncantada, however, the voters got the Foothills Mall!"

We fought against this EDA. We took it to court. We took it to the voters. We lost the vote. But, at least, the EDA was fully vetted with the residents.

Residents will have nothing to say about it this EDA...

Unlike then, residents won’t know to what the town commits via the EDA until the council has approved it. Residents will have no input. This is because the Winfield-Barrett Council will discuss this agreement behind closed doors. They are not required by the open meeting law to do so. They are merely allowed by the open meeting law to keep their discussion secret if the matter involves negotiations.

…unless the council holds a hearing to get public input… which they can do if they so wish

The council has the option of holding a discussion of the EDA in public; of seeking, via a hearing, the wise advice of the many who live in the community who have experience in this field. Then, the council can adjourn behind close doors to deliberate or not, as they wish.,

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Note: Though the voters on the Oro Valley Marketplace approved the sales tax dollar giveaway, such deals were later declared unconstitutional by the Arizona State Supreme Court. Under that ruling, however, existing EDAs that gave away sales tax revenues were allowed to continue. 

"Bye-Bye" Best Buy

Oro Valley store is of many Best Buy store closings

Best Buy has been closing stores across the nation and now the Oro Valley Marketplace store is the latest victim. It is scheduled to close March 5. "The COVID-19 pandemic delivered a brutal haymaker to America’s brick-and-mortar stores, which were already badly bruised by their online opponents." (Source)

The closing comes a time when Oro Valley Marketplace owner, Town West, is presenting plans to town council to "reimagine" the marketplace. One of the main reasons they are doing so is that in-store retailing chains, like Best Buy, are "reimagining" themselves into fewer, smaller locations with fewer in-store personnel.

Even free rent can't keep Best Buy in the Marketplace

According to Keri Silvan of Lazarus and Silvyn PC, representing Town West: "We have been explaining this situation in all of our public hearings as there is not enough population around the Marketplace to support" a regional shopping center.

Indeed, Town West has worked diligently to keep the this big box retailer in the fold. 

Silvan told us: "Town West has been working closely with Best Buy Corporate to keep them on the site. Town West has offered reduced rent and even free rent to give time for Best Buy to remain until the re-imagining of the center starts to take hold. What we have been told by Best Buy Corporate is that this is the worst performing store in their portfolio and even with rent forgiveness, they are having to close."

Future of Oro Valley Marketplace is on the town council's radar

At this point, the Oro Valley Marketplace is looking like one of the many shabby malls across the nation. To an extent, Best Buy's exit is yet another reason why the Oro Valley Marketplace needs a reawakening. 

You will have your opportunity to opine on this at the Oro Valley Town Council meeting of February 16. 

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Bits and Pieces

Former Vistoso Golf Course is now "Vistoso Trails Nature Preserve"

The Oro Valley Town Council selected a name for the former Vistoso Golf Course preserve. They did so a this past Wednesday's town council meeting. 

There were 1,500 unique names submitted by more than 2,500 residents in a contest to name the former course. The council selected from among the top three as voted by town residents. The name, Vistoso Trails Nature Preserve," received the the most resident votes and was the final selection of council.

Oro Valley Village Center (aka Oro Valley Marketplace) visioning continues
Town West returned to the Oro Valley Town Council Wednesday night to seek guidance as they prepare to resubmit their plan for the Oro Valley Village Center to council. They were seeking guidance on the height of the two hotels. 

According to Keri Silvyn, Town West attorney, the hoteliers (Springhill Suites Marriot and Hilton Hampton Suites) require four floor buildings. That means a height of 49 feet plus 10 added feet for architecture. That brings the height 10 feet greater than the PAD permits. All council members were in favor of the increased height. 

The discussion then turned to the location of one of the hotels. Most members favored putting that hotel on Oracle as opposed to it being Tangerine. The other hotel will be in the entertainment area. 

Town West will continue the process, resubmitting their proposal to town staff. According to Silvyn, the development conforms with all other PAD requirements.

Sharp to speak at OVSBC meeting next week

Mayoral candidate Danny Sharp will be the guest speaker on May 25 at an Oro Valley Social & Business Club (OVSBC) gathering. The event is from 5-7pm at the Fork and Fire Grille in the Oro Valley Marketplace. The event is $20 cash at the door and includes food and music. Cash bar. OVSBC supports local restaurants, small businesses and Veterans/First Responders. This is not a candidate fundraising event.

Oro Valley invites community to Naranja Park groundbreaking ceremony 

ORO VALLEY, Ariz. (May 17, 2022) – The Town of Oro Valley is ready to break ground on the Naranja Park Expansion Project, a multi-million-dollar investment that will bring new amenities to this already established park. Community members of all ages are invited to attend the groundbreaking ceremony, which will be held Tuesday, May 31 from 9 to 10 a.m. at Naranja Park (810 W Naranja Drive). The groundbreaking will feature remarks from Parks and Recreation Director Kristy Diaz-Trahan and Mayor Joe Winfield. Following the ceremony, families are invited to stay and play at Naranja Park with free commemorative kites made specifically as a keepsake for the event.. (Source: Town of Oro Valley Press Release)

Town unveils third mural

There's a new mural in Oro Valley. According to Town Manager Mary Jacobs, "The mural was inspired by the beautiful starry nights in Oro Valley and the beautiful desert colors." The mural is on the concession stand in Riverfront Park. The town's other murals are at James D Kreigh Park and the Oro Valley Marketplace.

Town of Oro Valley accepting applications for Planning and Zoning Commission vacancy 

 ORO VALLEY, Ariz. (May 19, 2022) – The Town of Oro Valley is accepting applications to fill an immediate vacancy on the Planning and Zoning Commission.  To serve on an Oro Valley commission, members must be residents of Oro Valley, be able to attend the designated meetings and complete the Town’s Community Academy within their term. Planning and Zoning Commission members serve two-year terms. Those interested in applying can visit the application process on our website. The vacancy will remain open until filled. The Planning and Zoning Commission holds public meetings and makes recommendations to the Town Council on matters relating to the General Plan, zoning code amendments, rezoning and other land use requests. The commission meets on the first Tuesday of every month at 6 p.m. in the Oro Valley Council Chambers.

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Council Acts: Oro Valley Village Center Ready To Go

The way is clear to remake the Oro Valley Marketplace
The remake of the Oro Valley Marketplace can now begin. Last night, the Town Council unanimously approved the final clearances needed to break ground. The project will have two expansive apartment buildings housing a total of 504 units, a hotel and a recreation area.

Approval cleared two motions

Clearing the way required that the council approve two resolutions: First, relinquished the rights to two "right-of-ways." Second, approved a recreation area that will be developed solely by the developer. The final design of that recreation area is a bit fluid and will be "worked out" with town staff.

A phased approach to building the recreation area

Town West secured approval to advance the project by working through the final "sticking point". That point was the town's refusal to pay for part of what was to be an "entertainment center."  To work around this, Town West offered a scaled-down recreation area. It is one that can be expanded to the original concept. However according to Town West, that will only happen if the Town of Oro Valley invests in under-grounding the wash that runs through that area. That would cost the town $6 million, according to Vice Mayor Barrett, speaking at the meeting. 

Nothing will happen quickly

Developer representative Keri Silvyn said that it will take 18 months before any of the three planned buildings is ready for occupancy. The first building to be occupied will be a hotel because town council specified in its initial project approval last year that a hotel must receive a Certificate of Occupancy before any apartment can be occupied. Town West will complete the two apartment complexes, one on Tangerine and the other on Oracle, within a few months of that. 

Click here to learn more about the plan for building the center.  

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Oro Valley Village Center Approved

Almost unanimous approval

This past Thursday, the Oro Valley Town Council approved two measures that enable the revisioning of the Oro Valley Marketplace into the Oro Valley Village Center. Once completed the developer, Town West, estimates that the project will bring $47.4 million in annual wages to the community. 

The Council approved (6-1 vote) the massive two hotel, three apartment project. They approved a revised set of conditions (panel below right) presented by the applicant with a few exceptions.

Entertainment District Hotel is not going to happen… Apartments instead
There will be no hotel in the Entertainment District. This is something Mayor Winfield wanted. Speaking to counsel, Town West representative Keri Silyn reiterated what Town West told the Council at the prior session: There is no hotelier interested in building a hotel in the Entertainment District. 

What there will be is a four story apartment building. That building will have retail on the first level and then three levels of apartments. 

That apartment building will require the full expansion of the entertainment center to that which is proposed currently. That is, the open drainage area will need to be buried to create recreational space. This will have to happen because town code requires that a specific quantity of open recreational space per apartment unit.

This zoning code requirement is the reason that the Entertainment District is needed. The apartments that are now planned, not including the units in the Entertainment District, require at least 3 1/2 acres of open space in this area.

Private:Public Partnership to be developed
The council did not create or approve a private public partnership agreement. This is known as an economic development agreement. The approved motion specifically states that the amenities which are shown currently in the Entertainment District will have to be part of the separate agreement with the town. 

The town is not obligated, according to attorney Rothschild, to make any such agreement. If this agreement doesn’t take place, then the developer will have to incu the cost to create enough open recreational space to meet town code. That is: Space that is functionally usable. For example, it could be open desert walking space with benches and ramadas.

Town land sale to be transacted

There will also be a land sale from the town to the developer. These 2 1/2 acres of land on the west side of the Oro Valley marketplace. This land sale has not been discussed in public by the Council. LOVE identified it well over a year ago. We do not know the fair market value of that land. Sales of land or other properties must be approved by the a vote of the public if the market value is over a specified amount. We believe this is $1 million in value.

Council involvement made some difference
If councilmember Steve Solomon had his way this project would have been approved a long time ago. It would have been approved exactly as the developer proposed: Sixty-foot high buildings that are barely set back from Tangerine or Oracle.

Solomon’s philosophy, which he espoused a number of times during the hearings and discussions on OVVC, is that  “the developer is willing to invest millions of millions of dollars in Oro Valley. They are the experts. They most certainly know best. We should not question them.”

The Council did question them. They did so for over a year. The result is that the buildings will be about 40 feet high (some a bit higher because of architectural features). The buildings will be properly set back from the roadways. They will be less visible. 

But, when all is said and done, the developer got what they wanted
OVVC is a mini-city.  It is the highest density residential project ever approved in Oro Valley.: 500 apartment units in two or perhaps three buildings. 

This is most certainly not what is envisioned in the General Plan or by the founders of our town. Perhaps that is why Councilmember Bohen, recognizing this, voted “no” last Thursday. 

Bohen looked past the glitter and promises and looked at the project for what it is.

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Planning and Zoning Commission Approves Oro Valley Village Center

Project approval process moves forward

The Oro Valley planning and zoning commission approved (5-1) the conceptual design of the Oro Valley Village Center at its special session public hearing of January 6. Oro Valley Village Center is the new name of the Oro Valley marketplace. Their approval now moves this project to the next level of evaluation. This will be done by the Town Council.

The approval includes not only the design of the conceptual design of the project but the rezoning of this property from commercial use to residential and hotel use. In addition, the commission approved rezoning a draining area for entertainment use.

Town Staff: A regional commercial center is not feasible

Town staff reported at the meeting their conclusion that a regional commercial center is not feasible (see panel). A total overhaul of what was planned for the Oro Valley Marketplace is required. As we reported last week, town staff enthusiastically supports the proposal.

Town West: Reimagining is essential to the future of the site
Speaking at the meeting, Jim Horvath, Town West's Chairman and Founder, said that the ability to attract tenants to the Marketplace depends on the reimagined plans of the Oro Valley Village Center.

“We commit to our projects. We work with the Community towards success. Our centers operate generally at a very high-level of occupancy in the 95 to 98% range. We worked in partnership with Town of Oro Valley to attract Ashley Furniture into the Dick’s Sporting Goods space. We have brought new business like Tuc Tuc Thai, Peach Wave, Lewis + Ivy Salon, Back Benders Chiropractic and H&R Block to the marketplace.”

He continued: “We are working to save the movie theater, Best Buy, and the Red Lobster who have all struggled. We have new tenants coming into the center including Happy Vine and Pima heart, who are in the planning and construction phase. And several other tenants are in the process of negotiating leases or letters of intent.

This renewed activities is directly related and attributed to the reimagined plans for the Oro Valley Village Center.”

Neither Horvath nor his son Toby, Town West President, live in Oro Valley.

The Oro Valley Village Center is an "ecosystem"
The highlight of the reimagining the “Entertainment Center.”  Speaking at last week’s meeting, Kerri Silvyn, of Town West's law firm Lazarus and Silvyn, stated that:

 
“One of the things to understand is that this really is an ecosystem. In order for this to be successful, in order to create the space in the middle- which is the cool space that I’m going to start with because we’re excited about it -we really need the densities on the site. We need the people here that’s going to help create the success of the retail; it’s going to help create the financial wherewithal to be able to bring forward all of the really cool stuff that were we want to bring forward.”

Wednesday: “The Entertainment Center”

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EXTRA: Council Corrects Misreporting by Explorer, Releases Specific Info on Declined EDA with Town West

Town responds to false reporting regarding the proposed EDA for the Oro Valley Marketplace

Last night, the Oro Valley Town Council released information on a proposed economic development agreement in which they had declined participate in July. We believe that the reason for releasing this information was because of misreporting by the Explorer on what was the agreement.

The Explorer had reported the following incomplete and misleading information about the proposed EDA

"To build the district, Town West would have to bury that drainage, at an estimated expense of more than $3 million. It [Town West] asked the town to enter into a public-private cost-sharing agreement for such work. But, in July, after a town council executive session, town staff informed the company Oro Valley would not enter into such an agreement at this time."

This information is not even partially correct

Thus the town released the following statement at last night's Council Meeting: 

"Due to public statements which have been made which have caused confusion about the proposal for a public-private partnership between the Town and the developer of the Oro Valley Marketplace, Council would like to share the following items from the July 19, 2023, item 2, Council session that discussed this issue: The town granted zoning entitlements for 532 apartment units and hotels, recreational open space requirements for the apartments was partially to be satisfied by a central common area. The total cost of the project was estimated at least $9.5 million. The developer wanted their contribution capped at $3 million. The town would also be responsible for taking over and maintaining an acre of grass and some infrastructure. Town Council did not believe the common area improvements justified the cost to the town and declined to enter into this agreement”

We believe, and LOVE has always followed this principle, that accurate reporting of information is critical for you, our readers. To report only some of the information as was done in the Explorer article, is truly irresponsible. LOVE holds ourselves to the highest standards and we expect our peers in the industry to do the same.

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Jacobs Works "Behind Closed Doors" To Craft Economic Development Agreement On Oro Valley Village Center

"Dark of Night" Negotiating
Town manager Mary Jacobs is working "behind closed doors" without council authorization to craft an Economic Development Agreement  ("EDA") between the owner of the Oro Valley marketplace, Town West, and the town of Oro Valley. 

We believe that this agreement relates to the Entertainment District of the proposed Oro Valley Village Center. The cost of that district, according to Town West representative Keri Silvyn, will be from $11-$12 million. It is possible that the EDA may well be for that amount.

Jacobs has been negotiating this EDA since at least the fall of 2020. She has been doing so at a time when the council has yet to approve the many concessions that town staff wants to make regarding this revisioning of the marketplace. We posted about that yesterday.

Only rezoning is supposed to be on the table.. Not "deals"
Indeed, Council has been told that their job at this point is to only discuss the rezoning that has been as requested. Therefore, any EDA between the Town and Town West is premature because it assumes that the council will approve the project as proposed. The council should not be participating in any discussion regarding an agreement on how the Town is going to help make this project financially viable.

Deja Vu 2006: "The Outrageous Giveaway"
We wish to remind everyone of the 2006 "Outrageous Giveaway" involving Oro Valley Marketplace  It was an EDA from which Vestar, the developer and center operator, was to receive 45% of all sales tax revenues during the first ten years,  up to $23.3 million.

In the end, the venture was a miserable failure. In the ten years, the center earned a total of $16.4 million in sales tax revenue, with Vestar getting $7.4 million.

While the Town had agreed to do so, thousands of residents opposed the  "The Outrageous Giveaway." They fought to get the item put on the ballot. It was ultimately approved by the voters, due in part to Vestar's glitzy marketing campaign. However, it was a straight up deal and everyone knew what they were going to get and what it was going to cost. It was not hidden behind closed doors as this one is. (Indeed. LOVE's first post was about this giveaway)

Bohen Asks: Why the secrecy?
Rothchild Responds: Because we can and I recommend it
At last week's Town Council Study Session, Councilmember Tim Bohen asked Town Council Jonathan Rothschild whether keeping these discussions behind closed doors is required by law. Rothschild replied: “What we don’t want to get [into] is a conversation of how much you expect from us or, you know, [what]we want to do because again those are contractual discussions and negotiations. Those are subject to executive session… and what we need to do is to keep [this a] zoning conversation, which is really what tonight’s about separate from that.” (Source: Oro Valley Town Council Study Session, January 19, 4:47:51)

Bohen, once again, asked if this was mandatory. Rothschild stated that it was his strong recommendation. In other words, there is no legal requirement against having public discourse on this.

Council "in the dark"?
We do not know if any council member has been participating in the discussions with Town West on this economic development agreement. We do know, however, that at least one member council, Tim Bohen, has not. Bohen told LOVE: "The draft agreement was never shared with me except a brief view in a meeting with Mary Jacobs near the beginning of my term. And I don’t know if what I was shown is actually current as of today." Bohen asked Town Manager Jacobs for the current draft agreement. As of today, he has not received it.

If Bohen does not know any of the details of the EDA, it is reasonable to assume that the rest of the council does not know the details since "Council members shall be provided equal access to information, documents and materials." (Source: Oro Valley Parliamentary Rules 13.9 INFORMATION)

A pattern of behavior
Jacobs seems to want to keep everything private. And, unfortunately, Mayor Winfield allows her to do so. With Jacobs, the public only finds out what the deal is after the deal is done. By then, there's nothing the public can do about it.

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Here’s What Happened While We Were Away

The ATM Explosion

In July, someone used explosives to blow the side off an ATM at Wells Fargo (Tangerine and First Avenue). No money was taken. The matter is still under investigation.

Bookstore Cafe opens.. fifteen businesses under construction

Also in July, Stacks, an independent book store and full-service coffee bar, opened in the Oro Valley Marketplace. Read more about Stacks here. They are planning a ribbon cutting this fall.  At the moment, there are fifteen other businesses “ under construction” according to the town’s August “Commercial Project Status Report.”. No commercial occupancy permits were issued in July. There were fourteen single family residence permits issues. 

Diaz-Trahan leaves 

Kristy Diaz-Trahan, the Director of Parks and Recreation in Oro Valley, resigned her position in July. Diaz-Trahan had reached a significant milestone of 10 years with the town in May and was responsible for overseeing considerable improvements to the town's Parks and Recreation facilities. We extend our best wishes to Diaz-Trahan and express appreciation for her efforts in expanding the town's system. In the interim, Matthew Jankowski has assumed the role of Director.

Town plans pedestrian safety improvements at Naranja Park entrance… final design and funding approval pending

In July, Paul Keesler, the Town’s Engineer, presented recommendations of the town's safety committee to the Council for enhancing pedestrian safety on Naranja Drive at the entrance to the park. The proposed improvements encompass the installation of rapid rectangular flashing beacons, mumble strips designed to alert drivers to the fog lane, vertical flexible devices that sit on the fog line, and a high-visibility crosswalk. The diagram on the right provides a preliminary visual representation of this plan. Keesler is in the process of finalizing the design and intends to present the completed plans to the Council soon for budgetary approval.

The town has completed a paved pathway on the north side of the road. This pathway ensures that individuals can now access the park safely without having to walk within the lane designated for vehicle exits.

Sabrina Garcia case moves slowly

Very little progress occurred in the misdemeanor hearing of Sabrina Garcia. Garcia was the driver of the vehicle that the tragic St. Patrick’s Day death of Olivia Villalobos and injury to her sister Avry.  The court held a pre trial conference in July. The next court date is a trial management conference on October 3 at 4pm. It is this tragic accident that, after our urging, spurred the town to take action to Improve pedestrian safety in the area.

Vandals wreck pagoda at Steam Pump Ranch

In large July, a vehicle drove recklessly around Steam Pump Ranch, damaging a pagoda. The police have yet to apprehend the culprit.

Town issues easy to read budget

“The Town of Oro Valley’s Know Your Town’s Budget [for fiscal 2024] document is now available online for residents to read or download.” (Source: Town of Oro Valley Media Release)

Oro Valley implemented a storm cleanup plan

This summer in Oro Valley, the monsoon season was almost nonexistent. There were sporadic instances of light rain, with just one significant storm on August 16 that brought heavy rain, strong winds, and many fallen trees. Thankfully, Oro Valley didn’t lose power like the 56,000 people in Tucson who endured up to 3 days without electricity during temperatures over 100 degrees. In response, the town announced a storm clean up plan: “Immediately after the storms, the Public Works crews worked in the evenings to clear debris and fallen trees from the roads, guaranteeing a safe commute for drivers.” As of now, the town should have completed its cleanup efforts. (Source: Town of Oro Valley Media Release)

Oro Valley Village Center Economic Development Agreement is still a mystery

At July Town Council Meeting, the Council met in Executive Session to discuss an “Economic Development Agreement” with Town West, the owners of the Oro Marketplace. The “agreement” is a request by Town West for town funding of their planned recreation area. The recreation area is part of their vision for what will be the Oro Valley Village Center. We’ve heard that the cost to the town would be more than $10million.

Mayoral Candidate Danny Sharp: “We Need More Rooftops”

Mayoral Candidates Danny Sharp and current Mayor Joe Winfield have different approaches to “Development”

This was noted at the Greater Oro Valley Chamber of Commerce Candidate Forum of June 28. 

Sharp advocates for the “rooftop strategy”. Winfield does not

Danny Sharp stated at the Forum that Oro Valley needs to bring in on-site retail business in order to grow sales tax revenues.  According to Sharp: “We have to bring in more retail. We don’t have the retail because we need to bring in more rooftops.”

Winfield believes that the General Plan should guide whether variances and general plan amendments should be approved. The Winfield Council abided by the General plan during the past four years. Winfield promised to do so when he ran in 2018 and he did so. Only one general plan amendment was submitted and it was rejected because it did not fit the concept for that area.

The “rooftops strategy” is a revisit to the Hiremath Years

The “rooftops strategy” is a revisit to the Mayor Satish Hiremath years (2010-2018) of leadership. It was his strategy. Hiremath was eager to grow rooftops because he felt it would attract retail business and increase the town’s sales tax revenue. His council, which included current council candidate Bill Rodman and current Council Member Steve Solomon, approved a slew of general plan amendments, converting land into high density residential zoning. His council was so eager to increase rooftops that they approved several general plan amendments before the citizen vote that approved the 2016 “Your Voice, Our Future” general plan was ratified by the Secretary of State.

The “rooftops strategy” added to congestion but did not foster retail business success

As LOVE reported, the Hiremath Council left Oro Valley with a large pipeline of residences to build. As a result, the town’s population has and will continue to grow substantially.  Still, onsite retail struggles in this town before, during and now after the Pandemic. One merely needs to look at the vacancies at the Oro Valley Marketplace and the need for complete revisioning as an example of the failure of this strategy. Indeed, one could reasonably question the feasibility of the “rooftop strategy” in today’s retail world, a world where on-line retailing, a lack of personnel, and huge supply chain issues are plaguing brick and mortar retailers. 

We believe it was the rejection of the “rooftops strategy” that propelled Winfield, Barrett, Jones-Ivey and Nicholson to win the 2018 election, defeating Hiremath and his team. Voters were tired of the congestion that the rooftop strategy has caused.

Sharp will be more aggressive in pursuing growth.

For example, Sharp would have approved the Oro Valley Marketplace revisioning as presented 

Sharp blames Winfield for not approving the Oro Valley Marketplace revisioning as presented to council.

Sharp stated at the Forum: “When people propose projects we need to be sensitive to the fact that this costs them money. We need to be sensitive…We should have told Town West years ago that what they were proposing would not be approved and that they needed to come up with something that fits within the town’s framework.”

What was presented to council was vetted by town staff in detail, vetted at neighborhood meetings, vetted by the Planning and Zoning Commission, and vetted at a public hearing before council. This is the town’s process. There was no opportunity for the Council to tell Town West anything because the council can only discuss the project together in public at a hearing after this process has been completed. 

After all this, however, what was presented to council-15 exceptions to code, 75 foot tall buildings, and minimal road setbacks- was “not in character” with the town. Still, the council wanted to shape this project because the Oro Valley Marketplace is a commercial disaster; so they continued the application as opposed to rejecting it.

We believe that it is reasonable to conclude that Sharp would have approved the project as presented because the developer had invested so much into it and because the project had gone through a long process.

Sharp does agree with Winfield in one area. According to Sharp, speaking at the forum: “If [a developer] brings in something that is not in character with the town, we need to find a compromise to get to ‘Yes.’”That is exactly what Winfield did. In June, Town West, the owner of the Marketplace, presented a new plan that is more in line with existing codes and the character of the town . It is a revised plan that both Sharp and Winfield said they would support.

 "The properties currently under consideration for annexation

by the Town of Oro Valley are the two State Land‐ owned sites

indicated on the map below, referred to as Tangerine North

(302 acres), and Tangerine South (550 acres)."

Sharp will vigorously pursue the annexation of the Tangerine State Lands

Both Sharp and Winfield agree that town should annex the Tangerine Road State Lands. This is 852 acres, split into two portions (panel left). Sharp asserts that it should have happened long ago because he worked on it with State Lands when he was interim town manager (June 2016 to September 2017). 

However, as stated by Winfield and as reported in LOVE, the State discontinued conversation with the town in July of 2019 because State Lands was short of staff. They were to continue discussions in November of that year but failed to do so. Sharp would seek to restart these discussions immediately. The town’s annexation plan calls for seeking this annexation in the near term.

…Though not all residents want this annexation

It is not at all clear that residents want the town to annex these lands and open them for development. Annexation and development of these lands met significant opposition from residents when presented at neighborhood meetings.

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