Inside Oro Valley’s Economic Playbook: What’s Working, What’s Not, and What’s Next (Part 2)

The current economic development strategy is a departure from the past… it's a targeted approach

The current Oro Valley Comprehensive Economic Development Strategy (CEDS) represents a targeted approach, marking a clear departure from past economic strategies. It is a strategy of which LOVE and his readers have been critical. It is a strategy that was developed under the leadership of prior town manager, Mary Jacobs.

Though we have a new town manager, Jacobs' community and economic development strategy is still the prevailing strategy of the town is the prevailing strategy of the town. In fact, its implementation is a major objective of the town council's most recent strategic plan. This is the last year of its planning horizon, and a new or updated economic development plan will be required as the town also develops a 10-year general plan. 

The current CEDS seeks to achieve the following:

Attract Bioscience and Technology employers through partnerships and incentives
The CEDS takes a unique approach by targeting specific business sectors for employment growth, focusing on emerging industries such as electronic vehicle battery storage, think films technology,  optics, and destination marketing.  This aligns with previous efforts to collaborate with the University of Arizona on talent development while offering incentives to attract primary employers.  There has been success in this area with companies such as Sigma Tech, Polycharge, Nikon Research Corporation and Simpleview locating in Oro Valley.

Align residential development with workforce requirements
Aligning residential development with workforce needs is a new concept. When this was discussed with the Council, there was much debate about whether a bioscience and technology-focused workforce would prefer homeownership or apartment living. During those discussions, the council was repeatedly informed that younger workers, seen as the primary target group, often favor apartments over homes. A larger question however, was one that was never discussed.  

There is some question as to whether the employees of these companies want to live in Oro Valley. It's not that Oro Valley is not a great place to live. But let's face it. There really isn't any nightlife here and young people, especially those who are single, may well prefer to live in Tucson.

This CEDS strategy element may reflect an effort to justify increased apartment development.

Leverage natural and cultural resources to stimulate tourism
To boost retail and tourism, CEDS seeks to leverage Oro Valley’s natural and cultural resources, linking tourism with retail and the arts in a cohesive strategy. This broader approach contrasts with past efforts, which primarily emphasized sports and outdoor activities to attract visitors. The current strategy includes a broader range of community activities and seeks to create economic benefits for both residents and tourists. There are no metrics that we found can be used to determine if the strategy element is working.

Annex selectively to attract high-tech businesses
The CEDS employs a selective annexation approach, focusing on parcels that support economic development goals in technology and innovation. This approach includes infrastructure initiatives, such as dark fiber and utility expansions, to attract high-tech businesses. This strategy is a shift from past annexation strategies, which were more general, incorporating both residential and commercial areas to increase revenue. However,  the only annexation that has taken place in the past five years is the annexation of the Westward Look resort. This is an extension of a past strategy to annex areas that bring commercial business revenues to the town.

Streamline development approvals and update zoning codes for predictable business processes
The CEDS includes measures to streamline development approvals while retaining resident input. The strategy aims for zoning adjustments, form-based codes, and procedural modifications to improve efficiency across departments, with some updates already presented to the council. Unlike the previous Economic Expansion Zone (EEZ) approach, which was limited to Innovation Park, this CEDS element applies updates town-wide, aiming to maintain community standards while enhancing predictability for businesses. .

Is there an OV Factor when it comes to construction question?

Perhaps some streamlining is necessary. Although we hate to use anecdotal information, about a month ago a comment appeared on the social media platform Reddit. It was entitled: “Are Construction companies refusing to work in Oro Valley?” Two contractors—a home builder and a remodeling company—independently stated they avoid working in Oro Valley due to the building department’s inspectors, who allegedly demand costly requirements beyond the building codes. They claim these demands add thousands of dollars to project costs, which they hesitate to pass on to clients, resulting in lost sales. Contractors say they would need to overcharge to account for what they call the “OV factor,” making Oro Valley projects financially unviable.

Has CEDS Worked? 
The CEDS marked a significant departure from Oro Valley’s previous economic development plans. Past strategies focused on rooftops, shovel-ready lots, broad annexations for growth, and public safety as an economic driver. In their place, CEDS introduced a targeted, industry-focused approach and we have seen some success and attracting target sector businesses.

The questions now are: What tangible results of the CEDS strategy has Oro Valley experienced in the past five years in other areas? Second, should Oro Valley continue with this strategy or is it time to develop a new approach?  

What's next?

These are questions that will be answered as the Town begins to plot its financial future, a future without substantial bond funding, without outlandish federal giveaways, and [hopefully] without the luxury of seeing increases in sales taxes because of inflation. 

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Comprehensive Economic Development Strategy (CEDS). Oro Valley’s Trojan Horse. Part 1.

Say Hello to CEDS and Good-bye to Oro Valley’s Uniqueness
The Town of Oro Valley, under the leadership of its Town Manager, Mary Jacobs, and her Community and Economic Development Manager, J.J. Johnston, have published a 19-page document that proposes to eradicate all the uniqueness that is left in Oro Valley.

The cover of the document shows the sunset behind a saguaro and a view of the foothills. After reading the contents of this report, a more fitting cover would be a picture of bladed desert and smiles on the faces of all the builders and developers.

This document is divided into two different strategies. Half of the document develops a strategy for attracting business, attracting primary employers, a market strategy, and attracting talent. This is all commendable and worthwhile, but then comes…

The Trojan Horse
The document then goes into modifying codes and ways to improve planning efficiencies. This part of the CEDS confirms why the people elected a new mayor and council majority in 2018. It appears that Ms. Jacobs and Mr. Johnston have not altered their thinking as a result of the election. They utilize half of this document to combine economic development with land development! It makes one wonder if the ousted Hiremath regime is running a shadow government.

From Page 11 of the CEDS report:

“…the Town does not have a reputation of moving at the ‘speed of business.’”

The report uses the EEZ Town Code (Economic Expansion Zone) as an example of how all commercial and employment center development could be accelerated. The EEZ code was established to make development easier in Innovation Park by reducing the time required to establish a new business or expand an existing business. This streamlined review process allows the developer to bypass the public participation process (no Neighborhood Meetings for neighbors to voice their concerns) and no Planning and Zoning Commission review.

The code originally allowed for a developer to come in and explain their proposal during an Open House. The proposal would then fast-track from Open House to a Town Council vote. However, there were stipulations that included that the developer could not request a change to the existing zoning, AND there could be no houses within 600 feet of the proposal. It was under this code that Securaplane and Tucson Orthopedic were built. The Hiremath regime later amended the code to delete the 600 foot requirement.

The current EEZ Code is only pertinent in dedicated Tech Parks.

The CEDS report suggests that ALL commercial and employment development should follow the example of the EEZ.

“Resident input is important, but it should be noted that most communities apply the same administrative review process to commercially-zoned properties as the Town has introduced in the EEZ zone.”

Can you imagine the establishment of Oro Valley Marketplace without citizen input? Citizens did not want the storefronts facing Oracle and Tangerine. Vestar reversed the layout and placed the storefronts towards the interior. Citizens also fought and won their argument against illuminated signs facing Oracle and Tangerine in order to preserve the beauty of those scenic corridors.  Mr. Johnston and Ms. Jacobs, please take note: Oro Valley is not like most communities and we would like to remain that way.

(Note:  In another slap in the face to citizens, in March 2015, Hiremath, Hornat, Snider, and Waters broke that 9-year long agreement, allowing Vestar to add illuminated signs along Oracle and Tangerine).

The CEDS report praises Tucson’s fast-track building permits:

“The City of Tucson tapped into the Intergovernmental Agreement it had executed with Pima County to utilize the resources of the County’s building plan review team for the recently approved Amazon building. Pima County was able to complete its full review and position the City of Tucson to issue a building permit within one week. That’s the kind of speed of business major prospects expect in a highly competitive environment.”

Our Town officials need to read the General Plan. We are neither Tucson nor Pima County and we should not be lowering our standards to theirs. We do not want to follow their example. It was their poor examples that motivated us to incorporate in the first place.

The CEDS report criticizes Oro Valley’s landscaping requirements:

“Examples of other cost impacts to commercial developments include such things as excessive landscaping requirements, the amount of open space dedication required, architectural design requirements, some public infrastructure requirements, and the 1% public art requirement.”

Oro Valley’s landscape requirements, architectural standards, and open space requirements are what separate us from the “average” community. Public art is a mainstay in Oro Valley and has always been a ground rule for commercial development. Just because SAHBA (Southern Arizona Home Builders Association) and the Pima Metro Alliance would rather pocket the 1% is not a reason to eliminate it. Public art is another reason that Oro Valley is unique.

The CEDS report criticizes our sign codes:

“A number of interviewees also identified restrictions in the Town’s sign code as inhibiting awareness of drive-by traffic for successful retail enterprises, particularly along the 55 mph Oracle Road corridor.”

You can read the entire CEDS Report HERE

Part 2 will be published on Wednesday and includes the list of the 90 business and industry leaders and government officials who were interviewed for the CEDS report.

Guest View: Mike Zinkin ~ The Danger in the Community Economic Development Strategy (CEDS)

Oro Valley was incorporated in 1974 to allow more citizen input
In the 1970’s, a group of local citizens were worried that Pima County and Tucson would annex this area and they started an incorporation process. The result was the establishment of Oro Valley in 1974. The people that voted to incorporate did so because they did not want to be governed by the policies and mind set of Pima County or the City of Tucson.

One of the factors that made Oro Valley unique was the importance of community involvement and input on the Town’s development. Neighborhood meetings and citizen Boards and Commissions were established to provide a vehicle for citizen input to be given to the governing body – the Town Council.

Chiseling away at citizen input began about 8 years ago
About 8 years ago, the Town Council passed the Economic Expansion Zone ("EEZ"). Originally this allowed for fast-tracked development only in Innovation Park as long as there was no residence within 600 feet of the development. The development could be fast-tracked to the Council with only an Open House to introduce the development to the public. There was no requirement to go to the Planning and Zoning Commission. All the current building you now see in Innovation Park was a result of the EEZ code.

In 2018, the (Hiremath-led) Council amended the EEZ to eliminate the 600-foot residential buffer requirement and to allow for all Tech Park designations to be treated as an EEZ.

More citizen input limitations on the horizon
Now enter Town Manager, Mary Jacobs. A couple of months ago, Ms. Jacobs and her Economic Development Manager, J.J. Johnston sent a 14-page PDF to the Council explaining the new CEDS. The Council passed on the CEDS which mandated that staff come forward with changes to the Town’s zoning codes. Now these changes are coming before the Council for their approval.

Staff believes that these code changes are justified because this is how they do things in Tucson and Pima County. Remember, this is the reason we incorporated. We did not want to be like Tucson and Pima County. In the new CEDS, many of the now required neighborhood meetings are eliminated and many important decisions will be “administratively” approved by staff.

Town staff are not elected officials and not accountable to the citizens
It is not a good idea to allow the staff to make major decisions because the Town’s administration, including the Town Manager, is NOT accountable to the citizens. The Council is the elected body and the only part of the government that is accountable to you and me. The Council should remain the decision makers. There should be no allowance for administrative approvals. There should be no elimination of neighborhood meetings and other vehicles for citizen input.

The Council needs to tell Jacobs and Johnson that we are the decision makers and we wish to remain in that capacity. They need to vote NO on the CEDS code modifications.
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Mike Zinkin 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. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

Comprehensive Economic Development Strategy (CEDS). Oro Valley’s Trojan Horse. Part 2.

On Monday, LOVE published a synopsis of the 19-page CEDS Report. Today we are providing a list of the 90 people whom the Town interviewed for that report.

The Usual Suspects and “Stakeholders”
The report includes “the input of over ninety (90) interviews with key leaders, executives and other officials representing business and industry, education and workforce, government and strategic economic development allies.” The report refers to these people as “stakeholders.” One wonders why no “ordinary” Oro Valley citizen was interviewed. Are the citizens not considered stakeholders in their own town?

The short list of those interviewed includes:

Southern Arizona Homebuilders Association (SAHBA), Meritage Homes, Diamond Ventures, WLB Group, Mattamy Homes, HSL Properties, Venture West, Oro Valley Hospital, Simpleview, Honeywell, Amphi Schools, Tucson Chamber of Commerce, Oro Valley Chamber of Commerce, City of Tucson.

The list goes on for 3 pages and there wasn’t one ordinary Oro Valley citizen.

The point is that many of these entities have been wanting to control Oro Valley’s growth for years and now Jacobs and Johnston have opened the door for them to do just that.

Below is the complete list of individuals interviewed (along with their positions in the community). Other than for Mayor Winfield, Vice-Mayor Barrett, and Councilmembers Nicolson and Jones-Ivey, do you see anyone on this list who is interested in citizen input?

CLICK TO ENLARGE

No Comprende
What Ms. Jacobs and Mr. Johnston don’t seem to understand is that the model for retail has changed with the advent of the internet. Other than for Wal-Mart and Costco, people frequently shop online. Citizens still need local drug stores, grocery stores, hair salons, and some automotive, but look at retail in Oro Valley. All the sporting goods stores have closed – Dick’s, Big 5, Sports Authority. We need to fill all that empty retail space before we start bulldozing the desert to build more retail.

Oro Valley should be focusing on employment centers, not commercial centers. Ms. Jacobs and Mr. Johnston need to read the General Plan and listen to Citizens when they speak up. They need to stop going out on their own and pushing their own ideas…Main Streets, 36 holes of golf, and now with this CED Report, an easier way for developers to bypass citizens’ wishes.

CEDS. Clearly Egregious Destructive Scenario
Something sinister is going on here. Oro Valley was incorporated in 1974 because citizens wanted a community that was designed by citizen input…the very thing that has been removed in this document. We can only hope that the new mayor and council see through this smokescreen and keep the Trojan Horse out of Oro Valley.

Guest View: LOVE Contributor ~ We Deserve Better

I recently reviewed the Employment Agreement between the Town of Oro Valley and Town Manager, Mary Jacobs. My conclusion is that we are paying a lot of money and receiving little in return. One would think that when the Hiremath crew was searching for a new Town Manager, they would have preferred one that had some experience in Municipal golf, as that was a very divisive topic at the time. Instead they chose an individual who not only had no prior Town Manager experience, but also no experience in municipal golf. Is this the individual we deserve?

In the contract entered into on May 30, 2017 between the Town of Oro Valley and Ms. Jacobs, the contract stated, “The term of this agreement shall be for a period of two (2) years.”

Ms. Jacobs’ initial salary was $160,000 per year. However, just 15 months later, on September 5, 2018, her salary was increased to $180,000 per year. This was almost nine months before the 2-year contract was to expire or be renewed.

In addition, the Town paid for her moving expenses, up to $5,000. The Town also pays for the following:

• a deferred compensation payment into a 457 retirement account of $5,000 per year.
(Increased to $10,000 per year on September 5, 2018)

• 80 hours of vacation pay -- the equivalent of 10 days’ vacation.
(Increased to 27 vacation days per year, or 5.5 weeks of vacation, as of September 5, 2018)

• health, vision, dental, and disability insurance

• up to $90.00 per month to help defer costs associated with technological use and requirements for Town purposes (cell phone?)

All of this was given to an individual who had no Town Manager experience and had served as an Assistant Town Manager in Sierra Vista for 17 years.  Do you know anyone who has ever gone from 2 weeks of vacation to 5.5 weeks of vacation after barely a year and a half on the job?  Do you know anyone who received a $20,000 salary increase after just 15 months on the job?

This extremely well-compensated individual with no municipal golf experience relies on Troon for numbers. This is after Troon had shown that their forecast for the previous 5 years has been off by $9 million.

Ms. Jacobs also supported the Comprehensive Economic Development Strategy (CEDS) that supported eliminating citizen participation in business and commercial development in order to accelerate the review and permitting process. CEDS removes Neighborhood Meetings and Planning and Zoning Public Hearings from the process, eliminating the citizens’ voice.

Jacobs has no concept of why Oro Valley incorporated, which was to include the citizens in the decision-making process. We did not want to be like Tucson or Pima County.

With all the money and benefits budgeted for a Town Manager, we deserve better.

You can view the 2017 contract and the 2018 amended contract below.  The information provided in this article can be found in Sections 2, 7, and 9.  The amended agreement can be found on Page 9.

You can view the town's contract with Ms. Jacobs here.
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Editor’s Note: CEDS was approved by a 7-0 vote at the September 18, 2019 council meeting.