Oro Valley: cost to annex is too high
Published on Friday, May 04, 2007
Oro Valley has scrapped plans to extend their communities boundaries southward citing what they said were unreasonable demands from Foothills Mall and the Omni Tucson National Golf Resort & Spa.
“I predict that, some day, it will be part of this town,” said Scott Nelson, Oro Valley’s special projects coordinator, “but the timing isn’t right for this annexation, now.”
Since Nov. 1, 2006, Oro Valley has been seeking needed approval for the annexation of 2.2 square miles east of Shannon Road, between Overton roads. As part of the process, the town needed approval from the owners of the mall, Feldman Mall Properties, headquartered in Great Neck, N.Y., and Omni Hotels, based in Irving, Texas.
Feldman wanted a 50 percent rebate of Oro Valley’s 2 percent sales tax for 10 years, a ban on the town doing any more rebate agreements with competitors, an exemption from any town property taxes, plus signage and a police substation, according to David Welsh, administrator of economic development for Oro Valley.
Omni wanted a rebate of one-third of the town’s 6 percent bed tax for the next 10 years The resort wanted a 10-year, one-third, rebate of the town’s 6 percent bed tax, exemption from any other local resort tax, and protection from additional asssessments from the Metropolitan Tucson Convention and Visitors Bureau.
Both requests were similar to what Oro Valley has already agreed to do with other shopping centers, including Oro Valley Marketplace and Steampump Village, and a deal with the Hilton El Conquistador Golf and Tennis Resort.
“But this is a new council,” said Town Manager David Andrews.
Philip S. Moore
Inside Tucson Business
Contact Philip S. Moore at pmoore@azbiz.com or at (520) 295-4238.
© 2007 Inside Tucson Business. All Rights Reserved
Copyright © 2009 Inside Tucson Business