The URL can be used to link to this page

Home My WebLink AboutPackets - Council Packets (950) AGENDA ORO VALLEY TOWN COUNCIL STUDY SESSION OCTOBER 25, 2006 ORO VALLEY TOWN COUNCIL CHAMBERS 11000 NORTH LA CANADA DRIVE STUDY SESSION - AT OR AFTER 5:30 PM CALL TO ORDER ROLL CALL 1. PRESENTATION AND DISCUSSION OF TUCSON ELECTRIC POWER COMPANY'S ELECTRIC SYSTEM INFRASTRUCTURE INCLUDING THE EXISTING SYSTEM, SYSTEM EXPANSION, AND REPAIR AND MAINTENANCE OF THE SYSTEM AS RELATED TO THE ORO VALLEY TOWN CODE 2. PRESENTATION T ION AN D DISCUSSION OF ORO VALLEY'S DRAFT ECONOMIC DEVELOPMENT PLAN 3. PRESENTATION AND DISCUSSION OF ORO VALLEY'S ECONOMIC INCENTIVES POLICY GUIDELINES ADJOURNMENT with Disabilities The Town of Oro Valley complies with the AmericansAct(ADA). If any person it needs an type of accommodation, please notify the Oro Valley Town Clerk, at with a disabil y Y 229-4700. POSTED: 10/19/06 3:30 p.m. lh TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: October 25, 2006 TO: HONORABLE MAYOR & COUNCIL FROM: Sarah S. More, FAICP, Planning and Zoning Administrator SUBJECT: Study Session—Electric Infrastructure Issues BACKGROUND: Staff recently met with Tucson Electric Power(TEP) representatives to discuss issues related to electric infrastructure needs within the Town. Both TEP and staff agree that it is in the best interest of the Town to plan together for the future to assure reliable service for the Town residents and businesses. The Town Manager suggested that all parties discuss the issues in a study session with Town Council. TEP representatives will gg make a presentation at the study session. DISCUSSION OF ISSUES: 1. Immediate Need to Update Circuits Our initial discussion has focused on an existingsituation with overloaded circuits at Tangerine and La Cholla and Tangerine and La Canada. TEP indicates that these circuits were overloaded the past two summers. In order to address this issue, TEP intends to run a new line to connect these two circuits to providepexisting backup. There are above-ground power poles on the south side of the Tangerine right-of- yAccording right-of- way. to TEP, the original plan to use the existing poles for the new lines will not work. The current TEP proposal, not formallysubmitted, is to build a new above-ground line, on the south side of p p � Tangerine Road for that one mile length. Previous Conditional Use Permits to allow above ground lines have not been approved by the Town Council. code requirement for locating of that discussion concerned the Town'sq new utility lines underground. The Oro ValleyZoningCode requires a conditional use permit for new utility poles and above ground wires (see q Another issue is coordinating with the future roadway widening of Tangerine Road (in the Attachment). adoptedRegionalTransportation Trans ortation Plan) and avoiding duplicative work. One option might be to allow TEP to construct the above ground line on an interim basis pending the Tangerine Road widening and requiring that it belaced underground at that time, as a condition of a Conditional Use Permit. At this time, staff does not p � know whether the RTA funds will cover any of the cost of utility line relocation and undergrounding. Another optionmight be to require that the new line be placed underground, hopefully in a location that will not be disturbed byfuture roadwaywidening. Neither the Town nor TEP has identified funding for utility line di stu g undergrounding. TEP estimates the cost of undergrounding over that of putting in a new above ground line, for this one project is approximately$433,500. Inaddition,there is a current need to upgrade the wires along four existing routes within the Town that TEP has delayed due to the Town ordinance requiring that new wires be placed underground. According to TEP, upgrading old wires will increase capacity without increasing voltage, thus providing better service to Town residents. For example, lines on La Cholla are 40 years old and in serious need of replacement. As TEP replaces are ces lines theyupgrading to steel poles that are weathered to appear the same color as the older wooden pgr' g poles. Steel poles last longer and are less susceptible to storm damage. TOWN OF ORO VALLEY TOWN COUNCIL STAFF REPORT Meeting Date: October 25, 2006 Electric Infrastructure Issues Page 2 2. Addressing Growth and Development Issues Related to TEP Service Typically, all new development— subdivisions, shopping centers, etc. —is responsible for all infrastructure needs generated by the new development. The developer pays to underground the new utilities. TEP reviews all new development proposals in the Town and provides comments regarding electric service and easements. The following is a quote from a recent TEP comment on a subdivision plat: "A conditional approval is being given because of the uncertainty that TEP will be able to make necessary modifications to its electrical system in order to provide service to this project. The Town of Oro Valley has established an ordinance which restricts the upgrading of any overhead electrical power facilities within the town limits. Such restrictions may prohibit TEP from rendering service under its filed rules and regulations. " TEP advises that the utility rate structure approved by the Arizona Corporation Commission does not include an allowance to cover the cost of undergrounding utilities. TEP has indicted that they do not have the capacity to cover such costs. When the Town makes roadway widening improvements that necessitate utility relocation, the Town is responsible for extra costs related to undergrounding the utilities. In the recent case of Town improvements at Tangerine and 1"Avenue, the Town chose not to underground utilities due to the lack of funding to cover such costs. Given the amount of planned and approved development that will be occurring over the next few years in Oro Valley, TEP and Town staff believe that we must work together to address service needs before the issue becomes critical. Both interruption of service to existing Town residents and business as well as the potential of lack of service to new developments is of concern to us all. 3. Planning for the Future Cities and towns in Arizona are given exclusive control over all rights-of-way dedicated to the municipality. This exclusive control enables the municipality to grant franchise agreements to utilities using the city or town's streets in the distribution of utility services. As an example, many cities and towns have granted franchises to electric companies to place power lines within the public right-of-way. In conjunction with this franchise, a franchise tax can be charged by the municipality to the utility users. While there is no specific amount or limitation in State law, the traditional amount for a franchise tax is usually between 2% and 5% of the gross proceeds from the sale of utility services within the city or town. The Town of Oro Valley does not currently have a franchise agreement with our electric provider, TEP. To grant a franchise, the municipality must place the question before the voters of the community for approval. This can be done at any one of the four primary/general election dates designated. TEP estimates that the cost to underground one mile of 48 kV line is $1,000,000 and $500,000 for a lower voltage line. Establishing a franchise tax could fund that portion of the cost of new or replaced electricity lines not covered by TEP, i.e. the difference between the cost to relocate an above ground line and placing the line underground. Franchise taxes can also fund other utility costs over and above normal service—for example, providing new solar power to the Town. TOWN OF ORO VALLEY TOWN COUNCIL STAFF REPORT Meeting Date: October 25,2006 Electric Infrastructure Issues Page 3 Looking ahead even further, TEP plans a new transmission substation just outside of the current Town limits to the north, located on state trust land. This substation will help address current service issues as well as future development to the north. It will take about 3 years to bring the substation on line. CONCLUSION Staff and TEP agree that there are both immediate and long-term issues related to growth and development and the provision of reliable electric service that must be addressed for the Town. Staff suggests that the Town Council discuss this matter with TEP and provide direction to staff regarding: 1. Options for an above ground line along Tangerine Road between La Canada and La Cholla, including a possible temporary CUP. 2. Whether the Town should work with TEP to develop a franchise agreement. 3. And, whether to pursue a franchise tax to fund projects unique to the Town, such as undergrounding. 4. Alternatively, identifying another funding source for utility undergrounding. 5. Other mechanisms for planning for future growth and development with TEP to assure adequate service. i Cr--(.4. • i Planning hd oning Administrator ` 71, Community Development Director Pidy e 4,1(/‘I—,_ Acting Assistant Town Manager _ g4,1,1,4___ .,t_ tol,„b Atifixtcwr own Manager Attachments: 1. OV Zoning Code Section 25.1.N 2. TEP Handout Section 25.1.N N. New Utility Poles and Wires 1. Applicability a. It is unlawful to erect, possess or maintain any utility poles or wires above the surface of the ground except after obtaining a Conditional Use Permit therefore. b. Exceptions i. Utility poles and wires erected prior to December 31, 1983. ii. New utility poles and wires erected for temporary use for periods not in excess of 4 months for purely temporary purposes such as for providing temporary building construction power or for emergency power or telephone service, or for the furnishing of power to temporary outdoor activities. This 4-month period may be extended by the Town Council if good cause is shown. iii. Replacements involving less than 600 feet of continuous poles and wires on any transmission or distribution line in any 12 month period where the remainder of such transmission or distribution line is not also being replaced within said period; such replacement excluded from being new utility poles under the latter clause must be poles of the same or less size, diameter, height and in the same location as the pole or poles being replaced, and in addition, must be of the same classification as to strength and purpose within the utility industry as pole or poles being replaced. iv. Erection on the ground surface and flush to the ground of transformers, pullboxes, service terminals, pedestal type telephone facilities normally used with and as a part of an underground distribution system. The size, type and design of these are to be approved by the Town Engineer. v. Erection on the ground surface and flush to the ground of wires in encased concrete or conduit where underground wire installation is not feasible due to special features of the terrain. 2. Approval Criteria a. A Conditional Use Permit for the erection of new utility poles and wires will be granted in accordance with Section22.5. b. In addition, the primary consideration shall be aesthetics with the following factors also considered: i. The location and height of such poles and wires and the relation to the present or potential roads; ii. The crossing of such lines over much traveled highways and streets; iii. Proximity of such lines to schools, churches and other places where people may congregate; iv. Fire or other accidental hazards from the presence of such poles and wires and the effect, if any, of the same upon the effectiveness of fire fighting equipment; • v. The availability of a suitable right-of-way for the installation; vi. Future conditions which may be reasonably anticipated in the area in view of a normal course of development; vii. The type of terrain; viii. The practicality and feasibility of underground installation of such poles and wires with due regard for the comparative costs between underground and overground installations (provided, however, that a mere showing that an underground installation shall cost more than an overground installation shall not, in itself, necessarily require issuance of a permit). c. In the event such poles and wires are for the sole purpose of carrying electricity or power or for transmitting of telephone, telegraph, or television communication through or beyond the Town's boundaries or from one major facility to another, the practicality or feasibility of alternative or other routes shall also be considered. TEP/Town Infrastructure Needs As the Town of Oro Valley develops additional economic growth and population, Tucson Electric Power Company stands ready to provide reliable electric service to the Town. In order to provide that service, TEP has identified several issues and solutions that can be addressed in a collaborative TEP/Town effort. Issues: 1. Many electrical distribution circuits are approaching their maximum capacity, and other circuits are often exceeding their capacity, which limits the life span and reliability of the circuit itself. The physical constraints (size and ampacity) of any circuit limit the circuit's ability to connect new customers to it. 2. Load growth in Oro Valley requires additional infrastructure to serve new customers. TEP has already implemented a written conditional approval, based on circuit availability, in the review of new subdivision plats in the Town. 3. Construction of electrical facilities by TEP has been stymied due to requirements of the Town's Overhead Line Ordinance (Zoning Code § 25.1.N). Potential Solutions: 1. TEP and the Town both have an immediate interest in constructing a circuit along Tangerine Road to reinforce the circuits along La Canada and along La Cholla, which would allow TEP to provide service to new customers. 2. TEP proposes to optimize the utilization of existing substations through various distribution network connections that reduce overloaded circuits, which will allow service to new customers. 3. TEP proposes to optimize the utilization of certain pre-existing pole-line distribution networks by changing wire sizes (re-conductoring, which increases the power distribution capability of the circuits with minimal changes in the aesthetics. 4. TEP is prepared to invest in the overhead construction of the various projects at no cost to the Town, and TEP is agreeable to partnering with the Town on the underground construction options where appropriate. 5. TEP proposes to construct a new electrical substation in northern Oro Valley (Catalina Substation), rebuild the existing transmission line for three miles, and construct new electrical distribution networks in the area. (For several of these projects, TEP will need to receive Conditional Use Permits for reconductoring projects and new lines.) 6. A Town Franchise with TEP may provide both parties with more operational certainty and an income source to assist in undergrounding collaboration projects. TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION MEETING DATE: October 25, 2006 TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: David W. Welsh ECONOMIC DEVELOPMENT ADMINISTRATOR SUBJECT: Presentation of Economic Development Plan 2006-07 SUMMARY: Since starting in May 2006, the Economic Development Administrator has been engaged in activities related to supporting economic development for the Town of Oro Valley. The presentation on October 25th will present the current Economic Development Plan elements including current activities, anticipated near term efforts and recommendations for future efforts. ATTACHMENTS: 1. Attachment A. Town of Oro Valley Community Economic Development Strategy, (CEDS) November 2005 (Updated). 2. Attachment B. Existing CEDS document (1997). 3. Attachment C. Economic Development Plan Presentation FISCAL IMPACT: N/A /_ I?Mk 1t A David Welsh ECONOMIC DEVELOPMENT ADMINISTRATOR 04.44; al/14.4 David Andrews TOWN MANAGER 4c4' m + � TOWN OF ORO VALLEY COMMUNITY ECONOMIC DEVELOPMENT STRATEGY NOVEMBER 2005 (UPDATED) TOWN OF ORO VALLEY TOWN COUNCIL PAUL LOOMIS Mayor TERRY PARISH Vice-Mayor PAULA ABBOTT Councilmember K.C. CARTER Councilmember CONNY CULVER Councilmember HELEN DANKWERTH Councilmember BARRY GILLASPIE Councilmember TABLE OF CONTENTS - 2- TOWN OF ORO VALLEY TOWN COUNCIL PAUL LOOMIS Mayor TERRY PARISH Vice-Mayor PAULA ABBOTT Councilmember K.C. CARTER Councilmember CONNY CULVER Councilmember HELEN DANKWERTH Councilmember BARRY GILLASPIE Councilmember TABLE OF CONTENTS - 2- Acknowledgements ... 4 Mission Statement ... 5 Background ... 5 Purpose ... 6 Business Attraction ... 6 Acknowledgements 3— The following persons were instrumental in the updating of the Town of Oro Valley's Community Economic Development Strategy. Town Staff Participation Chuck Sweet, Town Manager David Andrews, Assistant Town Manager Jeffrey H. Weir, Economic Development Administrator Karen Greenspoon, Economic Development Specialist Danielle Tanner, Senior Office Specialist THINK TANK Members Mr. Al Cook, Citizen-At-Large Mr. Bob Schwarz, SCORE Representative Mr. Chet Oldakowski, Stop Oro alley Outrageous Giveaways Mr. Erik Shapiro, Marketing & Market Research Mr. Gregg Forszt, Ventana Medical Systems, Inc. Ms. Kim Stine, Bank One/Finance sector Mr. Kit Donley, Commercial Real Estate Development Mr. Ray Paolino, Former State of New York Economic Development Mr. Rob LaMaster, Arizona Restaurant & Hospitality Association Mr. Paul Kappleman, CEO, Northwest Medical Center Hospital — Oro Valley Invited Speakers/Guests Dr. Lay Gibson, Professor of Geography, U of A Mr. Ben Craney, Bourn Partners — Retail Tenant Broker Mr. Jeff Jones, Small Business Owner Mr. Alex Jacome, SAHBA Government Affairs Liaison Dr. Leo Shapiro, Marketing and Market Research Mr. Doug McKee, Resident Council member Conny Culver Council member Helen Dankwerth MISSION STATEMENT - 4— "To increase the quality of life for Oro Valley citizens and the business community by developing a positive business climate consistent with the community's values to ensure the long-term financial and economic sustainability of the Town of Oro Valley." Background During the past year the Mayor and Council approved the creation of an Economic Development focused amalgamation of local residents and business persons designated as the Think Tank. A major effort, as assigned by the Mayor and Council to the Think Tank, was a review of the existing Community Economic Development Strategy (CEDS) and recommendations for changes, if any, that are to be forwarded to the Mayor and Council. The recommendation(s) for changes to the CEDS are in the area of business attraction and retention. The consensus of the Think Tank was to recommend a different prioritization (emphasis) on business attraction efforts and a separation of business attraction into two separate but equally important categories: 1. Income Generation businesses that provide sales tax revenues and/or high paying employment opportunities for the residents of the Town, and are either direct revenue sources or secondary revenue source businesses; 2. Quality of Life and Services businesses wherein a direct and measurable Quality of Life benefit can be determined as expressed by existing residents of the Town. The Think Tank members expressed support for the following key elements and purposes contained within the 1997 Adopted CEDS: • Develop an economic development marketing plan. • Coordinate closely economic development activities and opportunities with surrounding municipal, regional and statewide organizations. • Develop and maintain a computer database inventory of available land and buildings. • Develop a fiscal impact analysis before initiating an annexation. • Develop an Economic Development Impact Analysis to be incorporated into the evaluation of significant development proposals. Purpose The purposes of the Community Economic Development Strategy are as follows: - 5— • Implement the Goals and Policies of the Economic Development Element of the Town's General Plan. • Make the best use of limited resources in providing a focused economic development program for the community. • Link all development-related programs and strategies in a formal way. • Provideuidelines in decision-making to the Town's political and g administrative leadership to achieve unity of purpose in the pursuit of economic development goals. • Attract newpublic and private resources to assist in carrying out the action steps contained in the CEDS. Business Attraction Emphasis. The Towntargetfollowing will the list of tourism, high-tech manufacturing and research & development uses, and retail and service businesses for areas identified appropriate in the General Plan. 1. Resorts, Destination Spa's and Tourism related businesses. 2. High-tech manufacturing and Research & Development. 3. Boutique Retail Shopping including Art Galleries and Restaurants. 4. Medical Services and support businesses. 5. Headquarters operations and professional services. 6. Performing Arts facilities/ development of Oro Valley as a Regional Arts Center. 7. Educational facilities (degreed programs and support efforts for existing businesses). 8. Hotels and Lodging facilities. - 6— r � . � r Af-fei6C1Ib'rle#1+ TOWNOF ORO VALLEY S S S S Dr � D 0 11111 +moi. "` ,,, ,�"` • D ;: I. •-17 7__ i C(' 3 D COMMUNITYECONOMIC D STRATEGY ay. OS • r► Oft • A s s s TOWN OF ORO VALLEY • COMMUNITY ECONOMIC DEVELOPMENT • STRATEGY •s SEPTEMBER 1997 •1 A • TOWN OF ORO VALLEY A A TOWN COUNCIL A A A CHERYL SKALSKY A Mayor A PAUL PARISI � Vice-Mayor t • BILL KAUTENBURGER � Councilmember 1 FRANK BUTRICO Councilmember t � DICK JOHNSON • Councilmember 1 t t t t t SO s s 111 Acknowledgements The following persons were instrumental in the development of the Town of Oro Valley's Community Economic Development Strategy. Economic Development Plan 116 Task Force 141 Cheryl Skalsky Mayor Kit Donley Pro L.A.N.D. Dennis Douglas Chairman, P&Z Commission Melissa Franklin Educator, Amphitheater School District * Patti Jo Lewis Development Review Board 111) Richard Maes Vistoso Partners Michaele Ann Melton El Burrito Patio Restaurant Patty Morris Tucson Electric Power Oscar Rothenbuecher P&Z Commission Mark Weinberg Diamond Management Ikt Town Support Staff Chuck Sweet, Town Manager Norm Phillips, Economic Development Administrator David Andrews, Finance Director Don Chatfield, AICP, Planning & Zoning Director Bryant Nodine, AICP, Senior Planner 10 TABLE OF CONTENTS 11) Mission Statement ... 1 Background ... 2 Scope and Organization ... 3 11 Purpose ... 4 Action Steps ... 4 Ilb Town of Oro Valley-Assistance for Economic Development ... 9 * Challenges and Vision for the Future ... 9 1111 Appendix 1111 1111Economic Development Partners — Programs and Assistance ... 12 * Economic Development Contacts ... 18 A * TABLE 1 - GTSPED Targeted Industries ... 19 • • 110 �'3 111) 14 110 1 MISSION STATEMENT 1 • "To increase the quality of life for Oro Valley citizens and the business � community by developing a positive business climate consistent with the � community's values to ensure the long-term financial and economic � sustainability of the Town of Oro Valley." f � 1 0 5 . . ' 0 ID . Background * During the past year there has been a concerted effort on the part of Town and 0 private individuals to develop an organized plan of action for economic * development in Oro Valley. Oro Valley leaders have begun to realize that resources available for economic development are being depleted. The limited O commercial and industrial lands are rapidly being developed. Also, the demand A for municipal services creates an incentive for the Oro Valley community to 0 establish a stronger commercial/industrial tax base in order to keep local taxes at O a minimum. O In July 1996, the Town adopted the Focus 2020: Oro Valley General Plan, 4 which included an Economic Development Element. A key policy (3.1A) in the O Economic Development Element of the Plan states: O "Economic Development touches everyone and everything within a community. Policies 00 made now will have substantial impacts on the future. They will determine the services a O town can provide to its residents and the quality. To ensure that future growth reflects O the desires of the community in balance with an analysis of the Town's financial needs, a Strategic Plan for Economic Development will be detailed to ensure that future O development will complement community values and work toward implementation of the -10 community's economic vision for the future." O The development and use of an economic development strategy was deemed to O be an important step in providing for implementation of the General Plan Goals 0 and Policies. Without a strategic plan for action, the implementation of the 0 General Plan Goals and Policies would likely be sporadic, uncoordinated, poorly timed and inefficient. With a strategic or action plan for economic development 0 the Town can make the best use of limited resources in providing a focused t economic development program for the community. I A statement in the Economic Development Element of the General Plan 1 says it best; "The success of the General Plan is measured by how well the plan I is implemented." I 110 Important actions called for in the General Plan Element include: 0' Appoint an Economic Development Task Force to work closely with the 0' Economic Development Administrator (EDA) to develop a Strategic Plan. I ili' • Develop an economic development marketing plan. I 11) 0 I � 2 • Coordinate closely with surrounding municipal and regional as well as Statewide organizations. � • Develop and maintain a computer database inventory of available land and 110buildings • Develop a fiscal impact analysis before initiating an annexation. • Develop an Economic Development Impact Analysis to be incorporated into � the evaluation of significant development proposals. � Initiate the design of thematic entry monuments at key entry areas to Oro • Valley. � One purpose of an economic development strategy is to organize and implement � these and other actions necessary to provide for an effective economic � development effort. r ' The second action item suggested in Economic Development Element was the appointment of an Economic Development Task Force to work with the EDA in developing a Strategic Plan. The Economic Development Task Force was appointed by the Town Council in August of 1996 to coordinate the completion and adoption of a strategic plan. The first Task Force meeting was held in October of that year. Care was taken to include members which represented various major groups within the community, 1 i.e., small business, developer, land owner educator, utilities, home owner, etc. The Task Force met monthly from October of 1996 through August 1997. The Town Manager, the Economic Development Administrator, the Finance Director and the Planning and Zoning Director facilitated the meetings. In September 1 1997, the strategic plan document was completed and sent to the Town Council for implementation. Scope and Organization This document is designed to bring together under one cover the existing and planned strategies and programs into an overall community economic development strategy for the Town of Oro Valley. The name of this plan is the Town of Oro Valley Community Economic Development Strategy (CEDS). 3 • Purpose The purposes of the Community Economic Development Strategy are as follows: 1 • Implement the Goals and Policies of the Economic Development Element � of the Town General Plan. 0� • Make the best use of limited resources in providing a focused economic development program for the community. � • Link all development-related programs and strategies in a formal way. � • Provide guidelines in decision-making to the Town's political and administrative leadership to achieve unity of purpose in the pursuit of economic development goals. lb • Attract new public and private resources to assist in carrying out the action � steps contained in the CEDS. � Action Steps A A 111 (1) Establish an Action Program and operating budget for the Economic Development Administrator (EDA). The EDA will work with the Finance Director and Town Manager to develop an � action program and operating budget for one year and operating guidelines for a � three-year program (subject to refinement). This program & budget will provide � the general framework in which the EDA is expected to operate and is based on activities needed to implement the Economic Development Element of the General Plan. The one-year program will provide a focused scope, while the � three-year program provides the broader operating context. This process of developing the one and three-year program is advanced by one year and 1111 updated. � (2) Insure that adequate funding resources are available to implement the ! action steps contained in this document. The EDA and the Finance Director will work with the Town Manager and Town Council to assure that adequate funding is available to carry out the action steps contained in the Economic Development Strategic Plan. 4 116 111 (3) Pursue private, county, state and federal funding sources. lb The EDA will seek out available funding from various sources including the private sector and various governmental agencies. � (4) Develop and implement a Business Retention Program. A A retention program will be developed which provides for regular visits by Town 111staff to Oro Valley businesses. A survey will be utilized and information summarized at the end of each year and an annual report produced. The report 1111 will be used to analyze and evaluate Town services, development trends and A other information relating to the business community. The report will be presented each year to the Town Council. (5) Monitor expansion plans of businesses in the community. • In conjunction with the Business Retention Program, the EDA will closely monitor 111 the expansion and relocation plans of businesses in the Town. The EDA will assist expanding businesses with their plans and help to expedite the development review and construction process. 111 (6) Work with appropriate agencies in assisting local business and retaining local companies in Oro Valley. 111 The EDA will work with the Greater Oro Valley Chamber of Commerce, Greater � Tucson Economic Council (GTEC), the Industry Network Corporation (INC), A Pima County's Business Assistance Center, the Pima Community College Small Business Development and Training Center and the Arizona Department of Commerce in assisting local businesses and retaining local companies in Oro Valley. � (7) Work to attract retail development in the community by maintaining regular contact with the development community. The EDA will maintain regular contact with landowners, real estate professionals, 1 and developers in order to attract new retail development to the Town. Contact with the retail community will be facilitated through attendance at meetings and � conferences of the International Conference of Shopping Centers (ICBG) to secure new prospects and network with retail professionals. 1 1 5 01. 11) (8) Streamline the development review process. 011 The EDA will work with the Town Development Review Ad Hoc Committee and � Town staff to streamline the development review process. A procedure will be developed to expedite the permit process in response to development requests of significant importance to the Town image, tax base or employment base. 10 (9) Create and foster a positive image 110 Create a positive image for the Town and use that image in marketing plans to promote Oro Valley in industries such as retail, manufacturing and tourism. Specific action steps are: • Complete an Identity/Image study for the community. • Use the study in developing marketing plans for retail, light industry and hospitality and tourism industry attraction. � • Work with the Town Council and other appropriate groups to develop and � enhance a sense of community identity through landscape and design themes/treatments at entryways to the Town or along major road corridors. • Work with the Town Council, Arts Board, Public Works Department and the Arizona Department of Transportation (ADOT) to provide directional signage 1110 to Oro Valley along the 1-10 freeway and State Routes 77 and 89. 111 • Work to establish the Town Hall Complex and surrounding vicinity as the lb "Town Center" of Oro Valley and work to establish this site as the focus and 110 for the community. • Promote Oro Valley as progressive, on the move, properly staffed and � favorably disposed to accommodate the need of new retail, high tech industry � and resort and tourism developments. 11111 • Portray Oro Valley as a quality place to live, work, shop and recreate. Demonstrate.the commitment of Town officials to accommodate commercial and industrial developments, which contribute to the community's identity. • Reinforce the competitive strengths of Oro Valley as a place for business, capitalizing on the unique recreational opportunities and desert and mountain 110 beauty, highly educated citizens, high median income and rapid growth. � (10) Work with regional organizations to improve the image of the Town in the development community. 010� Work with regional organizations such as the Greater Tucson Economic Council (GTEC), Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and the II Greater Oro Valley Chamber of Commerce in developing the Town image. Work • 11. with such organizations to improve the image of the Town within the development community. I 111 � 6 110 (11) Develop a strategy to encourage northern Town and unincorporated area � residents to shop and do business in Oro Valley. It is recognized that it is � important to provide nearby shopping opportunities for those Town residents in le the Rancho Vistoso section of the Town and citizens north of Oro Valley. This 11) area has significant economic potential and should be included in the Town Marketing Plan. ID (12) Develop and adopt a Business Incentive Policy The Town may from time to time wish to use some form of incentives to attract or retain desirable businesses. Guidelines and review criteria will be established to assist the Town in deciding when to grant such incentives. w � (13) Develop a computerized Fiscal Impact Analysis The EDA will develop a computerized fiscal impact analysis for use in measuring the benefit of specific development, rezoning or annexation to the community. MI (14) Develop and maintain a Database Inventory The EDA will develop and maintain a computer database of available land, � buildings and lease space. � (15) Develop and Maintain an Oro Valley Business Directory � Develop a Business directory as part of an effort to retain retail dollars in the community and encourage residents to use Oro Valley services. (16) Develop Economic Development Web pages w Develop Economic Development Web pages on the Internet, including a retail, w industrial /office and general information and demographics page. The existing 111 Oro Valley tourism page will be updated. A � (17) Work to increase the number of tourists, both seasonal and year round, that come to Oro Valley. A Work with the MTCVB, the GOV Chamber of Commerce and the Sheridan El � Conquistador to increase the number of tourists that come to the area. � (18) Work to attract uses which support the hospitality/tourism industry. • ID These uses include retail businesses such as hotels and restaurants, which � generate sales and bed tax revenues for the Town. Olb (19) The Town will target the following list of retail, tourism and industrial uses for areas identified appropriate in the General Plan. These targeted uses meet (IIS one or more of the following criteria: OM) • High paying jobs • Strong projected job growth • Underrepresented in the Oro Valley market 1111 � Retail � • Furniture & Home Furnishings 0111 • Big-box Discount Stores • Restaurants • Drugstores � • Movie theaters � • Clothing stores Tourism 011 • Resorts • Hotels/motels 01 • Driving range Office • Corporate headquarters/regional headquarters MI • Back-office facilities • Health services • College, institutions • Professional offices 111 Services • Dry Cleaning • Insurance services ID • Banking and credit institutions � • Insurance Agencies � • Investment Services Industrial The Town will target the Greater Tucson Strategic Partnership for Economic lb Development (GTSPED) selected industries** as described in the Greater 110 Tucson Strategic Economic Development Plan, July 1996 (see Table 1). * Well-designed specialty retail developments (such as Saint Phillip's Plaza in Tucson) are much-preferred over strip commercial projects. 1111 * * A group of industries under the group heading "Fabricated Metals/Industrial � Machinery & Equipment" has been not been included due to incompatibility with 110the Town General Plan. I) 8 (20) Work with appropriate agencies in developing industrial/office leads and �► prospects. A 114 The EDA will work with the GOV Chamber of Commerce, GTEC and the Arizona Department of Commerce in developing industrial/office leads and prospects. This will include coordination on marketing materials and attendance at relevant �► events, trade shows, conferences and prospecting trips. �1 111 (21) The status of the Economic Development Plan will be reviewed annually by Town officials. A The EDA will review the Economic Development Strategic Plan annually with the Finance Director and Town Manager. Appropriate modifications will be brought forward to the Town Council for adoption. An annual status report will be prepared and presented to the Council reviewing progress on completion of the A action steps identified in the Strategic Plan. Town of Oro Valley-Assistance for Economic Development A' Local governments in the Tucson regional area, individually or in association, promote local and regional economic development. The state grants municipal PO governments, such as Oro Valley, the power to engage in economic development. These powers allow the Town to provide the leadership, energy and perspective to bring together the different segments of the community. 1114 Guidelines for the Town use of assistance for business location or expansion are outlined In the Town of Oro Valley Economic Development Incentive Policy. 0110 014Challenges and Vision for the Future PIO A► The economic and physical transformation of Oro Valley will occur as a result of a combination of physical, political and socio-economic factors which will influence the direction of growth and development in the years to come. External and internal forces influencing growth in Arizona and the region will filter down to 04 Oro Valley, generating impacts in its economy that are difficult to predict. The Town economy evolved as a result of the work of early pioneers who le conquered the desert after harnessing water and energy resources. Later, with the advent of World War II, a diversified industrialization process began to take place. This along with large population immigration, created by workers coming to take jobs in new area industries, has transformed Oro Valley into the fastest 10 growing town or city in the State of Arizona. 10 9 110 Economic growth and development in the region evolved, until recently, without the guidance of comprehensive planning, fueled primarily by speculative forces � and population immigration. Planning the future economic and physical growth of the Town, which is closely tied to the City of Tucson and the region, poses many � challenges. To be beneficial, economic development must not only help create wealth, it must also generate community benefits and be consistent with the unique character of the Town. A statement at the beginning of the Economic � Development Element of the General Plan put this in perspective: "Oro Valley's economic future is interwoven with its distinctive character based 1 on a residential/resort image and its proximity to the Pusch Ridge Wilderness, Coronado National Forest and Catalina State Park. Diversification in the local � revenue base, encouraged through additions to employment and shopping opportunities, is desirable. However, any new development must be consistent with the community's vision for the future and values." The Town Council and staff will continue to work diligently to carry out this vision. IP 10 ✓ ✓ • ,o t t t t t t t APPENDIX S S S Economic Development Partners — Programs and Assistance P g 00 Success in economic development is best achieved through cooperation with a number of local, regional and State agencies and groups. The following is a discussion of the most important of these organizations and what they provide in 1110 the way of programs and assistance for economic development. S Arizona Department of Commerce (ADOC) 0110 Economic development was an elusive function in Arizona until recently. At the IP initiative of a variety of individuals and organizations, the State Legislature 00 enacted the Omnibus Economic Development Act in 1989, directing the Department of Commerce to assess Arizona's business climate and draft the first 111, statewide strategic economic development plan. This effort culminated in the design and publication of Arizona's Strategic Plan for Economic development (ASPED) in October 1992. To implement ASPED, the Governor's Strategic 00 Partnership for Economic Development (GSPED) was established. GSPED identified ten key economic clusters upon which to build and expand Arizona's future economy. IP 1. Bio-industry 2. Optics 11111 3. Environmental Technology 4.. Software OP 1110 5. Food, Fiber & Natural Products 6. Tourism and Experience 5 7. High Tech Industry 8. Transportation OP 9.111 Mining & Minerals 10. Senior Living OP As defined by ASPED, an economic cluster is a geographic concentration of competitive firms in related industries that do business with each other. Clusters include companies that sell inside and outside of the region as well as support firms that supply raw materials. These become magnets for companies to locate in an area and create a spawning ground for start-up companies. Also, these create large, diverse pools of experienced workers; attract suppliers who tend to congregate in their vicinity for increased efficiency; and foster a competitive spirit that stimulates growth and innovative strategic alliances. • The activities' i of GSPED will be of benefit to the economic growth of Oro Valley. InP articular, those related to the High Tech Industry, Optics, Tourism and Experience, and Senior Living. de OD 10 12 ID A � The Arizona Department of Commerce is the key agency responsible for marketing and promoting the economy of Arizona while providing support to GSPED in implementing cluster initiatives. In 1993, the National Marketing � Division of the ADOC aligned its recruitment efforts with GSPED. Their marketing representatives were each assigned specific GSPED industry groups. lb The Department of Commerce approach has been to emphasize the non-urban * areas in their recruiting efforts. Leads and prospects considering the Tucson or Phoenix metro areas are turned over to the corresponding regional agency (GTEC or GPEC). 111 � While recruitment prospects are turned over to GTEC and not to Oro Valley, a number of important incentives are made available to the Town by the ADOC. 1111 • The Commerce and Economic Development Fund 111 The Arizona Legislature established the Commerce and Economic Development Commission (CEDC) to help expand economic opportunities in the state. A CEDC fund capitalized yearly with a percentage of lottery proceeds was established by the Legislature to help retain, expand, and relocate businesses to � Arizona. The CEDC funds are administered by ADOC. Direct loans, loan 1 guarantees and interest rate subsidies are directed by the CEDC to businesses. Priority consideration is given to businesses seeking to relocate and expand in rural and economically disadvantaged areas and to minority and women owned business. The allocations are made on a first-come first-served basis. 11/ • Work Force Recruitment and Job Training Program The Arizona State Legislature established the work force recruitment and job- training fund in 1993 to provide customized training to firms that create new jobs � in Arizona and to businesses that undergo economic conversion. Grants are � administered by ADOC and offered to financially sound for-profit enterprises. Those firms identified within the GSPED clusters receive priority consideration. � The grants cover the cost of recruitment, screening, assessment, interviewing, materials design, and training costs, among others. Training is provided through established community colleges, or private post-secondary educational � institutions, or other qualified providers, as requested by the company. • The Arizona Business Connection This program is operated through the ADOC and provides assistance in � business expansion, relocation and start-ups. The office is a resource for information regarding licensing, permits, applicable taxes, applicable regulations, and financial referrals to local, state and federal agencies, as appropriate. Small 111 * 13 1111 1111 businesses established in the Planning Area can access and benefit from these A programs. • Private Activity Bonds � Private Activity Bonds can be issued for industrial, manufacturing facilities, and 1 equipment. The Town of Oro Valley or the Pima County Industrial Development � Authorities can issue these bonds. 1111 • Revolving Energy Loans A Under this program, qualified Arizona companies can receive financial � assistance for long-term, fixed-asset plant expansions for the manufacture of 1 energy-conserving products and energy-conserving building retrofits, including the acquisition of qualified energy-conserving improvements and equipment. � • Environmental Technology Tax Incentive Program 1 1 The State of Arizona offers tax credits and exemptions to companies that invest � $20 million over five years in manufacturing technology that produces goods from recycled materials and renewable energy. 1 111 • Defense Restructuring Assistance Program 111 Under this program, defense contractors can receive individual and corporate tax credits for conversion of defense activities to commercial activities. 1 � • Economic Strength Fund � This program approved by the Arizona State Legislature provides private non- profit and/or local government financing for highway or road projects which retain � or significantly increase jobs in Arizona, or which lead to significant capital � investment, or which make a significant contribution to the economy of the State. A • Arizona Enterprise Development Corporation (AFDC) Loan Programs 1111 AEDC offers several types of Small Business Administration (SBA) Guaranteed 11 Loans to small businesses including: SBA 504 and SBA 502 fixed asset • subordinated loans, SBA 7A working capital and debt refinance, and bridge loans for land, building acquisition, inventory or equipment. • • Rural Economic Development Initiative (RED!) Program � This program, a part of ADOC Community Assistance Services, offers specialized services and funding assistance in the form of matching grants to 1111 � 14 110 rural communities. The communities use the assistance to maintain viable 10economic development programs and to make themselves more attractive for OP capital investment, industrial expansions and business locations. 10 • Community Facilities Districts Arizona's Community Facilities District Act, allows a landowner or a group of landowners to request by petition that a municipality establish a community facilities district within the city limits to finance and construct public infrastructure and facilities. The district provides developers and cities with a new and flexible 10 mechanism to deal with the rising costs of new community facilities. Several 110 financial options are available to construct and maintain infrastructure, including: A General Obligation Bonds, Revenue Bonds, Special Assessments and � Assessment Bonds, Uses Fees and Charges, Municipal and Private Contributions. The type of projects that could be funded include: water and 11/ sewerage storage, flood control and drainage, lighting and traffic control, streets � and parking, police and fire facilities, public buildings, school sites and facilities, Oi parks and recreation among others. • Other Programs: � Other Arizona programs that may offer potential for economic development are those offered through the Department of Environmental Quality (DEQ) Revolving � Loan Funds, the Arizona Department of Tourism and the Arizona Film Commission. � Federal 1111 � Over the years, the Federal Government has introduced a vast array of programs that local jurisdictions can use to improve their economies and � neighborhoods. These programs range from specific development projects for � rural and urban development to job training. While the breath and funding of � federal programs is always subject to changes in national policy and emphasis in � Washington D.C., local communities can make themselves aware of opportunities and where possible, participate in those programs. The following is +� a list of federal programs and agencies that offer the most potential to promote � development in concert with the attributes of the Planning Area. 41 • Smal!Business Administration Loans � These loans are offered through the state of Arizona. � • The Rural Economic and Community Development Service, and the Consolidated Farm Services Agency, formerly the Farmers Home Administration (FmHA) provides a vast array of programs including 40 15 r guaranteed loans and grants to rural areas for water I wastewater facilities, • community facilities (e.g. fire and rescue or health facilities, schools), • business and industrial loans. • Economic Development Administration (EDA) Public Works Grants r The EDA programs are directed to the funding of public works and development � facilities that contribute to theicreation or retention of private sector jobs and to the alleviation of unemployment and underemployment. For example, EDA funds could facilitate the construction of an industrial park in Oro Valley. � • Community Development Block Grants (CDBG) 1 Oro Valley is not an entitlement jurisdiction and relies on Pima County for CDBG funding (see below). 1111 Pima County 0 � • CDBG Funds � Entitlement funds received through the US Department of Housing and Urban 1 Development are utilized to support community and economic development � activities in the Town of Oro Valley. These funds are received through the Pima County Entitlement Program and may be used by the Town for economic . development projects, public works, community facilities, public services and planning. 0 � • Pima County Industrial Development Authority The IDA was established by Pima County to facilitate financing through the � issuance of tax exempt private activity (industrial revenue) bonds for 1 manufacturing, infrastructure and medical developments. These bonds are � generally limited to land, building and equipment for manufacturing purposes and � they are capped at $10 million. The proceeds from the sales of bonds are made available to finance projects through loans, leases or installment sales agreements with private credit-worthy companies. 0 � Payments are used to pay the principal and interest on the bonds as they � become due. Interest rates are normally three to four percent lower than those charged through conventional borrowing. � Greater Tucson Economic Council (GTEC) � The Town contracts with GTEC to provide national and international marketing activities for the region. GTEC receives and markets sites in the area to � 16 10 111 prospects passed onto them from the Department of Commerce and also � prospects developed through the group's own marketing efforts. r • The membership dollars provided to GTEC from Oro Valley and other towns and organizations in the Tucson area help improve the business climate, and attract new employers to the area. 11/ Metropolitan Tucson Convention and Visitors Bureau (MTCVB) This organization receives funding from public agencies such as the Town of Oro • Valley and from a number of Tucson area corporate sponsors (especially those in the hospitality industry). The activities result in bookings of hotel rooms and � conventions with the impact of several million dollars each year to the local economy. Greater Oro Valley Chamber of Commerce � The Chamber provides a local network for the exchange of ideas between the 1 business community and the Town. Also the Town has worked jointly with the Chamber on a variety of economic development issues and projects. 1 Tucson Electric Power Company (TEP) 1 � TEP works with the Town and other economic groups to provide assistance to companies in the area of business attraction, expansion and retention. The Economic Development Section of TEP provides various forms of assistance including power information, sharing of lead information and in certain cases rate • reductions for firms considering expansion or location in the Pima County area. Private Sector � One of the most critical pieces in the puzzle, fundamental to the building of � foundations for economic development is the private sector. The private sector � consists of local lenders, developers, investors, builders and contractors, � professionals, chambers of commerce, professional and business associations and the utilities. � Non-profit Sector Another key sector in economic development is the non-profit sector. The non- 0 profit sector includes colleges and local universities, community based � organizations, economic development corporations, neighborhood groups and � private foundations. This sector is an important source of both training and 111 funding for economic development programs and projects. � 17 110 11) ECONOMIC DEVELOPMENT CONTACTS 110 Chuck Sweet, Town Manager 297-2591 � Norm Phillips, Economic Development Administrator 297-2591 David Andrews, Finance Director 297-2591 � Don Chatfield, Planning & Zoning Director 797-9797 � David Hook, Town Engineer 797-2442 Bob Maassen, Building Official 797-9096 1111 1 • • • • • • • 1110• t • • 410 � 18 010 110 TABLE I Oink Pl° GTSPED TARGETED INDUSTRIES 1110 Optics RI Ophthalmic Goods (SIC 3851) Optical Instruments & Lenses (SIC 3827) Analytical Instruments (SIC 3826) Photographic Equipment& Supplies (SIC 3861) 1110 ra Environmental Technologies lb Fluid Meters & Counting Devices (SIC 3824) 4111 Analytical Instruments (SIC 3826) 0110 Measuring & Controlling Devices (SIC 3829) • Environmental Controls (SIC 3822) � Aerospace 410 • Space Vehicle Equipment(SIC 3769) Guided Missiles & Space Vehicles (SIC 3761) • Space Propulsion Units& Parts (SIC 3764) Space Commerce Biolndustries � Biological Products, Except Diagnostic (SIC 2836) � Diagnostic Substances (SIC 2835) Medicinals & Botanicals (SIC 2833) Teleservices 40 Telecommunications Services (SIC 4812, 4813, 4822) 411 Software/Information Services Computer Professional Services (SIC 7376) Data Processing (SIC 7375) 40 Electronic Information Services (SIC 7374) 41 Computer& Data Processing (SIC 737) � Prepackaged Software (SIC 7372) Computer Integrated Systems(SIC 7373) 40 40 40 19 � Electronic & Other Electronic Equipment • Electronic Components & Accessories (SIC 367) � Semiconductors & Related Devices (SIC 3674) � Printed Circuit Boards (SIC 3672) • Instruments & Related Products 1111 110 Fluid Meters& Counting Devices (SIC 3824) � Analytical Instruments(SIC 3826) . Measuring & Controlling Devices (SIC 3829) X-ray Apparatus &Tubes (SIC 3844) � Surgical & Medical Equipment(SIC 3842) � Electromedical Equipment (SIC 3845) . Process Control Equipment (SIC 3823) Photographic Equipment& Supplies (SIC 3861) 110 Environmental Controls (SIC 3822) • Instruments to Measure Electricity (SIC 3825) 410 i • i • i i • 11, 010 110 1110 20 i . . 4drne ,tZ "A Community 1 T°w"°{Oro Valley of Excellence" °`" Town of Oro Valley Study Session Economic Development Plan David W. Welsh Economic Development Administrator October 25, 2006 ■ Economic Development Plan Study Session Outline Consistent with current strategic planning and Manager's plan. + Definition of Economic Development for Town of Oro Valley. 1. Economic Development Plan Elements • Current Elements • Future Elements 1 1 • Definition and Purpose of EconomicDevelopment Economic Development is the process by which the Town of Oro Valley acts to stimulate and maintain business and employment activit topromote Y and contribute to the long-term financial stability of the Town. 1414 ) JA, v- ■ �tr Economic Development Plan Elements 4. Business Retention and Expansion .. f Business Recruitment 4- Project Management vt„._ /•• Economic Development Public Relations � } � r Moving Forward dtz 2 • Business Retention & Expansion Goal: To retain and expand the existing businesses in Oro Valley. General Activities: Establish and maintain contact with existing businesses to foster better responsiveness to their needs and concerns. • Oversee relationships with regional partners providing retention resources: • NPCCC • MTCVB • TREO ifiMMMMMMMMMOWWk,-■ Current Retention Elements *. Development and launch of Oro Valley's business "Navigator". Conduct survey of Convention/Tourism/Retail sector in Oro Valley in coordination with NPCCC and TREO. 4Host Governor's Rural Economic Development Conference August 15-17 2007. <� Presentation of Matrix Report findings to business groups such as SAHBA, NPCCC, etc. � Launch "Buy Oro Valley" campaign in Fall of '07. 3 111 Future Retention Elements Assemble statistics and needs of existing business community. �- Explore creation of Economic Development Advisory Committee of the Council. * Renegotiate agreement with MTCVB. it Determine infrastructure needs to support future development. 4:-. :741094.-Nr -.4akiiikv:, i.,_ 7471p.7 .44 vfr ,,-(-_-:-.„.. , A ___Th , a .............mow-- - Business Recruitment Goal: To identify and recruit targeted businesses to Oro Valley. General Activities: • Focus on expanding the employment base diversity. • Work with TREO/ADOC on generated leads. • Work with TREO/ADOC to support internally developed leads. • Act as resource for retail/commercial developers. + Monitor annexation efforts and discussions. • Cooperation and coordination with the Arizona Department of Commerce. * Maintain high level of visibility and accessibility. 4 Current Recruitment Elements • Contribute to the completion of TREO's "Regional Blueprint" project. * Update Economic Development Marketing Brochure. • Respond to direct inquiries. 4 Coordinate with TREO to host site selector meeting in February 2007, tied to Accenture Match Play Event. • Distribute updated Buxton retail report. • Participate in regional and national conferences together with TREO, UA, and ADOC. • Support Naranja Townsite as crucial to business recruitment. Future Recruitment Elements * Update incentive policy guidelines. • Develop strategy for working with Bio- Technology trade groups. Participate in planning for possible annexations. * Continue development of vacant land database project (known as "Map Optix"). * Develop employment targets. 5 . • limmaimamomi - Project Goal: To provide assistance to businesses involved with commercial development in the Town. General Activities: Act as liaison to Town staff for: • Commercial Projects • Existing Businesses • Town Coordination of large project teams. <+ Develop and maintain positive working relationships with Town departments and divisions involved with commercial development, through regular interaction and open communication. Develop positive working relationship with area developers, architects and contractors. + Monitor activities related to annexations, economic vitality planning, and related impact analyses.• Current Project Management Elements • Project Team Coordination: • Oro Valley Marketplace • Ventana Medical Systems Expansion • Steam Pump Ranch Development • • Venture West coordination } Participation on Development Review Committee. ✓ Coordination of Internal Review Committee. *- Monitor Current EDA. 4 Other: • Monitoring electric power and water needs. • Annexation planning and monitoring. 6 k t,. -kg Economic Development Public Relations Goal: To act as a liaison between the Town and the business public. General Activities: *- Presentations to service groups and other local organizations. • AAED, NPCCC, Rotary,TREO, MTCVB, and others. Provide regular and periodic updates to the Mayor and Council. Interact with regional, statewide, national and international Economic Development organizations. Timely responses to inquiries from all constituents. '4, Promote regional cooperation. Current Economic Development Public Relations Elements •t Participation in TREO "Blueprint" Project: • Steering Committee • Inclusion Committee (representing Mayor) • Town Manager's Committee (representing Town Manager) Participation in NPCCC: • Monthly Report to Government Affairs Committee of NPCCC. • Attendance at NPCCC monthly breakfast. �s Participation in AAED: • Planning Governor's Conference 2007 • Membership Committee • Monthly So. AZ Luncheons ,* Additional Groups: • UA Science and Technology Park • Pima County Workforce Investment Board • Fielding inquiries from public. • Working with Parks and Recreation on Naranja Townsite. 7 ' 1 4 Recommendations Adopt CEDS as presented in November 2005 with minor adjustments to the targeted industrylist. Adopt Economic Incentive Policy Guidelines as presented in January 2006. (Next agenda item.) a .,v i F rJ 8 I TOWN OF ORO VALLEY 3 STUDY SESSION COUNCIL COMMUNICATION MEETING DATE: October 25, 2006 TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: David W. Welsh ECONOMIC DEVELOPMENT ADMINISTRATOR SUBJECT: Discussion of Economic Incentive Policy Guidelines SUMMARY: The Economic Incentive PolicyGuidelines (Guidelines) were last considered at the January 11, 2006 o Study Session of the Council. At that January meeting a redacted version of the Guidelines, s y incorporating oratin recommendations from the "Think Tank," was presented. However, no action was taken by the Council. the October 11, 2006 StudySession, the Council requested that the Guidelines be presented for At discussion at the next StudySession. The presentation on October 25th will provide an overview of redacted version of the guidelines as well as recommendations from the Economic Development the Administrator (EDA). ATTACHMENTS: 1. Attachment A. Economic Development Incentive Policy Guidelines (Recommended Revisions-Redacted) January 2006 2. Attachment B. Town of Oro ValleyEconomic Development Incentive Policy Guidelines (Recommended Revisions from Think Tank-Changes Tracked) January 2006 3. Attachment C. Economic Incentive Policy Guidelines Presentation FISCAL IMPACT: N/A ' 4 / David Welsh ECONOMIC DEVELOPMENT ADM. w { r t David Andrews TOWN MANAGER f A A-tacil tiv,i4t- 4 TOWN OF ORO VALLEY ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES (RECOMMENDED REVISIONS - REDACTED) GOAL: To provide e the Town Council a set of guidelines that assist in the retention of targeted businesses and thea attraction of new or expanding targeted businesses to the Town of Oro Valley resulting in the diversification of the existing tax base and the creation of employment opportunities. POLICIES. Inc certain cases the Town may consider using some form of incentives in order to attract or retain targeted businesses. These incentives will only be used when the Town satisfies itself that the addition of the new business or retention and/or expansion of an existing business would have a significant, positive fiscal impact on the Oro Valley economy. The need for diversification of the local economyis a necessity. This policy places a priority emphasis on businesses that generate significant sales tax revenues,meaningful employment new and existing ' ' economic sustainability. As a guideline the following listing canbe viewed as opportluuties and ty ce: 1. Resorts, 2. Retail, 3. Other Lodging, 4. High Tech JobCreation, and a prioritized preferen 5. Service Providers. In all instances wherein an incentive and/or inducement is considered the Town MUST employ an independent third d party qualified to verify: 1. That the proposed tax incentive is anticipated to raise more revenue that the amount of the incentive within the duration of the agreement; and 2. That in the absence of a tax incentive, the retail business facility or similar retail business facility, not currently located within the Town limits nor under consideration to be annexed into ' the Town, would not locate in the Town in the same time, place or manner. (ARS Section 9- 500.11). The following general provisions shall be considered prior to offering incentives. 'ori should be placed on the businesses "targeted"in the Community 1. Ahighpn priority Economic Development g evelo ment Strate is (CEDS) Plan as amended by recommendations form the Think Tank(It is anticipated that the amended CEDS will be formally updated by the Mayor and Council in January 2006). have a substantial positive economic impact on the community, i.e.; the 2. The project will number ofjobs created or the sales tax created by the project in the long-term will offset the short-term costs offered by incentives. Additionally, the project or business will be of such size or consequenceto produce significant employment or sales in related sectors. 3. Incentives should not continue for more than a ten(10)year period including multi- phased projects, i.e.;the tenyear period is inclusive from the first year of the first phase, regardless of plannedfuture phases, or from any "milestone date or event" as determined Town Council. The project developer may request an extension of the ten year by the p � time limit or milestone date or event to the Town Council. This request must be based solely on some event or occurrence that is/was "beyond Control of the Developer/Owner". 4. An emphasisbe placed on firms that provide diversification (within targeted industrial or commercial sectors)to the Town's economy. 5. , The Town will not buy land or existing buildings or construct buildings for purely private objectives. The Town's position should be to offer incentives that have a relationship to public benefit. Improvements such as streets,water lines, traffic signals, storm drainage, parking structures,parks and open space, and similar publicly assessed improvements are examples of public-private financed incentives. Acquisition of property and construction of buildings, if necessary, must be related to a public purpose. 6. The dollar amount of the incentives offered shall not exceed the cost of the project considered nor shall the incentive value be more than 50% of the new revenues that the project could reasonably expect to return in benefits to the Town within a ten year period as defined in paragraph three (3) above. 7. Private dollars shall be utilized to up-front identified project costs. 8. In certain instances incentives may be offered in conjunction with financial goals and annexation activities which are viewed as financially and strategically important to the Town. 9. The intangible or unmeasurable benefits of a business to a community, such as the location of a headquarters facility, enhancement of attractiveness to other similar businesses or suppliers, or other similar image-related items are also very important and should be considered along with other factors when making decisions on incentives. 10. Generally Retail projects which qualify should generate significant sales tax revenues similar to projects normally identified at a community or regional shopping center levels or if a single business, show a clear positive financial benefit to the Town. 11. The use of retail sales tax sharing shall be used as a"pass-thru"tool to encourage earlier establishment of high end stores and/or high revenue generating retail operations in any single project. 12. The use of incentives must be linked to performance criteria. By policy the Town of Oro Valley will not expend public funds prior to development of any commercial project. 13. New Retail development should have an emphasis on meeting a need not currently being filled in the community, or providing a higher level of service/goods /products than presently available, or providing similar services in an area not currently being served. 14. Final authority for any approval of the use of an incentive and/or inducement rests solely with the Town Council. 15. Each action is separate and independent from all other actions associated with the approval of the use of an incentive and/or inducement. 16. Non-revenue sharing incentives (As recommended by the Think Tank) which may be considered would include: a. Reduction of impact fees; b. Reduction of building permit fees; c. Reduction of water connection fees; and d. Extension of the Project Team approach that has been successfully used for larger development projects to any project identified by the Council. The above suggested incentives will need to be addressed from a legal and fairness consideration due to the nature of creation (impact fees) and bonding requirements (water connection fees). Staff will include an analysis with each request for a consideration by an applicant to the Mayor and Council. Ac'(in'er1 TOWN OF ORO VALLEY ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES (RECOMMENDED REVISIONS) GOAL: To provide the Town Council a set of guidelines that assist in the retention of targeted businesses and the attraction of new or expanding targeted businesses to the Town of Oro Valley resulting in the diversification of the existing tax base and the creation of employment opportunities. POLICIES: In certain cases the Town may consider using some form of incentives in order to attract or retain targeted businesses. These incentives will only be used when the Town satisfies itself that the addition of the new business or retention and/or expansion of an existing business would have a significant, positive effect fiscal impact on the Oro Valley economy. The need for diversification of the local economy is a necessity. This policy places a priority emphasis on i 'ficant sales tax revenues, meaningful new and existing businesses that generate s gni employment opportunities and economic sustainability. As a guideline the following listing can be viewed as ap rioritized preference: 1. Resorts, 2. Retail, 3. Other Lodging, 4. High Tech Job Creation, and 5. Service Providers. In all instances wherein an incentive and/or inducement is considered the Town MUST employ an independent third party qualified to verify: 1. That the proposed tax incentive is p Y anticipated to raise more revenue that the amount of the incentive within the duration of the agreement; and 2. That in the absence of a tax incentive, the retail business facility or similar retail business facility, not currently located within the Town limits nor under consideration to be annexed into the Town,would not locate in the Town in the same time place or manner. (ARS Section 9-500.11). The following general provisions shall be considered prior to offering incentives. the 1 lJ - - ------ - -- ------ -• --= --A-situation in which -- -- — -'"—"----• --- - - = • - i mow--�-e-= e- :._ • - -= : - • -_-- :- ._ e f Oro Valley. s ! (Original paragraph #1 recommended for removal). 1. highpriority should be placed on the businesses "targeted" in the Community Economic Development Strategic (CEDS) Plan as amended by recommendations form P the Think Tank It is anticipated that the amended CEDS will be formally updated by the Mayor and Council in January 2006). t will have a substantial positive economic impact on the community, i.e.;the • 2. The project number of'obs created or the sales tax created by the project in the long-term will offset � costs offered byincentives. Additionally, the project or business will be the short-term of such size or consequenceproduce significant employment or sales in related sectors. to 3. Incentives should not continue for more than a ten (10) year period including multi- phased projects, i.e.; the ten year period is inclusive from the first year of the first phase, „ regardless of planned future phases, or from any "milestone date or event as determinedby the Town Council. The project developer may request an extension year the ten time limit or milestone date or event to the Town Council. This request must be based solely on some event or occurrence that is/was "beyond Control of the Developer/Owner". 4. An emphasisbe placed should on firms that provide diversification(within targeted industrial or commercial sectors)to the Town's economy. will not buyland or existingbuildings or construct buildings for purely private 5. The Town position The Town's should be to offer incentives that have a relationship to public benefit. Improvements such as streets,water lines, traffic signals, storm drainage, 'n structures,parks and open space, and similar publicly assessed improvements are parking ublic- private financed incentives. Acquisition of property and construction examples of p p of buildings, if necessary, must be related to a public purpose. 6. The dollar amount of the incentives offered shall not exceed the cost of the project considered nor shall the incentive value be more than 50% of the new revenues that the project could reasonably expect to return in benefits to the Town within a ten year period p as defined in paragraph three (3) above. 7. Private dollars shall be utilized whentwGr=p084134G to up-front identified project costs • - --=:------_ -- - - - - ----- :_ .-. . - 8. (Original paragraph #9 recommended for removal) In certain instances incentives �ra p red in conjunction with financial goals and annexation activities which are may be offe j� viewed as financially and strategically important to the Town. „ t c c se o 9. The intangible or unmeasurable benefits of a business to a community, such as the location of a headquartersfacility, enhancement of attractiveness to other similar ty businesses or suppliers, or other similar image-related items are also very important and should be considered alongwith other factors when making decisions on incentives. 10. Generally projects Retail which qualify should generate significant sales tax revenues similar to projects is normallyidentified at a community or regional shopping center levels � or if a single business, show a clear positive financial benefit to the Town. 11. The use of retail sales tax sharing shall be used as a "pass-thru" tool to encourage earlier establishment of high end stores and/or high revenue generating retail operations in any single project. , 124 (This sentence reworded for clarity). The use of incentives must be linked to performance criteria. By policy the Town of Oro Valley will not expend public funds prior to development of any commercial project. 13. New Retail development should have an emphasis on meeting a need not currently being filled in the community, or providing a higher level of service/goods /products than presently available, or providing similar services in an area not currently being served. 14. Final authority for any approval of the use of an incentive and/or inducement rests solely with the Town Council. 15. Each action is separate and independent from all other actions associated with the approval of the use of an incentive and/or inducement. 16. Non-revenue sharing incentives (As recommended by the Think Tank)which max be considered would include: a. Reduction of impact fees; b. Reduction of building permit fees; c. Reduction of water connection fees; and d. Extension of the Project Team approach that has been successfully used for larger development projects to any project identified by the Council. The above suggested incentives will need to be addressed from a legal and fairness consideration due to the nature of creation (impact fees) and bonding requirements twater connection fees). Staff will include an analysis with each request for a consideration by an applicant to the Mayor and Council. 4 4 i-er.kt.(4.00:f C • . . ,.4 „,,,,,-:_--T---,..„ s. A Community Oro Valley „ ,, of Excellence” ' ` =�r� Oro Town of Valley ., ..j1,-, Economic Incentive Policy „:. tt-4,-- Guidelines ,,h s_ Study Session ,:,., David W. Welsh Economic Development Administrator ( October 25, 2006 •w,imiiiiiiiiimummamiux„ Economic Incentive Pclicy Guidelines • History �n highlights for♦ Selected discussionittt`.;om P. i :. : , •RecommendatiOfls } ,,- ..„- r ; . ,_-,,--.....,:r t :--- v, -...i. i ..41 ' : ‘,Tr... t , ‘ -7 , .,-, ____. . -ii...., fr-i_-. ", . fil --- - ,... A - , - , ,.. p 1 • Economic Incentive Policy Gtiid€ • History/Context • This should be considered part of the Community Economic Development Strategy (CEDS) and an element of the overall plan. • It's presented here at your request due to its relevance to possible annexation efforts. • These guidelines were: ► Presented at the January 11 Study Session by the previous EDA. ► Include recommendations by the "Think Tank". Economic Incentive Policy Guidelines •GoaI: To provide the Town Council a set of guidelines that assist in the retention of targeted businesses and the attraction of new or expanding targeted businesses to the Town of Oro Valley resulting in the diversification of the existing tax base and the creation of employment opportunities. ,,,t_ 1-4 11. 2 61111111111111111111111111111111 Economic Incentive Policy Guidelines •Background: In certain cases the Town may consider using some form of incentives in order to attract or retain targeted businesses. These incentives will only be used when the Town satisfies itself that the addition of the new business or retention and/or expansion of an existing business would have a significant, positive fiscal impact on the Oro Valley economy. it■ Economic Incentive Policy Guidelines •Policy Priorities: This policy places a priority emphasis on new and existing businesses that generate significant sales tax revenues, meaningful employment opportunities and economic sustainability. As a guideline the following listing can be viewed as a prioritized preference: 1 . Resorts, 2. Retail, 3. Other Lodging, 4. High Tech Job Creation, and 5. Service Providers. 1 4tittirrt. in, i ei:rs; 3 metiiiimaimmomaireiwk,_ Economic Incentive Policy Guidelines • ARS Section 9-500.11: In all instances wherein an incentive and/or inducement is considered the Town MUST employ an independent third party qualified to verify: 1 . That the proposed tax incentive is anticipated to raise more revenue that the amount of the incentive within the duration of the agreement; and 2. That in the absence of a tax incentive, the retail business facility or similar retail business facility, not currently located within the Town limits nor under consideration to be annexed into the Town, would not locate in the Town in the same time, place or manner. ■ Economic Incentive Policy Guidelines General provisions: 1. A high priority should be placed on the businesses "targeted" in the Community Economic Development Strategic (CEDS) Plan as amended by recommendations form the Think Tank (It is anticipated that the amended CEDS will be formally updated by the Mayor and Council in January 2006). 2. The project will have a substantial positive economic impact on the community, i.e.; the number of jobs created or the sales tax created by the project in the long-term will offset the short-term costs offered by incentives. Additionally, the project or business will be of such size or consequence to produce significant employment or sales in related sectors. 4 ,mamassammems Economic Incentive Policy Guidelines General Provisions: 3. Incentives should not continue for more than a ten (10) year period including multi-phased projects, i.e.; the ten year period is inclusive from the first year of the first phase, regardless of planned future phases, or from any "milestone date or event" as determined by the Town Council. The project developer may request an extension of the ten year time limit or milestone date or event to the Town Council. This request must be based solely on some event or occurrence that is/was "beyond Control of the Developer/Owner". 4. An emphasis should be placed on firms that provide diversification (within targeted industrial or commercial sectors) to the Town's economy. 11411111111111111111111111111111111M6- conomic Guidelines General provisions: 5. The Town will not buy land or existing buildings or construct buildings for purely private objectives. The Town's position should be to offer incentives that have a relationship to public benefit. Improvements such as streets, water lines, traffic signals, storm drainage: parking structures, parks and open space, and similar publicly assessed improvements are examples of public-private financed incentives. Acquisition of property and construction of buildings, if necessary, must be related to a public purpose. 6. The dollar amount of the incentives offered shall not exceed the cost of the project considered nor shall the incentive value be more than 50% of the new revenues that the project could reasonably expect to return in benefits to the Town within a ten year period as defined in paragraph three (3) above. 5 IIIa Economic Incentive Policy Guidelines General Provisions: 7. Private dollars shall be utilized to up-front identified project costs. 8. In certain instances incentives may be offered in conjunction with financial goals and annexation activities which are viewed as financially and strategically important to the Town. 9. The intangible or immeasurable benefits of a business to a community, such as the location of a headquarters facility, enhancement of attractiveness to other similar businesses or suppliers, or other similar image-related items are also very important and should be considered along with other factors when making decisions on incentives. Economic Incentive Policy Guidelines General Provisions: 10. Generally Retail projects which qualify should generate significant sales tax revenues similar to projects normally identified at a community or regional shopping center level or if a single business, show a clear positive financial benefit to the Town. 11 . The use of retail sales tax sharing shall be used as a "pass-thru" tool to encourage earlier establishment of high end stores and/or high revenue generating retail operations in any single project. 12. The use of incentives must be linked to performance criteria. By policy the Town of Oro Valley will not expend public funds prior to development of any commercial project. 6 timairminismsew • Economic Incentive Policy Guidelines General provisions: 13. New Retail development should have an emphasis on meeting a need not currently being filled in the community, or providing a higher level of service /goods /products than presently available, or providing similar services in an area not currently being served. 14. Final authority for any approval of the use of an incentive and/or inducement rests solely with the Town Council. 15. Each action is separate and independent from all other actions associated with the approval of the use of an incentive and/or inducement. Economic Incentive Policy Guidelines General Provisions: 16. Non-revenue sharing incentives (As recommended by the Think Tank) which may be considered would include: 111 1. Reduction of impact fees. 2. Reduction of building permit fees. 3. Reduction of water connection fees; and 4. Extension of the Project Team approach that has been successfully used for larger development projects to any project identified by the Council. 7 ■ 14 Economic Incentive Policy Guidelines • Policy Priorities: This policy places a priority emphasis on i businesses thatgenerate significant new and existing 9 9 sales tax revenues, meaningful employment opportunities and economic sustainability. As a guideline the following listing can be viewed as a prioritized preference: 1. Resorts, 2. Retail, 3. Other Lodging, 4. High Tech Job Creation, and 5. Service Providers. • Policy Priorities: This policy places a priority emphasis on new and existing businesses that generate significant sales tax revenues, meaningful employment opportunities and economic sustainability. As a guideline the following listing can be viewed as a prioritized preference: Should reflect industry priority listing resulting from updated CEDS. Economic Incentive Policy Guidelines 1 . A high priority should be placed on the businesses "targeted" in the Community Economic Development Strategic (CEDS) Plan as amended by recommendations form the Think Tank It is anticipated that the amended CEDS will be formally updated by the Mayor and Council in January 2006). A high priority should be placed on the businesses "targeted" in the Community Economic Development Strategic (CEDS) Plan. 8 6 Economic Incentive Policy Guidelines 6. The dollar amount of the incentives offered shall not exceed the cost of the project considered nor shall the incentive value be more than 50% of the new revenues that the project could reasonably expect to return in benefits to the Town within a ten year period as defined in paragraph three (3) above. 6. The dollar amount of the incentives offered Shall Be negotiated on a case by case basis and should not generally exceed the cost of the offsite improvements necessary for the project being considered. Economic Incentive Policy Guidelines •General Recommendations: ■ Incentives should be as flexible as possible. • Should be considered on a case by case basis. • Should be used sparingly and carefully. • In most instances limited to the required offsite infrastructure improvements. 9 • Atfachirrietuf 13 • • • • • • TOWN OF ORO VALLEY • • • • • (\\ LEY • • y/z • 0 • , - • • I / • ".#2 • /2 7"2, • -40INPrinte*,t, • • /(NI • / uNDE D • • • • • • COMMUNITY ECONOMIC DEVELOPMENT • • • STRATEGY • • • • • • • • TOWN OF ORO VALLEY COMMUNITY ECONOMIC DEVELOPMENT STRATEGY SEPTEMBER 1997 TOWN OF ORO VALLEY TOWN COUNCIL CHERYL SKALSKY Mayor PAUL PARISI Vice-Mayor BILL KAUTENBURGER Councilmember FRANK BUTRICO � Councilmember DICK JOHNSON Councilmember Acknowledgements The following persons were instrumental in the development of the Town of Oro Valley's Community Economic Development Strategy. Economic Development Plan Task Force Cheryl Skalsky Mayor Kit Donley Pro L.A.N.D. Dennis Douglas Chairman, P&Z Commission Melissa Franklin Educator, Amphitheater School District Patti Jo Lewis Development Review Board Richard Maes Vistoso Partners Michaele Ann Melton El Burrito Patio Restaurant Patty Morris Tucson Electric Power Oscar Rothenbuecher P&Z Commission Mark Weinberg Diamond Management Town Support Staff Chuck Sweet, Town Manager Norm Phillips, Economic Development Administrator David Andrews, Finance Director Don Chatfield, A1CP, Planning & Zoning Director Bryant Nodine, A1CP, Senior Planner TABLE OF CONTENTS Mission Statement ... 1 Background ... 2 Scope and Organization ... 3 Purpose ... 4 Action Steps ... 4 Town of Oro Valley-Assistance for Economic Development ... 9 Challenges and Vision for the Future ... 9 Appendix Economic Development Partners — Programs and Assistance ... 12 Economic Development Contacts ... 18 TABLE 1 - GTSPED Targeted Industries ... 19 MISSION STATEMENT "To increase the quality of life for Oro Valley citizens and the business community by developing a positive business climate consistent with the community's values to ensure the long-term financial and economic sustainability of the Town of Oro Valley." 1 • • • • Background • During the past year there has been a concerted effort on the part of Town and 410 private individuals to develop an organized plan of action for economic 41 development in Oro Valley. Oro Valley leaders have begun to realize that resources available for economic development are being depleted. The limited • commercial and industrial lands are rapidly beingdeveloped. Also, the demand p Y for municipal services creates an incentive for the Oro Valley community to establish a stronger commercial/industrial tax base in order to keep local taxes at a minimum. In July 1996, the Town adopted the Focus 2020: Oro Valley General Plan, • which included an Economic Development Element. A key policy (3.1A) in the Economic Development Element of the Plan states: "Economic Development touches everyone and everything within a community. Policies I made now will have substantial impacts on the future. They will determine the services a town can provide to its residents and the quality. To ensure that future growth reflects the desires of the community in balance with an analysis of the Town's financial needs, a Strategic Plan for Economic Development will be detailed to ensure that future development will complement community values and work toward implementation of the 1t community's economic vision for the future." The development and use of an economic development strategy was deemed to be an important step in providing for implementation of the General Plan Goals • and Policies. Without a strategic plan for action, the implementation of the General Plan Goals and Policies would likely be sporadic, uncoordinated, poorly timed and inefficient. With a strategic or action plan for economic development • Town can make the best use of limited resources in providing a focused the economic development program for the community. •• A statement in the Economic Development Element of the General Plan says it best; "The success of the General Plan is measured by how well the plan • 40 is implemented." S Important actions called for in the General Plan Element include: • Appoint an Economic Development Task Force to work closely with the Economic Development Administrator (EDA) to develop a Strategic Plan. C • Develop an economic development marketing plan. • S • 2 • • • • • Coordinate closelywith surroundingmunicipal and regional as well as • Statewide organizations. • Develop and maintain a computer database inventory of available land and buildings • Develop a fiscal impact analysis before initiating an annexation. vi' • Develop an Economic Development Impact Analysis to be incorporated into the evaluation of significant development proposals. • • Initiate the design of thematic entry monuments at key entry areas to Oro Valley. One purpose of an economic development strategy is to organize and implement these and other actions necessary to provide for an effective economic development effort. I • The secondsuggested action item su ested in Economic Development Element was the appointment of an Economic Development Task Force to work with the EDA in developing a Strategic Plan. The Economic Development Task Force was appointed by the Town Council in August of 1996 to coordinate the completion and adoption of a strategic plan. The first Task Force meeting was held in October of that year. Care was taken to include members which represented various major groups within the community, i.e., small business, developer, land owner educator, utilities, home owner, etc. The Task Force met monthly from October of 1996 through August 1997. The Town Manager, the Economic Development Administrator, the Finance Director and the Planning and Zoning Director facilitated the meetings. In September 1997, the strategic plan document was completed and sent to the Town Council � g for implementation. C Scope and Organization f • This document is designed to bring together under one cover the existing and planned strategies and programs into an overall community economic I C development strategy for the Town of Oro Valley. The name of this plan is the Town of Oro Valley Community Economic Development Strategy (CEDS). qp 3 � Purpose • The purposes of the Community Economic Development Strategy are as follows: oik • Implement the Goals and Policies of the Economic Development Element of the Town General Plan. • 44 • Make the best use of limited resources in providing a focused economic development program for the community. • Link all development-related programs and strategies in a formal way. • Provide guidelines in decision-making to the Town's political and 5 6 administrative leadership to achieve unity of purpose in the pursuit of economic development goals. i 06 • Attract new public and private resources to assist in carrying out the action steps contained in the CEDS. Action Steps I tis, (1) Establish an Action Program and operating budget for the Economic Development Administrator (EDA). '� The EDA will work with the Finance Director and Town Manager to develop an r action program and operating budget for one year and operating guidelines for a three-year program (subject to refinement). This program & budget will provide the general framework in which the EDA is expected to operate and is based on 'i' activities needed to implement the Economic Development Element of the General Plan. The one-year program will provide a focused scope, while the +� three-year program provides the broader operating context. This process of � developing the one and three-year program is advanced by one year and updated. .. MO (2) Insure that adequate funding resources are available to implement the action steps contained in this document. The EDA and the Finance Director will work with the Town Manager and Town Council to assure that adequate funding is available to carry out the action steps contained in the Economic Development Strategic Plan. or 4 (3) Pursue private, county, state and federal funding sources. The EDA will seek out available funding from various sources including the private sector and various governmental agencies. (4) Develop and implement a Business Retention Program. A retention program will be developed which provides for regular visits by Town staff to Oro Valley businesses. A survey will be utilized and information summarized at the end of each year and an annual report produced. The report will be used to analyze and evaluate Town services, development trends and other information relating to the business community. The report will be presented each year to the Town Council. (5) Monitor expansion plans of businesses in the community. • In conjunction with the Business Retention Program, the EDA will closely monitor the expansion and relocation plans of businesses in the Town. The EDA will assist expanding businesses with their plans and help to expedite the development review and construction process. (6) Work with appropriate agencies in assisting local business and retaining local companies in Oro Valley. The EDA will work with the Greater Oro Valley Chamber of Commerce, Greater Tucson Economic Council (GTEC), the Industry Network Corporation (INC), Pima County's Business Assistance Center, the Pima Community College Small Business Development and Training Center and the Arizona Department of Commerce in assisting local businesses and retaining local companies in Oro Valley. ' (7) Work to attract retail development in the community by maintaining regular contact with the development community. The EDA will maintain regular contact with landowners, real estate professionals, and developers in order to attract new retail development to the Town. Contact with the retail community will be facilitated through attendance at meetings and conferences of the International Conference of Shopping Centers (ICBG) to secure new prospects and network with retail professionals. 5 • • • review (8) Streamline the developmentprocess. • The EDA will work with the Town Development Review Ad Hoc Committee and • 41 Town staff to streamline the development review process. A procedure will be developed to expedite the permit process in response to development requests of significant importance to the Town image, tax base or employment base. ▪ • (9) Create and foster a positive image Create• 4.0 a positive image for the Town and use that image in marketing plans to g promote Oro Valley in industries such as retail, manufacturing and tourism. Specific action steps are: • Complete an Identity/Image study for the community. • Use the study in developing marketing plans for retail, light industry and hospitality and tourism industry attraction. • Work with the Town Council and other appropriate groups to develop and enhance a sense of community identity through landscape and design themes/treatments at entryways to the Town or along major road corridors. • Work with the Town Council, Arts Board, Public Works Department and the ' directional signage Arizona Department of Transportation (ADOT) to providee g g to Oro Valley along the 1-10 freeway and State Routes 77 and 89. • Work to establish the Town Hall Complex and surrounding vicinity as the "Town Center" of Oro Valley and work to establish this site as the focus and identifyfor the community. • Promote Oro Valley as progressive, on the move, properly staffed and • favorably disposed to accommodate the need of new retail, high tech industry and resort and tourism developments. • Portray Oro Valley as a quality place to live, work, shop and recreate. Demonstrate.the commitment of Town officials to accommodate commercial and industrial developments, which contribute to the community's identity. • Reinforce the competitive strengths of Oro Valley as a place for business, capitalizing on the unique recreational opportunities and desert and mountain beauty, highly educated citizens, high median income and rapid growth. (10) Work with regional organizations to improve the image of the Town in the development community. IP Work with regional organizations such as the Greater Tucson Economic Council (GTEC), Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and the developing the Town image. Work Greater Oro Valley Chamber of Commerce in de p g g with such organizations to improve the image of the Town within the development community. • 6 (11) Develop a strategy to encourage northern Town and unincorporated area residents to shop and do business in Oro Valley. It is recognized that it is important to provide nearby shopping opportunities for those Town residents in the Rancho Vistoso section of the Town and citizens north of Oro Valley. This area has significant economic potential and should be included in the Town Marketing Plan. (12) Develop and adopt a Business Incentive Policy The Town may from time to time wish to use some form of incentives to attract or retain desirable businesses. Guidelines and review criteria will be established to assist the Town in deciding when to grant such incentives. (13) Develop a computerized Fiscal Impact Analysis The EDA will develop a computerized fiscal impact analysis for use in measuring the benefit of specific development, rezoning or annexation to the community. (14) Develop and maintain a Database Inventory The EDA will develop and maintain a computer database of available land, buildings and lease space. (15) Develop and Maintain an Oro Valley Business Directory Develop a Business directory as part of an effort to retain retail dollars in the community and encourage residents to use Oro Valley services. (16) Develop Economic Development Web pages Develop Economic Development Web pages on the Internet, including a retail, industrial /office and general information and demographics page. The existing Oro Valley tourism page will be updated. (17) Work to increase the number of tourists, both seasonal and year round, that come to Oro Valley. Work with the MTCVB, the GOV Chamber of Commerce and the Sheridan El Conquistador to increase the number of tourists that come to the area. (18) Work to attract uses which support the hospitality/tourism industry. These uses include retail businesses such as hotels and restaurants, which generate sales and bed tax revenues for the Town. 7 (19) The Town will target the following list of retail, tourism and industrial uses for areas identified appropriate in the General Plan. These targeted uses meet one or more of the following criteria: • High paying jobs • Strong projected job growth • Underrepresented in the Oro Valley market Retail * • Furniture & Home Furnishings • Big-box Discount Stores • Restaurants • Drugstores • Movie theaters • Clothing stores Tourism • Resorts • Hotels/motels • Driving range Office • Corporate headquarters/regional headquarters • Back-office facilities • Health services • College, institutions • Professional offices Services • Dry Cleaning • Insurance services • Banking and credit institutions • Insurance Agencies • Investment Services Industrial ` The Town will target the Greater Tucson Strategic Partnership for Economic Development (GTSPED) selected industries** as described in the Greater Tucson Strategic Economic Development Plan, July 1996 (see Table 1). * Well-designed specialty retail developments (such as Saint Phillip's Plaza in Tucson) are much-preferred over strip commercial projects. * * A group of industries under the group heading "Fabricated Metals/Industrial Machinery & Equipment" has been not been included due to incompatibility with the Town General Plan. 8 (20) Work with appropriate agencies in developing industrial/office leads and prospects. The EDA will work with the GOV Chamber of Commerce, GTEC and the Arizona Department of Commerce in developing industrial/office leads and prospects. This will include coordination on marketing materials and attendance at relevant events, trade shows, conferences and prospecting trips. (21) The status of the Economic Development Plan will be reviewed annually by Town officials. The EDA will review the Economic Development Strategic Plan annually with the Finance Director and Town Manager. Appropriate modifications will be brought forward to the Town Council for adoption. An annual status report will be prepared and presented to the Council reviewing progress on completion of the action steps identified in the Strategic Plan. Town of Oro Valley-Assistance for Economic Development Local governments in the Tucson regional area, individually or in association, promote local and regional economic development. The state grants municipal governments, such as Oro Valley, the power to engage in economic development. These powers allow the Town to provide the leadership, energy and perspective to bring together the different segments of the community. Guidelines for the Town use of assistance for business location or expansion are outlined In the Town of Oro Valley Economic Development Incentive Policy. Challenges and Vision for the Future The economic and physical transformation of Oro Valley will occur as a result of a combination of physical, political and socio-economic factors which will influence the direction of growth and development in the years to come. External and internal forces influencing growth in Arizona and the region will filter down to Oro Valley, generating impacts in its economy that are difficult to predict. The Town economy evolved as a result of the work of early pioneers who conquered the desert after harnessing water and energy resources. Later, with the advent of World War II, a diversified industrialization process began to take place. This along with large population immigration, created by workers coming to take jobs in new area industries, has transformed Oro Valley into the fastest growing town or city in the State of Arizona. 9 Economic growth and development in the region evolved, until recently, without the guidance of comprehensive planning, fueled primarily by speculative forces and population immigration. Planning the future economic and physical growth of the Town, which is closely tied to the City of Tucson and the region, poses many challenges. To be beneficial, economic development must not only help create wealth, it must also generate community benefits and be consistent with the unique character of the Town. A statement at the beginning of the Economic Development Element of the General Plan put this in perspective: "Oro Valley's economic future is interwoven with its distinctive character based on a residential/resort image and its proximity to the Pusch Ridge Wilderness, Coronado National Forest and Catalina State Park. Diversification in the local revenue base, encouraged through additions to employment and shopping opportunities, is desirable. However, any new development must be consistent with the community's vision for the future and values." The Town Council and staff will continue to work diligently to carry out this vision. 10 • • • • • • • • • • t APPENDIX • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ii • Economic Development Partners — Programs and Assistance Success in economic development is best achieved through cooperation with a number of local, regional and State agencies and groups. The following is a discussion of the most important of these organizations and what they provide in the way of programs and assistance for economic development. Arizona Department of Commerce (ADOC) Economic development was an elusive function in Arizona until recently. At the initiative of a variety of individuals and organizations, the State Legislature enacted the Omnibus Economic Development Act in 1989, directing the Department of Commerce to assess Arizona's business climate and draft the first statewide strategic economic development plan. This effort culminated in the design and publication of Arizona's Strategic Plan for Economic development (ASPED) in October 1992. To implement ASPED, the Governor's Strategic Partnership for Economic Development (GSPED) was established. GSPED identified ten key economic clusters upon which to build and expand Arizona's future economy. 1. Bio-industry 2. Optics 3. Environmental Technology 4.. Software 5. Food, Fiber & Natural Products 6. Tourism and Experience 7. High Tech Industry 8. Transportation 9. Mining & Minerals 10. Senior Living As defined by ASPED, an economic cluster is a geographic concentration of competitive firms in related industries that do business with each other. Clusters include companies that sell inside and outside of the region as well as support firms that supply raw materials. These become magnets for companies to locate in an area and create a spawning ground for start-up companies. Also, these create large, diverse pools of experienced workers; attract suppliers who tend to congregate in their vicinity for increased efficiency; and foster a competitive spirit that stimulates growth and innovative strategic alliances. The activities of GSPED will be of benefit to the economic growth of Oro Valley. In particular, those related to the High Tech Industry, Optics, Tourism and Experience, and Senior Living. 12 The Arizona Department of Commerce is the key agency responsible for marketing and promoting the economy of Arizona while providing support to GSPED in implementing cluster initiatives. In 1993, the National Marketing Division of the ADOC aligned its recruitment efforts with GSPED. Their marketing representatives were each assigned specific GSPED industry groups. The Department of Commerce approach has been to emphasize the non-urban areas in their recruiting efforts. Leads and prospects considering the Tucson or Phoenix metro areas are turned over to the corresponding regional agency (GTEC or GPEC). While recruitment prospects are turned over to GTEC and not to Oro Valley, a number of important incentives are made available to the Town by the ADOC. • The Commerce and Economic Development Fund The Arizona Legislature established the Commerce and Economic Development Commission (CEDC) to help expand economic opportunities in the state. A CEDC fund capitalized yearly with a percentage of lottery proceeds was established by the Legislature to help retain, expand, and relocate businesses to Arizona. The CEDC funds are administered by ADOC. Direct loans, loan guarantees and interest rate subsidies are directed by the CEDC to businesses. Priority consideration is given to businesses seeking to relocate and expand in rural and economically disadvantaged areas and to minority and women owned business. The allocations are made on a first-come first-served basis. • Work Force Recruitment and Job Training Program The Arizona State Legislature established the work force recruitment and job- training fund in 1993 to provide customized training to firms that create new jobs in Arizona and to businesses that undergo economic conversion. Grants are administered by ADOC and offered to financially sound for-profit enterprises. Those firms identified within the GSPED clusters receive priority consideration. The grants cover the cost of recruitment, screening, assessment, interviewing, materials design, and training costs, among others. Training is provided through established community colleges, or private post-secondary educational institutions, or other qualified providers, as requested by the company. • The Arizona Business Connection This program is operated through the ADOC and provides assistance in business expansion, relocation and start-ups. The office is a resource for information regarding licensing, permits, applicable taxes, applicable regulations, and financial referrals to local, state and federal agencies, as appropriate. Small 13 businesses established in the Planning Area can access and benefit from these programs. • Private Activity Bonds Private Activity Bonds can be issued for industrial, manufacturing facilities, and equipment. The Town of Oro Valley or the Pima County Industrial Development Authorities can issue these bonds. • Revolving Energy Loans Under this program, qualified Arizona companies can receive financial assistance for long-term, fixed-asset plant expansions for the manufacture of energy-conserving products and energy-conserving building retrofits, including the acquisition of qualified energy-conserving improvements and equipment. • Environmental Technology Tax Incentive Program The State of Arizona offers tax credits and exemptions to companies that invest $20 million over five years in manufacturing technology that produces goods from recycled materials and renewable energy. • Defense Restructuring Assistance Program Under this program, defense contractors can receive individual and corporate tax credits for conversion of defense activities to commercial activities. • Economic Strength Fund This program approved by the Arizona State Legislature provides private non- profit and/or local government financing for highway or road projects which retain or significantly increase jobs in Arizona, or which lead to significant capital investment, or which make a significant contribution to the economy of the State. • Arizona Enterprise Development Corporation (AFDC) Loan Programs AEDC offers several types of Small Business Administration (SBA) Guaranteed Loans to small businesses including: SBA 504 and SBA 502 fixed asset subordinated loans, SBA 7A working capital and debt refinance, and bridge loans for land, building acquisition, inventory or equipment. • Rural Economic Development initiative (REDI) Program This program, a part of ADOC Community Assistance Services, offers specialized services and funding assistance in the form of matching grants to 14 rural communities. The communities use the assistance to maintain viable economic development programs and to make themselves more attractive for capital investment, industrial expansions and business locations. • Community Facilities Districts Arizona's Community Facilities District Act, allows a landowner or a group of landowners to request by petition that a municipality establish a community facilities district within the city limits to finance and construct public infrastructure and facilities. The district provides developers and cities with a new and flexible mechanism to deal with the rising costs of new community facilities. Several financial options are available to construct and maintain infrastructure, including: General Obligation Bonds, Revenue Bonds, Special Assessments and Assessment Bonds, Uses Fees and Charges, Municipal and Private Contributions. The type of projects that could be funded include: water and sewerage storage, flood control and drainage, lighting and traffic control, streets and parking, police and fire facilities, public buildings, school sites and facilities, parks and recreation among others. • Other Programs: Other Arizona programs that may offer potential for economic development are those offered through the Department of Environmental Quality (DEQ) Revolving Loan Funds, the Arizona Department of Tourism and the Arizona Film Commission. Federal Over the years, the Federal Government has introduced a vast array of programs that local jurisdictions can use to improve their economies and neighborhoods. These programs range from specific development projects for rural and urban development to job training. While the breath and funding of federal programs is always subject to changes in national policy and emphasis in Washington D.C., local communities can make themselves aware of opportunities and where possible, participate in those programs. The following is a list of federal programs and agencies that offer the most potential to promote development in concert with the attributes of the Planning Area. • Small Business Administration Loans These loans are offered through the state of Arizona. • The Rural Economic and Community Development Service, and the Consolidated Farm Services Agency, formerly the Farmers Home Administration (FmHA) provides a vast array of programs including 15 guaranteed loans and grants to rural areas for water/wastewater facilities, community facilities (e.g. fire and rescue or health facilities, schools), business and industrial loans. • Economic Development Administration (EDA) Public Works Grants The EDA programs are directed to the funding of public works and development facilities that contribute to theicreation or retention of private sector jobs and to the alleviation of unemployment and underemployment. For example, EDA funds could facilitate the construction of an industrial park in Oro Valley. • Community Development Block Grants (CDBG) Oro Valley is not an entitlement jurisdiction and relies on Pima County for CDBG funding (see below). Pima County • CDBG Funds Entitlement funds received through the US Department of Housing and Urban Development are utilized to support community and economic development activities in the Town of Oro Valley. These funds are received through the Pima County Entitlement Program and may be used by the Town for economic development projects, public works, community facilities, public services and planning. • Pima County Industrial Development Authority The IDA was established by Pima County to facilitate financing through the issuance of tax exempt private activity (industrial revenue) bonds for manufacturing, infrastructure and medical developments. These bonds are generally limited to land, building and equipment for manufacturing purposes and they are capped at $10 million. The proceeds from the sales of bonds are made available to finance projects through loans, leases or installment sales agreements with private credit-worthy companies. Payments are used to pay the principal and interest on the bonds as they become due. Interest rates are normally three to four percent lower than those charged through conventional borrowing. Greater Tucson'Economic Council (GTEC) The Town contracts with GTEC to provide national and international marketing activities for the region. GTEC receives and markets sites in the area to 16 prospects passed onto them from the Department of Commerce and also prospects developed through the group's own marketing efforts. The membership dollars provided to GTEC from Oro Valley and other towns and organizations in the Tucson area help improve the business climate, and attract new employers to the area. Metropolitan Tucson Convention and Visitors Bureau (MTCVB) This organization receives funding from public agencies such as the Town of Oro Valley and from a number of Tucson area corporate sponsors (especially those in the hospitality industry). The activities result in bookings of hotel rooms and conventions with the impact of several million dollars each year to the local economy. Greater Oro Valley Chamber of Commerce The Chamber provides a local network for the exchange of ideas between the business community and the Town. Also the Town has worked jointly with the Chamber on a variety of economic development issues and projects. Tucson Electric Power Company (TEP) TEP works with the Town and other economic groups to provide assistance to companies in the area of business attraction, expansion and retention. The Economic Development Section of TEP provides various forms of assistance including power information, sharing of lead information and in certain cases rate reductions for firms considering expansion or location in the Pima County area. Private Sector One of the most critical pieces in the puzzle, fundamental to the building of foundations for economic development is the private sector. The private sector consists of local lenders, developers, investors, builders and contractors, professionals, chambers of commerce, professional and business associations and the utilities. Non-profit Sector Another key sector in economic development is the non-profit sector. The non- profit sector includes colleges and local universities, community based organizations, economic development corporations, neighborhood groups and private foundations. This sector is an important source of both training and funding for economic development programs and projects. 17 ECONOMIC DEVELOPMENT CONTACTS Chuck Sweet, Town Manager 297-2591 Norm Phillips, Economic Development Administrator 297-2591 David Andrews, Finance Director 297-2591 Don Chatfield, Planning & Zoning Director 797-9797 David Hook, Town Engineer 797-2442 Bob Maassen, Building Official 797-9096 18 TABLE 1 GTSPED TARGETED [NDUSTRIES Optics Ophthalmic Goods (SIC 3851) Optical Instruments & Lenses (SIC 3827) Analytical Instruments (SIC 3826) Photographic Equipment & Supplies (SIC 3861) Environmental Technologies Fluid Meters & Counting Devices (SIC 3824) Analytical Instruments (SIC 3826) Measuring & Controlling Devices (SIC 3829) Environmental Controls (SIC 3822) Aerospace Space Vehicle Equipment(SIC 3769) Guided Missiles & Space Vehicles (SIC 3761) Space Propulsion Units & Parts (SIC 3764) Space Commerce Biolndustries Biological Products, Except Diagnostic (SIC 2836) Diagnostic Substances (SIC 2835) Medicinals & Botanicals (SIC 2833) Teleservices Telecommunications Services (SIC 4812. 4813, 4822) Sofhvare/Information Services Computer Professional Services (SIC 7376) Data Processing (SIC 7375) Electronic Information Services (SIC 7374) Computer& Data Processing (SIC 737) Prepackaged Software (SIC 7372) Computer Integrated Systems (SIC 7373) 19 Electronic & Other Electronic Equipment Electronic Components & Accessories (SIC 367) Semiconductors & Related Devices (SIC 3674) Printed Circuit Boards (SIC 3672) Instruments & Related Products Fluid Meters & Counting Devices (SIC 3824) Analytical Instruments (SIC 3826) Measuring & Controlling Devices (SIC 3829) X-ray Apparatus & Tubes (SIC 3844) Surgical & Medical Equipment(SIC 3842) Electromedical Equipment (SIC 3845) Process Control Equipment (SIC 3823) Photographic Equipment& Supplies (SIC 3861) Environmental Controls (SIC 3822) Instruments to Measure Electricity (SIC 3825) � 20 • • • • • • • • • • • • • • • • • • • • • • • • • • t • • • • • • • • • • • • • • • •