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HomeMy WebLinkAboutPackets - Council Packets (1061) *AMENDED 06/21/05, 11:30 a.m. AGENDA ORO VALLEY TOWN COUNCIL SPECIAL SESSION AND ORO VALLEY TOWN COUNCIL/ECONOMIC DEVELOPMENT THINK TANK MEMBERS JOINT STUDY SESSION JUNE 22, 2005 ORO VALLEY TOWN COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE *SPECIAL SESSION: AT OR AFTER 5:30 P.M. CALL TO ORDER: 5:30 P.M. ROLL CALL *1. STOP O.V. OUTRAGEOUS GIVEAWAYS & OLDAKOWSK1 v. CUVELIER AND TOWN OF ORO VALLEY; DISCUSSION AND POSSIBLE ACTION CONCERNING THE SEPARATE DEFENSE OF THE TOWN OF ORO VALLEY, INCLUDING POSSIBLE DIRECTION TO THE TOWN ATTORNEY TO ENGAGE OUTSIDE COUNSEL FOR THE SEPARATE DEFENSE OF THE TOWN ADJOURNMENT JOINT STUDY SESSION: AT OR AFTER 5:30 P.M. CALL TO ORDER ROLL CALL 1 . DISCUSSION REGARDING "THINK TANK" MEMBERS RECOMMENDATION — ORO VALLEY ECONOMIC DEVELOPMENT STRATEGIES ADJOURNMENT The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Oro Valley Town Clerk, at 229-4700 POSTED: 06/15/05 AMENDED AGENDA POSTED: 06/21/05 4:00 p.m. 11:30 a.m. lh Ih AGENDA ORO VALLEY TOWN COUNCIL/ECONOMIC DEVELOPMENT THINK TANK MEMBERS JOINT STUDY SESSION JUNE 22, 2005 ORO VALLEY TOWN COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE CALL TO ORDER: 5:30 P.M. ROLL CALL 1. DISCUSSION REGARDING "THINK TANK" MEMBERS RECOMMENDATION — ORO VALLEY ECONOMIC DEVELOPMENT STRATEGIES ADJOURNMENT The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Oro Valley Town Clerk, at 229-4700 POSTED: 06/15/05 4:00 p.m. Ih I TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION MEETING DATE: JUNE 22, 2005 TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR SUBJECT: MEETING AND DISCUSSION WITH THINK TANK MEMBERS. SUMMARY: The Think Tank was created at the direction of the Mayor and Council to review the existing Community Economic Developemnt Strategy (CEDS), assess and recommend o p gg changes to the CEDS, suggest new directions (for Economic Developemnt) and offer any other considerations the Think Tank members wanted the Council to consider. The Think Tank members included representatives from a variety of local interests, p businesses, the development community, the arts and citizens-at-large. The session to day is an opportunity for the members of Council and Think Tank to pp t'Y discuss the proposed changes and suggestions submitted to the Mayor and Council by the Think Tank. I have attached cope reportprepared copies of the by Dr. Lay Gibson titled "Understandings and Observations from the15, January8 and 2005 Think Tank Sessions"; and a copy of the May 6, 2005 Think Tank Interim Report that was submitted to the Mayor and Council. Additionally, I have attached a copyof the names of the Think Tank members. ATTACHMENTS: 1. Report preparedDr. byLayGibson titled "Understandings and Observations from the January 8 and 15, 2005 Think Tank Sessions". 2. May 6, 2005 Think Tank Interim Report. 3. List of Think Tank members. TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION PAGE 2 OF 2 3, ,,/./ / ! iii I 1) 0 P 3 V r } JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADM. / i 4 JtA 1,i_ A 111 f.J 4 jZ CHUCK SW ET TOWN MANAGER ATTACHMENT # 1 THINK TANK SESSIONS REPORT FROM DR. LAY JAMES GIBSON JUNE 22, 2005 The Oro Valley Economic Development Think Tank: Understandings and Observations from The January 8 and 15, 2005 Think Tank Sessions Lay James Gibson, Ph.D. Consultant Submitted to The Town of Oro Valley Attention Jeff Weir January 19, 2005 The Think Tank sessions were organized around five lectures offered by Dr. Gibson, five and group discussions facilitated by Dr. Gibsonspontaneous discussions on a variety of g p topics initiated by the participants. This discussions produced a "Vision"for economic development in Oro Valley and a "Mission Statement"that called for creating export jobs that are commensurate with h the education levels and aspirations of Oro Valley residents; creating a sustainable public income stream to support high quality public goods; supporting the development of business activities that are consistent with Oro encouraging Valley's high quality living environment; 9 g the retention and expansion of especially businesses — ex ort oriented businesses; and making Oro Valley a p seeking destination for businesses new locations and individuals seeking a place to visit or reside. Mr. Weir's Vision and Mission Statement are in Appendix A. Three of Dr. Gibson's five lectures were offered on Saturday, January 8. The first was titled Economic Development 101. Discussion which followed suggested that Think Tank participants prefer to combine considerations of community and economic development themes; feel that initiatives i tives which focus on efficiency will eventually enhance equity outcomes; and feel that investments in "place prosperity"will eventually be translated into enhanced "people prosperity."This lecture provided a broad overview for participants. A copyof this presentation is found in Appendix B. The second lecture, "The Economic Landscape, The New Economy, and Your Region introducedadditional topics including a discussion of the structure of and Its Economy," p a regional economy andemerging emer in trends in the world's economic systems. It also introduced the notions of comparative advantage and barriers to economic development and theanalysisstrengths,of stren ths, weaknesses, opportunities and threats in Y regional systems. Appendix C describes this presentation. 9 The third lecture on the first day focused on economic base theory and cluster-driven economic development. Specifically export building and leakage-reducing strategies p Y were discusses along with basic and non-basic sources of income. Finally, often ignored in and transfer payments were reviewed. The notes for themes such as cross commute g p Y "Economic Base Theoryand Clusters" are found in Appendix D. Following discussions based on these three lectures and associated themes"homework" participants were asked to produce lists of"strengths and was assigned. Specifically, p p ", "barriers and weaknesses,""opportunities" and "threats." comparative advantages These lists would at least partially guide discussions during the January 15 Think Tank and Session. The second Think Tank Session was held on January 15. Dr. Gibson offered two lectures designed to stimulate thinking on the attributes of effective economic development efforts. The first focused on the regional approach to economic — value as a wayof leveraging resources but also some of the red development its va u g flags, downsides, and disbenefits that might come from being "too regional."This called "The Regional Approach" it is found in Appendix E. The presentation was simply 9 other lecture was called "The 12 Commandments" and it focused on the rules that should be followed to assure the creation of a successful economic development effort. The materials for this presentation are found in Appendix F. Discussion topics.covereda varietyof to ics. Each of the first four structured discussions follow a theme that had been introduced on the previous Saturday. And all four produced lists of"recommendations"commendations" or more properly, items which could certainly form the topics of future projects,discussions, or policy initiatives. In some ways, these four different work programs. The items on each list are not ranked; discussions yielded they simply appear in the order mentioned. List 1. Oro Valley's comparative advantages and strengths. Ten items were mentioned. p 9 List 2. Opportunities for economic development. Fifteen items were mentioned. List 3. Potential weaknesses and barriers to economic development in Oro Valley. Twelve items were mentioned. List 4. Threats to Oro Valley's economic future. Fourteen items were mentioned here. Finally there was substantial discussion on the business of incentives and economic development. Whereas no firm positions were taken most participants had a genuine interest in seeing an objective analysis of the pros and cons (and costs and benefits) associated with specific incentives. The nine potential incentives on List 5 are those clearly identified during discussions. Conclusion. There appears to be strong and enthusiastic public support for economic development initiatives in Oro Valley. Further, fully engaged elected officials and a knowledgeable and effective city staff are in place to move Oro Valley forward. This mix of capable players in a growing and dynamic community bodes well for Oro Valley. List 1. Oro Valley's Comparative Advantages and Strengths "build-out" Oro 1. Unlike communities atValley can "do it right"when developing its open land. 2. quality h urban and natural amenities make Oro Valley an exceptional place to live and work. 3. Oro Valleyhigh-quality subregion within the larger Tucson a hig - �s perceived to be q tY Metropolitan Region. 4. Oro ro Valleyoffers a clean and safe environment. 5. Oro Valley is a "high end, high amenity" place to live and work. 6. Oro Valley's residents are well educated and form a high quality workforce. and highly 7. Oro Valley has competentg Y motivated community leaders. 8. There is a real "sense of community" in Oro Valley. 9. There is room in Oro Valley for continuedgrowth rowth of local markets and demands for additional goods and services. homogeneous, and large enough to offer variety while 10.Oro Valley is cohesive, 9 being small enough to be"manageable." List 2. Opportunities for Economic Development 1. OroValley new, is open to change, and not"set in its ways." 2. great OroValleyhas potential to become a "branded"destination. 3. Oro Valleycan be and should be) proactive when promoting small business. 4. Oro potential Valleyhas the to become a year-round cultural center. Ile still has the opportunity to broaden its retail and service offerings, 5. Oro Valley pp especially those now under represented. II has the opportunity to be innovative in the physical design of the 6. Oro Valley pp tY community. 7. Oro Valley has the opportunity to develop small business assistance resources and capabilities. opportunity Oro Valleyhas the o ortunity to develop festivals and events, including fine arts appeal that will enhance its a eal and reputation as a "branded destination." Ile has the opportunity to develop the Naranja Town site"the right way." 9. Oro Valley pp tY Valleyhas the opportunity to further exploit its wonderful winter weather. 10.Oro ppo tY 11 .oro Valley opportunity the o ortunity to have full citizen participation in building a consensus blueprint for the Town's future. r Valleyhas the opportunity to better utilize the Mt. Lemmon resource by 12.0 o pp building a tram to link the Town to the mountain. 13.Oro Valley has the opportunity to expand its public revenues by instituting a property tax. Ile has the opportunity to rethink its "big box" position and recognize the 14.Oro Valley pp tY emergence of the"small box retail revolution." 15Valley opportunity oro has the o ortunity to develop "neighborhood-style retail." List 3. Potential Weaknesses and Barriers to Economic Development in Oro Valley 1. Town rules and regulations may negatively impact business ventures. 2. Poor access to Tucson International Airport. 3. The perception of unstable local government. 4. Poor access to lower skill/lower wage workers. 5. Inflexible town rules and regulations and uneven administration of town codes. 6. High land cost and limited availability of land for development. 7. No speculative buildings for potential industrial tenants. 8. Lack of affordable housing for all but the most affluent. 9. High crime rates in the Tucson Metropolitan Region. 10.Lack of ethnic diversity. 11.Unreasonably high impact fees. 12.Lack of transparency in building regulations and lack of consistency in building regulations over time. List 4. Threats to Oro Valley's Economic Future 1. Unimaginative developments and poor land-use choices could squander Oro Valley's future. 2. Depletion of ground water. pp 3. Oro Valley may be oversupplied with retail and retail establishments leading to declines in business activity. 4. All infrastructure, but especially roads, may be near or at capacity. 5. Water availability both in absolute availability and in terms of systems capacities. 6. The perception by outsiders that Oro Valley is a "tough place to do business." 7. Lack of economic diversification and overdependence on a single cluster (retail). 8. Failure of leadership to gather ather authoritative "strategic intelligence" on local, regional, national, and global trends, issues, and opportunities. 9. Secure and sustainable quality public goods are not in place. 10.Oro Valley's leadership is too reactive and not nearly as proactive as it should be. 11.Upward movement of housingcosts and diminished supply of"suitable housing" will increasingly limit the "Oro Valley demographic." 12.Oro Valley has t potential otential to create an inappropriate balance in commercial vs. residential land use. 13.Failure to recognize the need to consider redevelopment of land and to plan for reuse of already developed parcels. 14.Institutin9 a property tax would be a threat to the community. List 5. Economic Development Incentives 1. Job training. 2. "Fast tracking"of the development permits-and-permissions process. 3. A mechanism to develop and support (bus or other) transport for low wage workers who are employed in Oro Valley but who live elsewhere in the Tucson Region. 4. Tax incentives or inducements for a) retail businesses or b) other business types. 5. Fee waivers. 6. Incentivize development of Town Center (public incentives to private developer(s)). 7. Tax rebates to commercial developers. 8. Town subsidy of (selected) infrastructure development costs. 9. Code relaxation. ATTACHMENT # 2 THINK TANK INTERIM REPORT MAY 6, 2005 MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR DATE: MAY 6, 2005 SUBJECT: THINK TANK INTERIM REPORT. Vision By formally engaging in economic development Oro Valley will demonstrate its . to the process in which the government engages to stimulate or commitment . business activityand/or employment. The principal goal of economic maintain development is employment to stimulate em to ment opportunities in sectors that improve the region orusing communityexisting human, natural, and institutional resources. Mission Statement The Mission of Oro Valleyeconomic development initiatives are to build an even ss stronger and more desirable Oro Valley by... • Creating exportjobs that are commensurate with the education levels and aspirations of Oro Valley residents; • Creatinga sustainable public income stream to support high quality public goods; • Supportingthe development of business activities that are consistent with p Oro Valley's high quality living environment; • Encouraging in the retention and expansion of existing businesses — especially export oriented businesses; • Making Oro Valleya branded destination for businesses seeking new locations a g and individuals seeking a place to visit or reside. METHODOLOGY The Think Tank members utilized a process that included: o Education on the foundations and principles of Economic Development; o Free flowing discussions; o Focused areas and evaluations; o Presentations from outside sources/experts; and o Recommendations to Council achieved through Consensus. CHRONOLOGY Meetings were held on four (4) Saturdays ending on April 23, 2005. Most sessions were four (4) hours in duration. PARTICIPANTS Participants included members of the Think Tank, invited presenters, Council members, residents and staff. 1. Mr. Al Cook Citizen-At-Large & Arts Community 2. Mr. Bob Schwarz SCORE representative 3. Mr. Chet Oldakowski Stop Oro valley Outrageous Giveaways 4. Mr. Erik Shapiro Marketing & Market Research 5. Mr. Gregg Forszt Ventana Medical Systems, Inc. 6. Ms. Kim Stine Bank One/Finance sector 7. Mr. Kit Donley Commercial Real Estate Development 8. Mr. Ray Paolino Former State of New York E. D. person 9. Mr. Rob LaMaster AZ Restaurant & Hospitality Association 10. Mr. Paul Kappleman CEO, NW Hospital — Oro Valley Pp . 11. Mr. Ben Crane Bourn Partners/Retail Tenant Broker y 12. Mr. Jeff Jones Small Business Retail Owner & Incoming President of the Chamber of Commerce 13. Mr. Alex Jacome SAHBA Government Affairs Liaison 14. Dr. Leo Shapiro Marketing & Market Research 15. Mr. David Andrews Assistant Town Manager & Finance Director 16. Mr. Doug McKee Resident 17. Ms. Helen Dankwerth Council member 18. Ms. Conny Culver Council member 19. Mr. Barry Gillaspie Vice Mayor 20. Mr. Chuck Sweet Town Manager 21. Ms. Karen Greenspoon Economic Development Specialist 22. Ms. Danielle Tanner Administrative Assistant 23. Mr. Jeffrey H. Weir Economic Development Administrator Considerations, Recommendations and Suggestions. • p Continuation & Expansion of the Economic Development Think Tank. + Creation of a Small Business Advisory Council. • Expansion of the Ombudsman efforts. ❖ Annexation action of specific properties. ••• ntinued Use and expansion of existing Incentive Policy. Co ••• Revsexisting i ions to Community Economic Development Strategy. ❖ Recommendations on adoption of NEW revenue sources. Recommendations to the Council. Continuation p i n & Expansion of the Economic Development Think Tank. I, P o Continuation and expansion of the Think Tank comprised of the existing volunteers with appropriate ro riate staff support from the Economic Development Division. o Added members of non-represented businesses and community groups may include: Owner of a Small Retail Business, Real Estate professional, Aerospace Industryrepresentative, and a Lawyer or Certified Public p Accountant. o The Council maywant to additional members who represent other diverse areas of the Town. II. Creation ofa Small Business Advisory Council. o Establishment of a Small Business Advisory Council (SBAC). o Members of this Advisory Council will be appointed by and report to the & Council (or Ma or the permanent Economic Development Think v Tank committee) for a specified period/term. o The SBAC will be charged with providing input on all proposed legislative actions, Town process revisions and/or rule changes which would impact the local business community. o The SBAC will participate in the Town's Business Retention & Expansion program efforts; assist in meeting with other businesses p and assessing potential assistance needed by the local business community. o The SBAC would serve as the interface with Oro Valley businesses and the proposed Tucson Regional Economic Opportunities (TREO) Small Business Council. o The SBAC woulda part become of the Northern Pima County Chamber of Commerce's activities in engaging local small businesses. III. Expansion of the Ombudsman efforts. o Currently the Economic Development Division acts as the Ombudsman t y for all inquiries from members of the business community concerning issues related to interactions with the Town. p o There is a need to expand this effort based with an emphasis on assisting small business owners/operators in the development of permits applicationsfor building and/or tenant improvement permits and the associated review and approval process. o The position Ombudsman would be the liaison between Development Services and the business community. position• This would remain reporting to the Economic Development Division to ensure positive outreach efforts and coordination with other entities. p o The Ombudsman expanded position would include that of Liaison to the Small Business Advisory Council. IV. Annexation action of specific properties. The Think Tank members support the following annexation targets: e A. The Westward Look Resort property. This worldwide recognized property a would be "plum"for Oro Valley. Revenue sharing, if considered, must be mutually beneficial. B. The OMNI Tucson Resort. This worldwide recognized property would be a "plum"for Oro Valley. Revenue sharing, if considered, must be mutually beneficial. C. The Foothills Mall Retail Center. This established retail center, when annexed into theprovide Town would a large source of new revenues and further add to the local economic diversification efforts the Town has initiated. D. Preparation and consideration to annex the State Lands located due � north and west of Sun City. p V. Continued Use and Expansion of existing Incentive Policy. o Continue the use of incentives. performance• Incentives must be linked to clauses and clawbacks. that assist existingbusinesses with retention and o Focus on incentives businesses which create high payingjobs, expansion, new and existing and the continued promotion of resort development. o Reta e l sales tax sharingshould continue on a limited basis. o Independently prepared economic analyses must indicate clearly that revenue sharing between the Town and any recipient of any form of incentives is justified. o New retail developments should focus on high quality retail stores. g o Revenue sharing agreements would apply to qualifying expenditures made by the developer physical evelo r for h sical infrastructure expenditures; i.e. road improvements, trail accesses, etc. o o Additional forms of incentivization for consideration could be: 1. Reduction of impact fees, permit fees and/or connection fees; p Z. Extension oft the Project Team approach that has been used for larger developments for ALL commercial projects. g payments Y Hold all a ments until a specific level of performance has been attained. Please refer to the attached Incentives Table wherein potential applications of some of the non-revenueencouragements could be applied. The table indicates by category(s) for each of the eight (8) proposed new CEDS attraction emphasis groups. VI. Revisions to existing Community Economic Development Strategy. o The consensus of the members was the recognition that the existing CEDS attraction emphases clearly expressed the desires of the community in 1996/97. o The members have recommended separating future new business attraction efforts into two categories. I. Economic Development— Income Generation. o category This cate o focuses on Income Generation opportunities which provide and produce sales tax revenues and/or high paying employment opportunities for the residents of the Town. o There are both direct revenue sources and secondary revenue sources. II. Quality of Life & Services. o category This cate o focuses on providing a direct Quality of Life benefit to the residents of the Town. Possibly also provide Income Generation but the emphasis o Pos y ma y within this category is a continuation of the quality of living desired by the existing residents of Oro Valley. The new business attraction efforts that should replace the existing CEDS are: 1. Resorts, Destination Spa's and Tourism related businesses. 2. High-tech manufacturing and Research & Development. q 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. Educational facilities (degreed programs and support efforts for 7. existing businesses). 8. Hotels and Lodging facilities. attached CEDS Recruitment Emphasis Table indicates the above eight (8) The separated into the two primary categories of Economic attraction emphasis areas Income— Generation and Quality of Life & Services. VII. Recommendations on adoption tion and enactment of NEW revenue sources. o The attached City/Town Local Sales & Property Tax Rate Comparison indicates that the Town of Oro Valley has enacted fewer taxes than any of the surrounding Tucson regional jurisdictions. p o The attached Revenue Impact — Various Tax Considerations table indicates the dollar amounts that could be realized from each of thero osed new taxes at proscribed tax rates. p p y The Mayor and Council should adopt/enact following new taxes: 1. Approve a 4% Utility Sales Tax $ 1,572,000 2. Approve a 4%o/ Telecommunications Sales Tax $ 637,000 $ 212091000 3. Increase Bed Tax from 3% to 6% $ 475,000 Town raising members support the the Bed Tax Rate to the same level as that of the City of Tucson as well as the planned increase by Pima County. The members would encourage the Mayor and Council to identify the use of Y the Bed Tax forTourismDevelopment,Develo ment, Specific Program Uses (Naranja Town Site Program Cost Study) and Economic Development. 4. Initiate the creation of Franchise Agreements with Tucson Electric Power and Southwest Gas Corporation. 5. Project specific secondary property tax. The members support the initiation of a secondary property tax by the Mayor and Council for the bondingneeded for important community projects such as the Naranja Town Site. p 6. Development of an Economic Vitality Model. The members expressedPP support for the development of an economic sustainability model. VIII. Future Items for Consideration. o Housing affordability and availability. o Transportation system demands and opportunities. o Workforce development/education. o Diversification of the local economy. o Public Safety &Quality of Services. o Creation of a centralized Purchasing function for all Town Departments. Attachments: 1. Incentives Table. 2. CEDS Recruitment Emphasis Table. 3. City/Town Local Sales & Property Tax Rate Comparison Table. 4. Revenue Impact - Various Tax Considerations Table. • ATTACHMENT # 3 THINK TANK MEMBERS LISTING t O 0 a) ct _ , O — ._ O W 0 a) ai �V o�S >u 0 re .E 0 .T. >. a) 4 = — 0 a) tn -e., p.. a) to a) 5 ts 4., — .... o ea '.- ,3 o . c c a L p W Z 0 VV) O 0a) co fa a) E a = •S _ 0 12 Clic E i aC O o? S = V •— a) �—iti m � O L � V = 2 V •V C •N >. a) it O W a W Vf = ,0 0 L' L L V� V = cu :E5 OC a. 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E m n Ci MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS; CHUCK SWEET, TOWN MANA • FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR DATE: JUNE 21, 2005 SUBJECT: UPDATE/REVISED THINK TANK INTERIM REPORT. Attached is a copy of corrections made to the Think Tank Interim Report as a result of meeting with the Think Tank members on Saturday, June 18th. The changes add clarity and where applicable a prioritizing of itemized lists. The REVISED copy is a markup of the changes and the REDACTED copy is a finalized version with all deletions and corrections incorporated. Attachments: 1. Think Tank Interim Report-- REVISED. 2. Think Tank Interim Report— REDACTED. MEMORANDUM - REVISED TO: MAYOR AND COUNCIL MEM = RS _ FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR DATE: MAY 6, 2005 SUBJECT: THINK TANK INTERIM REPORT. Vision Byformallyengaging in economic development Oro Valley will demonstrate its commitment to the process in which the government engages to stimulate or maintain business activity and/or employment. The principal principle goal of economic development is to stimulate employment opportunities in sectors that improve the region or community using existing human, natural, and institutional p resources. Mission Statement The Mission of Oro Valley economic development initiatives & is to build n a stronger and more desirable Oro Valley by: 1. Creating a sustainable public income stream to support high quality public goods; 2. Supporting the development of business activities that are consistent with pp g Oro Valley's high quality living environment; 3. Encouraging the retention and expansion of existing businesses — especially export oriented businesses; 4. Making Oro Valley a branded destination for businesses seeking new locations and individuals seeking a place to visit or reside. 5. Creating export jobs that are commensurate with the education levels and P aspirations of Oro Valley residents. METHODOLOGY The Think Tank members utilized a process that included: o Education on the foundations and principles of Economic Development; o Free flowing discussions; o Focused areas and evaluations; o Presentations from outside sources/experts; and o Recommendations to Council achieved through Consensus. CHRONOLOGY Meetings were held on fsauf five (5) Saturdays ending on Nara 23 June 18, 2005. Most sessions were four (4) hours in duration. PARTICIPANTS Participants included members of the Think Tank, invited presenters, Council members, residents and staff. (Permanent members) Mr. Al Cook Citizen-At-Large &Arts Community Mr. Bob Schwarz SCORE representative Mr. Chet Oldakowski Stop Oro valley 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 E. D. person Mr. Rob LaMaster AZ Restaurant & Hospitality Association Mr. Paul Kappleman CEO, NW Hospital — Oro Valley (Invited Guests/Speakers) Dr. Lay Gibson Professor of Geography, U of A Mr. Ben Craney Bourn Partners/Retail Tenant Broker Mr. Jeff Jones Small Business Retail Owner Mr. Alex Jacome SAHBA Government Affairs Liaison Dr. Leo Shapiro Marketing & Market Research Mr. David Andrews Assistant Town Manager & Finance Director Mr. Doug McKee Resident (Council& staff participants) Ms. Helen Dankwerth Council member Ms. Canny Culver Council member Mr. Barry Gillaspie Vice Mayor Mr. Chuck Sweet Town Manager Ms. Karen Greenspoon Economic Development Specialist Ms. Danielle Tanner Administrative Assistant Mr. Jeffrey H. Weir Economic Development Administrator Page 2 of 8 Considerations, Recommendations, and Suggestions. I. Continuation, Composition & Expansion of the Economic Development Think Tank. II. Creation of a Small Business Advisory Council. III. Expansion of the Ombudsman efforts. IV. Annexation action of specific properties. V. Continued Use and expansion of existing Incentive Policy. VI. Revisions to existing Community Economic Development Strategy. VII. Recommendations on adoption of NEW revenue sources. I. Continuation, Composition & Expansion of the Economic Development Think Tank. p o Continuation and expansion of the Think Tank comprised of the existing volunteers with appropriate staff support from the Economic Development Division. o Added members of non-represented businesses and community groups may include: Owner of a Small Retail Business, Real Estate professional, Aerospace Industry representative, and a Lawyer or Certified Public Accountant. o The Council may want to add additional members who represent other diverse areas of the Town. II. Creation of a Small Business Advisory Council (SBAC). o Establishment of a Small Business Advisory Council (SBAC). o Members of the SBAC would be appointed by and report to the Mayor &Council. (eis=the=permanent=Eeeneisnie o The SBAC will be charged with providing input on all proposed legislative actions, Town process revisions and/or rule changes which woukt might impact the local business community. o The SBAC will participate in the Town's Business Retention & Expansion program efforts; assist in meeting with other businesses and assesses potential assistance needed by the local business community. Page 3 of 8 o The SBAC would serve as the an interface with Oro Valley businesses and thero osed Tucson Regional Economic Opportunities (TREO) p p Small Business Council and the Northern Pima County Chamber of Commerce. - - --_- --.- . i - - - - - - -- is -- - - -- `-III. Expansion of the Ombudsman efforts. o Currentlythe Economic Development Division acts as the Ombudsman for all inquiries from members of the business community concerning issues related to interactions with the Town. o There is a need to expand this efforts baseekvoith=i3menvhasis=on to assists small business owners/operators in the development of applications for building permits and/or tenant improvement permits and the associated review and approval process. o The Ombudsman position would be the a liaison between the Town of Oro Valley Development=Setvices and the business community. o This=position The Ombudsman would remain reporting to the Economic Development Division to ensure positive outreach efforts and coordination with other entities. o The Ombudsman evaietdeel=position would ificlude=that=of serve as a Liaison to the Small Business Advisory Council. IV. Annexation action of specific properties. The Think Tank members support the following annexation targets: A. The Westward Look and OMNI Tucson Resort properties. This These worldwide recognized properties would be a"plums"for Oro Valley. Revenue sharing, if considered, must be mutually beneficial. B. Page 4 of 8 C The Foothills Mall Retail Center. This established retail center, when annexed into the Town, would provide a large source of new revenues and further add to the bec931 Town's economic diversification efforts the T...•..n_l.,,r :l:t:ited D. 11--- - _ = -_-_•-- The State Lands located due north and west of Sun City. V. Continued Use and Expansion of existing Incentive Policy. 1. Inde endentl prepared economic analyses must indicate clearly that p Y revenue sharing between the Town and any recipient of any form of incentives is justified. 2. Gantivtie=tiste Use of incentives Ineentive5 must be linked to performance clauses and clawbacks. 3. Focus on incentives that assist existing businesses with retention and expansion, new and existing businesses which create high paying jobs, and the continued promotion of resort development. 4. Revenue sharing agreements would apply to qualifying expenditures made by the developer for physical infrastructure expenditures; i.e. road improvements, trail accesses, etc. 5. New retail developments should focus on high quality retail stores. 6. Additional forms of incentivization for consideration could be: 1. Reduction of impact fees, permit fees and/or connection fees; 2. Extension of the Project Team approach that has been used for larger developments for ALL commercial projects. 3. Hold all payments until a specific level of performance has been attained. 4. Retail sales tax sharing should continue on a limited basis. ittifeetion=envhasi,y.gfoup Page 5 of 8 VI. Revisions to existing Community Economic Development Strategy (CEDS). o While the consensus of the members was the recognition that the existing CEDS attraction emphases clearly expressed the desires of the community in 1996/97 this is no longer true and needs to be reassessed. The new business attraction efforts that should replace the existing CEDS are: 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. o The members have recommended separating future new business attraction efforts into two categories. A. Economic Development—Income Generation. o This category focuses on Income Generation opportunities which provide and produce sales tax revenues and/or high paying employment opportunities for the residents of the Town. o There are both direct revenue sources and secondary revenue sources. B. Quality of Life &Services. o This category focuses on providing a direct Quality of Life benefit to the residents of the Town. o Possibly may also provide Income Generation but the emphasis within this category is a continuation of the quality of living desired by the existing residents of Oro Valley. Page 6 of 8 - - - . - - .�-a►�_w .�.a....wrr• •a.�•�.r• •.._.- a-tea�_•�•• I • • I I Devolopment=inconurraeneratioivan‘QuIditspoftife4ESetwice& VII. Recommendations on adoption and enactment of NEW revenue sources. o—The=ettaehed=eityPown=local=Saieveplareperty=TRate The Mayor and Council should adopt/enact the following new taxes: 1. Approve a 4% Utility Sales Tax $ 1,572,000 2. Approve a 4% Telecommunications Sales Tax $ 637,000 $ 2,209,000 3. Increase Bed Tax from 3% to 6% $ 475,000 members support the Town raising the Bed Tax Rate to the same level The pp . as that of the Cityof Tucson as well as the planned increase by Pima County. The members would encourage the Mayor and Council to identify the use of the Bed Tax for Tourism Development, Specific Program Uses (Naranja Town Site Program Cost Study) and Economic Development. 4. Initiate the creation of Franchise Agreements with Tucson Electric Power and Southwest Gas Corporation. 5. Project specific secondary property tax. The members support the initiation of a secondary property tax, subject to, voter approval, by the Mayor and Council for the bonding needed for pp important community projects such as the Naranja Town Site. 6. Development of an Economic Vitality Model. The members expressed support for the development of an economic sustainability model. Page 7of8 VIII. Future Items for Consideration. 1. Diversification of the local economy. 2. Transportation system demands and opportunities. 3. Public Safety. 4. Quality of Services. 5. Workforce development/education. 6. Creation of a centralized Purchasing function for all Town Departments. 7. Housing affordability and availability. Gomparisow9Fabi,w Table. Page 8 of 8 MEMORANDUM - REDACTED TO: MAYOR AND COUNCIL MEMS FROM: JEFFREY H. WEIR, CED ECONOMIC DEVELOPMENT ADMINISTRATOR DATE: MAY 6, 2005 SUBJECT: THINK TANK INTERIM REPORT. Vision By formally engaging in economic development Oro Valley will demonstrate its commitment to the process in which the government engages to stimulate or maintain business activity and/or employment. The principle goal of economic development is to stimulate employment opportunities in sectors that improve the region or community using existing human, natural, and institutional resources. Mission Statement The Mission of Oro Valley economic development is to build a stronger and more desirable Oro Valley by: 1. Creating a sustainable public income stream to support high quality public goods; 2. Supporting the development of business activities that are consistent with Oro Valley's high quality living environment; 3. Encouraging the retention and expansion of existing businesses — especially export oriented businesses; 4. Making Oro Valley a branded destination for businesses seeking new locations and individuals seeking a place to visit or reside. 5. Creating export jobs that are commensurate with the education levels and aspirations of Oro Valley residents. METHODOLOGY The Think Tank members utilized a process that included: o Education on the foundations and principles of Economic Development; o Free flowing discussions; o Focused areas and evaluations; o Presentations from outside sources/experts; and o Recommendations to Council achieved through Consensus. CHRONOLOGY Meetings were held on five (5) Saturdays ending on June 18, 2005. Most sessions were four (4) hours in duration. PARTICIPANTS Participants included members of the Think Tank, invited presenters, Council members, residents and staff. (Permanent members) Mr. Al Cook Citizen-At-Large &Arts Community Mr. Bob Schwarz SCORE representative Mr. Chet Oldakowski Stop Oro valley 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 E. D. person Mr. Rob LaMaster AZ Restaurant& Hospitality Association Mr. Paul Kappleman CEO, NW Hospital — Oro Valley (Invited Guests/Speakers) Dr. Lay Gibson Professor of Geography, U of A Mr. Ben Craney Bourn Partners/Retail Tenant Broker Mr. Jeff Jones Small Business Retail Owner Mr. Alex Jacome SAH BA Government Affairs Liaison Dr. Leo Shapiro Marketing & Market Research Mr. David Andrews Assistant Town Manager & Finance Director Mr. Doug McKee Resident (Council& staff participants) Ms. Helen Dankwerth Council member Ms. Conny Culver Council member Mr. Barry Gillaspie Vice Mayor Mr. Chuck Sweet Town Manager Ms. Karen Greenspoon Economic Development Specialist Ms. Danielle Tanner Administrative Assistant Mr. Jeffrey H. Weir Economic Development Administrator Page 2 of 7 Considerations, Recommendations, and Suggestions. I. Cont , Composition Com osition & Expansion of the Economic Development Think Tank. II. Creation of a Small Business Advisory Council. III. Expansion of the Ombudsman efforts. IV. Annexation action of specific properties. V. Cot expansion Continued Use and of existing Incentive Policy. VI. Revisions to existing Community Economic Development Strategy. VII. Recommendations on adoption of NEW revenue sources. I. C . Composition Com osition & Expansion of the Economic Development Think Tank. o Continuation and expansion of the Think Tank comprised of the existing volunteers with appropriate ro riate staff support from the Economic Development Division. o Added members of non-represented businesses and community groups may include: Owner of a Small Retail Business, Real Estate professional, Aerospace Industryrepresentative, and a Lawyer or Certified Public p Accountant. o The Council maywant to add members who represent diverse areas of the Town. II. Creation of a Small Business Advisory Council (SBAC). o Establishment of a Small Business Advisory Council (SBAC). o Members of the SBAC would be appointed by and report to the Mayor & Council. o The SBAC will be charged with providing input on proposed legislative actions, TownP rocess revisions and/or rule changes which might impact the local business community. o The SBAC will participate in the Town's Business Retention & Expansion program efforts; assist in meeting with other businesses P and assess potential assistance needed by the local business community. Page 3 of 7 o The SBAC would serve as an interface with Oro Valley businesses and the proposed Tucson Regional Economic Opportunities (TREO) Small Business Council and the Northern Pima County Chamber of Commerce. III. Expansion of the Ombudsman efforts. o Currently the Economic Development Division acts as the Ombudsman for all inquiries from members of the business community concerning issues related to interactions with the Town. o There is a need to expand efforts to assist small business owners/operators in the development of applications for building permits and/or tenant improvement permits and the associated review and approval process. o The Ombudsman would be a liaison between the Town of Oro Valley and the business community. o The Ombudsman would report to the Economic Development Division to ensure positive outreach efforts and coordination with other entities. o The Ombudsman would serve as a Liaison to the Small Business Advisory Council. IV. Annexation action of specific properties. The Think Tank members support the following annexation targets: A. The Westward Look and OMNI Tucson Resort properties. These worldwide recognized properties would be"plums"for Oro Valley. Revenue sharing, if considered, must be mutually beneficial. B. The Foothills Mall Retail Center. This established retail center, when annexed into the Town, would provide a large source of new revenues and further add to the Town's economic diversification efforts. C. The State Lands located due north and west of Sun City. Page 4 of 7 V. Continued Use and Expansion of existing Incentive Policy. 1. Independently prepared economic analyses must indicate clearly that revenue sharing between the Town and any recipient of any form of incentives is justified. 2. Use of incentives must be linked to performance clauses and clawbacks. 3. Focus on incentives that assist existing businesses with retention and expansion, new and existing businesses which create high paying jobs, and the continued promotion of resort development. 4. Revenue sharing agreements would apply to qualifying expenditures made by the developer for physical infrastructure expenditures; i.e. road improvements, trail accesses, etc. 5. New retail developments should focus on high quality retail stores. 6. Additional forms of incentivization for consideration could be: 1. Reduction of impact fees, permit fees and/or connection fees; 2. Extension of the Project Team approach that has been used for larger developments for ALL commercial projects. 3. Hold all payments until a specific level of performance has been attained. 4. Retail sales tax sharing should continue on a limited basis. VI. Revisions to existing Community Economic Development Strategy (CEDS). o While the consensus of the members was the recognition that the existing CEDS attraction emphases clearly expressed the desires of the community in 1996/97 this is no longer true and needs to be reassessed. The new business attraction efforts that should replace the existing CEDS are: 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. Page 5 of 7 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. o The members have recommended separating future new business attraction efforts into two categories. A. Economic Development— Income Generation. o This category focuses on Income Generation opportunities which provide and produce sales tax revenues and/or high paying employment opportunities for the residents of the Town. o There are both direct revenue sources and secondary revenue sources. B. Quality of Life &Services. o This category focuses on providing a direct Quality of Life benefit to the residents of the Town. o Possibly may also provide Income Generation but the emphasis within this category is a continuation of the quality of living desired by the existing residents of Oro Valley. VII. Recommendations on adoption and enactment of NEW revenue sources. The Mayor and Council should adopt/enact the following new taxes: 1. Approve a 4% Utility Sales Tax $ 1,572,000 2. Approve a 4% Telecommunications Sales Tax $ 637,000 $ 2,209,000 3. Increase Bed Tax from 3% to 6% $ 475,000 The members support the Town raising the Bed Tax Rate to the same level as that of the City of Tucson as well as the planned increase by Pima County. Page 6 of 7 The members would encourage the Mayor and Council to identify the use of the Bed Tax for Tourism Development, Specific Program Uses (Naranja Town Site Program Cost Study) and Economic Development. 4. Initiate the creation of Franchise Agreements with Tucson Electric Power and Southwest Gas Corporation. 5. Project specific secondary property tax. The members support the initiation of a secondary property tax, subject to voter approval, by the Mayor and Council for the bonding needed for important community projects such as the Naranja Town Site. 6. Development of an Economic Vitality Model. The members expressed support for the development of an economic sustainability model. VIII. Future Items for Consideration. 1. Diversification of the local economy. 2. Transportation system demands and opportunities. 3. Public Safety. 4. Quality of Services. 5. Workforce development/education. 6. Creation of a centralized Purchasing function for all Town Departments. 7. Housing affordability and availability. Page 7of7 MEMORANDUM - REDACTED TO: MAYOR AND COUNCIL MEMBfiRS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR DATE: MAY 6, 2005 SUBJECT: THINK TANK INTERIM REPORT. Vision By formally engaging in economic development Oro Valley will demonstrate its commitment to the process in which the government engages to stimulate or maintain business activity and/or employment. The principle goal of economic development is to stimulate employment opportunities in sectors that improve the region or community using existing human, natural, and institutional resources. Mission Statement The Mission of Oro Valley economic development is to build a stronger and more desirable Oro Valley by: 1. Creating a sustainable public income stream to support high quality public goods; 2. Supporting the development of business activities that are consistent with Oro Valley's high quality living environment; 3. Encouraging the retention and expansion of existing businesses — especially export oriented businesses; 4. Making Oro Valley a branded destination for businesses seeking new locations and individuals seeking a place to visit or reside. 5. Creating export jobs that are commensurate with the education levels and aspirations of Oro Valley residents. METHODOLOGY The Think Tank members utilized a process that included: o Education on the foundations and principles of Economic Development; o Free flowing discussions; o Focused areas and evaluations; o Presentations from outside sources/experts; and o Recommendations to Council achieved through Consensus. CHRONOLOGY Meetings were held on five (5) Saturdays ending on June 18, 2005. Most sessions were four (4) hours in duration. PARTICIPANTS Participants included members of the Think Tank, invited presenters, Council members, residents and staff. f Permanent members) Mr. AI Cook Citizen-At-Large &Arts Community Mr. Bob Schwarz SCORE representative Mr. Chet Oldakowski Stop Oro valley 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 E. D. person Mr. Rob LaMaster AZ Restaurant & Hospitality Association Mr. Paul Kappleman CEO, NW Hospital — Oro Valley (Invited Guests/Speakers) Dr. Lay Gibson Professor of Geography, U of A Mr. Ben Craney Bourn Partners/Retail Tenant Broker Mr. Jeff Jones Small Business Retail Owner Mr. Alex Jacome SAHBA Government Affairs Liaison Dr. Leo Shapiro Marketing & Market Research Mr. David Andrews Assistant Town Manager& Finance Director Mr. Doug McKee Resident (Council&staff participants) Ms. Helen Dankwerth Council member Ms. Conny Culver Council member Mr. Barry Gillaspie Vice Mayor Mr. Chuck Sweet Town Manager Ms. Karen Greenspoon Economic Development Specialist Ms. Danielle Tanner Administrative Assistant Mr. Jeffrey H. Weir Economic Development Administrator Page 2 of 7 Considerations, Recommendations, and Suggestions. I. Continuation, Composition & Expansion of the Economic Development Think Tank. II. Creation of a Small Business Advisory Council. III. Expansion of the Ombudsman efforts. IV. Annexation action of specific properties. V. Continued Use and expansion of existing Incentive Policy. VI. Revisions to existing Community Economic Development Strategy. VII. Recommendations on adoption of NEW revenue sources. I. Continuation, Composition & Expansion of the Economic Development Think Tank. o Continuation and expansion of the Think Tank comprised of the existing volunteers with appropriate staff support from the Economic Development Division. o Added members of non-represented businesses and community groups mayinclude: Owner of a Small Retail Business, Real Estate professional, . Aerospace Industry representative, and a Lawyer or Certified Public Accountant. o The Council may want to add members who represent diverse areas of the Town. II. Creation of a Small Business Advisory Council (SBAC). o Establishment of a Small Business Advisory Council (SBAC). o Members of the SBAC would be appointed by and report to the Mayor & Council. o The SBAC will be charged with providing input on proposed legislative actions, Town process revisions and/or rule changes which might impact the local business community. o The SBAC will participate in the Town's Business Retention & Expansion program efforts; assist in meeting with other businesses and assess potential assistance needed by the local business community. Page 3of7 o The SBAC would serve as an interface with Oro Valley businesses and the proposed Tucson Regional Economic Opportunities (TREO) Small Business Council and the Northern Pima County Chamber of Commerce. III. Expansion of the Ombudsman efforts. o Currently the Economic Development Division acts as the Ombudsman for all inquiries from members of the business community concerning issues related to interactions with the Town. o There is a need to expand efforts to assist small business owners/operators in the development of applications for building permits and/or tenant improvement permits and the associated review and approval process. o The Ombudsman would be a liaison between the Town of Oro Valley and the business community. o The Ombudsman would report to the Economic Development Division to ensure positive outreach efforts and coordination with other entities. o The Ombudsman would serve as a Liaison to the Small Business Advisory Council. IV. Annexation action of specific properties. The Think Tank members support the following annexation targets: A. The Westward Look and OMNI Tucson Resort properties. These worldwide recognized properties would be "plums"for Oro Valley. Revenue sharing, if considered, must be mutually beneficial. B. The Foothills Mall Retail Center. This established retail center, when annexed into the Town, would provide a large source of new revenues and further add to the Town's economic diversification efforts. C. The State Lands located due north and west of Sun City. Page 4 of 7 V. Continued Use and Expansion of existing Incentive Policy. 1. Independently prepared economic analyses must indicate clearly that revenue sharing between the Town and any recipient of any form of incentives is justified. 2. Use of incentives must be linked to performance clauses and clawbacks. 3. Focus on incentives that assist existing businesses with retention and expansion, new and existing businesses which create high paying jobs, and the continued promotion of resort development. 4. Revenue sharing agreements would apply to qualifying expenditures made by the developer for physical infrastructure expenditures; i.e. road improvements, trail accesses, etc. 5. New retail developments should focus on high quality retail stores. 6. Additional forms of incentivization for consideration could be: 1. Reduction of impact fees, permit fees and/or connection fees; 2. Extension of the Project Team approach that has been used for larger developments for ALL commercial projects. 3. Hold all payments until a specific level of performance has been attained. 4. Retail sales tax sharing should continue on a limited basis. VI. Revisions to existing Community Economic Development Strategy (CEDS). o While the consensus of the members was the recognition that the existing CEDS attraction emphases clearly expressed the desires of the community in 1996/97 this is no longer true and needs to be reassessed. The new business attraction efforts that should replace the existing CEDS are: 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. Page 5of7 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. o The members have recommended separating future new business attraction efforts into two categories. A. Economic Development—Income Generation. o This category focuses on Income Generation opportunities which provide and produce sales tax revenues and/or high paying employment opportunities for the residents of the Town. o There are both direct revenue sources and secondary revenue sources. B. Quality of Life &Services. o This category focuses on providing a direct Quality of Life benefit to the residents of the Town. o Possibly may also provide Income Generation but the emphasis within this category is a continuation of the quality of living desired by the existing residents of Oro Valley. VII. Recommendations on adoption and enactment of NEW revenue sources. The Mayor and Council should adopt/enact the following new taxes: 1. Approve a 40/0 Utility Sales Tax $ 1,572,000 2. Approve a 4% Telecommunications Sales Tax $ 637,000 $ 2,209,000 3. Increase Bed Tax from 30/0 to 6% $ 475,000 The members support the Town raising the Bed Tax Rate to the same level as that of the City of Tucson as well as the planned increase by Pima County. Page 6 of 7 The members would encourage the Mayor and Council to identify the use of the Bed Tax for Tourism Development, Specific Program Uses (Naranja Town Site Program Cost Study) and Economic Development. 4. Initiate the creation of Franchise Agreements with Tucson Electric Power and Southwest Gas Corporation. 5. Project specific secondary property tax. The members support the initiation of a secondary property tax, subject to voter approval, by the Mayor and Council for the bonding needed for important community projects such as the Naranja Town Site. 6. Development of an Economic Vitality Model. The members expressed support for the development of an economic sustainability model. VIII. Future Items for Consideration. 1. Diversification of the local economy. 2. Transportation system demands and opportunities. 3. Public Safety. 4. Quality of Services. 5. Workforce development/education. 6. Creation of a centralized Purchasing function for all Town Departments. 7. Housing affordability and availability. Page 7 of 7