HomeMy WebLinkAboutPackets - Council Packets (1096) AGENDA
ORO VALLEY TOWN COUNCIL
STUDY SESSION
OCTOBER 27, 2004
ORO VALLEY COUNCIL CHAMBERS
N
11,000 N. LA CANADA DRIVE
STUDY SESSION: AT OR AFTER 4:30 PM
CALL TO ORDER
ROLL CALL
1. DISCUSSION REGARDING THE POSSIBLE CREATION OF AN
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
2. DIRECTION REGARDING REVISIONS OF THE COMMUNITY
ECONOMIC DEVELOPMENT STRATEGY (CEDS) AND ECONOMIC
DEVELOPMENT GUIDELINES
•
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's Office at 229-4700.
POSTED: 10/22/04
4:30 p.m.
rg
1
TOWN OF ORO VALLEY
STUDY SESSION
COUNCIL COMMUNICATION MEETING DATE: OCTOBER 27, 2004
TO: HONORABLE MAYOR & COUNCIL
VIA: CHUCK SWEET, TOWN MANAGER
FROM: JEFFREY H. WEIR, CEcD
ECONOMIC DEVELOPMENT ADMINISTRATOR
SUBJECT: APPOINTMENT OF AN ECONOMIC DEVELOPMENT ADVISORY COMMITTEE.
BACKGROUND:
The Mayor & Council met on Monday September 27, 2004 and directed that a Study
Session meeting be set before the end of October 2004 to discuss the creation of an
Economic Development Advisory Committee. The meeting this date is to discuss and
receive direction from the Mayor and Council as to the next step(s) in the process of
establishing this committee.
r r 1
f i\I I
i i r c
i
Jeffrey H. Weir, CEcD
Economic Development Administrator
/ / ,
L e /01.-
Chuck Sweet
Town Manager
2
TOWN OF ORO VALLEY
STUDY SESSION
COUNCIL COMMUNICATION MEETING DATE: OCTOBER 27, 2004
TO: HONORABLE MAYOR & COUNCIL
VIA: CHUCK SWEET, TOWN MANAGER
FROM: JEFFREY H. WEIR, CEcD
ECONOMIC DEVELOPMENT ADMINISTRATOR
SUBJECT: DIRECTION REGARDING REVISIONS OF THE COMMUNITY ECONOMIC
DEVELOPMENT STRATEGY (CEDS) & GUIDELINES.
BACKGROUND:
The Mayor & Council met on Monday September 27, 2004 and directed that a Study
Session meeting be set before the end of October 2004 to discuss revisions to the
existing Community Economic Development Strategy (CEDS). The meeting this date is to
discuss and receive direction from the Mayor and Council as to the next step(s) in the
process of revising the existing CEDS.
PROPOSED PROCESS.
I propose that the process utilize input from a Task Force comprised of representatives
from the business community, Mayor and Council, Citizen Review Boards and
Commissions, local citizenry, MTCVB, and technically oriented/qualified individuals (full
list shown later). The Task Force will receive input from sources related to many areas of
interest and be provided needed information, will participate in public presentations that
are designed to be interactive with attendees, will meet once each month for six (6)
months, and will prepare for Council approval a Town of Oro Valley Economic Strategy
policy document.
The Task Force will begin meeting the later part of November 2004 depending on Council
approval. The review and recommendation process will include public meetings receiving
input from private citizens, local businesses and regional entities. The Task Force will
establish meeting dates for a Study Session to receive input from the Planning &Zoning
Commission. At least one Study Session will be held at the three month point to review
with the Council progress to date and receive input from the Council at that time. The
Task Force will bring forward for the Council's consideration a proposed CEDS no later
than seven (7) months from the date of initiation.
TOWN OF ORO VALLEY
STUDY SESSION
COUNCIL COMMUNICATION PAGE 2 OF 2
TASK FORCE MEMBERS.
Given the nature of the task at hand, identifying and creating an Economic Strategy for
the Town of Oro Valley, it is important that the members of the Task Force be
representative of the composition of the Town. The attached listing indicates names by
area of interest for the Council's consideration and approval (see attachment).
STAFF SUPPORT.
1. Economic Dev. Admin
2. Economic Development Specialist
3. Public Works Director
4. Community Development Director
5. Finance Director
POTENTIAL OUTSIDE PARTICIPATION. (Not in order of importance or sequence).
1. Economic Forecasting (U of A and ADOC).
2. Re-Development Expert.
ATTACHMENTS:
1. Task Force Members Names for Council's review and appointment.
, ,, t / ,,,«,/, „._
i
Jeffrey H. Weir, CEcD
Economic Development Administrator
Olf/1 / A
i /=4
Chuck Sweet
Town Manager
n 'O
IQ l'a ma
. .a
XP g3 > co n -i 3 a 0 13 0 70 IA
3 CD 0 C m --i 9 s Cw n- 1 0 70 o coR° 0 m (1)
11) nVi
11- . o = (A n 3 o 7o n n �, 3
— as cr 0 0 0 0• cD
70 m m cn m 1.9 3 c = 3
n cD •CD � CD n �, CI ' �p to 3, c�, � M
in "It
N n to C ., 0
. 0 'a U rt 0.VI VI 7i
In g Dj (A 3 IA g ft <
p Mp ..tC = n/om�
t n r* < C C
C r
t
CD
..073 > v 70 r, 0 3 3 (D
O 0 = lc ... =
lu 00 W ( m 0 co
vi
'C rt 0 0 Vf rg C a) * 3
* < M 126 M
C 0 0 tD et Z. DI 0 =
§" u, -, -, A-
Cv U) 9v
D
=
n
0
co-.< -< "< "< "< "< g m g
-< -.< -< (0-‹ m m as m m 12 to In
ai m a in v, v) (A vi in a. vi
a
Z X. =
* Pr.
al
3 = C t° g'
M rn = u e O
n n 0 � 0- 0
cD
°—' `" m n co ( n 3 a - o D
n -I p -r -1 -I p 73 �° C �.
_.FDP a — n sv 3 , . < O o� , .
= D -t p n CO n -. r't
n tD O
0 0 GI io, m c i°
3 "5... * cD =
—
t — 0 n •
o
o
2
TOWN OF ORO VALLEY
STUDY SESSION
COUNCIL COMMUNICATION MEETING DATE: OCTOBER 27, 2004
TO: HONORABLE MAYOR & COUNCIL
VIA: CHUCK SWEET, TOWN MANAGER
FROM: JEFFREY H. WEIR, CEcD
ECONOMIC DEVELOPMENT ADMINISTRATOR
SUBJECT: DIRECTION REGARDING REVISIONS OF THE COMMUNITY ECONOMIC
DEVELOPMENT STRATEGY (CEDS) &GUIDELINES.
BACKGROUND:
The Mayor& Council met on Monday September 27, 2004 and directed that a Study
Session meeting be set before the end of October 2004 to discuss revisions to the
existing Community Economic Development Strategy (CEDS). The meeting this date is to
discuss and receive direction from the Mayor and Council as to the next step(s) in the
process of revising the existing CEDS.
PROPOSED PROCESS.
I propose that the process utilize input from a Task Force comprised of representatives
from the business community, Mayor and Council, Citizen Review Boards and
Commissions, local citizenry, MTCVB, and technically oriented/qualified individuals (full
list shown later). The Task Force will receive input from sources related to many areas of
interest and be provided needed information, will participate in public presentations that
are designed to be interactive with attendees, will meet once each month for six (6)
months, and will prepare for Council approval a Town of Oro Valley Economic Strategy
policy document.
The Task Force will begin meeting the later part of November 2004 depending on Council
approval. The review and recommendation process will include public meetings receiving
input from private citizens, local businesses and regional entities. The Task Force will
establish meeting dates for a Study Session to receive input from the Planning &Zoning
Commission. At least one Study Session will be held at the three month point to review
with the Council progress to date and receive input from the Council at that time. The
Task Force will bring forward for the Council's consideration a proposed CEDS no later
than seven (7) months from the date of initiation.
TOWN OF ORO VALLEY
STUDY SESSION
COUNCIL COMMUNICATION PAGE 2 OF 2
TASK FORCE MEMBERS.
Given the nature of the task at hand, identifying and creating an Economic Strategy for
the Town of Oro Valley, it is important that the members of the Task Force be
representative of the composition of the Town. The attached listing indicates names by
area of interest for the Council's consideration and approval (see attachment).
STAFF SUPPORT.
1. Economic Dev. Admin
2. Economic Development Specialist
3. Public Works Director
4. Community Development Director
5. Finance Director
POTENTIAL OUTSIDE PARTICIPATION. (Not in order of importance or sequence).
1. Economic Forecasting (U of A and ADOC).
2. Re-Development Expert.
ATTACHMENTS:
1. Task Force Members Names for Council's review and appointment.
_/ ,moi
Jeffrey H. Weir, CEcD
Economic Development Administrator
/
AP
Chuck Sweet
Town Manager
M+ la' l'+` I" to CO V al V1 1 W N E•+► v O
.p. $,..J N
w a 01 A -I 3 a 0 o al 70 1
ul
et 3 M c 0 0 0' e) 1 f13 * m a.
' - 0 et' I• to ' - w N t
g a: 0 w...-, AD, A """ m .9 C. cr 3 03 x, 7na, fl
coICI 7o m A 0 "'� rn rn 73 mm ,0 9 3 c
;I g
-t 1 3 ei
n m 13 .9 m et .41 14 -v I -- ,..: "0 u) a
ff. Z a 01 2
0 '0 g w i. 73 a
m et al � A � '� � � � 0 � et '„Z3
411 gi g 3 'Am 5 ci. < .... 0
.4. rat tD - rp 4 (1) no = til
o m n si < m m
m �.
o C.
0
13 .1 73 > 0 70 ii,73W o ca tD
c Q
o03 g o„c o X
5 0 x o ' a c 4 =
ut 0 ariGirt < <D
ga m 3 s = n Ifi,e fu 0)
i
c 0 rD , ca c� a
gIA Z (D M
pi a fil”
3 -9
n
0
3
.< -‹ ..< ..< SI
..< ..< .4 a< "4 m< g "< at lb M
a I a a " In Ul in (n a
Z.
z 3
* Ft"
m
ii. rn 8 -4
c ifi
3 IA o
!"1 0 0 a i 01 '9
cao„ = � rn g w 4= F > 0 'O o t
w I Z"... is
= A al � A di —in, 2 § � N A r�
Fir n it .2. Da 0 5' w ” o
-, ig A
� ° .0 a � 0
0 o G1 o c
o . . . * F 0
... 0 c
e.). ao 19
.0
09/27/04 Minutes,Town Council Special Session 4
Loomis asked about the timeliness of the information, frequency and selection of
Mayor pointed out that in the past the Town has tried multiple methods including
the items. He Town pagesin weeklynewspapers, promoting the webpage, e-mails, etc. He suggested
doing more work to decide on what message Council is trying to send.
MOTION: Mayor Loomis MOVED to continue this item to a future study session in
November or December. MOTION SECONDED by Council Member Parish.
DISCUSSION. Vice Mayor Abbott asked staff to see how much paper it would require
to do a consolidated list of minutes listing each council member's name and vote. This
would be inclusive. Based on that they could decide if it is too much information or not.
gg
Mayor Loomis suggested that Council provide their ideas to Bob Kovitz before it comes
y
back to a study session.
MOTION carried ? - 0.
Mayor Loomis turned the gavel over to Vice Mayor Abbott and left the meeting at 5:00
p.m.
3. APPOINTMENT OF AN ECONOMIC DEVELOPMENT ADVISORY
COMMITTEE AND DIRECTION REGARDING REVISIONS OF THE
COMMUNITY ECONOMIC DEVELOPMENT STRATEGIES (CEDS) AND
ECONOMIC DEVELOPMENT GUIDELINES
Economic Development Administrator Jeff Weir stated that the original Community
Economic Development Strategy (CEDS) and Economic Development Guidelines were
approved in 1997. He agreed that it was time to review and update the CEDS and he
asked for Council direction on how they would like to move forward.
Vice Mayor Abbott asked the Council for their thoughts on the suggested Task Force
Members, staff support and potential outside participation.
Council Member Dankwerth stated that she felt the Task Force was an unwieldy amount
ofeo le because she would like to include citizens at large as well. She suggested
P P
reducing the amount of people on the list to include one person from each category.
In answer to a question by Council Member Gillaspie, Mr. Weir stated that he is not sure
what the Council wants the Advisory Committee to do, but typically a committee is
assigned to a specific plan or project. He suggested that the focus should be on
modifying the existing Community Economic Development Strategy. But he asked for
yg
clear direction as to what the Council would like to do. He stated that his suggested list
was to a et representative from all areas, as well as giving Council a choice of whom
g
they would like to select.
09/27/04 Minutes,Town Council Special Session 5
Council Member Dankwerth stated that she was thinking of a group of people to do more
brainstormingrather than forming an Advisory Committee. She would like to see people
gettingtogether from different areas to talk loosely about what direction Oro Valley
might like to go into and also mention the contacts they might have nationwide and
internationally. Therefore, the thrust would be to have an investigative or a creative
committee at first who would have nothing to do with the implementation of strategy or
formulating a strategic plan. She thought this would precede any Advisory capacity or
development of the strategic plan for quite awhile. Representatives from key areas would put their heads together to perhaps come up with some ideas that we as a Town have not
thought of or perhaps point us in a new or more lucrative direction.
Council Member Carter asked that local retired citizens that have expertise in these areas
be included on the Committee.
In answer to a question by Council Member Gillaspie, Council Member Dankwerth
suggested including people representing SCORE. She felt that her initial purpose was to
gettank"a committee that would be a "think to brainstorm for about 4 to 6 months. Out of the direction of that Committee, we could then determine that which would be most
advantageous to the Town and then select an Advisory Committee to further investigate
what has been identified.
Council Member Culver agreed that our retirees are a great resource, and we should take
advantage of that, but she thought this item was to approve a revised Town of Oro Valley
Economic Strategy Policy Document. She pointed out that with the recent events in the
Town where people have been unhappy with some of the economic decisions that have
been made, this would be a great opportunity to have that issue addressed. She asked to
move forward on directing staff to begin investigating the formation of the Committee to
revise our Economic Strategy Documents. This could be done in concert with a
committee such as a committee suggested by Council Member Dankwerth. She stressed
the importance of getting the Advisory Committee moving to clearly address the
economic policies and guidelines.
Council Member Parish agreed with Council Member Culver in that it is imperative to
put together a Committee with the specific charge of updating the strategic plan for
Economic Development. He asked for ideas from staff as to who would be in tune from
the business community as well as private citizens who would also want to be involved in
this process. He stated that before we have a "think tank" about how to implement new
ideas, we have to know where we are going. It is important to get our strategy laid out.
That should be the focus of the committee.
MOTION: Council Member Culver MOVED to create an Oro Valley Economic
Development Advisory Committee made up of the following categories, beginning with
the list suggested by staff. The committee would revise our Economic Strategy Policy
Documents. She asked Mr. Weir to begin talking to the people on the suggested list to
see if they are available to participate and then Council would meet to nominate those
11 people to the Committee, including the 2 names submitted by Council Member Gillaspie
09/27/04 Minutes,Town Council Special Session 6
-Eric Shapiro and Chet Oldakowski. MOTION SECONDED by Council Member
Parish.
DISCUSSION: Vice Mayor Abbott clarified that the names would be submitted at a later
time and determined at a later meeting.
Council Member Culver clarified that her motion also includes directing the new
Economic Development Advisory Committee to revise the Community Economic
Development Strategy Policy (CEDS) and Economic Development Guidelines and
provide by-monthly status reports to Town Council and Final Report within seven (7)
months of the Committee's appointment.
Discussion followed regarding the best way to move forward and the pros and cons of
having a "think tank" vs. an advisory committee.
MOTION failed 3 — 3 with Vice Mayor Abbott, Council Member Carter and Council
Member Dankwerth opposed.
MOTION: Vice Mayor Abbott MOVED to continue this item to a study session to be
held no later than the end of October. Council Member Dankwerth SECONDED the
motion.
MOTION carried 4— 2 with Council Member Culver & Council Member Parish opposed.
1111
ADJOURNMENT
Vice Mayor Abbott MOVED to ADJOURN the special session at 5:35 p.m. MOTION
SECONDED by Council Member Gillaspie. MOTION carried 6 — 0.
Respectfully submitted,
c°,6-z4,-tb-
Kathryn E. Cuvelier, CMC
Town Clerk
I hereby certify that the foregoing minutes are a true and correct copy of the minutes
of the Special Session of the Town of Oro Valley Council of Oro Valley, Arizona held
on the 27th day of September 2004. 1 further certify that the meeting was duly called
and held and that a quorum was present.
Dated this '- 1"'-1- day of (�G 2004.
Kathryn E. Cuvelier, CMC
411 Town Clerk
Economic Development Study Session
Wednesday, October 27, 2004
"Think Tank" Steps
Meeting #1
1. Assemble Team-no more than 10-representatives of existing business,
industry, academia, government (?), citizens (staff?).
2. Use a facilitator.
3. Frame the task/issue: "Develop a vision-economic development for
Oro Valley."
4. Assign pre-work: (Give packet with instructions to team members)
A) List (5-10) key words, phrases (3" X 5" cards)which best
describe (your) ideas of a vision/mission-focusing on where we
want to be 5 years from now.
B) Vision: i.e. our future identity-what do we want to become/be
C) Mission: In what direction do we want to go? How will we
reach our objectives?
Example: Oro Valley to be perceived as a major center of bio-
tech or the arts.
5. Draft Preliminary vision/action statement. List key words/phrases at
meeting-tape to wall-OBSERVE-DISCUSS (expand upon)
(agree/disagree). Facilitator places in buckets. No idea is bad!
6. Have scribe record and distribute minutes to team members.
Meeting #2
1. Review minutes-draft vision statement-input/modifications
2. Draft a statement of finalized vision/mission:
A.) Where should we be in 5 years?
B.) What do we have to do to get there?
3. Key Values: What do we stand for (embrace) that will lead to the
desired future: (overall community, business community, government).
4. What action steps must be taken to get there (#3)-to implement
strategies.
5. "Brainstorming"-to arrive at above strategies-to achieve vision/mission.
A.) Prioritize strategies, tasks, rules thru random idea generation-
free give/take dialogue. No rights or wrongs, no bad ideas.
B.) 1) Using "post-its" with ideas, place on wall (create storyboard)
2) Build on others ideas/new thoughts/creativity
3) Facilitator may add to or expand ideas
EVERYONE PARTICIPATES!
4) No commentary on ides at this point-go 15-20 minutes till
"well runs dry." All ideas may be added to, expand upon
others
5) Combine into "Buckets" by facilitator"good-better-best"
Discuss/challenge/explain/comment
6) Rank/prioritize ideas by votes. Compile final list.
7) Compare results with existing material-add appropriate
ideas to compiled list.
8) Assign specific idea areas to committee members-
A.) How can specific information be obtained?
B.) What steps specific to said idea should be taken?
C.) How can staff/town resources best be utilized?
[Scribe-write up minutes-distribute]
Additional Notes:
After ranking ideas, place those not immediately addressed in
"parking lot"-do not discard anything!
Meeting #3
1. Review homework assignments (#8)
2. How do we measure objectives? How many of(specific) goals are
necessary to ensure success?
3. Discuss makeup of enlarged group-
What would (their) roles/tasks be?
How are they to interact with staff?
4. Develop broad statements of final strategy/vision.
Meeting #4
1. Consider competition-other towns, legislature, marketplace, economy.
2. Consolidate/review with additional members of committee, staff.
3. Discuss staff participation/specific roles/function.
Suggested Initial Core Member List
,(5 E t) -9r ,‘" ic
Y,, ,r-)
Ray Paolino-531-9818 ,� y '�
Chet Oblakowski-797-7161 � I 2754'‘.
Al Cook
Chamber
Ventana/Biomolecular
University of Arizona
Kit ReAfteRy-
Banking
Northwest Hospital
Investment Community
Chuck/Jeff
Bt Bond-Honey Pivirotto
3
TOWN OF ORO VALLEY
SPECIAL SESSION
COUNCIL COMMUNICATION MEETING DATE: SEPTEMBER 27, 2004
TO: HONORABLE MAYOR & COUNCIL
VIA: CHUCK SWEET, TOWN MANAGER
FROM: JEFFREY H. WEIR, CEcD
ECONOMIC DEVELOPMENT ADMINISTRATOR
SUBJECT: APPOINTMENT OF AN ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AND DIRECTION REGARDING REVISIONS OF THE COMMUNITY ECONOMIC
DEVELOPMENT STRATEGY (CEDS) AND ECONOMIC DEVELOPMENT
GUILDELINES.
BACKGROUND:
g
During the May 3, 2004
Budget Review of the Economic Development Division the Town Council
d i rested that the revision process ion for review and modification of the existing Community Economic
Development Strategy (CEDS) brought brou ht forward with a planned start in the September/October
time frame. This meeting will initiate that process.
PROPOSED PROCESS.
It is proposed that the process utilizeinput in ut from a Task Force comprised of representatives from the
business community, Mayor and Council, Citizen Review Boards and Commissions, local citizenry,
MTCVB, and technically oriented/qualified individuals (full list shown later). The Task Force will
• to manyareas of interest and be provided needed information, will
receive input from sources related
participate in public presentations that are designed to be interactive with attendees, will meet twice
months, and will prepare for Council approval a revised Town of Oro Valley
a month for six (6) p p
Economic Strategy policy document.
• - Task Force would begin meeting the later part of October 2004 depending
It is anticipated that the
e
on Council action. The review and recommendation process will include public meetings receiving
inputlocal businesses and from private citizens, regional entities. The Task Force will establish
meeting dates for a Study Session to receive input from the Planning & Zoning Commission. At least
held at the three month point to review with the Council progress to date
one Study Session will be
and receive input from the Council at that time. The Task Force will bring forward for the Council's
consideration a proposed CEDS no later than seven months from the date of initiation.
TOWN OF ORO VALLEY
SPECIAL SESSION
COUNCIL COMMUNICATION PAGE 2 OF 2
TASK FORCE MEMBERS.
Given the nature of the task at hand, identifying and creating an Economic Strategy for the Town of
Oro Valley, it is important that the members of the Task Force be representative of the composition
of the Town. The following listing is suggested:
1. Town Council Representative 2. P & Z Commission Representative
3. DRB Rep. 4. ADOC Representative
5. MTCVB Representative 6. Tucson ED Representative
7. Chamber of Commerce Rep. 8. Bio-Medical Business Representative
9. Aerospace Representative 10. Business Services Representative
11. Retailing Representative 12. Resort Representative
13. At-large Citizen 14. Medical Services Representative
STAFF SUPPORT.
1. Economic Dev. Adm. 2. Economic Development Specialist
3. Public Works Director 4. Community Development Director
5. Special Projects Coordinator 6. Finance Director
l� J
POTENTIAL OUTSIDE PARTICIPATION. (Not in order of importance or sequence).
1. Economic Forecasting (U of A and ADOC).
2. Re-Development Expert.
ATTACHMENTS:
1. CE DS Document
2. Incentive Policy Guidelines.
Suggested Motions:
1. I move to create a Oro Valley Economic Development Advisory Committee made
up of the following categories:
AND
appoint the following individuals to serve on the Town's Economic Development
Advisory Committee : •
2. I also move to direct the new Economic Development Advisory Committee to
revise the Community Economic Development Strategy policy (CEDS) and
Economic Development Guidelines and provide bi-monthly status reports to
Town Council and Final Report within seven (7) months of the Committee's
appointment.
)eft e '". We r, CEcD , -•`
Economic Development Admi istiator
Chuck Sweet
Town Manager
EXHIBIT A
TOWN OF ORO VALLEY
ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES
' guidelines that assist in the retention of targeted
GOAL: Toprovide the Town Council a set of .
G businesses to the Town of Oro Valley
businesses and the attraction of new or expanding targeted •
• the existing tax base and the creation of employment
resulting in the diversification of
opportunities.
consider usingsome form of incentives in order to
POLICIES: In certain cases the Town may ' es
s. These incentives will only be used when the Town satisfies
attract or retain targeted businesse existing business
new business or retention and/or expansion of ane g
itself that the addition of the for
positive effect on the Oro Valley economy. The need
would have a significant, sales tax
• economywhich minimizes dependence of residential
diversification of the local ' tin businesses
ispolicyplaces apriority emphasis on new and existing revenues a necessity. This be viewed as
tax revenues. As a guideline the following listing can
that generate significant sales Creation, and
• • 2. Retail, 3. Other Lodging, 4. High Tech Job
a prioritized preference: 1. Resorts,
5. Service Providers.
'sions shall be considered prior to offering incentives.
The following general prove
willif theyare actuallynecessary in order to affect the
1. Incentives only be offered
retention and/or expansion of an
existingbusiness or to attract a new business to the
Town. This would include:
• Oro Valleyhas determined that the retention of an
- A situation in which the Town of
existing business is desirable.
Oro Valleyis competing- A situation in which the Town of with other cities for the
expansion of an existing business
to the Town or where incentives are actually
•
a to affect the expansion of an existing business.
necessary p
incentivesneeded to induce a business to relocate or expand
- A situation wherein are inanother city.operation to the Town of Oro Valley from an existing site a o cy.
- A situation wherein incentives are needed to induce a business to locate their
operation to the Town of Oro Valley.
2. A high priority should be placed on the businesses "targeted" in the Community
Economic Development or the most recent update)Strategic (CEDS)Plan
positive economic impact on the community, i.e.; the
3. Theproject will have a substantial .
created bytheproject in the long-term will offset
number of fobs created or the sales tax
the short-term costs offered by incentives.
Additionally, the project will be of such size
or consequence to produce significant employment or sales in related sectors.
4. Incentives should not continue for more than a 10 year period.
5. An emphasis should be placed on firms that provide diversification (within targeted
industrial or commercial sectors)to the Town's economy.
6. 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.
7. 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%that the project could
reasonably expect to return in benefits within a ten year period.
8. Private dollars should be utilized whenever possible to up-front identified project costs
and then to be reimbursed by the Town to avoid straining the Town's operational or
bonding capacity and reduce the Town's front-end risks.
9. Incentives can be utilized for resort, retail, commercial and industrial projects Town-
wide.
10. In certain instances incentives may be offered in conjunction with annexation activities
which are viewed as important strategically. In the case of large-scale development
areas, incentives should be combined with a community facilities district, where feasible,
to offer maximum flexibility in attracting development.
11. 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.
12. Generally Retail projects which qualify should generate significant sales tax revenues
similar to projects normally identified at a community or regional shopping center level.
13. Specific performance criteria for each project will be established.
14. 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.
15. Final authority for any approval of the use of an incentive and/or inducement rests with
the Town Council.
16. Each action is separate and independent from all other actions associated with the
approval of the use of an incentive and/or inducement.
TOWN OF O
ORO VALLEY
LE Y
/9/,
Q'��r.mss•:� .�.iR �. _...
(-)
-4,
-=_
• •
_ v,7
- .�Zf -fir s'•.+-�T -� *.
•
c'-*-04ft ZeTt4i:k.'sk • • •
��Y�� `r '� �►•+ wM� NI+�-.�•. �. l..L •• • • ...1 ' fir"c
Wil•{`•-iJ.�_��'••--�,.�Z��'w:'►;s.����'r :l.__ _-.!t,._ ••fit•_--• ___.-..
4
4111 -
, I i
'"5241M1MW- 1
/ 1
OuND E
D 1\9
COMMUNITY ECONOMIC DEVELOPMENT
STRATEGY
TOWN OF ORO VALLEY
COMMUNITY ECONOMIC DEVELOPMENT
STRATEGY
• SEPTEMBER 1997
4111/ TOWN OF ORO VALLEY
TOWN COUNCIL
CHERYL SKALSKY
Mayor
PAUL PARISI
Vice-Mayor
BILL KAUTENBURGER
Councilmember
II FRANK BUTRICO
Councilmember
DICK JOHNSON
Councilmember
• Acknowledgements
persons following 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
0 Chuck Sweet, Town Manager
Norm Phillips, Economic Development Administrator
David Andrews, Finance Director
Don Chatfield, AICP, Planning & Zoning Director
Bryant Nodine, AICP, 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
411 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."
•
110
1
Background
During past ast Y ear there has been a concerted effort on the part of Town and
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
commercial and industrial lands are rapidly being developed. Also, the demand
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
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
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
the Town can make the best use of limited resources in providing a focused
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
is implemented." -
Important actions called for in the General Plan Element include:
• Appoint an Economic Development Task Force to work closely with the
PP
Economic Development Administrator (EDA) to develop a Strategic Plan.
• • Develop an economic development marketing plan.
2
• Coordinate closely with surrounding municipal 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.
• 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.
Oneur ose of an economic development strategy is to organize and implement
P P
these and other actions necessary to provide for an effective economic
development effort.
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.
4111 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.
n to
The first Task Force meetingwas held in October of that year. Care was take
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
plan g
the strategic 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
Th s 9
planned strategies and programs into an overall community economic
development strategy
velo ment for the Town of Oro Valley. The name of this plan is the
Community
Town of Oro ValleyEconomic Development Strategy (CEDS).
40
3
Purpose
•
The purposes of the Community Economic Development Strategy are as follows:
• Implement the Goals and Policies of the Economic Development Element
of the Town 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.
• 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.
• Attract new public and private resources to assist in carrying out the action
steps contained in the CEDS.
Action Steps
(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
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.
110
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
i
• (8) Streamline the development review process.
The EDA will l 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.
(9) Create and foster a positive image
positive image for the Town and use that image in marketing plans to
Create a 9
promote Oro Valleyin industries such as retail, manufacturing and tourism.
Specific action steps are:
• Complete an Identity/Image study for the community.
p
• Use the studyin developing marketing plans for retail, light industry and
hospitality and tourism industry attraction.
• k with the Town Council and other appropriate groups to develop and
Work
enhance a sense of community identity through landscape and design
themes/treatments at entryways to the Town or along major road corridors.
• Wo rk with the Town Council, Arts Board, Public Works Department and the
Arizona Department of Transportation (ADOT) to provide directional signage
to Oro Valley along the I-10 freeway and State Routes 77 and 89.
• Work to establish the Town Hall Complex and surrounding vicinity as the
"Town Center" of Oro Valleyand work to establish this site as the focus and
identify for the community.
• omote Oro Valleyprogressive, on the move, properly staffed and
Pr as
favorably disposed dis osed to accommodate the need of new retail, high tech industry
and resort and tourism developments.
• PortrayOro Valleyas a quality place to live, work, shop and recreate.
Demonstrateofficials commitment of Town to accommodate commercial
industrial developments, which contribute to the community's identity.
and p
• Reinforce the competitive strengths of Oro Valley as a place for business,
on
capitalizingthe unique recreational opportunities and desert and mountain
q
beauty, highly hi hl educated citizens, high median income and rapid growth.
(10) regionalorganizations Work with to improve the image of the Town in the
development community.
Work with regional organizations such as the Greater Tucson Economic Council
Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and the
(GTEC), p .
ValleyChamber of Commerce in developing the Town image. Work
Greater Oro
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,
40 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
c
A
o 9
(19) The
Town will target the following list of retail, tourism and industrial uses
for areas identified appropriate ro riate 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
111 • 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
g
The
Town will target the Greater Tucson Strategic Partnership for Economic
Developmentselected industries** as described in the Greater
Tucson Strategic Economic Development Plan, July 1996 (see Table 1).
* Well-desined 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"& E ui ment" has been not been included due to incompatibility with
the Town General Plan.
8
t
(20) appropriate agencies with a ro riate a encies 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
Localovernments in the Tucson regional area, individually or in association,
• 9 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
anders ective to bring together the different segments of the community.
P P
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
PY
a combination ofPhY sical, political and socio-economic factors which will
the direction of growth and development in the years to come. External
influence
and internal forces influencing growth in Arizona and the region will filter down to
Oro Valley, generating eneratin 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 11, a diversified industrialization process began to take
large place. This alongwith lar a 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
theg uidance of comprehensive planning, fueled primarily by speculative forces
ando ulation immigration. Planning the future economic and physical growth of
P P g
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
9
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
Y
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.
•
4110
10
APPENDIX
a
Economic Development Partners — Programs and Assistance
p
Success in
economic development is best achieved through cooperation with a
numberregional of local, and State agencies and groups. The following is a
p
discussion of
the most important of these organizations and what they provide in
the way programs of and assistance for economic development.
Arizona Department of Commerce (ADOC)
p
Economic
development was an elusive function in Arizona until recently. At the
initiative of a varietyof 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 publication n and 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 keyeconomic clusters upon which to build and expand
Arizona's future economy.
110 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
byASPED 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
P locate
firms that supply raw materials. These become magnets for companies to 0
PP Y
P
in an
area and create a spawning ground for start-up companies. Also, these
diverse pools of experienced workers; attract suppliers who tend to
create large,
congregate in their vicinityfor increased efficiency; and foster a competitive spirit
g
that stimulates growth and innovative strategic alliances.
410 The activities of GSPED will be of benefit to the economic growth of Oro Valley.
In particular,r, those related to the High Tech Industry, Optics, Tourism and
Experience, and Senior Living.
12
0
0 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
0 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 ActivityBonds can be issued for industrial, manufacturing facilities, and
equipment.ui ment. The Town of Oro Valley or the Pima County Industrial Development
Authorities can issue these bonds.
• Revolving Energy Loans
Under thisro ram, qualified Arizona companies can receive financial
P 9
assistance for long-term, fixed-asset plant expansions for the manufacture of
energy-conservingproducts 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 thisro ram, defense contractors can receive individual and corporate tax
P 9
credits for conversion of defense activities to commercial activities.
• Economic Strength Fund
This program approved by the Arizona State Legislature provides private non-
profit
PP
and/or local government financing for highway or road projects which retain
or significantly increase jobs in Arizona, or which lead to significant capital
9 Y
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
a,ramro part of ADOC Community Assistance Services, offers
P 9
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:
40 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 the.creation 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
410 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
40 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
f
4
0 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
410
18
A
TABLE 1
0
GTSPED TARGETED INDUSTRIES
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
s
110 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)
41111
110
20
3
TOWN OF ORO VALLEY
SPECIAL SESSION
COUNCIL COMMUNICATION MEETING DATE: SEPTEMBER 27, 2004
TO: HONORABLE MAYOR & COUNCIL
VIA: CHUCK SWEET, TOWN MANAGER
FROM: JEFFREY H. WEIR, CEcD
ECONOMIC DEVELOPMENT ADMINISTRATOR
SUBJECT:
APPOINTMENT OF AN ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AND DIRECTION REGARDING REVISIONS OF THE COMMUNITY ECONOMIC
DEVELOPMENT STRATEGY (CEDS) AND ECONOMIC DEVELOPMENT
GUILDELINES.
BACKGROUND:
g
During the May 3,
2004 Budget Review of the Economic Development Division the Town Council
h the revision process for review and modification of the existing Community Economic
directed that
Development Strategy (CEDS) be brou ht forward with a planned start in the September/October
9
time frame. This meeting will initiate that process.
PROPOSED PROCESS.
It is proposed that the process utilize input from a Task Force comprised of representatives from the
p
Mayor and Council, Citizen Review Boards and Commissions, local citizenry,
business community, ynry,.
ll oriented ualified individuals (full list shown later). The Task Force will
MTCVB, and technically /q
receive input from sources related toareas of interest and be provided needed information, will
many
' ' public presentations that are designed to be interactive with attendees, will meet twice
participate in
i (6) months and will re are for Council approval a revised Town of Oro Valley
a month for s x prepare
Economic Strategy policy document.
h Task Force would begin meeting the later part of October 2004 depending
It is anticipated that the
on Council action. The review and recommendation process will include public meetings receiving
input from private citizens,i local businesses and regional entities. The Task Force will establish
d Session to receive input from the Planning & Zoning Commission. At least
meeting dates for a Study P
one Study Session will l be held at the three month point to review with the Council progress to date
and receive input from the Council at that time. The Task Force will bring forward for the Council's
cons�de a proposed ro sed CEDS no later than seven months from the date of initiation.
TOWN OF ORO VALLEY
SPECIAL SESSION
COUNCIL COMMUNICATION PAGE 2 OF 2
TASK FORCE MEMBERS.
Given the nature of the task at hand, identifying and creating an Economic Strategy for the Town of
Oro Valley, it is important that the members of the Task Force be representative of the composition
of the Town. The following listing is suggested:
1. Town Council Representative 2. P & Z Commission Representative
3. DRB Rep. 4. ADOC Representative
5. MTCVB Representative 6. Tucson ED Representative
7. Chamber of Commerce Rep. 8. Bio-Medical Business Representative
9. Aerospace Representative 10. Business Services Representative
11. Retailing Representative 12. Resort Representative
13. At-large Citizen 14. Medical Services Representative
STAFF SUPPORT.
1. Economic Dev. Adm. 2. Economic Development Specialist
3. Public Works Director 4. Community Development Director
5. Special Projects Coordinator 6. Finance Director
POTENTIAL OUTSIDE PARTICIPATION. (Not in order of importance or sequence).
1. Economic Forecasting (U of A and ADOC).
2. Re-Development Expert.
ATTACHMENTS:
1. CE DS Document
2. Incentive Policy Guidelines.
Suggested Motions:
1. I move to create a Oro Valley Economic Development Advisory Committee made
up of the following categories:
AND
appoint the following individuals to serve on the Town's Economic Development
Advisory Committee : •
y
2. I also move to direct the new Economic Development Advisory Committee to
revise the Community Economic Development Strategy policy (CEDS) and
Economic Development Guidelines and provide bi-monthly status reports to
Town Council and Final Report within seven (7) months of the Committee's
appointment.
rl` r - J
)eff a CEcD -"''r►
Economic Development Administrator
I • -
Chuck Sweet
Town Manager
EXHIBIT A
TOWN OF ORO VALLEY
ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES
' guidelines that assist in the retention of targeted
GOAL: Toprovide the Town Council a set of •
G businesses to the Town of Oro Valley
businesses and the attraction of new or expanding targeted .
in the existingtax base and the creation of employment
resulting the diversification of
opportunities.
- consider usingsome form of incentives in order to
POLICIES: In certain cases the Town may
s. These incentives will only be used when the Town satisfies
attract or retain targeted businesse existingbusiness
itselfnew business or retention and/or expansion of an
that the addition of the e for
positive effect on the Oro Valley economy. The need
would have a significant, sales tax
local economywhich minimizes dependence of residential
diversification of the existingbusinesses
ispolicyplaces priority emphasis on new and
revenues a necessity. This a can be viewed as
tax revenues. As a guideline the following listing
that generate significant sales• Resorts, 2. Retail, 3. Other Lodging, 4. High Tech Job Creation and
a prioritized preference: 1.
5. Service Providers.
The following general provisions shall be considered prior to offering incentives.
if theyare actuallynecessary in order to affect the
1. Incentives will only be offered
retention and/or expansion of an existing business or to attract a new business to the
Town. This would include:
' Oro Valleyhas determined that the retention of an
- A situation in which the Town of
existing business is desirable.
Oro Valleyis competing- A situation in which the Town of with other cities for the
expansion of an existing businessincentives to the Town or where are actually
necessary to affect the expansion of an existing business.
• needed to induce a business to relocate or expand
- A situation wherein incentives are
tion to the Town of Oro Valley from an existing site in another city.
.
their opera
- A situation wherein incentives are needed to induce a business to locate their
operation to the Town of Oro Valley.
2. A high priority should be placed on the businesses "targeted" in the Community
• (CEDS)Plan(1997, or the most recent update)Develo ment Strategic
Economicp
willpositive economic impact on the community, i.e.; the
3. The project have a substantial .
jobs created the roject In the long-term will offset
number of created or the sales tax by p
nc
the short-term costs offered by incentives. Additionally, the project will be of such size
or consequence to produce significant employment or sales in related sectors.
4. Incentives should not continue for more than a 10 year period.
5. An emphasis should be placed on firms that provide diversification (within targeted
.- industrial or commercial sectors)to the Town's economy.
6. 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.
7. 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%that the project could
reasonably expect to return in benefits within a ten year period.
8. Private dollars should be utilized whenever possible to up-front identified project costs
and then to be reimbursed by the Town to avoid straining the Town's operational or
bonding capacity and reduce the Town's front-end risks.
9. Incentives can be utilized for resort, retail, commercial and industrial projects Town-
wide.
10. In certain instances incentives may be offered in conjunction with annexation activities
which are viewed as important strategically. In the case of large-scale development
areas, incentives should be combined with a community facilities district, where feasible,
to offer maximum flexibility in attracting development.
11. 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.
12. Generally Retail projects which qualify should generate significant sales tax revenues
similar to projects normally identified at a community or regional shopping center level.
13. Specific performance criteria for each project will be established.
14. 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.
15. Final authority for any approval of the use of an incentive and/or inducement rests with
the Town Council.
16. Each action is separate and independent from all other actions associated with the
approval of the use of an incentive and/or inducement.
TOWN OF ORO VALLEY
E
o
".?
• : .
. - • .. -
' .. .
-
..1,-t,„-:!ti!:4 ". • : -
: •
. .
O
- _
A,
. ,
L.)0Nur ED 1\ z)
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
110 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
PattyMorris 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, AICP, Planning & Zoning Director
Bryant Nodine, AICP, 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 past ast Y ear there has been a concerted effort on the part of Town and
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
commercial and industrial lands are rapidly being developed. Also, the demand
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.IA) in the
Economic Development Element of the Plan states:
"Economic Development touches everyone and everything within a community. Policies
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
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
the Town can make the best use of limited resources in providing a focused
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
is implemented." -
Important actions called for in the General Plan Element include:
• Appoint an Economic Development Task Force to work closely with the
PP
Economic Development Administrator (EDA) to develop a Strategic Plan.
410 • Develop an economic development marketing plan.
2
I
• rdinate closelywith surrounding municipal and regional as well as
Coordinate
Statewide organizations.
• to and maintain a computer database inventory of available land and
Develop P
buildings
• Develop a fiscal impact analysis before initiating an annexation.
P
• velo an Economic Development Impact Analysis to be incorporated into
De p
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.
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.
Economic4111 Development Task Force was appointed by the Town Council in
The P
August of 1996 to coordinate the completion and adoption of a strategic plan.
first Task Force meetingwas held in October of that year. Care was taken to
The P
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 monthlyfrom October of 1996 through August 1997. The
TownManager,
the Economic Development Administrator, the Finance Director
and theZoning
Planningand Director facilitated the meetings. In September
plan the strategic is document was completed and sent to the Town Council
for implementation.
Scope and Organization
This documentdesignedbring
is to together under one cover the existing and
plannedstrategiesprograms and into an overall community economic
development strategy
to ment for the Town of Oro Valley. The name of this plan is the
Town of Oro Valley Community Economic Development Strategy (CEDS).
110
3
• Purpose
The purposes of the Community Economic Development Strategy are as follows:
• Implement the Goals and Policies of the Economic Development Element
of the Town 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.
• 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.
• Attract new public and private resources to assist in carrying out the action
steps contained in the CEDS.
Action Steps
110
(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
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
(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.
i
5
4
• (8) Streamline the development review process.
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
developedexpeditepermit to the 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 a positive image for the Town and use that image in marketing plans to
promote
Oro Valleyin industries such as retail, manufacturing and tourism.
Specific action steps are:
• Complete an Identity/Image study for the community.
P .
study in developing marketing plans for retail, light industry and
• Use the s y P 9
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
9
to
Oro Valleyalong
the 1-10 freeway and State Routes 77 and 89.
• Wo rk to establish the Town Hall Complex and surrounding vicinity as the
Town
Center" of Oro Valleyand work to establish this site as the focus and
identify for the community.
• as Promote
Oro Valleyprogressive, on the move, properly staffed and
p
favorably
disposed to accommodate the need of new retail, high tech industry
and resort and tourism developments.
• PortrayValley Oro 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.
• Reinforcethe competitive strengths of Oro Valley as a place for business,
capitalizing oq
n the unique recreational opportunities and desert and mountain
beauty, highly hi hl educated citizens, high median income and rapid growth.
(10) Work regionalorganizations with to improve the image of the Town in the
development community.
Work with regional
i nal organizations such as the Greater Tucson Economic Council
(GTEC), Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and the
Greater Oro Valley
Chamber of Commerce in developing the Town image. Work
with such organizations to improve the image of the Town within the
g P
•
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
f
4
0 (19) The Town will target the following list of retail, tourism and industrial uses
for areas identified appropriate ro riate 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
40 • 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
Town will target the Greater Tucson Strategic Partnership for Economic
The g
Developmentselected industries** as described in the Greater
Tucson Strategic Economic Development Plan, July 1996 (see Table 1).
u 9
* Well-desined specialty retail developments (such as Saint Phillip's Plaza in
Tucson) are much-preferred over strip commercial projects.
* * A group ou of industries under the group heading "Fabricated Metals/Industrial
41110 Machinery Equipment"& E ui ment" has been not been included due to incompatibility with
the Town General Plan.
8
(20) appropriate Work with a ro riate 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
Local9 overnments 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
P
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
PY
a combination ofPhY sical, 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 eneratin 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
large place. This alongwith lar a 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
• the9 uidance of comprehensive planning, fueled primarily by speculative forces
andP o ulation immigration. Planning the future economic and physical growth of
P
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.
411,
10
APPENDIX
Economic Development Partners — Programs and Assistance
4111
P
Success
in economic development is best achieved through cooperation with a
numberregional of local, and State agencies and groups. The following is a
discussion of the most important of these organizations and what they provide in
the way programs of ro rams and assistance for economic development.
Arizona Department of Commerce (ADOC)
development was an elusive function in Arizona until recently. At the
Economicp .
initiative of a varietyof individuals and organizations, the State Legislature
enacted the Omnibus Economic Development Act in 1989, directing the
Department ment of Commerce to assess Arizona's business climate and draft the first
statewide strategic economic development plan. This effort culminated in the
publication n and 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 keyeconomic 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
ASPED,
As defined
byan economic cluster is a geographic concentration of
competitive firms in related industries that do business with each other. Clusters
companies include that sell inside and outside of the region as well as support
n
that supply raw materials. These become magnets for companies to locate
firms pp y
an area and create a spawning ground for start-up companies. Also, these
in P g diverseattract suppliers
large, pools of experienced workers; aracppliers who tend to
create . . . .
in their vicinityfor increased efficiency; and foster a competitive spirit
congregate
that stimulates growth and innovative strategic alliances.
1110 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
0
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 Legislature Le islature to help retain, expand, and relocate businesses to
110 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 ActivityBonds can be issued for industrial, manufacturing facilities, and
equipment.ui ment. The Town of Oro Valley or the Pima County Industrial Development
Authorities can issue these bonds.
• Revolving Energy Loans
Under thisro ram, qualified Arizona companies can receive financial
P 9
assistance for long-term, fixed-asset plant expansions for the manufacture of
energy-conservingproducts 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
million over five ears in manufacturing technology that produces goods
$20 Y
from recycled materials and renewable energy.
• • Defense Restructuring Assistance Program
Under thisro ram, defense contractors can receive individual and corporate tax
P 9
credits for conversion of defense activities to commercial activities.
• Economic Strength Fund
This program approved by the Arizona State Legislature provides private non-
profit
PP
and/or localgovernment financing for highway or road projects which retain
or significantly nificantl 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 (RED!) Program
This
a,ramro part of ADOC Community Assistance Services, offers
P 9
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 the creation 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
110 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
4
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
411
18
A
TABLE I
0
GTSPED TARGETED INDUSTRIES
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)
Software/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
s
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)
•
41110
20