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HomeMy WebLinkAboutPackets - Council Packets (2012)Stine, Michelle From: Standish, Michael Sent: Monday, November 24, 2025 9:59 AM To: Stine, Michelle Subject: FW: Rental Tax comments from David Blanchette of Oro Valley From: Greene, Harry <hgreene@orovalleyaz.gov> Sent: Friday, November 21, 2025 1:59 PM To: Standish, Michael <mstandish@orovalleyaz.gov> Subject: FW: Rental Tax comments from David Blanchette of Oro Valley From: David Blanchette Sent: Tuesday, September 30, 202511:45 AM To: Winfield, Joe <iwinfield@orovallevaz.gcv>; Barrett, Melanie <mbarrett@orovallevaz.gov>; Barrett, Melanie <mbarrett@orovallevaz.gov>; Greene, Harry <hgreene@orovallevaz.gov>; Jones -Ivey, Joyce< ioll nes- ivevgorovallevaz.gov>; Nicolson, Josh <inicolsontaorovallevaz Rov>; Murphy, Mary<mmurohv(alorovallevaz.gov>; Robb, Elizabeth <erobb(alomvallevazgov>; kristen0orovalleychambeccom Subject: Rental Tax comments from David Blanchette of Oro Valley c WARNING: External Sender. Read Carefully. Report ph ishing. Good morning, Oro Valley Council Members, My name is David Blanchette I am a homeowner in Oro Valley with my wife Erin for the last 5 years. We love living in Oro Valley, as do our daughter and her family, and we think Oro Valley is the greatest place to live. I am a Commercial Real Estate Agent with NAI Horizon of Tucson and have been an Agent for 20 years. I am a CCIM ( Certified Commercial Investment Member) for 16 years and have represented commercial Clients in Oro Valley. I support the comment below of my Colleague and fellow CCIM member, Batoun Herrington, CCIM, CPMS, President, Designated Broker Brant Real Estate Company, LLC, who also lives in Oro Valley. Please reconsider taxing Commercial and Multi -Family rentals and help our existing Companies and Landlords to invest in Oro Valley and grow our Commercia Tax base. A Rental Tax will be passed onto the consumer and will make Oro Valley a less attractive city to shop and live. "Asa stakeholder in the commercial real estate industry in the Tucson MSA, including the Town of Oro Valley, I strongly advise against the commercial rental tax. Tenants regularly pursue cost savings when deciding where to lease space and rental tax is a significant consideration. Many of my commercial real estate peers assert the Town should be avoided at all costs, considering the challenges to open new businesses. Respectfully, this wilt have the effect of steering commercial renters out of Oro Valley more than they already are by the perception of the Town being unfriendly to businesses. In response to the sentiment of following suit with fees implemented by neighboring municipalities, until such time as Oro Valley adopts similar pro -business regulatorypractices as its adjacent municipalities, i.e., Morons and Pima County, this will be a detriment to the TOV. While other cities have commercial rental tax, they do not have the high property tax valuations that the Assessor places on Oro Valley properties. The tenants are already laboring under massive property costs and to add even more costs will be a detriment to retaining businesses. It's difficult enough already. Case in point, a property at Oracle Road near Linda Vista Road, has Triple Net (NNN) Charges of $14.19/sq ft/yr (of which property taxes are the largest component at$7.43/sq ft/yr). NNN Charges for a similarproperty in a different market area would be below $10/sq f lyr. Understanding that the taxes exacted by the County are not related to the Town, but the fact of the matter is that the County is already wringing the tenants dry as it is. This constitutes another valid point- any taxes levied will be paid by the tenants, not the landlords. The costofdoingbusiness in Oro Valleyis alreadyhigher than just down the road on Oracle Road due to the higher property tax valuations. This could push businesses out of Oro Valley. Thank you foryour consideration." Thank you for this opportunity to have a voice in Oro Valley's growth and success Best regards, David J. Blanchette David Blanchette, CCIM Vice President david.blanchette(a?naihorizon.com NAI Horizon 2900 N Swan Road, Suite 200 Tucson, AZ 85712 USA naihorizon.com Cell +1 520 906 9446 Bloa I Twitter I vCard IYAlHorizon Stine, Michelle From: Standish, Michael Sent: Monday, November 24, 2025 9:59 AM To: - Stine, Michelle Subject: FW: Strong Opposition to Proposed Commercial Rental/Lease Tax & New Business Taxes From: Greene, Harry <hgreene@orovalleyaz.gov> Sent: Friday, November 21, 20251:59 PM To: Standish, Michael <mstandish@orovalleyaz.gov> Subject: FW: Strong Oppos ticn to Proposed Commercial Rental/Lease Tax & New Business Taxes From: Mark Beres - Sent: Monday, September 29, 202511:07 AM To: Winfield, Joe <iwinfield@orovallevazgov>; Barrett, Melanie <mbarrett@orovallevaz.zov>; Greene, Harry <hgreene@orovallevaz.eov>; Jones -Ivey, Joyce <iiones-ivey@orovallevaz gov>; Nicolson, Josh <inicolson@orovallevaz.eov>; Murphy. Mary <mmurohv@orovallevazgov>; Robb, Elizabeth <erobb@orovallevazgov> Subject: Strong Opposition to Proposed Commercial Rental/Lease Tax Be New Business Taxes IWARNING: External Sender. Read Careftdly. Report phishing. Dear Mayor Winfield, Vice -Mayor Barrett, and Councilmembers Greene, Jone-Ivey, Nicolson, Murphy and Robb, I write as a concerned local business owner to express my strong opposition to the proposed Commercial Rental/Lease tax (and the related "commercial use" tax) currently under consideration. I urge you to reject these measures — especially the lease tax — which will disproportionately harm small businesses, including restaurants that are already struggling to survive in today's economic climate. Below are my concerns, supported by real -world examples, and suggestions for alternatives. Why the Proposal Is Dangerous — Especially for Restaurants 1. Restaurant margins are razor thin Contrary to public perception, independent restaurants often operate with almost no margin. As the recent article "Inside the Fight to Keep Tucson Restaurants Alive in 2025" from Tucson Foodie makes clear: Owners point out that profit margins that once might have been 10 % are now as low as 0.05%. Rising labor costs (especially after recent minimum wage changes) and persistent food inflation have pushed many restaurants to the brink. When you add a new tax on top of lease payments, utilities, insurance, supply chain increases, and staffing costs, you push many operators past the point of sustainability. In short: "you can't squeeze something out of nothing". 2. This is "one more knife in the back" Restaurants and small businesses have absorbed numerous cost increases in the past few years: food costs, labor, utilities, insurance, licensing, supply chain disruptions, and more. Many have used creative cost cutting, deferred maintenance, or slimmed - down staffing just to stay afloat. Imposing a new lease tax is not just poor policy — it may very well be the final blow for some. 3. It drives businesses away or into bankruptcy A new tax on rent is essentially a tax on staying in Oro Valley. Landlords may pass it on to tenants, but tenants (especially small ones) have limited ability to absorb higher costs. Many will either (a) relocate out of Oro Valley, (b) reduce staff/services, or (c) close altogether. That outcome is directly counter to the stated goal of preserving a vibrant local economy. 4. Unintended effects magnify the damage Tenants might negotiate shorter -term leases, creating more turnover and instability in commercial corridors. Landlords may raise base rent to offset the tax, making the tax's impact invisible but felt in every lease renewal. Non —restaurant businesses (retail, service, office) will also feel the squeeze, reducing commercial occupancy and lowering overall town revenues in the long run. I respectfully request that you: • Drop or table the proposed Commercial Rental/Lease tax (and related new taxes) altogether. • If you decide to proceed, at minimum exclude or significantly reduce the burden on restaurants and small businesses that already operate at razor -thin margins. • Present transparent revenue forecasts and sensitivity analyses showing how many businesses might fail under the proposal. • Schedule public hearings open to business owners and provide time for written input. This is not just a financial issue; it's about the future of our town's commercial corridors, local character, jobs, and community vibrancy. Please don't let Oro Valley make a mistake that drives restaurants and other small businesses into extinction. Thank you for your time and consideration. I hope you will stand with local business rather than burden it further. Thank You, Mark W. Beres I President & CEO Flying Leap Hospitality Group Office: 888-431-5777 1 Cell: 520-954-2935 8110 S. Houghton Rd., Ste. 158-524, Tucson, Arizona 85747 www.fl V IngIeapyineyards.com "Good food is very often, even most often, simple food:" - Anthony Bourdain (American chef & author) WFLYING LEAP® HOSPITALITY GROUP Stine, Michelle From: Standish, Michael Sent: Monday, November 24, 2025 9:58 AM To: Stine, Michelle Subject: FW: Rental Tax comments by Kyle Kilgore From: Greene, Harry <hgreene@orovalleyaz.gov> Sent: Friday, November 21, 202S 1:S8 PM To: Standish, Michael <mstandish@orovalleyaz.gov> Subject: FW: Rental Tax comments by Kyle Kilgore From: Kyle Kilgore Sent: Wednesday, October 1, 202510:21 AM To: Winfield, Joe <iwinfieldPorovallevazRov>; Barrett, Melanie <mbarrett@orovalleyaz.gov>; Barrett, Melanie <mbarrett@orovallevaz.gov>; Greene, Harry <hgreene@orovallevaz.gov>; Jones -Ivey, Joyce <"oil nes- ivev@orovallevaz.gov>; Nicolson, Josh <inicolsonCta orovallevaz.gov>; Murphy, Mary <mmurohv@orovallevaz.gov>; Robb, Elizabeth <erobb@orovallevaz.Eov>; kristen(v)orovallevchambercom Subject: Rental Tax comments by Kyle Kilgore WARNING: External Sender. Read Carefully. Report ph ishing. Dear Oro Valley Town Council Members, My name is Kyle Kilgore, and I am a Commercial Real Estate Agent with NAI Horizon of Tucson. Over the past five years, I've had the privilege of representing numerous commercial office and medical clients throughout Oro Valley. I've seen firsthand the positive momentum the town has achieved, and I believe that continued thoughtful economic development is critical to sustaining that growth. I write in support of the comments made by my colleague and fellow CCIM member, Batoun Herrington, CCIM, CPMO, President and Designated Broker of Branel Real Estate Company, LLC, and a proud resident of Oro Valley. I respectfully urge the Council to reconsider the proposed rental tax on commercial and multi -family properlies. Such a tax is not absorbed by landlords as it is directly passed through to tenants in lease agreements. In the case of commercial tenants, these increased costs are ultimately bome by consumers, making Oro Valley a more expensive and less attractive place to shop, dine, and do business. For residential tenants, this creates additional financial pressure, particularly for those already facing a tight rental market. Rather than imposing new taxes that could discourage investment and occupancy, I encourage the Council to focus on expanding the town's commercial tax base. A recent Explorer News article highlighted that Oro Valley experiences an estimated $1.185 billion in retail leakage, meaning residents are spending that much annually outside of Oro Valley. This represents a missed opportunity. Instead of taxing existing landlords and tenants, we should be working to retain more of that spending locally by attracting new businesses and encouraging expansion of existing ones by acting as a true partner to developers and landlords, not as a deterrent through excessive restrictions, rezoning resistance, or additional taxes. A rental tax would signal to businesses and investors that Oro Valley is becoming a costlier and less competitive environment. At a time when we should be positioning our community as a hub for innovation, healthcare, and family - friendly living, let's not create policies that undermine those goals. As a stakeholder in the commercial real estate industry in the Tucson MSA, including the Town of Oro Valley, I strongly advise against the commercial rental tax. Tenants regularly pursue cost savings when deciding where to lease space and rental tax is a significant consideration. Many of my commercial real estate peers assert the Town should be avoided at all costs, considering the challenges to open new businesses. Respectfully, this will have the effect of steering commercial renters out of Oro Valley more than they already are by the perception of the Town being unfriendly to businesses. In response to the sentiment of following suit with fees implemented by neighboring municipalities, until such time as Oro Valley adopts similar pro -business regulatory practices as its adjacent municipalities, i.e., Marano and Pima County, this will be a detriment to the TOV. While other cities have commercial rental tax, they do not have the high property tax valuations that the Assessor places on Oro Valley properties. The tenants are already laboring under massive property costs and to add even more costs will be a detriment to retaining businesses. It's difficult enough already. Case in point, a property at Oracle Road near Linda Vista Road, has Triple Net (NNN) Charges of $14.19/sq ft/yr (of which property taxes are the largest component at $7.43/sq ft/yr). NNN Charges far a similar property in a different market area would be below $10/sq ft/yr. Understanding that the taxes exacted by the County are not related to the Town, but the fact of the matter is that the County is already wringing the tenants dry as it is. This constitutes another valid point- any taxes levied will be paid by the tenants, not the landlords. The cost of doing business in Oro Valley is already higher than just down the road on Oracle Road due to the higher property tax valuations. This could push businesses out of Oro Valley. Thank you for your consideration." Thank you for your time and consideration. Kyle Kilgore Associate kvle.kiioore0naihorizon.com NAI Horizon 2900 N Swan Road, Suite 200 Tucson, AZ 85712 USA naihorizon.com Cell +t 520 235 0750 Office +t 520 999 3736 Bloq i Twitter i vCard NAIHorizon Oi CoStar POWERBROKER QUARTERLY DEALS 032024 DEALS WINNER , Stine, Michelle From: Standish, Michael Sent: Monday, November 24, 2025 9:58 AM To: Stine, Michelle Subject: FW: Nature Trails Preserve, Parking From: Greene, Harry <hgreene@orovalleyaz.gov> Sent: Friday, November 21, 2025 1:57 PM To: Standish, Michael <mstandish@orovalleyaz.gov> Subject: FW: Nature Trails Preserve, Parking From: Pat Tebo - Sent: Friday, October 3, 20251:19 PM To: Winfield, Joe <iwinfield@orovallevaz.gov>; Barrett, Melanie <mbarrett@orovallevaz.gov>; Greene, Harry <hgreene@orovallevaz.eov>; Jones -Ivey, Joyce <iiones-ivevCdorovalleyaz.9ov>; Nicolson, Josh <inicolson@orova lleyaz.gov>; Murphy, Mary <mmurohv@orova llevaz.gov>; Robb, Elizabeth <erobb@orovallevaz.gcv> Cc: info@oreservevistoso.ore; Bill Sugars - Subject: Nature Trails Preserve, Parking WARNING: External Sender. Read Carefully. Report phishing. We were enroute to Oro Valleyduring the 17 Sep Town Hall but reviewed the meetingonline. Wewere pleased with the outcome and some of the comments and have additional input. I wholeheartedly agree with Charlene Donovan on the pond parking issue. Thank you, Mayor Winfield for your support. I do not live on Keystone but walk the path behind it. The parking lot would be much too close besides which the entry/exit is located on a curve and is directly across from access to a condominium complex across the street making for a dangerous juncture. • Further, I do not think there should be any parking by the pond except for ADA access and that that should beat the Southeast corner of the pond (though I will have to check elevations at that location). A parking lot by the pond would likely be full much of the time, drawing more traffic from out of the area to an already overloaded street. Yesterday came out of Stone Village to walkthe trails and came upon construction vehicles lined up from the entrance to Stone Canyon to at least the end of our subdivision beyond which I couldn't see - a distance of at least 333 yards. The proposed 132 unit apartment complex with an adjacent parking lot for trail access will additionally burden an already overtaxed Vistoso Highlands Drive. As an aside, I do not see why Stone Village construction should not be made to enter off of King Air Dr as originally planned nor why trail parking can't be located elsewhere. Two alternate locations for trail user parking have been proposed o 1. Behind the restroom between "holes" 6 & 7. A problem with that location is that northbound traffic on Rancho Vistoso would have a traffic island to contend with and promises to present anothertraffic hazard on a fairly high speed road. o 2. 1 and others have proposed using part of the large, paved old golf course maintenance facility which also has covered parking. • I have been told that -what, the Conservation Agreement? -forbids using that facility for any other purpose otherthan maintenance. However, l believe that may have come about due to an intention on the part of the city to use the area as a depot for equipment servicing the greater Oro Valley area but that the notion had been stricken because all property and facilities are to be dedicated to The Nature Trails Preserve. • Perhaps that point can be renegotiated • Or, parking could be placed outside the compound on the NW end or on the raw open area behind the facility. o One or both of the covered parking structures might be move to these areas a portion of which is already paved which could be overlayed with supplemental parking on rocked area behind the compound. o There Is an area at the NW end of the compound buildings that might be evaluated for use as a restroom. • A clear advantage to using the old maintenance facility area for parking is that there are no intersecting streets and no structures on either side of the road for 200 yards or more either way from the center of the compound. Thank you for your attention, Pat Tebo, Oro Valley Resident • That stretch of road is straight, eliminating line-of-slght Issues for cars entering or leaving. Stine, Michelle From: Standish, Michael Sent: Monday, November 24, 2025 9:58 AM To: Stine, Michelle Subject: FW: No parking signs From: Greene, Harry <hgreene@orovalleyaz.gov> Sent: Friday, November 21, 2025 1:51 PM To: Standish, Michael <mstandish@orovalleyaz.gov> Subject: F W: No parking signs From: Jeannette Bovert Sent: Monday, October 13, 2025 9:00 PM To: Greene, Harry <hgreene@orovallevaz.gov> Subject: No parking signs WARNING: Externa[Sender. Read Carefully. Report phishing. Dear Council Member Greene, My husband and I are residents at 530 W. Spring Valley Dr. in Oro Valley. We live at the corner of Spring Valley and Calle Buena Vista. We are very distressed to see all of the "No Parking" signs that are being installed up and down both of these streets. Why were we not notified that this was going to take place? What is the reason for them being installed? No one ever parks on those roadways except in front of OVCN on Sundays, and for their special events. These signs are a complete eyesore and detract from the rural appeal of the neighborhood. What can be done about this? I eagerly await your reply. Sincerely, Jeannette Bovert Jeannette Jordan Bovert Independent Beauty Consultant with Mary Kay cell:661-478-5118 website: w .marykay.com/jeannettejbovert