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HomeMy WebLinkAboutPackets - Council Packets (2053)Town Council Regular and Study Session September 16, 2026 Upcoming Meeting Announcements Upcoming Meetings Meetings are subject to change. Check the Town website for meeting status. Stormwater Utility Commission September 17 at 4:00 p.m. Hopi Conference Room Board of Adjustment -CANCELLED September 22 at 3:00 p.m. Council Chambers Board of Adjustment Special Session October 5 at 3:00 p.m. Council Chambers Planning and Zoning Commission October 6 at 6:00 p.m. Council Chambers Town Council Regular Session October 7 at 6:00 p.m. Council Chambers 4 Mayor and Council Reports Parent Webinar on ADE Seals On Wednesday,September 16,from 6:00 to 7:30 p.m.,Amphitheater District will be hosting a webinar for parents regarding the ADE Seals of Excellence and how their high school students can earn one of the four current seals. 7 Mayor and Council Reports Town Manager’s Report Upcoming Events Kids Market with Farmers Market Steam Pump Ranch Saturday, September 19 8 a.m. – 1 p.m. Join us as young entrepreneurs showcase their creations alongside local vendors Friday Night Concerts – FREE Steam Pump Ranch 7-9:30 p.m. Bring your own chair or blanket. Food trucks will be on site. •September 25 Band: Rainy Daze Food Truck: Mutts Premium Franks and Sausages •October 2 Band: Your Money's Worth Food Truck: Quesadillas and More Night Hike at Big Wash Trail Big Wash Trailhead Parking Lot E Rancho Vistoso Blvd & E Paseo Arroyo Mayor Friday, September 25 7 p.m. Join Parks & Recreation Staff for a special night hike as we explore Oro Valley’s Big Wash Trail by moonlight. For ages 10 & Up! Register at playOV.com! Dog Friendly Movies at the Ranch – FREE Steam Pump Ranch Saturday, September 26 6 – 9 p.m. Movie: The Secret Life of Pets Bring your family and furry companions for a dog- friendly evening under the stars. Enjoy complimentary popcorn for moviegoers and pup cups for your four-legged friends. Town Council Regular and Study Session September 16, 2026 2026 Annexation Strategy Update Presentation and Discussion September 16, 2026 Purpose of Today’s Discussion Annexation Strategy Update Council input today will shape the adoption draft. Today Discussion and direction on the framework, priorities and decision points. Next Meeting Revised strategy returned for possible adoption. Introduce the proposed strategic direction Explain new priority framework Surface key policy choices Confirm where Council wants staff resources focused Return with a revised strategy for consideration 12 Council Discussion and Direction Annexation Strategy Update Direction requested before staff returns with a revised strategy. 1 Strategic focus Focus proactive resources primarily on retail and commercial opportunities with the potential to strengthen Oro Valley’s long-term fiscal position? 2 Priority structure Use Tier 1 and Tier 2 to distinguish active work from monitoring? 3 Current priorities Confirm Ina/Oracle and 880 as Tier 1, and La Encantada/Foothills/Oracle Corridor as Tier 2? 4 Unanticipated opportunities Bring owner-initiated opportunities forward after owner interest + legal feasibility? 5 Decision points Right balance between Council oversight and staff flexibility? Outcome today: clear direction for the adoption draft. 13 Why Update the Strategy Now? Annexation Strategy Update The current strategy identifies opportunities; the update clarifies where to actively invest. 2003 Annexation Policy - Fiscal, service and boundary principles 2020 Annexation Strategy - Comprehensive priority framework 2026 Update Proposed framework Active vs. long-term priorities with clearer resource direction Core question: Where should the Town proactively spend limited annexation resources? 14 What Needs to Change? Annexation Strategy Update The update is less about finding every possible annexation area and more about prioritizing effort. Theoretical value does not always justify sustained staff work Retail-revenue opportunities need clearer priority Long-term opportunities should be monitored without becoming active work programs Owner-initiated opportunities need a predictable pathway to Council. Council decision points should be explicit 15 Proposed Strategic Direction Annexation Strategy Update Focus proactive annexation efforts primarily on opportunities reasonably expected to increase Oro Valley’s long-term fiscal position. Important qualifier Annexation is not an objective in itself. It is a tool for advancing fiscal, service, economic-development, land-use and broader community interests. Reoccurring retail revenue is the proposed focus for proactive work It is not the only reason annexation may be considered Owner-initiated or strategic opportunities can still come forward Fiscal, service and infrastructure impacts remain central 16 Guiding Principles Annexation Strategy Update Principles are applied together—not as a mechanical scorecard. 1 Focused use of Town resources 2 Long-term fiscal benefit 3 Protection of existing service levels 4 Alignment with community and economic goals 5 Feasibility and likelihood of success Balanced judgment A mature retail center and State Trust Land require different levels of analysis. 17 Eligibility Is Not Priority Annexation Strategy Update A legally possible annexation is not automatically an active Town initiative. Eligibility▸Credible legal pathway▸Contiguity and boundary rules▸Petition and notice requirements▸Service-plan requirements▸Council action remains required Priority▸Likely benefit to residents▸Strategic importance▸Realistic prospects for progress▸Justifies intentional staff time▸Can change as conditions change 18 Proposed Priority Framework Annexation Strategy Update Two tiers distinguish active work from longer-term strategic monitoring. Priority concept Tier 1 — Active Opportunities Tier 2 — Long-Term Strategic Areas Staff posture Proactive analysis, outreach and coordination Monitor, maintain/build relationships Current fit High potential + plausible pathway + readiness Strategic value but limited current readiness Resource level Sustained investment during strategy life Periodic attention unless conditions change Council role Establish priorities Move to Tier 1 when triggers emerge Examples Ina/Oracle; Tangerine/Thornydale State Land La Encantada; Foothills Mall/Ina; Oracle Corridor Council question: Does this structure create the right distinction between active priorities and strategic opportunities? 19 Tier 1 — Ina/Oracle Commercial Areas Annexation Strategy Update Established retail nodes remain the clearest near-term fiscal opportunity. Council direction: Continue treating Ina/Oracle as an active priority? Mature commercial activity and recurring retail sales-tax potential Immediate adjacency to Town boundaries and gateway value Potential for a relatively retail- focused annexation approach Property-owner interest remains uncertain 20 Tier 1 — Tangerine/Thornydale State Trust Land Annexation Strategy Update Council has directed staff to evaluate “880’s” long-term potential and to return for further direction. Council direction on October 21st: Should sustained coordination and analysis continue as Tier 1 work? Major adjacent State Trust Land opportunity along the Town’s western edge Potential for future commercial and economic activity Opportunity to shape development framework before auction and build-out Requires ASLD coordination, technical analysis, entitlement work and agreements. Planning scenarios are assumptions – not commitments or approvals Presentation to Council on October 7th. 21 Tier 2 — Long-Term Strategic Areas Annexation Strategy Update Tier 2 preserves strategic awareness without making every opportunity an active work program. La Encantada Foothills Mall / Ina Oracle Corridor La Encantada and pathway: high value, highly complex contiguity and residential/service exposure Foothills Mall/Ina corridor: redevelopment and gateway potential, but significant ownership and service complexity Oracle Corridor: monitor sequencing and smaller commercial opportunities south toward Orange Grove 22 Owner-Initiated and Unanticipated Opportunities Annexation Strategy Update The strategy remains flexible, but Council controls whether unplanned work advances. 1 Meaningful owner interest 2 Preliminary legal feasibility 3 Council direction 4 Next stage or decline Staff brings the matter forward once the two threshold conditions are established Staff provides preliminary fiscal, service and Tier 1 capacity context when available Council may decline, authorize limited evaluation, or direct the next appropriate step 23 How Opportunities Are Evaluated Annexation Strategy Update Legal feasibility is the threshold; the rest is policy judgment. Legal feasibility Threshold issue Fiscal impact Does it strengthen long-term fiscal position? Economic development Does it advance revenue or development objectives? Service delivery Can the Town serve the area without reducing existing levels? Owner/community conditions Is there a reasonable path to participation and implementation? Land use and growth management Would annexation improve boundaries and development coordination? Different annexations require different lenses: mature retail ≠ State Trust Land ≠ residential pathway. 24 Council Decision Points Annexation Strategy Update Staff can explore; Council retains control over consequential commitments. 1 Strategy & priorities Adopt or materially amend the strategy and Tier 1 priorities 2 Unanticipated opportunity Decide whether owner-initiated opportunities warrant more work 3 Formal pursuit Authorize significant annexation work requiring substantial resources 4 Agreements & commitments Approve material financial, infrastructure or service commitments 5 Statutory / land-use actions Conduct hearings and consider required land-use actions 6 Annexation ordinance Decide whether to extend the Town’s corporate limits Council question: Are these the right points to return for direction and approval? 25 Council Discussion and Direction Annexation Strategy Update Direction requested before staff returns with a revised strategy. 1 Strategic focus Focus proactive resources primarily on retail and commercial opportunities with the potential to strengthen Oro Valley’s long-term fiscal position? 2 Priority structure Use Tier 1 and Tier 2 to distinguish active work from monitoring? 3 Current priorities Confirm Ina/Oracle and 880 as Tier 1, and La Encantada/Foothills/Oracle Corridor as Tier 2? 4 Unanticipated opportunities Bring owner-initiated opportunities forward after owner interest + legal feasibility? 5 Decision points Right balance between Council oversight and staff flexibility? Outcome today: clear direction for the adoption draft. 26 Next Steps Annexation Strategy Update Staff will revise the strategy based on Council direction. 1 Council discussion Confirm/improve policy direction and priority framework 2 Staff revision Update draft strategy and supporting materials 3 Council consideration Return approximately one month later 4 Implementation Administer adopted priorities and report significant activity The revised strategy will be presented for possible adoption—not as a commitment to complete any specific annexation. 27 2026 Annexation Strategy Update Discussion Appendix Appendix: Annexation Is a Relationship-Based Process Annexation Strategy Update The Town’s value proposition depends on the stakeholder and the opportunity. Property owners may value certainty, coordination or infrastructure clarity Residents may focus on public safety and service quality Developers may need predictable processes and implementation clarity Public agencies may prioritize planning, infrastructure and long- term obligations Gift Clause and budget authority define the limits of incentives 30 Appendix — Legal Guardrails Annexation Strategy Update Key statutory requirements remain central to any annexation pathway.▸Contiguity and boundary configuration requirements▸Standard petition process and property-owner thresholds▸Required notice and public hearing steps▸10-year service plan and infrastructure disclosure requirements▸Restrictions on creating county islands▸HB 2793 streamlined option for qualifying single-owner annexations Streamlined process ≠ lower decision quality For qualifying single-owner annexations, Council may have a faster statutory path after legal confirmation — but still needs adequate fiscal, service and operational information. Sources: A.R.S. § 9-471; Arizona Legislature HB 2793 summary. 31 Annexation Operates Within Clear Legal Guardrails •What State Law Requires •Contiguity •Size and Shape •Petition thresholds •10-year service plan •No county islands 32 Appendix — Fiscal Analysis Components Annexation Strategy Update Fiscal analysis should show the full municipal effect, not revenue alone. Measure Illustrative considerations Recurring revenue Retail sales tax; utility sales tax; state-shared revenue One-time revenue Construction sales tax and other development-dependent revenues Recurring operating costs Police; roads; court; general government; service delivery Capital / infrastructure Initial infrastructure needs and longer-term maintenance obligations Risk and assumptions Development timing, ownership conditions, service exposure and lifecycle costs Revenue dependent on future development should be distinguished from revenue generated by existing uses. 1933 Appendix — Tier 1 34 Appendix — Tier 2 35 36 Local Policy Annexation Operates Within Clear Legal Guardrails The ability to provide full municipal services. Fiscal neutrality or positive fiscal impact. Logical service areas and boundary consistency. Growth management objectives. Consistency with the Your Voice Our Future General Plan. Current Annexation Strategy •Current •Westward Look Resort •Tangerine 880 •Casas Adobes Plaza •La Toscana Plaza •Cottonwood Properties 37 Current Annexation Strategy •Near-term •Residential area adjacent to Westward Look •Honeywell 38 Current Annexation Strategy •Mid Term •Foothills Mall •Pima Community College •Omni Tucson National Residential •Nearby/surrounding commercial and residential areas 39 Current Annexation Strategy •Long Term •Arroyo Grande •Tangerine/Moore •Shannon/Thornydale •La Cholla/Shannon 40