The developer of a giant retail center, the Oro Valley Marketplace, has added a Wal-Mart SuperCenter, Linens 'n Things, Petco, Chase Bank and Danny's Family Car Wash to its list of tenants.
Some Oro Valley residents say including a Wal-Mart and other chain stores in Oro Valley Marketplace contradicts Vestar's earlier promises for a unique retail center — promises made before a crucial citizens' vote on the development.
The developer, Phoenix-based Vestar Development Co., says a large "anchor" store such as Wal-Mart is necessary for a shopping center of its size. Oro Valley Marketplace will encompass 114 acres on the southwest corner of Tangerine and North Oracle roads.
"On a site that large, it requires two or three major anchors," said David Malin, Vestar's project manager. "All the other major tenants would not commit without a major foot-traffic generator."
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The center's two other anchors will be Cinemark Theatres and one other retailer, whose name Vestar has not yet released. Previously announced tenants include Best Buy, Olive Garden Italian Restaurant, Cost Plus World Market and the Keg Steakhouse & Bar.
Last March, 58 percent of Oro Valley voters approved a controversial agreement between the town and the developer that returns roughly 45 percent of sales tax revenue generated at the center to Vestar, for a maximum of 10 years or $23.2 million.
Mayor supports choices
For some residents, the question now is whether the vote would have been in Vestar's favor had Oro Valley residents known the retail center would include "big box" stores such as Wal-Mart and Best Buy.
But Mayor Paul Loomis said that is just speculation and there is no sense or value in bringing up the economic development agreement.
People should be focusing on the big picture and not individual tenants, he said.
Last Friday, Oro Valley spokesman Bob Kovitz issued a statement on the center's tenants.
It said the town is excited about the current tenant list and has been working with Vestar to ensure the center "meets Oro Valley's high standards relating to architecture, signage, lighting, preservation of open spaces and general attractiveness."
Loomis and Kovitz also said surveys done by Vestar showed some residents wanted the center's current tenants.
In a Vestar survey of residents that ran from Dec. 1, 2004, to March 15, 2005, out of 398 votes for department stores, 36 of those votes went to putting in a Wal-Mart SuperCenter.
Department stores Nordstrom (132 votes), Dillard's (47 votes) and Kohl's (41 votes) were more popular. So far, they are not among Oro Valley Marketplace's tenants.
But Nordstrom, for example, would not move into this type of shopping center or into a center that caters to such a small population, Malin said.
Out of the stores that received the most votes, the only two that would go into this type of shopping center are Kohl's and Wal-Mart, Malin said. A new Kohl's opened last October in Oro Valley at 7785 N. Oracle Road.
In working with Oro Valley Marketplace's future tenants, some of which have not yet been announced, Vestar is pretty much getting all the categories of retailers residents asked for, Malin said.
Some residents feel misled
But some residents don't agree and say Vestar misled the community.
"They have misled the community every step of the way, which concerns me as they proceed. What else are they disregarding?" Oro Valley resident Diane Loving said in an e-mail.
"We were told that upscale shops would be coming to Oro Valley, and that Oro Valley would become an attractive destination for out-of-town shoppers," she wrote.
But Malin said Wal-Mart is just a small part of the large retail center that will include a wide variety of stores, restaurants and other retailers.
"Wal-Mart is just a small piece of this entire project," he said. "It's not like this is a Wal-Mart project."
Along with chain stores such as Wal-Mart and Best Buy, Oro Valley Marketplace will include a 70,000-square-foot "lifestyle area" that will have higher end stores such as Talbots and a natural-food grocer, according to a media release.
Vestar estimates that the Oro Valley Marketplace will bring in about $65 million in tax revenue over the first 20 years, according to a media release.
Wal-Mart will provide much of that anticipated sales-tax revenue, Malin said.
"Wal-Mart will bring in more sales-tax dollars than any other retailer in this project" and Oro Valley will reap the reward, he said.
Wal-Mart to give $250,000
Sales tax and other sources of revenue unrelated to construction impact fees have been a hot topic for the Oro Valley Town Council.
In December, the council approved a 2 percent local sales tax on electric, water and gas utility services to fund 18.5 new town staff positions including police, transit, and parks and recreation workers.
Wal-Mart plans to give the town $250,000 toward work on the Naranja Town Site, 213 acres between Naranja Drive and Tangerine Road. The town plans to turn that site into a park that will include recreational and fitness areas and a performing-arts center.
"Wal-Mart has shown itself to be very conscious of the communities it's in," Loomis said.
Star survey results
● Last Thursday, the Northwest Star asked readers if the first phase of the Oro Valley Marketplace tenant list, not including a Wal-Mart SuperCenter, which was announced after the section's press time, lived up to their expectations.
By Wednesday morning, 102 readers had cast their vote. Here's how they voted:
"No. What's so interesting about chain stores?" 43 percent.
"Yes. I'm excited about the stores." 25 percent.
"I'm worried these chains will drive out local businesses." 14 percent.
"The stores are okay, but I was hoping for something more unique." 13 percent.
"I'm just happy I won't have to drive into Tucson to shop." 6 percent.
On Starnet: How do you feel about a Wal-Mart going into the Oro Valley Marketplace? Cast your vote in a poll on this issue at northwest.azstarnet.com
