Tucson strikes annexation deal for proposed Southside shopping plaza
The city of Tucson is prepared to annex a pocket of land at Kolb and Valencia roads that could eventually bring a rush of retail into a part of the Southside that has been largely industrial and residential.
There’s no clear timeline yet for developers’ visions, a large shopping center that could put more than 1.3 million square feet of shop space on the roughly 160 acres of raw land between the Port of Tucson and the Boneyard at Davis-Monthan Air Force Base. That depends on potential road improvements in the area.
The Tucson City Council agreed to a pre-annexation and development agreement at Tuesday’s meeting.
Developer Mike Farley said he can’t say much until the Regional Transportation Authority has taken action on whether to realign Valencia Road. The RTA will present an update on the project in late April.
“We’re not talking to anybody now and I won’t be, won’t even make an effort until that road decision is finalized,” Farley said.
Thus, development is not necessarily imminent; actual development may not be for years, the city said.
But based on a hypothetical timeline of construction starting this year and the first shop opening in 2015, with one new business coming online every other month through 2022, the project could be worth a cumulative $37.7 million in tax revenues over a 10-year period, mostly in retail sales taxes.
The Kolb-Valencia intersection has been contentious. Farley sued Pima County last year for breach of contract over a planned realignment of the congested intersection, which started with the county and is now in the hands of the Regional Transportation Authority. Farley contended the county backed away from the new road in an act of political retribution. The county denied the assertion.
There are currently no large retail shopping centers within a three-mile radius of the Kolb and Valencia intersection. The immediate area is industrial, but dense residential neighborhoods, built within the last 10 or so years, are within three miles of the site’s southwest and southeast corners.
Farley said the property was in escrow with a big California retail developer in 2007, but then the recession strangled the real estate market. He said he doesn’t know when retailers will come back, but somebody was interested at one time.
Chris Kaselemis, director of the city’s Economic Initiatives program, said the city has talked with Farley about annexation off and on for years. With annexation, the owner will be in a better position to market the property, he said.
City staff will gather necessary property owner signatures and return to the council with a proposed ordinance to approve the annexation at a later date.
The city says it prefers to annex land before it’s been developed because that makes it easier to gather the needed signatures, typically only one. After a development has been built out, at least half of the property owners representing at least half of the assessed value of the property must sign the petition.