Oro Valley is in early talks to annex three shopping centers and part of a Casas Adobes neighborhood, a move that would pull Safeway, Whole Foods and a stretch of unincorporated Pima County land into the town's borders — and its tax base. The proposed footprint covers 227 acres near the intersection of Ina Road and Oracle Road, according to the Arizona Daily Star.
Assistant Town Manager Karl Shaddock has invited business owners and 159 property owners near the intersection to an informational meeting, as reported by the Arizona Daily Star. That meeting is scheduled for 6-8 p.m. Tuesday at the Tohono Chul Outdoor Pavilion, giving residents and business owners a chance to hear details and ask questions before anything is finalized.
The proposed boundary would sweep in Cottonwood Plaza on the northeast corner, La Toscana Village on the southeast corner anchored by Safeway, and Casas Adobes Plaza on the southwest corner anchored by Whole Foods, along with a portion of the neighborhood south of Ina Road. The three shopping centers are also home to restaurants including Wildflower, Tap & Bottle North, Truland Grassfed Burgers and Guadalajara Original Grill. All three retail parcels currently sit in unincorporated Pima County.
Why Oro Valley Wants the Tax Revenue
Town spokesman Phillip Cantrell said Oro Valley wants to annex the area to bring in more tax revenue. Shoppers there currently pay only state and county sales tax, but annexation would add the town's 2.5% levy, pushing the combined rate to 8.6%.
That math lines up with a separate staff analysis described by Tucson Local Media, which found annexation of the three major retail parcels could generate a combined estimated $1.57 million in annual sales-tax revenue. A broader scenario folding in nearby residential properties was projected to produce a positive annual net impact of $1.19 million once costs are factored in. Oro Valley's optional sales tax of 2.5% sits atop Pima County's 6.1% rate, per the same outlet.
Still, adopting an annexation strategy is not the same as pulling the trigger. Tucson Local Media reported that the strategy's adoption does not commit the town to initiate or complete any annexation, and that each annexation, agreement and related land-use action would return to the council for separate consideration. A report cited by the outlet framed the real obstacle as finding a legally viable boundary configuration with sufficient property-owner support, rather than questions about the fiscal upside.
What It Takes to Make Annexation Final
Under the process Shaddock described, final annexation requires support from more than half of property owners and owners representing one-half or more of the area's assessed property value to approve the proposed boundary. Shaddock emphasized that the boundaries are not final and that the proposed annexation area could still change based on community feedback.
That bar has proven to be a real hurdle in Oro Valley's recent history. The town's last annexation added 36 acres on the southwest corner of La Cañada Drive and Moore Road in 2023, and the Westward Look area was annexed in 2021. A separate annexation of 107 acres in the northwest area of Ina and Oracle roads took three years to complete and required the town to secure support from more than 50% of area property owners representing more than 50% of assessed property valuation, Tucson Local Media reported. In the 36-acre case, the council voted 7-0 to accept the land, after which a protest period began before the annexation became final 30 days later, according to the same outlet.
Arizona law also sets out the support thresholds for annexation. Under Arizona Revised Statutes § 9-471, signatures must come from more than half of the persons owning taxable property and owners representing one-half or more in value.
Ina-Oracle's Priority Status
The Town Council designated the Ina and Oracle intersection a Tier 1 annexation priority, and Tucson Local Media reported the council determined on Oct. 21 that properties along and near the intersection were the town's highest priority for expansion.
At that September meeting, Shaddock laid out a two-tier framework, with Tier 1 covering active opportunities with commercial interest and Tier 2 covering long-term goals that do not require immediate resources, Tucson Spotlight reported. Tucson Spotlight also reported that Vice Mayor Melanie Barrett pushed for more focus on other Tier 2 items and suggested adding a third tier, with a vote on a revised plan expected once staff incorporated council members' suggestions. Oro Valley's current annexation strategy was originally adopted in 2020 as a broad framework for potential opportunities, per the same outlet.
Beyond the Casas Adobes properties, Oro Valley is also considering Foothills Mall and La Encantada shopping plaza for possible annexation, though Shaddock noted those properties are not next to current Oro Valley town limits. Annexing them would require including the neighborhoods in between, he said — placing them squarely in the Tier 2 areas the town will monitor and study over the long term. The town has posted additional information on its Ina-Oracle annexation website for residents who want to follow the process.
