Developers drop claims against OV - The Explorer: Pima Pinal

Developers drop claims against OV

Suits abandoned after town reinstates payments under development contracts

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Posted: Wednesday, March 24, 2010 11:00 pm | Updated: 8:12 am, Thu Mar 24, 2011.

Plaintiffs in a pair of multi-million dollar lawsuits against the Town of Oro Valley have dropped their claims.

The suits, filed by Vestar Development Company and BP Oracle Crossings Investors, were connected to the Oro Valley Town Council's January 2009 decision to withhold contract payments to the companies.

The companies dropped the suits after the town last month reinstated economic development agreement payments, following the resolution of an Arizona Supreme Court case challenging the legality of a similar contract between the city of Phoenix and a retail developer.

The town had entered into economic development agreements with the firms, which own retail developments in Oro Valley.

Vestar, owners of the Oro Valley Marketplace, receives a 45 percent cut of local sales taxes generated at the shopping center. In 2006, local voters approved the sales-tax sharing deal that over 10 years would give the company $23 million.

BP Oracle Crossings Investors, owners of Oracle Crossings shopping center, penned a similar deal with the town for a share of sales tax revenues. The town council approved the Oracle Crossings deal, which would pay the developer up to $6.5 million.

 

Economic development deals in Oro Valley

Oro Valley Marketplace

Vestar Development Company

45 percent of sales taxes

Up to $23 million

 

Oro Valley Town Centre

Cañada Del Oro Properties

45 percent of sales taxes and one-third of bed taxes

Up to $11 million

(This development has not been built)

 

Steam Pump Village

Evergreen/Diamond Ventures

40 percent of sales taxes

Up to $7.6 million

Oracle Crossings

BP Oracle Crossings Investors

46 percent of sales taxes

Up to $6.5 million

 

Hilton El Conquistador

Rebate one-third of town's 6 percent bed tax

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