Oro Valley Council Approves New Use Tax, Rejects Telecom and Commercial Lease Taxes

Oro Valley

ORO VALLEY, AZ (Jan. 16, 2026) — Oro Valley’s Town Council voted 4–3 Wednesday night to adopt a new 2.5% use tax aimed at capturing revenue from certain large, untaxed purchases made outside town limits, while rejecting two other proposed taxes backed by Mayor Joe Winfield.

Under the action approved on Jan. 14, the council adopted the use tax but voted down separate proposals to impose a 2.5% tax on telecommunications providers and on landlords of commercial property—a measure often passed through to tenants via lease terms. The town’s finance staff estimated the approved use tax could generate approximately $375,000 to $600,000 annually.

Town officials framed the vote as part of a broader fiscal shift as Oro Valley approaches buildout and can no longer rely on growth-driven revenues that have funded services for decades. Chief Financial Officer David Gephart told the council that the town has historically relied on construction-related revenues, but those have softened as growth has slowed. The town’s public notice leading up to the vote also cited flat sales tax collections in recent years, inflation-driven pavement preservation costs, and reductions in state-shared revenues tied to Arizona’s income tax changes.

Business leaders urged the council to prioritize growth strategies rather than new taxes. The Greater Oro Valley Chamber of Commerce opposed the proposed increases, arguing that the town should focus on expanding the tax base, citing the same meeting agenda’s discussion of development options for a key Oracle Road parcel.

The public notice for the tax package indicated an expected effective date of July 1, 2026, for the proposed changes, subject to council direction and final implementation steps.

The vote underscores a widening policy divide at Town Hall: whether Oro Valley should “right-size” revenues now to achieve long-term stability, or hold the line on taxes and prioritize development to sustain future municipal revenue.




Holy Cross Evangelical Lutheran Church Buys 4.55 Acres on Speedway for New Church Site

New Church Site

TUCSON, AZ (January 15, 2026) — Holy Cross Evangelical Lutheran Church has purchased 4.55 acres of vacant land along Speedway Boulevard east of Harrison Road in Tucson for $1,000,000 ($5.05 PSF) on Jan. 9, 2026.

The lot totals approximately 198,198 square feet and traded at about $219,780 per acre.

The seller was Elizabeth McKenzie-Uriarte, trustee of The McKenzie Family Trust.

The buyer plans to build a new church on the site.

Ben A. Becker and Adam Becker of CBRE (Tucson) marketed the property, and Long Realty’s Sue Hill represented the buyer in the transaction.

The site had been promoted as a residential development opportunity in southeast Tucson, with SR (Suburban Ranch) zoning in the City of Tucson and a minimum residential lot size of 144,000 square feet under current zoning. The marketing materials also noted the property is within the Pantano East Area Plan along Speedway Boulevard—an arterial corridor where medium- and higher-density residential development may be considered through rezoning.

Utility availability was highlighted as a strength: sewer located near the southwestern corner of the property, and water and electric service in the Tucson Water and Tucson Electric Power service areas, respectively, with utilities described as at the lot line.

For more information, contact Ben Becker at 520.323.5149, Adam Becker at 520.323.5188, or Sue Hill at 520.577.7400.

Source: RED Comp #12301.




TW Shannon Park Buys 90-Unit Shannon Park Apartments in Central Tucson for $12.1 Million

Shannon Park Apartments

TUCSON, AZ (January 14, 2026) — TW Shannon Park LLC has purchased Shannon Park Apartments, a 90-unit multifamily community at 3737 N. Country Club Rd. in Tucson’s Central submarket, according to public records. The property sold for $12,075,000 ($134,166 per unit) to Bayliss Associates Limited Partnership, closing on December 18, 2025.

The apartment community totals approximately 68,476 square feet on about 6.65 acres and was built in 1971 with masonry construction. The sale equates to roughly $172 per square foot.

Shannon Park Apartments offers a unit mix of (56) one-bedroom/one-bath units (672 square feet), (19) two-bedroom/one-bath units (856 square feet), and (15) two-bedroom/two-bath units (972 square feet), along with a clubhouse and pool.

Allan Mendelsberg and Joey Martinez, principals and multifamily specialists with Cushman & Wakefield | PICOR, represented the buyer, while Matt Bollinger with Realty Executives Arizona Territory represented the seller.

For information, Allan Mendelsberg can be reached at (520) 546-2721, Joey Martinez at 520.546.2730, and Matt Bollinger at (520) 886-7500.

Source: RED Comp #12270.