Sahuarita council approves contract with Green Valley chamber and adopts economic development incentives

The Town of Sahuarita council voted to approve a contract with the Green Valley–Sahuarita Chamber of Commerce and adopted a three-part Economic Development Incentive Program aimed at attracting commercial and industrial investment.

The contract (number 260028) for the Green Valley–Sahuarita Chamber of Commerce was presented by Economic Development Director Victor Gonzalez with a virtual presentation by Randy Graff, the chamber’s president and CEO. The council moved to approve the contract and the mayor announced the motion carried.

The council then considered a proposed Economic Development Incentive Program. Victor Gonzalez said the program is designed to be a public investment with measurable return, and described three elements: a business‑attraction reimbursement (a rebate of construction sales tax tied to eligible public improvements), a building‑fee credit (upfront waiver or credit for plan‑review and permit fees for qualifying projects), and a façade grant for renovation of older or vacant commercial buildings. Using staff examples, Gonzalez said a $1 million construction project could generate roughly $26,000 as the program’s illustrative "total incentive amount," derived from the town’s construction transaction privilege tax calculations. He also described eligibility criteria: projects must be located inside the Town of Sahuarita, be zoned for the proposed use, typically generate at least $1 million in hard construction costs, create jobs and pay at least the Pima County median wage for the industry.

Gonzalez emphasized performance safeguards including a requirement that construction commence within 12 months and an ultimate certificate of occupancy within 36 months. He said the town will include clawback provisions to recapture up to 100% of incentive awards if projects fail to meet agreed milestones or cease operations during specified post‑completion periods.

Councilmembers expressed general support for the framework and noted that every individual project would return to the council as an Economic Development Incentive Agreement that details the percentage of reimbursement and any CIP protections. One councilmember observed that offering such incentives reduces tax leakage to neighboring communities and gives the town competitive tools to attract projects.

A motion to adopt the Economic Development Incentive Program was moved and seconded; the mayor called for ayes and announced the motion carried.

What’s next: Staff will return to the council with individual incentive agreements and specific project proposals if developers seek to use the programs. The council record indicates the program will include clawbacks and case‑by‑case determinations of award percentages to protect the town’s capital improvement program.

Quotes "The incentive must align to the goals that we want to accomplish," Victor Gonzalez said during his presentation, describing the program’s intent to create jobs and expand the tax base.

"We are the first community outside of Maricopa County, so we're sort of a beta test for the program," Randy Graff said while outlining chamber workforce efforts connected to the town’s economic goals.

Ending Councilmembers said they expect detailed agreements to return with each project. The council then continued with other business and moved into an executive session later in the evening.