Town of Sahuarita, Arizona

TischlerBise conducted a two-part evaluation for the Town of Sahuarita. The analysis was triggered by the proposed Rancho Sahuarita Town Center that is seeking a certain level of financing through the future sales tax collections. In response, the study included an assessment of the opportunities for additional retail, transient accommodations, and other land uses. The fiscal evaluation conducted by TischlerBise indicated that although the project generates net surpluses, the Town should not enter into a tax-sharing agreement. The Town derives little revenue from residential development because there is no property tax. Since the Town has a significant amount of residential development when compared to nonresidential development, it is imperative that any sales tax revenue generated by new development be utilized to subsidize future residential development (including that of first phase of Rancho Sahuarita) since the Town, at present, does not have a significant sales tax base.