The city of Tucson expects to bring in more state revenue and eventually sales tax revenue by annexing 163 acres on the southeast side of town.

The Tucson City Council voted Tuesday night to annex properties in an unincorporated island at South Kolb Road and East Valencia Road.

The decision is the latest in an effort to bring more sales tax revenue to city coffers, because some state revenue is divided and distributed among cities and towns — incorporated areas.

The 163-acre site at East Valencia Road and South Kolb Road is poised for retail development, said Mike Czechowski, the city's annexation project manager.

Pima County has already approved preliminary development plans for 1.3 million square feet of retail on the site, and the city has agreed to accept those plans as part of the annexation agreement, according to a memo from Tucson City Manager Richard Miranda.

Once final plans are written, those will still go through a city approval process, Czechowski said.

The site is called the Century Park Marketplace, and the retail development will be a few years away, but there is a desire for retail development in the area, he said.

"With the Rita Ranch area growing as big as it is, the Valencia, I-10 area, there isn't anything there," he said.

Changes to the Valencia and Kolb roads intersection are planned, but those will be done by the Regional Transportation Authority, Czechowski said, not the city.

Details about the plan have not been finalized.

"We're waiting for the RTA to make that decision," he said.

Tucson Mayor Jonathan Rothschild has been pushing for annexation because the more incorporated land in Pima County, the more state shared revenues return to cities and towns.

Czechowski is working on other annexation projects, including the southern part of the Tucson Auto Mall, which could be completed in the next few months, and one at Valencia and I-10, where about 150 homes and a small gasoline retail center would be brought into the city, if the city council approves both projects, he said.