Tucson will pursue annexing 150 homes near Interstate 10 and Valencia Road in the next few weeks, and later in the year, a section of Auto Mall Drive.

The efforts follow a City Council vote last week to incorporate 163 acres near East Valencia and South Kolb roads.

Annexations help the city provide services, because unincorporated areas are served by fire departments other than Tucson Fire, may have water service from a department other than Tucson Water, said Mike Czechowski, annexation project manager for Tucson.

The project at I-10 and South Valencia Road includes 150 homes, and a small gas station retail center, he said.

"And then some vacant raw land ready for development," he said. That helps the city increase its revenue. Development of any kind contributes construction taxes and impact fees to pay for new services such as roads and emergency response, but retail development can generate sales taxes which go to the city budget.

The project is likely to go to to the City Council for consideration in the next few weeks, Czechowski said.

At Auto Mall Drive, car dealers already collect state sales taxes, but if the incorporation is approved later this year, city sales taxes would also be collected on car sales. That could be a boon for the city budget, Czechowski said.

“It’s a potential of $1.5 million of revenue to the city of Tucson, and we’re working very diligently with the property owners on that one," he said.

Any attempted annexation needs approval from property owners and the city council.