Tucson Development Thread [Archive] - Page 17

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poconoboy61

Jul 27, 2010, 5:42 AM

Although it shouldn't totally be funded by taxpayers, I think a hotel like this is needed in downtown Tucson. Even if it may not bring more events to TCC, it's important to still maintain whatever events we have already (i.e. Gem Show). I believe the hotel's prime location (to UA, I-10/19, TIA) will bring guests regardless of how busy downtown Tucson is. This hotel will create some activity downtown, and some is better than none (what we have right now).

Understandably, the economy has made a lot people a little weary on anything with price tags this high, but that doesn't mean it's still not necessary to build. There are cities of the same size and even smaller that have larger downtown hotels. The way I see it it's like UA sports (or any other school for that matter), you have to upkeep and upgrade your facilities to compete at a high level and bring in the best athletes-- which equals more $$$. A major hotel (whether it's this one being proposed or not) is an important element to our downtown to attract people to work, play and eventually live there. Everyone is struggling right now, but that doesn't mean we just sit bobbing like a broken boat.

I don't know why a 25-story hotel is needed for gem show attendees. Gem show events take place all around Tucson. Studies have already revealed that room rates will be lower at some resorts than they would be in the proposed Sheraton.

The project just seems to massive for a small town like Tucson that just doesn't have the demand for these types of events. Phoenix attracts the big events because they have an enormous convention center and because they are a major city. Tucson is too close to Phoenix to really stand on its own and attract larger conventions that would warrant construction of this hotel.

I don't know of any cities Tucson's size that have convention center hotels that are as massive as our proposed hotel. Tucson's metro is about the size of Rochester and Providence. Last time I checked, they had no huge hotels occupying their downtowns.

Economic development needs to start and end with the private sector. This idea of using public funds to try to spur activity downtown is ludicrous. The people of Tucson are overwhelmingly against their money being spent on this. Why is the city continuing to go forward with this? It makes no sense. The hotel is not going to be built. End of story. Why are tax dollars still being wasted on studies and consultants?

I hate to keep bringing Phoenix into this, but they are a prime example of what happens when you build without demand. Office space at Westgate in Glendale sits empty. That residential highrise in Tempe sits empty and trashed. Why are we walking toward gunfire that we can see?

atbg8654

Jul 27, 2010, 11:16 PM

I don't know why a 25-story hotel is needed for gem show attendees. Gem show events take place all around Tucson. Studies have already revealed that room rates will be lower at some resorts than they would be in the proposed Sheraton.

The project just seems to massive for a small town like Tucson that just doesn't have the demand for these types of events. Phoenix attracts the big events because they have an enormous convention center and because they are a major city. Tucson is too close to Phoenix to really stand on its own and attract larger conventions that would warrant construction of this hotel.

I don't know of any cities Tucson's size that have convention center hotels that are as massive as our proposed hotel. Tucson's metro is about the size of Rochester and Providence. Last time I checked, they had no huge hotels occupying their downtowns.

Economic development needs to start and end with the private sector. This idea of using public funds to try to spur activity downtown is ludicrous. The people of Tucson are overwhelmingly against their money being spent on this. Why is the city continuing to go forward with this? It makes no sense. The hotel is not going to be built. End of story. Why are tax dollars still being wasted on studies and consultants?

I hate to keep bringing Phoenix into this, but they are a prime example of what happens when you build without demand. Office space at Westgate in Glendale sits empty. That residential highrise in Tempe sits empty and trashed. Why are we walking toward gunfire that we can see?

You make valid points, however, what do you do if your private sector hasn't been interested in your downtown for more than a decade? You just going to sit there and wait until private entities take a risk in a city that doesn't spend money to reach out or create a business-friendly relationship? The only way private sectors are going to get interested in developing downtown is if they see the public sector making a better effort to entice businesses to come. In this city, everyone knows that dt is dead. Nobody wants to take the risk to develop there because the city isn't even taking the risk.

Its stinks that there are all millions of dollars being spent on soft costs and the MGP has risen substantially, but that's to blame for the lackadaisical council we have running the place. A major hotel is a key element in any large city's dt. It's a complimentary amenity to not just the TCC but every future dt project that we talk about in this forum.

I may not completely agree, but Hotel Arizona's Bert Lopez is even proposing to expand because he thinks that the city needs more rooms in addition to this Sheraton Hotel.

azliam

Jul 28, 2010, 2:28 AM

I don't know why a 25-story hotel is needed for gem show attendees. Gem show events take place all around Tucson. Studies have already revealed that room rates will be lower at some resorts than they would be in the proposed Sheraton.

The project just seems to massive for a small town like Tucson that just doesn't have the demand for these types of events. Phoenix attracts the big events because they have an enormous convention center and because they are a major city. Tucson is too close to Phoenix to really stand on its own and attract larger conventions that would warrant construction of this hotel.

I don't know of any cities Tucson's size that have convention center hotels that are as massive as our proposed hotel. Tucson's metro is about the size of Rochester and Providence. Last time I checked, they had no huge hotels occupying their downtowns.

Economic development needs to start and end with the private sector. This idea of using public funds to try to spur activity downtown is ludicrous. The people of Tucson are overwhelmingly against their money being spent on this. Why is the city continuing to go forward with this? It makes no sense. The hotel is not going to be built. End of story. Why are tax dollars still being wasted on studies and consultants?

I hate to keep bringing Phoenix into this, but they are a prime example of what happens when you build without demand. Office space at Westgate in Glendale sits empty. That residential highrise in Tempe sits empty and trashed. Why are we walking toward gunfire that we can see?

Correct me if I am wrong, but I fail to see what the Centerpoint Towers in Tempe have anything to do with this. Commercial real estate lender Mortgages LTD (Centerpoint was one of its investments) went bankrupt in 2008 after the suicide of its CEO. When Tempe Land principal Ken Losch tried to secure more financing to complete the project, the collapse of the financial markets froze lending and Tempe Land eventually filed bankruptcy, etc., etc., etc.

atbg8654

Jul 28, 2010, 5:20 AM

Correct me if I am wrong, but I fail to see what the Centerpoint Towers in Tempe have anything to do with this. Commercial real estate lender Mortgages LTD (Centerpoint was one of its investments) went bankrupt in 2008 after the suicide of its CEO. When Tempe Land principal Ken Losch tried to secure more financing to complete the project, the collapse of the financial markets froze lending and Tempe Land eventually filed bankruptcy, etc., etc., etc.

Sucks that even when it was auctioned for $8 million there were no takers... there's like $8 million worth in just the windows themselves!

kaneui

Jul 29, 2010, 5:25 AM

Nice to see more private investment downtown, with Providence Service Corp. now expanding into the 44 E. Broadway building--even putting in a few condos on the top floor:

http://i12.photobucket.com/albums/a228/kaneui/44Broadway-constr.jpg
An earlier photo of 44 E. Broadway after being gutted for new luxury condos.
(The ground floor retail facade has since been finished.)
(photo: Arizona Daily Star)

Providence Service Corp. buys 44 E. Broadway
by Teya Vitu
Downtown Tucsonan
July 27, 2010

Providence Service Corp. has bought the hulking four-story 44 E. Broadway building that looks like a World War II bomb target with its stripped away facades. The $2.8 million acquisition continues Providence relentless westward march down Broadway since the national behavioral and education services provider moved its corporate headquarters into 64 E. Broadway in May. “We had no intention to go any further down the block,” Providence CEO Fletcher McCusker said. “A number of things happened simultaneously once we moved to Scott and Broadway.”

Providence at first leased only 64 E. Broadway, which was renovated through the city’s Façade Improvement Program. McCusker then took an option to lease the neighboring 50 E. Broadway. McCusker said Bank of the West called him to tell him the bank, which owned 44 E. Broadway, was taking offers on the building, which had failed to sell at auction. It is a reinforced concrete structure that originally serviced as a federal courthouse annex.

McCusker plans to pump another $3 million to restore 44 E. Broadway for mixed use. The ground floor will remain parking. Providence’s 25-person information technology department will fill the second floor and the third floor will be leased out for commercial use. McCusker intends to put six residential condos with roof access on the fourth floor.

kaneui

Jul 29, 2010, 5:38 AM

You make valid points, however, what do you do if your private sector hasn't been interested in your downtown for more than a decade? You just going to sit there and wait until private entities take a risk in a city that doesn't spend money to reach out or create a business-friendly relationship? The only way private sectors are going to get interested in developing downtown is if they see the public sector making a better effort to entice businesses to come. In this city, everyone knows that dt is dead. Nobody wants to take the risk to develop there because the city isn't even taking the risk.

Its stinks that there are all millions of dollars being spent on soft costs and the MGP has risen substantially, but that's to blame for the lackadaisical council we have running the place. A major hotel is a key element in any large city's dt. It's a complimentary amenity to not just the TCC but every future dt project that we talk about in this forum.

I may not completely agree, but Hotel Arizona's Bert Lopez is even proposing to expand because he thinks that the city needs more rooms in addition to this Sheraton Hotel.

As I've noted before, convention center hotels just don't get built these days without some sort of public assistance. And with the guaranteed maximum price continuing to rise, the likelihood of it being remotely affordable for Tucson continues to dwindle. However, according to the Rio Nuevo board's meeting agenda for today, it appears they are looking to find a way to make it work by examining where costs can be cut. (Though I'm not sure how you do that in any significant way without a redesign of the whole project.)

With regards to Bert Lopez--I think he realizes that if the Sheraton and convention center expansion go forward, his Hotel Arizona will look even more outdated and unlikely to capitalize on any new convention business. And so he's basically looking for a handout from the city to help him renovate and expand--a total pipe dream given Tucson's current budgetary problems.

kaneui

Jul 29, 2010, 6:18 AM

Looking for sources of revenue, the city may sell its downtown arena site for construction of an upscale outlet mall:

High-end outlet mall proposed for I-10 frontage
by Teya Vitu
Downtown Tucsonan
July 22, 2010

A premium branded retail outlet mall has been proposed for the city-owned freeway frontage property, currently site of the temporary Greyhound bus depot. The city expects to issue a formal request for proposals later in August to sell the roughly 8.8-acre strip into the private sector. A few years ago, the city considered building a tortoise shaped arena on that land, but the design and the site were both scrapped for the arena. A committee would weigh the proposals and recommend one to the City Council, said Lou Ginsberg, the city’s real estate program director.

For a couple of years already, non-traditional retail developer Rodney Yates has eyed the vacant Downtown freeway frontage for a premium branded destination outlet center. “Retail is a great catalyst for revitalization of Downtown,” said Yates, founder of Scottsdale-based OTB Destinations. Yates envisions three anchor stores and about 50 smaller stores along the freeway frontage road stretching from Congress Street south to Cushing Street. Yates seeks to fill the anchors with “value concept” versions of Nordstrom, Bloomingdale's, Neiman Marcus or Saks Fifth Avenue– the same concept as the Saks Off Fifth store at Foothills Mall.

“I’m not saying Nordstrom is coming,” Yates said. What he is saying is those premium retailers these days are focusing more on value concept stores than building new department stores. A Nordstrom Rack store is already scheduled to open at Oracle and Wetmore roads in Fall 2011, according to the company’s website. The Interstate 10 widening project, in particular, attracted Yates to downtown. He intends to tap into the shoppers who flock to Tucson from Mexico. “Destination retail works well for Mexican nationals,” said Yates, who has developed similar outlet malls call Legends at Village West in Kansas City, Kan., and Legends at Sparks Harbor in Sparks, Nev. The land value is still in the appraisal process, Ginsberg said.

azliam

Jul 30, 2010, 2:26 AM

kaneui

Jul 30, 2010, 5:52 AM

Instead of just loft apartments, a commercial office tenant will also occupy space at the historic Carriage House, with renovations to be completed by year-end:

Nonprofit offices now part of Carriage House plans
by Teya Vitu
July 19, 2010

Work has started inside the 9,300-square-foot carriage house behind the historic Julian-Drew building at Broadway and Fifth Street. Just since April, the carriage house plans morphed from 11 rental lofts to the Amity Foundation moving its offices from Tanque Verde Road into 3,000 square feet of the carriage house and another 1,500 square feet in the Julian-Drew, said Ross Rulney, who owns both buildings and Tiburon Apartments to the south. Amity, a nonprofit that focuses on substance abuse treatment, will share the building with seven residential lofts ranging from 700 to 1,100 square feet, Rulney said. Rulney has owned Julian-Drew since 2006 and has wrestled with changing plans and drastically shifting financial winds. Even after he got financing in February, Rulney suddenly got an office tenant delivered his way.

“The exciting for me is for the first time in a long time we’re seeing some action,” Rulney said. “Instead of the property owner having to subsidize a project and court tenants, we are receiving letters of intent and offers for leased office and retail space. We expect to be fully leased by the end of construction. Local contractor Coffee Buildings is doing the construction, which started July 12 and is expected to be done by the end of the year, Rulney said.

PHX31

Jul 30, 2010, 5:15 PM

/\ pictures of the carriage house?

Azstar

Jul 31, 2010, 5:03 PM

Downtown renewal cursed by City Hall's interference, blessed by private sector
Part 2: McCuskerâ€™s role in downtown revitalization

By Roger Yohem, Inside Tucson Business
Published on Friday, July 30th, 2010
"When talking about revitalization of downtown Tucson, Providence Service Corporation CEO Fletcher McCusker is both a brutally negative critic and a wildly positive optimist.

His pessimistic side describes City Hall’s handling of Rio Nuevo as “a national embarrassment, a total failure.” On the flip side, the private sector is making “extraordinary and unbelievable” progress.

From his company’s new corporate headquarters at 64 E. Broadway, McCusker literally overlooks the renaissance-in-progress. With great passion, he is speaking to civic groups, hosting city officials in his office, and working to motivate other companies to invest downtown.

With a newfound passion to revitalize downtown, Providenceâ€™s Fletcher McCusker literally overlooks the progress from his new corporate headquarters.

Eventually, about 100 corporate staffers will move into the renovated, 1907 historic building. The multi-billion-dollar health care company operates in 350 cities in 44 states.

“Everyone in those places can talk to me intelligently about the failure of Rio Nuevo. It is a nationwide embarrassment. Our downtown is a disgrace, our government has totally failed us in revitalizing the downtown corridor,” McCusker remarked at a Tucson Metropolitan Chamber of Commerce presentation earlier this summer. “The people who are investing their money and getting a return on those investments, are now the ones making things happen. It’s not going to be the government’s money.”

For years, the heavy hand of City Hall has held back downtown’s renewal. What has now changed is the private sector’s string of successes. The ability to deliver significant projects has put the Mayor and Council “into more of a supporting role,” he said.

Next to Providence Service Corporation, UniSource Energy is building its headquarters at Broadway and Scott Avenue where the Santa Rita Hotel once stood. That will put Tucson’s two largest publicly-held companies side-by-side.

Both have allocated ground-floor commercial space along Broadway. Plus, restaurateur Janos Wilder is opening his new Downtown Kitchen+Cocktails around the corner at 135 S. Sixth Ave."

In my opinion, we need more people like Fletcher McCusker and fewer losers like the Mayor and CIty Council Members in Tucson.

kaneui

Aug 1, 2010, 2:01 AM

/\ pictures of the carriage house?

Only thing I've got is the Julian-Drew block entry on the Tucson project list: a render, site plan, and link to a Dec., 2009 article in Zocalo Tucson magazine.

kaneui

Aug 4, 2010, 4:50 AM

A Chicago-based developer will build the first project in The Gadsden Co's. 14-acre, mixed-use Mission District development west of I-10--a 6-story, 143-unit senior housing structure that will be nearly twice the size of the new MLK Apartments being completed on E. Congress:

Low-income housing credits boost W. Side development
by Teya Vitu
Downtown Tucsonan
August 03, 2010

A credit from the Arizona Department of Housing is a boost to a planned low-income senior housing project on the West Side. The 143-unit project is in the works for the 14.3 acres of city-owned land on West Congress Street destined to become a mixed-use development. The five- or six-story structure to be built by Urban Tucson LP would be the first development on the property. The Gadsden Co. has the development agreement with the city for the property.

The estimated $26 million senior housing project hit a key milestone in July when the developer received $2.85 million in annual low-income housing tax credits from the Arizona Department of Housing. “It makes the project very attractive to lenders and investors,” said Urban Tucson President Steve Greenbaum. He wants to start construction in the first half of 2011 and open the apartments in 2012. They would be located between the Santa Cruz River and Avenida del Convento, south of Congress. Greenbaum is under contract to buy the 143-unit Armory Park Apartments, 211 S. Fifth Ave., also a low-income senior housing complex. He intends to transfer the federal Section 8 low-income housing subsidies and move the residents from Armory Park to the new West Side structure. “The existing Armory Park apartment building is in really terrible shape,” Greenbaum said, adding that many Armory park units are efficiency studios, while his new project is all one-bedroom units.

Greenbaum is president of Chicago-based Senior Housing Group LLC, which focuses on affordable housing preservation developments. He has an ownership interest in 17 senior housing buildings in five states with a combined 1,544 units, all of which serve low-income residents. He is a partner at Council House in the Sam Hughes Neighborhood. Greenbaum collaborated closely with city officials and the Downtown Tucson Partnership to assemble this shift of senior housing from Armory Park to the West Side. The proposal still awaits approval from the U.S. Housing and Urban Development Department.

bleunick

Aug 4, 2010, 8:28 AM

mwadswor

Aug 4, 2010, 3:34 PM

kaneui

Aug 4, 2010, 5:46 PM

Why is there such a strong focus on low-income senior housing in downtown Tucson? Call me crazy, but I feel like if we want to revitalize our downtown we would try to attract a more permanent youthful residency in hopes to eliminate the 8-5 monday-friday downtown scenario which has plagued Tucson since the early 70's. I mean with the highly anticipated modern streetcar route running nearby this newly planned development, how many seniors would really utilize an opportunity like that to its full potential? I dont see the logic here.

At the moment, I think it has more to do with the fact that that is where financing is more readily available, especially with the recent crash of luxury and market-rate condo projects in both Tucson and Phoenix. But you're right--until we see more market-rate housing downtown, it doesn't bode well in the long-term for all the new restaurants and businesses sprouting up downtown. Plus, downtown is not Tucson's main center for professional employees, so demand for market-rate housing there will be limited. In the meantime, we'll have to be satisfied with a few small projects coming online (e.g., the Carriage House lofts and a few condos at 44 E. Broadway), and hope that the modern streetcar will be a catalyst for more businesses like Madden Media and Providence Service Corp. to relocate to the city center, and eventually create more demand for urban-style housing nearby.

The rumor is that we'll start to see more student housing along the streetcar route fairly soon, although they don't have the same spending capacity as professional workers.

atbg8654

Aug 4, 2010, 6:07 PM

kaneui

Aug 4, 2010, 9:53 PM

Student housing is what's key for DT Tucson... and there is a high demand for it too. It just doesn't make sense that more people aren't/haven't been talking about building 6-12 story residential high-rises, I mean campus is less than 2 miles away and a streetcar is being built to connect the two regions! The land where the Post and El Mirador were going to be built are perfect for something like student housing.

In addition to the two UA residence hall complexes going up on 6th St. to house 1,088 students, the following TOD housing proposals are in the works:

- the proposed 11-story Memorial Complex near Euclid and E. Fourth St. will provide housing for 300 students, and could start construction next year;
- the 150 apartments in three four-story buildings planned for Plaza Centro near the 4th Ave. underpass will be targeted for students;
- Town West is considering student housing instead of condos for their proposed El Mirador project, since that's what can be financed.

With the streetcar now greenlighted, UA Pres. Shelton is pushing for more student housing along the route, so there will undoubtedly be more announcements in the near future. (Latest word is that Bourne Partners is looking at building a mid-priced hotel on The Post parcel.)

*And one more item: now that Don Martin and Scott Stiteler have settled their lawsuit with the city, they may begin construction on their proposed five-story apartment building at Depot Plaza sometime next year, adding more density to the east end of downtown.

kaneui

Aug 5, 2010, 8:08 PM

Against the objections of nearby property owners, the city will rent part of vacant side street to the Rialto Theatre for an outdoor patio and bar:

Rialto gains part of side street
Temporary deal with city allows a patio and bar

by Rob O'Dell
Arizona Daily Star
August 5, 2010

A new patio and bar could soon be on the way next to the Rialto Theatre downtown. The City Council on Wednesday gave unanimous approval to temporarily turn over - or vacate - part of the side street next to the theater, which is on East Congress Street. The move involves part of South Herbert Avenue and gives the theater the rights to use the property so the Rialto can set up a patio and bar to augment its business. The patio and bar could also be open when the theater is not. The city will require that an 8-foot-wide access be maintained on the side street so emergency vehicles can get through the area.

The deal is for three years. After that, the theater may have the opportunity to purchase the property from the city. The deal requires the theater to pay the city $9,366 annually for the easement, plus a 2.5 percent rental tax. The easement property is valued now at $93,660. Any sale of the property in the future would be at market prices. The small roadway will not be turned over to the Rialto Theatre Foundation, but will be turned over to the Rio Nuevo board, which owns the theater. After hearing about the vacating of the street, the Rio Nuevo board asked the city that it be granted the easement rights because it owns the building.

The Rialto Theatre did not oppose giving the rights to the street to the Rio Nuevo board, said Lou Ginsberg, the city's real-estate director. The council had almost nothing to say about the issue. Councilwoman Karin Uhlich applauded the effort to help the Rialto and downtown. Several nearby business owners and developers - several of whom have received favorable deals from the city - signed a letter of opposition to the patio and bar because they said it would block pedestrian, bike and emergency-vehicle access to East Congress Street and East Broadway. Those opposed included Hotel Congress owner Richard Oseran, developer Ross Rulney, Rialto Block owner Don Martin and downtown property manager Swain Chapman.

kaneui

Aug 6, 2010, 6:03 PM

If the UA doesn't lease the Roy Place Building (former Walgreens) with its restored facade, the county will put the property back on the market:

http://i12.photobucket.com/albums/a228/kaneui/RoyPlaceBldg-restoration8-10.jpg
There is still stucco work left to do around decorative windows on the Spanish Colonial Revival building.
(photo: Mamta Popat)

County hoping UA will lease old store
Facelift for downtown Walgreens site

by Becky Pallack
Arizona Daily Star
August 6, 2010

A building renovation at a busy downtown intersection is nearly complete. There is stucco work left to do around new decorative windows on the 1928 Spanish Colonial Revival building at North Stone Avenue and East Pennington Street, said Reid Spaulding, Pima County facilities management director. The once-crumbling facade has been restored with real cast stone, which was more cost-effective and historically correct than the material called for in an earlier plan, he said. The project could wrap up next month.

In 2004, voters approved $800,000 in bonds to restore the building's historical appearance. The county wants to lease the space to the University of Arizona for $1 a year. The Architecture College has expressed interest, but the UA is still evaluating the cost to operate the building as classroom space, said Melissa Dryden, spokeswoman for the college's planning department. The university "is still committed to making it work" and is close to an agreement with the county, said Bob Smith, acting senior vice president for business affairs. No private tenants have expressed interest in the space since Walgreens moved out in 2004, so the county may put the building back on the market if the UA doesn't take the deal, Spaulding said.

DID YOU KNOW
The 82-year-old building, now known as the old downtown Walgreens, was designed by noted Tucson architect Roy Place as a Montgomery Ward store. Place also designed the domed Pima County Courthouse a block to the west.

kaneui

Aug 9, 2010, 7:12 PM

Taking his due diligence seriously as a member and Treasurer of the new Rio Nuevo Board, Alan Willenbrock wants to know why developer Garfield Traub's guaranteed maximum price for the proposed TCC Sheraton is 39% higher than the downtown Phoenix Sheraton:

by Alan Willenbrock
special for Inside Tucson Business
August 6th, 2010

As a member and treasurer of the board of the Rio Nuevo Multipurpose Facilities District, I have reviewed numerous documents related to the proposed downtown convention center hotel project and other similar projects. My research suggests that we may be overpaying by at least 40 percent compared to other hotels. This is my personal opinion and not the board’s opinion. Here are some of the percentage differences I’ve found. Versus what’s happened elsewhere, the Tucson hotel proposal is:

39 percent more expensive than the downtown Phoenix Sheraton hotel.

127 percent more expensive than average per-room costs calculated by the city’s consultants HVS Convention, Sports and Entertainment.

110 percent more expensive than a comparable hotel built in Peoria, Ill.

170 percent more expensive than a Four Points Sheraton in College Park, Ga., near Atlanta’s Hartsfield-Jackson International Airport.

101 percent more expensive than a hotel tower in Portland, Ore.

17 percent more expensive than both the hotel tower and conference in Portland, Ore.

The details:

The proposed Sheraton Tucson Convention Center hotel has these preliminary guaranteed maximum prices:

$319,485 cost per key (This is an industry term that is essentially the total amount spent in all areas of the hotel divided by the total number of rooms in the hotel.)

$27,900 per room for furniture, fixtures and equipment (FF&E).

$12,206 per room for operational supplies and equipment.

Let’s compare those estimates to the others:

• Phoenix Convention Center Sheraton hotel. This is a good comparison because it’s the same hotel brand built in the same state.

$230,000 cost per key.

$20,000 cost per room for FF&E.

$8,800 per room for OSE.

The Tucson hotel is 39 percent more expensive by all three measures.

• HVS, the same consultants the City of Tucson is using, did a valuation survey in 2008 and 2009 of full-service hotels and came up with:

$140,700 median cost per key when land costs were excluded.

$19,000 median cost per room for FF&E.

Most convention center headquarters hotels include meeting space, so you need to add on these costs. But you also must figure that some of the work from HVS has been less than precise. This survey was designed to report what has happened and relies less on assumptions so it provides useful information.

• Peoria’s civic center hotel cost:

$151,800 per key, which was $132,000 in actual costs plus a 15 percent profit to the developer.

$19,000 per room for FF&E.

• The Four Points Sheraton in Georgia cost:

$118,430 per key.

While this is a Sheraton hotel, the Four Points brand is not entirely comparable but still, you have to ask why it cost less than half of what Tucson’s Sheraton is estimated to cost.

• Westin Portland at the Convention Center cost:

$158,641 cost per key.

$18,184 per room for FF&E.

$10,861 per room for OSE.

The Westin is part of the Starwood group, the same as Sheraton. The developer is Garfield Traub, same as Tucson’s developer. But it is a bit difficult to determine its comparability and cost because the Portland project has two major components that might properly be combined in all or part. Many suggest that Rio Nuevo is where it is partly because no one has ever asked tough questions. I am here to ask some of these critical questions before we spend another $200 million.

Why is the Tucson Sheraton hotel 39 percent more expensive than the Phoenix Sheraton?

Why did Portland terminate its project in 2009 as not financially feasible despite the fact that it was at least 17 percent less expensive than Tucson’s hotel?

Why should Tucson pay twice what HVS’ survey says is the median cost per room?

Alan F. Willenbrock, CFA, is a director and treasurer of the Rio Nuevo Multipurpose Facilities District board. Send comments to editor@azbiz.com

**UPDATE**: Alan Willenbrock resigned from the Rio Nuevo Board effective August 10, 2010.
http://azstarnet.com/news/local/govt-and-politics/article_e1581d0f-d71c-5230-80fd-cd72acf3287b.html

kaneui

Aug 12, 2010, 5:21 AM

The ongoing sale of numerous ADOT properties to private owners over the past year in downtown's Warehouse District is signaling a stabilization of the area, attracting more artists as tenants:

http://i12.photobucket.com/albums/a228/kaneui/35ETooleAve.jpg
The Arches, the remodeled warehouse at 35 E. Toole Ave., where
Solar Culture's Steven Eye plans to create space for artists.
(photo: Nick Smith)

Return of the Artists
A renaissance may be coming to the Warehouse District

by Dave Devine
Tucson Weekly
August 12, 2010

The building at 35 E. Toole Ave., which opened in 1928 as a plumbing-supply warehouse, is known for its arched façade—and it will soon become another artists' gallery/studio venue in downtown's Warehouse Arts District. "The idea is to create a community for this block," says Steven Eye, who will act as the master leaseholder for the building. For more than 20 years, Eye has operated Solar Culture, a gallery and performance space just west of 35 E. Toole. For most of that time, the Arizona Department of Transportation (ADOT) owned these two former warehouses, along with three others on the block, and they were leased to a number of different artists by the state on an "as is" basis at attractive rates.

Several months ago, though, local investor Steve Fenton bought most of the buildings from ADOT. Some downtown artists were upset when Fenton purchased the Solar Culture property, thinking that Eye would perhaps have a hard time staying in the building. But Eye says he and his new landlord have "found a way to work together to move forward to make this a vital area for Tucson." Eye compliments Fenton for his sympathetic handling of the buildings he now owns along Toole. "Fenton wants to preserve these structures," Eye says. "He has a history of caring about old buildings." In an e-mail message, Fenton says that he's excited about the future of the properties. Solar Culture is currently the only building in use on the block, but the pending re-opening of 35 E. Toole will be a big step toward bringing back a strong artistic presence.

For more than 30 years after its construction, 35 E. Toole was the home of the Crane Company. The plumbing-supply business at one time had a display room in downtown's Santa Rita Hotel, and used the Toole Avenue property as a warehouse for its products. After the Crane Company left the building around 1960, it went through a number of different uses. The last several years saw a series of nonprofit and quasi-governmental agencies in the structure. To accommodate these office functions, the once-cavernous plumbing supply warehouse was partially divided into carpeted rooms, some of which are around 150 square feet in size and have windows onto Toole Avenue. Other interior spaces have more than 1,000 square feet and don't provide natural light.

Eye plans to offer the space at very low rental rates—starting at less than $150 month, including some utilities. "I'm trying to make the space accessible to artists," Eye says. He believes that ADOT's ownership—the state agency owned the property because of a planned roadway extension, but those plans have since been changed—always meant that the area's future was unstable. Now that those properties are in private hands, Eye has already signed up at least 10 tenants who work in a variety of media.

Carolyn King is one of them. Utilizing a large space in the building, she'll be offering mixed-media, paper-making and drawing classes, focusing especially on children and families. After occupying five spots in the 10-years she's lived in Tucson, including her present Armory Park location, King says she found the new space more attractive because of its better configuration, including a storage closet with existing shelves. Plus, she appreciates the cheap rent. In addition, King says that there's another reason for her move: "I'm committed to revitalizing downtown, and this building is really downtown." Eye points out other advantages of 35 E. Toole. There will be a large kitchen and lounge area, while the bathrooms have beautiful sinks. There's even a fenced backyard that provides some secure parking. The building also has a basement that could be used. Eye will occupy the building's garage, with its enormous rolling metal door, to work on his large metal sculptures.

At the other end of the block is the former Baffert and Leon wholesale grocery warehouse. For years, it was owned by ADOT and was the home to Zee's Mineral Gallery. It now belongs to Patricia and Ron Schwabe of Peach Properties. "We're wrapping up some structural work," Patricia Schwabe says about the building. "Now, it's a big, open, clean space." Schwabe says the building will soon be available for rent, and she's hoping for a number of uses, including a gallery and artist studio, and food-related functions on the ground level. Offices are one possibility she mentions for the downstairs area. On the block just east of 35 E. Toole is another warehouse purchased by the Schwabes from ADOT. Artist David Aguirre says both Dinnerware and the Central Arts Collective galleries should be relocating to this building next month.

Back at 35 E. Toole, King plans to move in by the end of August. That is contingent upon the building's air-conditioning system being restored to a working condition; therefore, the date remains uncertain. The building at 35 E. Toole will be known as The Arches. "If 20 to 40 artists come back to this block, it bodes well for the future of the downtown arts corridor," King says.

kaneui

Aug 12, 2010, 6:20 AM

As noted by two board members in an Arizona Illustrated interview this week, Rio Nuevo is evaluating the rather steep guaranteed maximum price submitted by Garfield Traub for the TCC expansion and hotel, and continues to sift through the convoluted arrangements of the district's property holdings and obligations incurred by the former regime. Until those issues are resolved, Rio Nuevo has stopped payment on $225k billed to them by the City of Tucson for nine separate projects, including improvements to both Barrio San Agustín and Barrio Viejo.

http://ondemand.azpm.org/videoshorts/watch/2010/8/11/160-whats-next-for-downtown-tucson/

http://azstarnet.com/news/local/govt-and-politics/article_b44117b6-dafd-5288-98ad-65b5f12b4373.html

kaneui

Aug 15, 2010, 8:18 PM

A local real estate agent is promoting a Bellagio-style fountain plaza for a long-vacant lot across from TCC as the answer to draw locals and tourists to downtown. (The parcel was originally slated for a new arena and civic plaza.)

http://i12.photobucket.com/albums/a228/kaneui/fountainplaza1.jpg
Early render of a proposed downtown fountain plaza surrounded by hotels, retail and condos.
(render: www.tucsonfountainplaza.com)

A touch of Vegas
Tucsonan envisions our own mini-Bellagio downtown

by Dale Quinn
Arizona Daily Star
August 15, 2010

How about a bit of Vegas in downtown Tucson? Just picture it: a Bellagio-style fountain, complete with illuminated geysers of water shooting skyward in sync with music, surrounded by restaurants, a couple of nightclubs, some office space and condos. Oh yeah, a hotel and convention center, too. That's the vision of local real estate agent Raj Kohli. And he's promoting it - relentlessly - to anyone who will listen. He talks it up on a weekly radio show he hosts to garner grass-roots support. He's spent hours pitching it to city officials. He implores a newspaper reporter to give him just one page in the paper devoted to his idea (almost as if he thinks we give them away to those who talk the fastest).

He quickly brushes off reactions that his plan sounds too ambitious for downtown Tucson. "If we are so lame in Tucson that we can't even dream, then we'll get what we deserve," he says. Kohli is an agent for Keller Williams Realty, representing banks selling foreclosed houses. That's more than a full-time gig these days, but he still seems to have unlimited energy for this side passion. Downtown lacks something all great cultural centers have, he says - a plaza where friends can meet and mingle with strangers, free of cost. That's the kind of social life he misses from his native India. Historically, civilizations gather around water, and Kohli, inspired by the fountain at the Bellagio Resort in Las Vegas, thinks that would be the ideal eye-catcher to get people downtown.

Of course, for Tucson he envisions one on a smaller scale, costing about $10 million. The price of the Bellagio fountain has been estimated at four times that. He's not worried about wasting water in the desert. "If water is the issue than let's not build any new subdivisions," Kohli says. He loves to point out he's invested time and money in the project, even though he says he stands to gain nothing financially. He's even worked with an architect to develop color renderings of the plaza. His zeal is clear in a 24-page proposal he's written - entirely in capital letters accented with underlines and exclamation points - detailing nearly every aspect of the project.

Kohli's plaza - which would feature three hotels connected by an air conditioned, enclosed skywalk - would be bound by West Congress Street on the north, West Cushing Street on the south, South Church Avenue on the east and the Interstate 10 frontage on the west. He estimates the total cost of the project at $285 million and says he's confident the entire venture would be profitable in a year or so. Just who would pay for it is another question. Kohli says it's too early for him to talk seriously with private investors. Kohli is critical of the city's current plan for a $200 million hotel downtown, primarily, he says, because it doesn't offer anything to local residents.

Having an element that would draw locals downtown is definitely a bonus, says Teresa Vasquez, a planner with the Downtown Tucson Partnership. A challenge for Kohli's plan is that the core of Tucson suffers from a bit of the "chicken or the egg" dilemma, she says. It's tough to get retailers to move downtown because they want to open near population centers. But before people move in, they're going to want access to those amenities, she explains. Vasquez also questions whether people would want to live that close to the I-10 frontage. And, noting that it's hard to get everyone to agree on a major downtown feature, Vasquez says successful ideas usually come from a collaborative effort.

Kohli counters that buildings along the west side of the project would act as a sound buffer from the freeway. Drivers zipping by Tucson might be attracted to the fountain and stop to check it out. He's tried pitching the idea to the Rio Nuevo board and hasn't gotten much traction, he says. Board Chairwoman Jodi Bain says the board can't look at projects of that magnitude right now, under contractual obligation. By statute it can consider only the hotel and convention center before moving on to anything else, she says. Bain does give Kohli's idea some credit, though. "He's trying to take a small space and put residential, commercial, retail and streetscapes that have potential to create an environment where people will want to go," Bain says. "Whether or not his particular idea works at this time is another question."

Kohli knows how to follow through on a difficult goal, he says. In the early 1980s, he rode more than 15,000 miles across Asia to promote world peace. But hey, if someone's got a better idea, he'll listen. "I would be happy to abandon my plan if someone shows me a better one," he says.

• For images of Raj Kohli's fountain plaza idea go to www.tucsonfountainplaza.com

Kohli says he's willing to talk with anyone about it.

• Contact him at Raj@RajKohli.com or 891-9119.

kaneui

Aug 18, 2010, 1:01 AM

A Phoenix-based contractor set to build the Plaza Centro parking garage near the Fourth Ave. Underpass has leased downtown office space for its southern Arizona operations:

Phx. builder sets up S. Az. base on Stone Ave.
by Teya Vitu
Downtown Tucsonan
August 17, 2010

After years of operating out of project offices, D.L. Withers Construction Co. has committed to Downtown to establish a Tucson headquarters office that will oversee projects across town and Southern Arizona. D.L Withers has moved into street frontage space at 147 N. Stone Ave. in space occupied by the Museum of Contemporary Art in 2008. Little Café Poca Cosa is the neighbor to the north and the Joel D. Valdez Main Library is to the south.

“Downtown Tucson, it is coming back. We’d like to be part of it,” said David Bradley, D.L. Withers’ vice president and a Tucson native whose parents both worked Downtown. D.L. Withers is the construction manager at risk for the 378-space Plaza Centro Garage set to be built in the coming months just south of the Fourth Avenue Underpass. The firm also built the Pennington Street Garage. “We will use this as a base for projects all over Tucson and Southern Arizona,” Bradley said. That includes a fire crash rescue facility D.L. Withers is building at Davis-Monthan Air Force Base. Past projects include the Marana Town Center and the new crime lab for the Tucson Police Department.

The office will have a planning room area for architects and vendors, a bid room, and an area for project superintendents. The office is in the Pima Building, which is owned by the Tucson Department of Transportation and houses the Transit Services office. The D.L. Withers space was created in a substantial $4.6 million 2007 renovation of the 1954 structure that stripped away later alterations and restored the spirit of the original look. Before the renovation, fortress-like walls with slit windows ran along the Stone Avenue warehouse. D.L. Withers is the first official lease tenant in the Stone Avenue frontage. MOCA was allowed to use the space through a temporary right of entry. The company’s home office is in Phoenix.

somethingfast

Aug 18, 2010, 3:01 PM

combusean

Aug 19, 2010, 6:52 PM

You've got to be kidding me. Nonsense massing diagrams posted to a blog by taking a cellphone shot of the computer screen? I've come up with crap a few orders of magnitude more professional than this and still miles away from anything serious. The article either has the location wrong or the site has absolutely no context to itself because it makes NO sense trying to overlay it on reality.

Still, it's visionary, and I appreciate anything from anyone that purports to improve the center of a city ... but it truthfully looks completely turned in on itself because there's no way to engage both the plaza areas and the street with single low-slung retail buildings. In the end, I don't know whether to be enjoyed or be saddened that he's even got this much traction.

There could be some SERIOUS potential for a megasite using the garbage land around the TCC and courthouses to the NW of it however incorporating ideas from his proposal.

kaneui

Aug 20, 2010, 7:33 PM

The original Rio Nuevo plan for all that vacant land across from TCC and around the federal courthouse was for a new arena and civic plaza with retail, restaurants, etc. However, the major fly in the ointment has always been Allan Norville, who seems to be happy leaving his big property across from TCC as a parking lot and leasing it to the gem show for a few weeks in the winter (unless, of course, he can somehow extort a huge price from the city to buy it, which seems highly unlikely at this juncture).

And now that the city is strapped for cash, they are looking to sell the parcel at Congress and I-10 to a developer for a high-end outlet mall. In any case, I would guess that some sort of TOD is going to happen there soon, as the modern streetcar will have stops near the courthouse and in front of TCC. However, those real estate agent's amateur renderings (he says he's working with an architect?) certainly don't inspire any confidence.

http://i12.photobucket.com/albums/a228/kaneui/TCCProjects-1.png

kaneui

Aug 29, 2010, 1:26 AM

UA Selects GLHN for $42 million addition

by Joe Pangburn
Inside Tucson Business
Aug. 26th, 2010

The University of Arizona has selected GLHN Architects and Engineers, Inc. to design a $42 million, 128,000 square foot addition to the University’s Environmental and Natural Resources Building. The project has been dubbed the ENR2 project.

The ENR2 facility will house the Institute of the Environment (IE), the School of Geography Development (SGD), the School of Natural Resources & Environment (SNRE), including the Office of Arid Lands Studies (OALS), and the Department of Atmospheric Sciences/Institute for Atmospheric Physics (ATMO) and will be designed to facilitate scientific collaboration and interdisciplinary research. Another of the primary goals for the project is to create a facility that reflects the University's commitment to design excellence and sustainability in the Sonoran Desert environment. LEED Platinum certification will be sought for the project.

kaneui

Aug 30, 2010, 7:06 PM

Incorporating features such as solar power, natural lighting, and rainwater harvesting has earned the new UA Student Recreation Center expansion a LEED Platinum rating:

Highest 'platinum' rank awarded to eco-friendly UA rec addition
by Tom Beal
Arizona Daily Star
August 30, 2010

The University of Arizona shot for silver but was awarded platinum - the highest rating - for the "green" design and construction of its Student Recreation Center addition on East Sixth Street. University planners were assigned last year by UA President Robert Shelton to attain LEED silver certification from the U.S. Green Building Council for all campus projects. The Rec Center, the first campus building finished since that mandate, earned platinum certification, the highest category of LEED, or Leadership in Energy and Environmental Design. The building is actually platinum-plus. Peter Dourlein, director of planning, design and construction for UA, said the building needed to compile 52 points in six areas to go platinum. It was certified at 56.

The LEED program provides independent verification that a building is "green," awarding points in six categories - sustainable sites; water efficiency; energy and atmosphere; materials and resources; indoor environmental quality; and innovation and design. During construction, Dourlein said, it became apparent that "silver" was an easily attainable goal, that the next best category, gold, was within reach, and that platinum was a possibility. The UA begins with a leg up for a number of reasons, Dourlein said:

• Its location and its established programs support and encourage mass transit, walking and bicycling.

• Its central utilities build in savings in water and energy. The building received points, for instance, because its electricity is supplied by a grid that includes generation of photovoltaic energy from solar panels elsewhere on campus.

• The UA's standard design practices already incorporate many of the goals required for LEED certification.

"We were pretty conscious about this project's budget," Dourlein said, "but it really didn't cost the university any more to reach for platinum." The $27.6 million project was built by Sundt Construction. It was designed by Sasaki Associates and M3 Engineering & Technology Corp. Among the building's environmental touches:

• The 55,000 square feet of added recreation space is lighted by the sun but shaded from glare and heat.

• Water doesn't run off the site when it rains. Instead, it's funneled to planting areas or directed to a rock pile beneath the sand volleyball courts. That allows it to percolate into the aquifer.

• Preferred parking is given to those who drive low-emission vehicles.

kaneui

Sep 2, 2010, 3:24 AM

With the Great Recession clobbering Phoenix's convention center hotel occupancy and Tucson's proposed convention hotel projections relying on an quick economic recovery, a new TCC hotel could eventually require significant subsidies from the city's general fund:

http://i12.photobucket.com/albums/a228/kaneui/TCCSheratonHotelrender.jpg
The proposed Sheraton hotel
(render: DLR Group)

Downtown Hotel Hell
Phoenix built one and they didn't come

by Dave Devine
Tucson Weekly
September 1, 2010

While Tucson leaders ponder the wisdom of building a Sheraton convention center hotel, Phoenix opened one in October 2008. But its occupancy rates have fallen significantly short of expectations. In 2005 the consulting firm HVS International prepared a market study for the proposed Phoenix hotel. It predicted in the first nine months of operation there would be 60-percent occupancy, increasing to 63 percent the following year. Reality was quite different. For 2009, according to a City of Phoenix financial report, the hotel had a 49.4-percent occupancy rate. Phoenix's finance director, Jeff Dewitt, says the underperforming hotel presents some financial challenges. The city committed non-general fund taxes to cover any shortfall in operating proceeds to pay a portion of the hotel's construction bonds. Despite that, earlier this year, Standard and Poors changed the rating on these bonds from stable to negative. Dewitt says hotel revenues will cover 2010 construction debt service and believes they'll be sufficient for 2011. After that, he admits, it's questionable.

Stating he didn't work on the Phoenix market study and can't comment on it, Thomas Hazinski of HVS does say, "There's one obvious fact—(the report) was completed before the financial crisis." Hazinski did help prepare a recent HVS analysis for the proposed $202 million Tucson convention center hotel. It anticipates an initial occupancy rate of 55 percent, rising to 67 percent within two years and then stabilizing at 69 percent. These figures, Hazinski acknowledges, are based upon an economic recovery. "If that doesn't happen," he says, "in Tucson the projections won't be met."

Those projections are critical to local taxpayers because they might be on the line to pick up at least some of the construction costs of the hotel. If the Tucson Sheraton doesn't perform as anticipated, the shortfall in revenue to pay for construction bonds might have to be paid by severely budget-challenged City Hall. That is not a prospect Councilwoman Regina Romero endorses. To avert that scenario, on July 13 she sent City Manager Mike Letcher a memorandum. It was also published as a guest editorial in the Arizona Daily Star. In her memo, Romero writes that she favors the hotel project but calls for lowering the city's risk by requiring greater financial participation from Sheraton and Garfield Traub, the firm managing construction. As of last week, Romero hadn't received an official response to her suggestions. Regardless, Romero believes Letcher has been clear in his public statements about the proposal. "He won't get the city into a situation," Romero suggests, "where the city's general fund is on the line. "The hotel has to be able to support itself," Romero continues. Additional financial assistance "needs to be pledged from others before it gets to the general fund. If that doesn't happen, (the city manager) won't recommend it and I can't approve something that won't be a success."

Alan Willenbrock is skeptical of the Tucson hotel being as successful as the HVS study portrays. He recently stepped down from the Rio Nuevo Multipurpose Facilities District Board, the appointed body that, with the City Council, will decide the hotel's fate. Willenbrock calls the HVS study "very sloppy" and believes the information provided "is not consistent with the evidence." Pointing out that the HVS report shows an average length of stay for Tucson convention goers twice as long as that in Phoenix and several other cities, Willenbrock contends the explanations given for this discrepancy haven't been satisfactory. "I'm not for or against the hotel," Willenbrock continues, "but I am against misleading taxpayers toward expectations not likely to be realized. I can create a strong case why the hotel is likely to be less successful than the consultants say." If that happens, Willenbrock thinks paying for the hotel's construction bonds "will likely require significant (city) general fund subsidies."

Heywood Sanders, a professor at the University of Texas-San Antonio and a frequent critic of the convention industry, spoke to the City Council in July. He believes the message Tucson leaders should take from the less-than-anticipated Phoenix hotel occupancy rate is simple. "Projections," Sanders says of convention center hotel studies, "often aren't realized." Another assumption made in the Phoenix HVS analysis, Sanders stresses, is that the recent enormous expansion of that city's convention facilities would bring many more customers to downtown hotels. That, he says, hasn't happened. Addressing a major contention of Tucson hotel proponents—that the facility is needed to spur downtown revitalization—Sanders observes, "It's much the same argument made in every city in the country. ... The problem is, the more places that do it, the more competition there is. The result is what happened in Phoenix. You don't see much increase in business."

David Pittman works for the Arizona Builders Alliance, an organization representing about 150 construction companies. He cites job creation and economic stimulus as two reasons he supports building the hotel. Since the height of the building boom in 2006, Pittman points out, Pima County has lost almost 14,000 construction jobs, or about one-half its former total. "There are a lot of good things about the hotel project," Pittman emphasizes. "I think the city needs the downtown hotel. We have a lot of things going for us and we want to bring people downtown." Then Pittman returns to his original theme: "It will put a lot of people back to work who need jobs," he says of the hotel proposal. "Let's look on the bright side."

kaneui

Sep 6, 2010, 12:10 AM

With the necessary backing from the Rio Nuevo Board and City Council now in doubt, developer Garfield Traub is suggesting that an REIT finance the TCC expansion and new hotel, although it still won't get taxpayers off the hook from guaranteeing the debt:

New hotel-finance plan unveiled
by Rob O'Dell
Arizona Daily Star
September 4, 2010

Convention Center hotel developer Garfield Traub unveiled a new financing proposal this week the company says would eliminate the need for Rio Nuevo to pay for the $190 million hotel. The hotel would instead be funded with bonds sold to a single private investor - a real estate investment trust or REIT. The shift doesn't take the city out of the funding equation, however. The debt would still need to be fully guaranteed by taxpayers.

Details of the financing plan are still sketchy, and it is unclear how exactly the REIT would finance the transaction, other than it would be a "private placement offering" that wouldn't be a public bond sale. Instead of it being funded through the public bond market, the REIT would buy all the bonds. The real estate investment trust is from Chicago, and the REIT would finance the new hotel, the Tucson Convention Center expansion, and a new parking garage in the area, a total package of $230 million. The hotel would be financed with Build America Bonds, a type of bond that carries a lower interest rate because a portion of the interest is rebated by the federal government. That's why Garfield Traub says the deal needs to be done by the end of the year, when terms offered for Build America Bonds will change and the federal rebate would drop. Information presented to the new Rio Nuevo board by Garfield Traub said some advantages are that the bonds don't have to be rated by rating agencies, there would be less required reserve funds, and there would be a significant reduction in the cost to issue the bonds. One of the reasons for the lower cost of issuance is the bonds don't have to meet all of the public disclosure requirements mandated by the Securities and Exchange Commission for publicly sold bonds.

Stephen Moffett, president of hospitality at Garfield Traub, declined to comment on the specifics of the deal, saying he is still negotiating with the city. However, he did provide the three-page PowerPoint presented to the Rio Nuevo board this week. Silvia Amparano, deputy city finance director, said Rio Nuevo would have to lease the property and give or sell the hotel plans to the city, meaning it would be up to just the city to decide whether to approve the financing. Currently, both Rio Nuevo and the city need to approve the financing. Benefits of the new proposal, according to Garfield Traub's presentation to the Rio Nuevo board, include simplification of the planning and approval process and freeing up of Rio Nuevo funds for use on other projects. For city taxpayers not much would change, because they would have to guarantee the whole deal, just as would be required if Rio Nuevo funded the project. Amparano said the financing could not be completed otherwise, something Garfield Traub also acknowledges.

Rio Nuevo board member Scott Egan, who has been a hotel critic, said he would be happy to get the hotel off Rio Nuevo's plate. "I'm not convinced at this time that the hotel is something the Rio Nuevo district should invest in," Egan said. Egan said the Rio Nuevo board was surprised by the new financing proposal this week. He said Moffett told the board the private placement bond sale was an option a long time ago, but Moffett said he didn't want to bring it up because he didn't want to confuse the Rio Nuevo board.

If city taxpayers still have to guarantee the bonds, City Councilman Steve Kozachik said there's nothing different about the new deal. He said it doesn't make sense to do the hotel until the demand is there. He said he'd be "wholly unimpressed" if Rio Nuevo pushes the whole deal onto the city, but said it's about getting four votes on the council to secure the hotel. Councilwoman Regina Romero said she hadn't seen details of the new proposal, but reiterated her stance the hotel can't put city taxpayers at risk. She's open to the hotel if Garfield Traub can prove it won't. Mayor Bob Walkup, the strongest backer of the convention hotel, said he hadn't seen the new financing plan, but said the city must ensure its general fund is secured and that a quality management company will run the hotel.

kaneui

Sep 9, 2010, 5:23 AM

UA is working with an architect to finalize plans for the north end zone expansion of Arizona Stadium, with construction slated to begin in August, 2011:

Architecture firm to discuss plans for end zone work
by Patrick Finley
Arizona Daily Star
September 8, 2010

The Arizona Wildcats will meet the next two days with a newly selected architect, the latest steps in designing a north end zone structure for Arizona Stadium. Heery International will huddle with senior athletic department officials today and Thursday and could produce early design ideas within six weeks. "Hopefully by mid to late fall, we'll have the design completed," senior associate athletic director John Perrin said. Athletic director Greg Byrne first mentioned the firm Tuesday in his monthly news conference. "We threw some ideas out of what all goes into the facility," Byrne said. "For sure, there's going to be new locker rooms, coaches offices, meeting rooms, weight room, medical-treatment center. All those things are non-negotiable." As for the rest, Byrne said he liked the concept of leaving new rooms empty to use for growth, which Nebraska has done.

Sasaki Associates' master plan priced a new facility at $72 million, though Perrin said a Heery design could have a different cost. Perrin said the UA likely would raise half the cost before breaking ground, and Byrne hinted there could be fundraising news soon. "Me being new, I think understandably, the donors we've been targeting probably want to have a comfort level," he said. "Hopefully we're getting to that point."

For more info.: http://www.fdc.arizona.edu/projects/Project.aspx?Project=09-8902

somethingfast

Sep 9, 2010, 10:22 PM

kaneui

Sep 10, 2010, 12:59 AM

how about putting in some comfortable f**king seats???? or just additional seats? this smells of another arizona stadium expansion disaster plan. as long as they put up some more used car lot flag lines we'll all be ecstatic :haha:

Initial plans for this expansion were to add 5,000 - 10,000 additional seats (with luxury boxes for added revenue), although that may depend on how the fundraising goes.

atbg8654

Sep 10, 2010, 4:07 PM

this smells of another arizona stadium expansion disaster plan.

When/where were the other disasters?

kaneui

Sep 11, 2010, 4:30 AM

The first tenant for downtown's long-vacant courthouse annex at 44 E. Broadway will occupy the former sales office for the luxury condos originally planned for the building:

Green Chamber first tenant at 44 E. Broadway
by Teya Vitu
Downtown Tucsonan
September 10, 2010

The building at 44 E. Broadway is still a work in progress, but it already has its first tenant under its new owner. The Southern Arizona Green Chamber of Commerce, established in March 2010, expects to open some time in October on the building’s street level, the only currently inhabitable space. The eco-chamber started moving in at the end of August.

Providence Service Corp. quickly landed this first tenant after buying 44 E. Broadway in late July from Bank of the West. Green Chamber board member Andrew Greeley was at “one of those breakfasts” and got to talking with Providence CEO Fletcher McCusker. More coincidentally, when Greeley brought the 44 E. Broadway offer to Melissa Black, the Green Chamber’s founder and president, all she could do was smile. She knew the space very well because it served as a sales office when Black, a Long Realty broker, represented 44 E. Broadway in 2008 as a proposed luxury condo loft project. “I appreciate the new owner’s vision and repurposing of the building,” Black said about what was originally a federal courthouse annex. “I just got back from New York City. Oh, my God, there is the potential for the heart of Downtown Tucson to be rejuvenated. It’s the epitome of cultural creativity. We can be a resource for the redevelopment of Downtown.”

Black and a variety of green-oriented business people launched the Green Chamber after Black started her own solar electric, hot water and pool system dealership in 2009, Solar Gain. The chamber started at Solar Gain as a green energy resource center, but Black is thrilled to move the chamber Downtown. “Downtown is the current hub for development and we can have the greatest impact on the business equation,” Black said. “I needed a bigger platform to have the conversation with the community.” The Green Chamber is dedicated to promoting sustainability and green practices in the business sector. The chamber has resource materials and meeting space for members to collaborate on green initiatives. The fledgling chamber had 156 members in early September.

For more information, visit the Green Chamber website: http://www.sagcc.org/

somethingfast

Sep 11, 2010, 4:55 PM

When/where were the other disasters?

arizona stadium is the biggest jalopy stadium in college football. every addition has stuck out like a sore thumb, incorporating zero integration into previous structures. it's like the homer car of college stadiums.

kaneui

Sep 15, 2010, 11:52 PM

The latest version to privately fund the TCC hotel will require more money from the operator (Sheraton), while the modern streetcar aims to get its 60% design drawings complete to receive the $63M of TIGER grant funds in November:

Private-funding plan for hotel advances
Tucson will send formal proposal to Rio Nuevo board

by Rob O'Dell
Arizona Daily Star
September 15, 2010

Tucson will send to the Rio Nuevo board next week a formal proposal for a new $190 million convention center hotel that would be privately financed instead of taxpayer funded. During a discussion on the hotel at Tuesday's City Council meeting, City Manager Mike Letcher asked the council to put off any votes on the hotel or a new agreement with Rio Nuevo until next week.

Earlier this month, hotel developer Garfield Traub unveiled a proposal the company says would eliminate the need for Rio Nuevo to pay for the $190 million hotel. The hotel would instead be funded with bonds sold to a single private investor - a real estate investment trust, or REIT, from Chicago. The shift doesn't take the city out of the funding equation totally. The debt would still need to be fully guaranteed by taxpayers. The new terms would require more money from the hotel operator to secure the bonds, Letcher said. "We've got to have this additional security," he said. Councilman Steve Kozachik tried to force a vote to get the council to declare it would not financially guarantee the hotel, but City Attorney Mike Rankin said the council couldn't vote on the issue because it wasn't on the agenda. Kozachik said he was also "ticked off" that former Rio Nuevo Director Greg Shelko has refused twice to come before the council to talk about the hotel project.

The council also talked about the $196 million modern streetcar project. Transportation Director Jim Glock told the council the city still has a $26 million funding gap for the streetcar, although he said he thinks the shortfall will shrink to under $19 million. Federal Transit Administration Region 9 Administrator Leslie Rogers will visit Tucson next week for meetings on the streetcar. The city also will launch a new website on Sept. 24 for the project. Glock said the city hopes to get 60 percent of design drawings completed in October, so the city can get the $63 million grant released by the federal government in November.

kaneui

Sep 16, 2010, 4:14 PM

Don Bourn now plans to build a 5-story, 123-room Hampton Inn on his vacant downtown property on Congress originally slated for luxury condos, and is also proposing to convert part of La Placita to UA student housing and offices:

Thrifty Block plans turn from condos to hotel
by Teya Vitu
Downtown Tucsonan
September 15, 2010

Bourn Partners is on the verge of reawakening the long dormant Thrifty Block that the local development firm has owned since May 2007 on Congress Street between Scott and Stone avenues. Don Bourn’s stymied plans for luxury condos called The Post have faded away in favor of a Hampton Inn Hotel, he told the Rio Nuevo board Sept. 15. Bourn plans to enter into a partnership with True North Hotel Group to launch the initial planning to bring a 5-story, 123-room hotel to the vacant lot on Congress, he said. If they can line up financing in the next three to six months, the hotel could be finished in two years, Bourn said. The $15 million hotel would have no restaurant or parking but would rely on continental breakfasts, nearby restaurants and the Pennington Street Garage a short block to the north, Bourn said. He added a marketing study predicts a 65-percent occupancy rate and a nightly room rate just under $115.

The Thrifty Block was torn down in September 2004 and the city entered into a development agreement with Bourn in April 2006 to sell the property to him for $100 with the intention of having The Post completed by the end of 2008. The international mortgage and financial calamity fell right into Bourn’s lap and construction on The Post never started, even though he has invested $4.5 million in the property. “The main thing is we haven’t given up,” Bourn said.

Bourn Partners also owns La Placita Village. Bourn, in partnership with Concord Eastridge of Scottsdale, have La Placita as one of seven proposals submitted in response to a UA request for proposals for student housing with 300 to 1,200 beds located along the proposed streetcar route, adjacent to UA or Downtown. A selection committee will weigh the proposals at the end of September and could select more than one proposal, project manager J.T. Fey said. Bourn said, if selected, La Placita would retain current tenants, but La Placita has enough available space to offer student housing and academic use.

Locofresh55

Sep 17, 2010, 2:58 PM

They gotta have more than just housing and academics for UA students there. Are they looking at restaurants and such for la placita? There's barely any of that there. Hampton Inn's are ok...but I don't know about a downtown location given that there is one on Grant by the freeway. Eh something is better than nothing.

kaneui

Sep 17, 2010, 5:44 PM

They gotta have more than just housing and academics for UA students there. Are they looking at restaurants and such for la placita? There's barely any of that there.

I think the plan is for student housing/offices in the upper floors of La Placita, leaving the ground floor for existing retail/commercial. UA is soliciting proposals for student housing within walking distance of the new streetcar, so I'm sure plenty of property owners want a piece of the pie.

atbg8654

Sep 17, 2010, 8:14 PM

Where will this La Placita village exactly be?

Locofresh55

Sep 18, 2010, 4:57 AM

Where will this La Placita village exactly be?
La Placita is the vibrant colored, multi-story buildings near the convention center. You can see it on brodway before you pass Church Ave. There's some restaurants and random shops and I think a Gold's Gym too. It has potential but I'm not sure about college kids there. I thought the Depot Plaza Centro (whatever it is called) was going to be the big U of A downtown presence. La Placita just seems out of the way for U of A and if they are going to house students.....how many students???? are they looking to expand in anyway? I definitely would like to see some life to La Placita because it has potential and with Mercado District getting ready to open.....It's gonna be hard to attract potential tenants.

Anqrew

Sep 18, 2010, 10:41 AM

sounds nice..

"Xoom Juice had a good enough first year Downtown for owner Ari Shapiro to diversify to a coffee shop just two doors to the east.

Shapiro is the man behind the Sparkroot signs in the window at Congress and Fifth Avenue in the year-old commercial strip at the One North Fifth Apartments. He’s shooting to open Sparkroot in early 2011. He envisions it as a neighborhood hangout.

Shapiro is busy enough with the three Xoom Juice stores he owns in Tucson, but he has a serial entrepreneur gene."

http://sparkroot.com/
http://www.downtowntucson.org/news/?p=2620

retrorv

Sep 20, 2010, 5:21 PM

arizona stadium is the biggest jalopy stadium in college football. every addition has stuck out like a sore thumb, incorporating zero integration into previous structures. it's like the homer car of college stadiums.

I'm aware of 3 expansions. The first was in the mid '60's when the west side was expanded. It was totally integrated into the early design. In the late '70's the east side expansion was done and it was not integrated and thank God for that. Keep in mind the original Arizona Stadium was built in the early 20th century so "integration" as it were really isn't an option. The last was the sky boxes/press boxes done in the '80's and again in the '90's. But its not as bad as the Coliseum in LA. That place is antiquated and dilapidated.

kaneui

Sep 23, 2010, 2:00 PM

While covering all the proposed developments along the new modern streetcar route, this article also questions whether the streetcar itself or government subsidies will be the actual impetus for more TOD:

http://i12.photobucket.com/albums/a228/kaneui/Streetcarrender4.jpg
(render: City of Tucson)

A Streetcar Named Development
What attracts more people and business: transit tracks or government subsidies?

by Dave Devine and Molly McKasson
Tucson Weekly
September 16, 2010

All Aboard!
When Mayor Bob Walkup proudly announced in February that Tucson had received sufficient federal funds to likely ensure the implementation of a modern streetcar line, he bubbled, "Everything now changes." Similar enthusiasm was expressed in 2006 by the now-defunct Tucson Citizen. Before the successful Regional Transportation Authority (RTA) election, the newspaper proclaimed: "Supporters say other Western cities have found that permanent streetcar systems have spurred business development along the routes, creating jobs and expanding local tax bases."

RTA money and those federal funds will cover most of the cost of the 4-mile, almost $200 million streetcar project. But based on the experience of other communities, critics caution that Tucson shouldn't expect the streetcar to be a "cash cow" for future development. Randal O'Toole of the libertarian Cato Institute has researched the economic impacts of light-rail and streetcar lines in detail, and is a well-known critic of these types of public transit. (The differences between these two types of rail systems have to do with the type of track and right of way used, along with the length of the route.) O'Toole says he's found no proof that modern streetcars are any kind of engine for economic turnaround. "It's a Disneyland toy which doesn't attract new development," O'Toole declares. O'Toole suggests that instead, government subsidies draw developers to invest near streetcar and light-rail lines. He writes in an article: "Developers in Portland, Oregon, built no new transit-oriented developments along the city's light-rail line until the city began subsidizing such developments 10 years after that line opened." He elaborates in a phone interview. "Every time I ask for an example (of development along a line)," O'Toole says, "I Google it and find tax-increment financing or something like it involved. (Such developments) are almost always subsidized."

Tucson's modern streetcar will charge riders fares and is slated to run from University Medical Center through the UA and the West University neighborhood. From there, it will cut south on Fourth Avenue and then head west on Congress Street before jogging to the far side of the Santa Cruz River. Local backers, including westside Councilwoman Regina Romero, are confident that the streetcar will help revitalize property along its route. "We know what happens with streetcars in other places," Romero explains. "There's a lot of development and housing." Even though the streetcar line won't be in operation until 2013 at the earliest, plans and proposals by the score are already being floated for land-use changes along its route. On the campus itself, attention is being paid to how the streetcar might help spur implementation of the proposed Warren Avenue mall. "We're really excited about it," says Peter Dourlein of the UA Planning, Design and Construction Department.

University Stop!
The first focus of proposed development concentrated along the streetcar route is centered on the area between Speedway Boulevard, Sixth Street, Park Avenue and Euclid Avenue. Often referred to as a "transition zone" between the UA and the West University neighborhood, this land presently has a mix of uses including dormitories, the Main Gate Square commercial center and some single-family homes used as residences or offices. In the past several years, two high-density, high-rise residential and retail projects were proposed for this area, but neither got off the ground. In supporting this type of intense development, then-City Councilwoman Nina Trasoff remarked in 2008: "I've been pushing transit-oriented development in the last two years. ... It's a good plan to encourage greater density. I have a responsibility to do that."

But how much of a subsidy—from a city government that is basically broke—will it take to encourage intense development along the streetcar line? Would subsidized developments even be positive for the community? Steve Kozachik, who defeated Trasoff in last year's city election, observes: "The streetcar by itself makes no economic sense. The city has to take the initiative by putting together a menu in terms of what we can offer developers for housing and retail. It could be a mix of things like land swaps, parking and/or financial incentives."

The result would be transit-oriented development, or TOD, a current buzzword among contemporary urban planners. Unlike traditional city planning, in which land uses determined transportation decisions, TOD goes the other way: Transportation via modern-streetcar or light-rail systems drives land use. Developer Mike Noonan last year proposed a multistory student-housing project near University Boulevard and Euclid Avenue, about one block away from a future streetcar stop. He believes the line can be a bonus for his development—but it's not the lynchpin. "The big thing for us," Noonan explains, "is proximity to the UA." Noonan's proposal received the support of the West University Neighborhood Association, though some individual board members continue to oppose it. "The developer is promising the neighborhood a minimum of $15,000 per year from a historic bed tax," comments longtime resident John Patterson. "If the neighborhood is going to support this project, it should be on the merits of the development and not on getting money."

As for the role of the modern streetcar in encouraging high-density projects like Noonan's, Patterson reflects: "I was excited before and supportive (of the line), but now I think this will put too much pressure on the neighborhood." Another neighborhood resident, Brian McCarthy, says he supports the streetcar line. "But I'm also in favor of protecting our neighborhood with historic design and implementation." Kozachik represents the West University area on the City Council, and he brings up another argument for transit-oriented development. "By identifying places closer to the downtown area (for student housing), the UA will benefit, but so will the neighborhoods that don't have to end up with mini-dorms," Kozachik says.

Patterson does not agree that high-density development along the streetcar line will discourage the blight of mini-dorms in areas around the campus. "There is absolutely no proof of that," he says about Kozachik's claim. Even though Noonan's student-housing proposal went to the Planning Commission in June—where it was recommended for adoption by the City Council with modifications—it appears to be on hold. Noonan is reportedly in the process of selling the project to Campus Acquisitions, LLC, of Chicago. That company was one of seven firms that responded last month to a UA request for proposals (RFP). The RFP solicited submissions from developers "to construct new non-freshman undergraduate- and/or graduate-student housing, ranging in number from approximately 300 to 1,200 beds."

The budget-challenged university has no desire to be directly financially involved with any of the selected projects. Instead, it will offer incentives such as "student referrals and marketing, (and) branding and management collaborations." One of the primary criteria to be used in selecting a proposal, according to the RFP, is "projects which will be served by the modern streetcar and projects which contribute to a university presence in the downtown area." While some of the companies that submitted responses to the UA declined to comment, we do know that Noonan's proposed development would be located near the campus, while most of the others are planned for downtown. At the deadline for this story, the selection process was proceeding slowly, with university officials hoping to make a final decision on the RFP by the end of the year.

Meanwhile, residents of the West University neighborhood have another potential high-density issue to consider. At the end of June, a limited-liability corporation headed by Jim Horvath of Town West Realty purchased several historic residences in the neighborhood. They are located at the southwest corner of Euclid and University, across the street from Noonan's proposed project. Some time ago, Town West Realty demolished an old structure at Campbell Avenue and Sixth Street to construct Sam Hughes Place, a controversial mixed-use project with retail and condominiums. But Horvath insists the same future isn't planned for the West University neighborhood property. "We want to restore the buildings," he says. "We're not going to try to tear them down. We want to add more units in back with parking."

Fourth Avenue Stop!
The West University Neighborhood Association has been working to update the existing land-use plan for the area, in anticipation of higher-density development in the transition zone between Park and Euclid avenues. Another plan—this one commissioned by the city of Tucson—has been prepared for the blocks west of Fourth Avenue. Referred to as the Warehouse Triangle District, this area is bounded by Fourth Avenue to the east, the Union Pacific railroad tracks to the south, and Sixth Street to the north. According to the land-use plan, prepared by Poster Frost Associates, one major goal for this triangular area should be to acknowledge "the value of the coming influence of the streetcar (and) promote transit oriented development in this district." In addition, the plan suggests that City Hall "assist developers in their efforts to achieve substantially increased density on larger-parcel development sites." New mixed-use buildings up to 10 stories tall are recommended to replace the mostly single-story commercial and arts-oriented structures now present. The exception to this recommendation, according to the plan, would be that "all historic buildings are preserved."

These are just two of the planning efforts now underway that will potentially affect land uses along the entire length of the modern streetcar line. The city of Tucson also recently submitted an application for a Community Challenge Grant of the U.S. Department of Housing and Urban Development for almost $3 million. According to a memorandum sent to the City Council last month about the application, one of the two objectives of the grant is to "address land use, regulatory and perceptual barriers and opportunities to promote public and private development along the 4-mile streetcar alignment."

Albert Elias, director of Tucson's Housing and Community Development Department, expects a decision on the grant application by Dec. 1. He believes federal officials making the selection will be looking to support certain objectives. "The people heading this up (at the federal level) are thinking big on urban context," Elias says. "They're interested in Tucson and believe some strategic investment can transform the community. In making federal investments (in a city), they want to see some transformational changes made." What changes would be considered transformational? According to Elias, they include the development of new housing, commercial establishments and streetscape improvements along the streetcar route. The goal of these changes, he states, is partly public-relations oriented. "Investment along the streetcar line in an urban form that's different than found today ... can help people see the value of the streetcar," Elias says. But major questions remain about these possible land uses next to the streetcar line. First, how much will it cost the city to make them happen? Second, will the payback to the community be worth the public investment?

Downtown Stop!
Once the streetcar emerges from the south end of the Fourth Avenue underpass, it will head west on Congress Street. As in the UA area, new high-density developments are being discussed downtown. But judging from a survey of several other Western cities with streetcar or light-rail systems, such developments seem likely to depend on government subsidies. While supporters of Tucson's streetcar like to use Portland, Ore., as a comparison for the anticipated impacts, that analogy is like Toros fans believing their team can emulate the New York Yankees. Instead, more realistic role models are in order.

Opened in 2004, the Tacoma, Wash., streetcar has a one-mile route, is free and carries about 800,000 passengers annually. According to Bob Levin, manager of project capital for the city of Tacoma, the line has generated some new downtown development, but not at the density desired. "There are some new condos," Levin observes, "but I don't know if they're attributable to the streetcar line." Levin also says that developers were interested in using public/private partnerships to build student dorms near the line to serve the University of Washington at Tacoma. But those ideas, he says, "haven't gone forward." Levin mentions that the LeMay-America's Car Museum will use the streetcar line by building a 165,000-square-foot exhibit hall along the route. In addition, Pacific Plaza, a public-private partnership, will combine office and retail uses with automobile parking.

In Salt Lake City, the first light-rail line was inaugurated more than a decade ago, and while it exceeded ridership projections from the start, Gerry Carpenter says that didn't result in new downtown development. "Transit-oriented development was slower in coming than was expected," reports Carpenter, spokesman for the Utah Transit Authority. "We're just now seeing movement in that direction. We had small apartments and other uses, but not mixed-use, but that now may be happening."

Jack Wierzenski, director of economic development for Dallas Area Rapid Transit, indicates the recession has significantly impacted downtown development related to their light-rail line. While more than $4 billion in investment had been attributed to the line, Wierzenski says: "It's really slowed down in the last few years. ... Financing is still difficult for mixed-use projects. ... It's just a lot of talk now, but no go."

Since the Phoenix light-rail line was initially proposed in 2004, its backers tout $5.9 billion in private investment and another $1.5 billion in public expenditures along the route. This includes more than 17,000 residential units, in excess of 9 million square feet of commercial space, and 3,200 hotel rooms. But Hillary Foose of Valley Metro acknowledges the recession has changed things. "Development's not happening at the rate of 2004 and '05," she admits. O'Toole from the Cato Institute holds up Phoenix as an example of what can go wrong. "All the high-density development got free land, but the developers got hornswoggled, and most of the projects flopped, because just building them doesn't create more demand," he claims of property near Phoenix's light-rail line.

One downtown Tucson project proposed immediately adjacent to the streetcar line is Jim Campbell's student housing complex near the Fourth Avenue underpass. Campbell recently submitted a 300- to 650-bed proposal on this site for consideration by the UA. Campbell says of the streetcar route: "It really helps with connectivity (to the UA). It's a critical aspect of the proposal." Another downtown project related to the streetcar route is the proposed use by the UA of the former Walgreens building at Stone Avenue and Pennington Street. Negotiations are ongoing with Pima County, which owns the building, and a decision is expected within two months. If this project comes to fruition, the university would use the historic structure for an urban-design studio and classes pertaining to government functions.

Final Stop!
At Granada Avenue and Congress Street, the streetcar route swings south, passing the federal courthouse and the mostly vacant land west of the Tucson Convention Center. One development idea for this empty land reportedly comes from the Phoenix firm OTB Destination. They have proposed using city-owned property south of Congress Street, where the supposedly temporary Greyhound bus station is now located, to build a high-end outlet mall. Having already implemented similar projects in four other communities, the company is apparently seeking assistance from City Hall. (Their representative didn't respond to e-mail messages seeking comment.)

Continuing west on Cushing Street, the streetcar will skirt under Interstate 10 and cross the Santa Cruz River. Its route then passes what was once the site of the proposed Rio Nuevo museum district. Despite the sorry state of affairs in what was the museum district, the streetcar might still hold the key to several developments on the west side of the river. Adjacent to the proposed streetcar tracks and situated south of Congress Street is Jerry Dixon's Mercado District of Menlo Park. Under development since 2004 and now including 26 homes, this subdivision will be complemented shortly with the opening of a shopping mercado containing 18 locally owned small businesses.

Next door, Dixon is planning the 14-acre Gadsden development—through which the streetcar will loop. This land was acquired by Dixon from the city in 2008, and under a development agreement for the property, he will either pay approximately $3 million for the streetcar tracks to be installed in the area, or reimburse City Hall for the work. A six-story, 143-unit senior-living facility along Congress Street is scheduled to be the first phase of the Gadsden project. Dixon expects it to be under construction within 12 months. Dixon also has plans along Congress Street for two mixed-use buildings containing residential units above retail space. He anticipates these buildings will be under construction before the end of 2011. A large chunk of land in the center of the Gadsden project site is slated for a 200,000-square-foot commercial development and 650-space parking garage. Dixon calls this project a traditional shopping experience.

But it's a vacant piece of land south of Cushing Street—once the proposed site of the Rio Nuevo underground parking garage and surface-level cultural plaza—which Dixon considers critical to his $23 million investment to date, plus most of his future plans. "For us to be successful," he insists, "we must address the land south of Cushing." Dixon would like to obtain the land and build, utilizing a public/private partnership, a 100,000-square-foot destination shopping center. Modeled after a market in Budapest, Hungary, the facility would have shops and restaurants. Dixon says he's even talked to representatives of the Arizona Historical Society about locating their museum there. Currently, this property is the site of a 30-foot-deep hole in the ground. It was excavated for the planned parking garage and to remove garbage once buried on the site. Dixon believes the enormous depression will have to be filled in before anything can happen around it. That responsibility, he believes, rests with the city of Tucson.

There are other potential snags in Dixon's plans for the land south of Cushing Street. These include a possible property-ownership dispute between the city and the Rio Nuevo Multipurpose Facilities District Board, as well as a reported $7 million monetary disagreement between the UA and City Hall concerning the land once slated for the UA Science Center. What happens to the hole in the ground, though, is the critical hurdle, according to Dixon. "I'm a businessman, and I can't lease space (in most of my other proposed projects) with that big hole in the ground," he says. Dixon indicates that if City Hall doesn't make a decision on this issue by the end of the year, he'll pull the plug on all of his proposals, with the exception of the development along Congress Street. At this point, though, the city hasn't even determined how much it might cost to fill the hole. Despite Dixon's threat, he's confident that the streetcar will be transformative for Tucson. He made a substantial amount of money in Phoenix, he says, by selling property three blocks from the light-rail line, and calls the Tucson project "a game-changer."

But the unknowns make the area around the western terminus of the streetcar a question mark. It could become a thriving residential/commercial area—or it could remain a hole in the ground. Councilwoman Romero believes the future use of the Rio Nuevo land is critical. She says she's directed city staff to put together a working group to consider its future. Romero insists that she doesn't want to give up on the Tucson Origins Park, which was slated for part of the area. However, she also thinks the idea of city financial participation in westside land-use projects along the modern streetcar line is farfetched.

O'Toole from the Cato Institute sees things differently, believing it's government subsidies, not streetcar traffic, that are required to drive most development decisions. "I question government meddling in downtown redevelopment," he says. "A streetcar doesn't help." The well-known light-rail/streetcar critic adds: "Extend my sympathies to the people of Tucson for being subjected to this white elephant." But Romero remains optimistic that development opportunities will exist along the streetcar route. "We're looking for programs that will help in these economic times," she says of assistance efforts, "without poking into the city's general fund. We need to be as creative as possible."

Is the Trolley Toast?

http://i12.photobucket.com/albums/a228/kaneui/Trolley-1.jpg
(photo: City of Tucson)

For many years, everyone has assumed that the modern streetcar would co-exist with Tucson's historic trolley, which has been operated by volunteers on Fourth Avenue and University Boulevard since 1993. The two would share track and complement each other, it was believed.

That idea now appears to be in jeopardy. According to Dick Guthrie of Old Pueblo Trolley, "The city's consultants seem to be proposing something which precludes operation of our historic cars." Guthrie hopes that attitude will change. "Our biggest concern is to educate the consultants about a street railway system that includes modern streetcars," he says. If that can't be accomplished, Guthrie warns: "Right now, we're teetering on the brink of losing the historic trolley."

Anqrew

Sep 24, 2010, 10:17 AM

i was bored and made this animation. thought i would share.
http://i54.tinypic.com/1fes8.gif

kaneui

Sep 26, 2010, 5:26 PM

Diamond Children's Hospital Medical Center opens
By Joe Pangburn
Inside Tucson Business
September 25, 2010

After years of plans and months of construction the Diamond Children’s Medical Center is a reality. “This pediatric medical center has been in the making for more than 15 years, and it is so gratifying to see the building finally finished,” said Vicki Began, UMC vice president of Women, Children’s and Emergency Services. “Already it is helping us recruit top-notch pediatric sub-specialists to Southern Arizona,” said Dr. Fayez K. Ghishan, head of the department of pediatrics and director of the Steele Children’s Research Center.

An initial $15 million gift from developer Don Diamond got the ball rolling on the center and the community did the rest. The center is officially open to the public Tuesday (Sept. 28).

kaneui

Sep 26, 2010, 5:34 PM

With construction of the actual streetcars already underway in Oregon and the laying of tracks scheduled to begin in early 2011, Tucson has a new website for the modern streetcar line:

http://www.tucsonstreetcar.com/

chenley

Sep 27, 2010, 5:35 PM

New publication by National Academies Transportation Research Board, sponsored by the Federal Transit Administration - Relationships Between Streetcars and the Built Environment

"This synthesis presents an overview of published literature on the relationship between streetcars and the built environment, a survey of 13 streetcar systems that have been recently built or expanded, and in-depth case studies of five systems to describe the current state of knowledge and elaborate on the relationship of streetcars to the built environment."

http://www.trb.org/Main/Blurbs/164091.aspx

kaneui

Sep 28, 2010, 4:29 AM

The first projects in the new 14-acre "Mission District" west of I-10 will be a six-story, 140-unit building for low-income senior housing, and an 85-unit mixed-income project with retail and commercial space, all to be finished by the end of 2012:

http://i12.photobucket.com/albums/a228/kaneui/MissionDistrictsite.jpg
This vacant land near downtown will be the site of a senior-housing project,
south of Congress Street and across I-10 from downtown high-rises.
(photo: Jeffry Scott)

6-story building set near downtown
Broader development on 14 acres to include businesses, offices

by Dale Quinn
Arizona Daily Star
September 27, 2010

A six-story building to house low-income seniors is set to rise just west of downtown, on vacant land near Interstate 10. The Arizona Department of Housing just awarded the project - for now called the New Armory Building - an annual allotment of $2.85 million in low-income-housing tax credits for the next 10 years. The federal tax credit is the largest reserved for any such project in the state, and it leaves little time for construction to languish. For investors to qualify, the 143-unit building has to be occupied by the end of 2012.

The $26 million housing project is one component of a 14-acre, commercial and residential development south of Congress Street on the west side of I-10. The development is within Rio Nuevo's boundaries, but the developer says it's being funded through private investment. An 85-unit, mixed-income project that will include 24,000 square feet of ground-floor retail and 6,000 square feet of office space is slated for completion about the same time as the low-income housing. It will all be on vacant land that for years was occupied by a 70,000-cubic-yard pile of dirt.

The Gadsden Co. acquired the land from the city in 2008 through a competitive request for proposals, and under terms of the transaction, it was required to include low-income housing. "What we're trying to do is make sure there's availability for mixed-income individuals to find housing downtown," said City Councilwoman Regina Romero. Gadsden plans to reserve about 140 of 450 total housing units in the overall project for affordable housing, said Adam Weinstein, a Gadsden partner. "We're trying to build quality infill housing for a diverse population - not just a high-end product." Weinstein said.

In December 2009, Gadsden was approached by Steven Greenbaum of the Chicago-based Senior Housing Group. Greenbaum had contracted to buy Armory Park Apartments, a nearly 40-year-old, low-income building for seniors at 211 S. Fifth Ave. Under the contract, Greenbaum agreed to improve the apartments or build a new structure to house the seniors. Sprucing up that building would have been expensive, Greenbaum said. He began to look at other options to house the seniors, as well as to preserve low-income housing subsidies the building's owner was receiving. Looking around downtown, Greenbaum decided the Gadsden property was a good location. He said a new project would let him to provide new amenities for residents. Also, because federal restrictions on the Armory Park Apartments were set to expire at the end of 2013, there no longer was any legal requirement for the owner to keep that building affordable.

Greenbaum worked with The Gadsden Co. to buy some of its land. That transaction should close at the beginning of December, Weinstein said. Greenbaum is still working to nail down investors who will pay for the low-income apartments, but he said there's substantial interest. What will become of the existing low-income apartments near Armory Park hasn't been determined yet, Greenbaum said. Though the timeline may change, Weinstein said, the plan is to have the entire $300 million, 14-acre development finished in about 10 years.

atbg8654

Sep 28, 2010, 4:25 PM

:previous: That pic makes our downtown look really dense haha

kaneui

Sep 29, 2010, 11:32 PM

CEO Fletcher McCusker, whose Providence Service Corp. now rents the 64 E. Broadway building restored under the Facade Improvement Program's Phase I, is now raising $80k of private money to match the remaining $80k program funds, with $40k to be set aside for smaller projects. (Apparently, a prior award of $80k to restore the W.A. Julian/ZenRock nightclub building on Congress was forfeited.)

http://i12.photobucket.com/albums/a228/kaneui/FMcCuskerMKeith.jpg http://i12.photobucket.com/albums/a228/kaneui/BeowulfAlleyTheatrefacade.jpg
Fletcher McCusker (left), CEO of Providence Service Corp., and Michael Keith,
CEO of Downtown Tucson Partnership, talk about the Façade Program at a press
conference that also revealed the plan for Beowulf Alley Theatre.
Right: The new façade at Beowulf Alley Theatre.
(photos: Downtown Tucsonan)

Private funds help expand façade program
by Teya Vitu
Downtown Tucsonan
September 29, 2010

Even as Beowulf Alley Theater begins today to update its look through the city’s Façade Improvement Program, the program’s supporters are looking to the future. The second round of the program will have a two-tiered system of grants partly supported by private funding. Providence Service Corp. CEO Fletcher McCusker has pledged to raise $80,000 in private sector funds to combine with the $80,000 remaining from the first round of the Façade Improvement Program, which is managed by the Downtown Tucson Partnership.

The $160,000 fund, would allow one or two more large-scale historic façade improvements, such as those carried out at The Screening Room, the Rialto Block and 64 E. Broadway. But $40,000 of the money would be set aside for “paint and awning” projects for both historic and non-historic buildings, said DTP CEO Michael Keith. The grants would range from $500 to $10,000. The second round of requests for proposals will go out as early as Nov. 1. Both the major renovations and smaller façade grants will follow a similar request for proposal process where a selection committee will decide who gets funding. Business or property owners would be expected to match the grant amount, Keith said.

The three façades completed through the program have been resounding successes for Downtown revitalization. As soon as the $250,000 façade work was done at 64 E. Broadway, McCusker started angling to move Providence’s corporate headquarters from Midtown to Broadway and Scott. Since opening in May, McCusker has also leased the neighboring buildings to the west and bought the adjoining four-story concrete block at 44 E. Broadway. Unisource Energy started construction across the street for a new, nine-story headquarters.

The Rialto Block’s $300,000 restoration of the structure’s 1920s look immediately landed Bodies: The Exhibition, which extended its run twice. Titanic: The Artifact Exhibition will open in the space Oct. 23. The Rialto and 64 E. Broadway owners each received $125,000 in city Façade Improvement funds and The Screening Room got $63,000. The Screening Room’s lighted marquee transformed a niche independent film venue into a popular locale for band concerts, birthday parties, a Club Crawl venue and led to a 30 percent increase in film festival crowds. Beth Dell, executive director of Beowulf Alley Theater, 11 S. Sixth Ave., said she expects similar results from its transformation. Keith doesn’t want to settle with this projected $160,000 façade improvement pot. “I started looking up and down the street,” Keith said. “There are a lot of buildings I want to be able to strip down and return to their original historic elegance. We obviously need to find additional funding.”

Façade Improvement Program investment

Projects completed: 3

Projects in progress: 1

City of Tucson Preservation funds granted: $ 236,000

Matching funds raised: $286,000

Phase 2

City funds available: $80,000

Private funding pledged: $80,000

Major projects:
• Building must be on the Historic Register or eligible for the register
• Owners will be required to convey a preservation easement to the City of Tucson
• Grants amounts range from $60,000-$120,000
• 50-50 match is required
• Program will go out for proposals in November 2010

Minor ‘Paint & Awning’ projects:
• Building can be either historic or non-historic
• No preservation easement will be required
• $40,000 will be set aside initially
• Grant amounts will range from $500-$10,000
• 50-50 match is required
• Program will go out for proposals November 2010

kaneui

Sep 30, 2010, 12:03 AM

A Google billionaire is apparently saving the luxury home development at the Ritz-Carlton from foreclosure:

http://i12.photobucket.com/albums/a228/kaneui/RitzCarltonresidences.jpg
Outdoor firepit and lighted pool with hot tub at The Residences at
The Ritz-Carlton, Dove Mountain.
(photo: Jim Davis)

Infusion by Google magnate good news for The Residences
by Dale Quinn
Arizona Daily Star
September 29, 2010

A Google magnate has poured cash into The Residences at The Ritz-Carlton, Dove Mountain, making the luxury Tucson-area development one of few able to recapitalize in a struggling housing market. The investment from Ray Sidney - Google's third employee - has cleared the development's debt and lowered the price point for the properties tucked into the foothills of the Tortolita Mountains. Sidney, a software engineer, cashed in his Google stock options when the company went public, yielding him "more money than he could ever burn through in his lifetime," The Associated Press has reported, adding, "Billions? He won't say."

Sidney's support was crucial to the Dove Mountain project's ability to move forward, said local developer David Mehl. "Like every other project in the United States, the economics did not work based on how it was originally conceived," Mehl said Tuesday. The luxury market has not been immune from the severe downturn in the housing market. Earlier this year, several lots in the Stone Canyon development in Oro Valley received foreclosure notices. So did lots in Butterfly Mountain, a high-end project near North Thornydale and West Moore roads. Without Sidney's investment, The Residences at The Ritz-Carlton could have faced a similar situation. To cover the debt, finished homes were previously priced about $600 to $800 per square foot, Mehl said. But given current housing conditions, that's a higher price than buyers were willing to pay. The homes are now priced about $400 per square foot. "It definitely allows us to reprice our homes to reflect where the market has settled," said Mehl, who's the president of Cottonwood Properties.

The Residences at The Ritz-Carlton are in Marana northwest of Tucson, along a 27-hole golf course designed by Jack Nicklaus. The Ritz-Carlton Dove Mountain resort, which opened last December, is nestled nearby among the rocky, saguaro-laden slopes. Right now, construction is under way at one home in The Residences. Several others should start going up in coming months, Mehl said. Sidney's investment is helping that construction move forward.

Sidney joined Google in 1999 and left the company about four years later. After his exit, he became involved in philanthropic enterprises focusing on the environment and education. He also started putting money into real estate. He's invested in properties in California and Nevada. The Residences at The Ritz-Carlton is his first foray into real estate in Arizona, he said in a phone interview Tuesday. Sidney, who lives near Lake Tahoe, first visited Mehl's development this spring and found it to be a unique opportunity, he said. With an eye for sustainable real estate projects, Sidney said he plans to incorporate more environmentally friendly components into the homes.

He learned of the project through another of Mehl's investors he'd worked with in the past. Sidney said he's aware of challenges facing Tucson's housing market. In fact, he said the decline is what allowed him to make an effective investment. "That situation is what allowed me to get involved with the Ritz-Carlton development with what I viewed as a very valuable price point," he said. He would not say how much cash he put in. Seeing the completed Ritz-Carlton resort - a separate Cottonwood Properties development - added to Sidney's confidence in financially backing Mehl. Also, the Ritz-Carlton brand carries a worldwide reputation for quality, he said. "Now I and David Mehl will be able to make some money while making a really amazing development," Sidney said.

AT A GLANCE

The initial residential phase of The Residences at The Ritz-Carlton plans for 126 homes, with 16 of those custom sites in the Rockpoint Ridge neighborhood. Those sites start at $605,000. Homes in the development's Amolillo neighborhood start at $1.1 million, while homes in the Seven Saguaros neighborhood start at $1.5 million.

Locofresh55

Sep 30, 2010, 6:19 AM

Does anyone plan on taking pics around downtown and the U of A area? I've been gone from Tucson for 2 months (deployed to Iraq) and I've been wondering what was going on with the UniSource Building, the new MLK apartments and the Sixth St dorms. I will be back in Tucson around March so if anyone plans on taking some pics I would really appreciate it.

kaneui

Sep 30, 2010, 7:10 PM

kaneui

Sep 30, 2010, 7:42 PM

http://i12.photobucket.com/albums/a228/kaneui/MOCAcourtyard.jpg
MOCA plans to use its outdoor space for both events
and exhibition of artwork.
(photo: Downtown Tucsonan)

MOCA ‘completes building’ with finished plaza
Downtown Tucsonan
October, 2010

A plaza took shape over the summer outside the large, roll-up bay doors at the Museum of Contemporary Art’s new home in the former Tucson Fire Department headquarters, 265 S. Church Ave. The plaza converted the sloping driveway into a level plane extending out from the former fire engine bay, which serves as MOCA’s large exhibition hall. “This is an extension of our interior space so we have an opportunity to open the bay doors and create indoor/ outdoor programming,” MOCA President Randi Dorman said. "One of the things I love about the plaza is it looks as if it was meant to be part of the building. It kind of completes the building.”

The plaza has some landscaping and eventually will have outdoor art, sometimes in conjunction with what’s indoors. But no outdoors exhibit has yet been planned for the plaza, which will have its official opening later in fall, Dorman said. The plaza was fully funded by a grant for an undisclosed amount from Cox Communications. “From the second we saw this building, we saw an opportunity to expand the exhibit space with a plaza,” Dorman said.

MOCA got the certificate of occupancy for the former fire HQ in December 2009 and opened the museum to the public March 6. MOCA has a five-year lease with the city for the space, which is considered the museum’s first permanent home. MOCA was founded in 1997, but until now has occupied “sub-par” space in a variety of Downtown locations and in recent years often had no exhibition space at all. “This is the first space on par with the quality of programming we do,” Dorman said. “We are now in our sustainability and permanent phase.” Plaza construction started in July and was largely completed in September.

kaneui

Sep 30, 2010, 8:49 PM

http://i12.photobucket.com/albums/a228/kaneui/PlazaCentroRender4.jpg
Plaza Centro mixed-use building - Phase I
(render: AI Architects)

1 new garage opens, another gets started at east end
Downtown Tucsonan
October, 2010

A groundbreaking ceremony Oct. 1 launched construction of the 378-space Plaza Centro Garage wedged into space bounded by Congress Street, the Fourth Avenue underpass and the railroad tracks. The four-level, $6.5 million garage should be open by June 1, said Chris Leighton, parking coordinator for the city’s ParkWise division.

Plaza Centro will be the second new city garage in quick succession for the eastern end of Downtown. The 285-space Depot Plaza Garage was scheduled to open the first week of October. The Plaza Centro Garage, 345 E. Congress St., is the parking element for a public-private partnership long touted by developer Jim Campbell, who plans to bring retail and housing to the site. Leighton said construction of three stories of housing should start on top of the garage as soon as the garage is built. Downtown Tucson Partnership Chief Executive Michael Keith said two types of housing are under consideration for Plaza Centro. There could be 60 units of workforce housing or living units for University of Arizona students.

Anqrew

Sep 30, 2010, 9:53 PM

Finally some news on Plaza Centro!

kaneui

Oct 2, 2010, 2:27 AM

With its projected revenue forecast in doubt, an inexplicably high Guaranteed Maximum Price to build, and other local hotels/resorts now facing imminent foreclosure, a forthcoming announcement by the new Rio Nuevo Board that the proposed TCC expansion and hotel deal is dead will be no surprise to anyone who has been watching this saga unravel over the past several months:

In back and forth game, hotel may now be dead
By Joe Pangburn
Inside Tucson Business
October 01, 2010

The downtown convention center hotel could very well be dead in the water and even those who were strongly in favor of the plan can walk away and still save face. The potential knockout punch was dealt through a unanimous vote by the Tucson City Council to send the project back to Rio Nuevo, specifying city staff could not bring the project back to the council until four items are fulfilled. The council wants Rio Nuevo to abide by the establishing legislation, which means the Rio Nuevo Board must first vote on moving forward with the hotel. The other three conditions include:

• A reduced guaranteed maximum price (GMP) for the project and reduced developer and design/build fees.

• A resolution of issues relating to the use of local subcontractors on the project – or hiring more local subcontractors to build the hotel.

• Acquiring additional security – money – from the hotel operator, Sheraton.

“The city taxpayers cannot backstop this entire project,” said Steve Kozachik after the vote. On the surface, it appears to be the latest toss in the back-and-forth game the council and the Rio Nuevo board have played the last few weeks with neither body wanting to cast the first vote on the project. Hotel developer Garfield Traub has said they will work on lowering the GMP and will talk about lowering design/build fees, and that these are reasonable requests.

Those close to the situation say they don’t expect all four conditions to be met. Because of that, the project may never come back to the city for a vote. The ultimatum motion actually gives Mayor Bob Walkup, the city council and Rio Nuevo the political coverage to back away from the project while still being able to claim they made the effort and also protected taxpayers. The $258 million package of the hotel, convention center improvements and parking garage has to be approved and bonds sold before the end of the year or the bond instrument the city planned to use – Build America Bonds – will become more expensive and the total price will go up again.

Ritarancher

Oct 3, 2010, 7:20 PM

Why doesn't Sheraton pay for their own hotel any way?:shrug:

Ritarancher

Oct 3, 2010, 7:24 PM

:banana: Hopefully all of the new garages in downtown will make parking easier

Ritarancher

Oct 4, 2010, 1:53 AM

[COLOR="Cyan"]Tucson is nice for bikes with all of the bike lanes.

aznate27

Oct 4, 2010, 8:07 AM

Why doesn't Sheraton pay for their own hotel any way?:shrug:

Exactly!!!! :previous:

atbg8654

Oct 4, 2010, 8:26 AM

Why doesn't Sheraton pay for their own hotel any way?:shrug:

Cuz they know it's a bad idea too :haha:

somethingfast

Oct 4, 2010, 7:06 PM

Cuz they know it's a bad idea too :haha:

you need to realize that all government is run by corporations now...Sheraton doesn't have to incur the risk or cost of buidling the hotel (that's on the taxpayers thanks to corrupt politicians) but the DO get to reap the rewards if it's successful. they are a large corporation and deserve to have taxpayers work for them, not the other way around...this is the America we have asked for, folks...socialism at its best (worst)... :tup:

Ritarancher

Oct 5, 2010, 4:08 AM

Sheraton should pay for their own hotel

Ritarancher

Oct 6, 2010, 7:47 PM

Some one should put the new energy building on the diagrams page:cool:

kaneui

Oct 7, 2010, 9:18 PM

Even as the downtown dining scene kicks up a notch this month with the opening of Janos Wilder's Downtown Kitchen + Cocktails, Kwang An says his new sports bar/restaurant may not open until the streetcar construction on Congress is finished in 2012:

http://i12.photobucket.com/albums/a228/kaneui/AnCongresssite.jpg
The proposed site of An Congress is at East Congress Street and North Fifth
Avenue, but the restaurant's opening has been delayed.
(photo: Dean Knuth)

An Congress opening delayed
Timing for restaurant debut downtown is now uncertain

by Coley Ward
Arizona Daily Star
October 7, 2010

Kwang C. An's new downtown restaurant won't open next month as originally planned. Not even close. An and partner Scott Stiteler say they aren't sure when An Congress, at the southwest corner of North Fifth Avenue and East Congress Street, will open. "I want to make sure the timing of opening up something of that size coincides with other projects moving at a good clip," Stiteler said. Tucson's $182 million modern streetcar, which has been twice delayed, is one of Stiteler's biggest concerns. The streetcar is now scheduled for August 2013 at the earliest. An said his restaurant might not open until 2012. He doesn't want to open until installation of new rail lines on Congress Street has finished. "I want to do it right," he said. The city Transportation Department estimates the rail-line construction on Congress Street will begin in mid-to-late 2011 and last six months. "It's important to me and a lot of downtown businesses that the streetcar go on as scheduled," Stiteler said. Stiteler and An plan to meet sometime in the spring to discuss a new opening date for An Congress. In the meantime, renovation of the building, which is currently boarded up, will continue.

An Congress eagerly Awaited
Other business owners on Congress Street are eager for An Congress to open its doors. Ari Shapiro, who owns Xoom Juice, a smoothie company across the street from An Congress, said he's "going with the flow." "I'd like there to be more density on Congress," he said. "But I'm willing to wait, because I've always approached this with a long-term vision." Shapiro knows An Congress, when it does open, could bring lots of people to the block. An is well known around town for his hokey TV commercials featuring former Arizona Diamondbacks player Luis Gonzalez (who An calls his "No. 1 son"). He owns Great Wall China, near Davis-Monthan Air Force Base, and Mr. An's Teppan Steak and Seafood Sushi Bar, on North Oracle Road. His east-side restaurant Sakura, which he sold in 2008, was a favorite of spring-training baseball players and other local celebs, whose pictures still hang on the restaurant's walls.

Others have plans
While An Congress is on hold, Stiteler will focus on his other downtown properties. Former Time Market general manager Kade Mislinski recently leased the building next to An Congress, which is also owned by Stiteler. Mislinski said he plans to open a restaurant that will serve pastrami sandwiches and beer. "We're going to be pickling, curing and smoking all our own meats," he said. Across the street, Xoom Juice's Shapiro is planning a coffee bar called Sparkroot in a retail space also owned by Stiteler. Meanwhile, a traveling exhibit of artifacts from the Titanic will come to the Rialto Block, 300 E. Congress St., later this month. Stiteler and developer Don Martin own that property.

Ritarancher

Oct 8, 2010, 2:55 AM

Cuz they know it's a bad idea too :haha:

:previous: The company should pay for their hotel and 1/2 of the garage but the city should pay for the convention center and the other 1/2 of the parking garage

Ritarancher

Oct 8, 2010, 2:58 AM

:yuck: Is this the sick joke sheraton plays making cities pay for their hotel

kaneui

Oct 8, 2010, 4:12 AM

:yuck: Is this the sick joke sheraton plays making cities pay for their hotel

FYI: Sheraton would not have any ownership interest in the convention center hotel, and only be the hotel operator, receiving a certain portion of revenues as such. Additionally, Sheraton's parent company, Starwood Hotels, owns less than a quarter of the hotels they operate worldwide under various brands (including Westin, W, etc.), with the majority owned by franchisees.

Sheraton was selected as the operator as they were part of the winning RFP submitted by developer Garfield Traub over three years ago. The city's proposal to make Sheraton put up additional security money as the hotel's operator without any ownership interest in the property is a long shot at best, and will not likely succeed.

Ritarancher

Oct 8, 2010, 5:37 AM

FYI: Sheraton would not have any ownership interest in the convention center hotel, and only be the hotel operator, receiving a certain portion of revenues as such. Additionally, Sheraton's parent company, Starwood Hotels, owns less than a quarter of the hotels they operate worldwide under various brands (including Westin, W, etc.), with the majority owned by franchisees.

Sheraton was selected as the operator as they were part of the winning RFP submitted by developer Garfield Traub over three years ago. The city's proposal to make Sheraton put up additional security money as the hotel's operator without any ownership interest in the property is a long shot at best, and will not likely succeed.

wow.........:omg: so the city of tucson pretty much would own the hotel

somethingfast

Oct 8, 2010, 2:17 PM

:yuck: Is this the sick joke sheraton plays making cities pay for their hotel

whoa, can we tone down the font size there a bit???? it's not a sick joke...it's how business is done in America these days...get the guy who won't even use it (ie, joe average tax payer) to foot the bill, throw a bone to the politicians who arranged for it to happen, and then the corporation reaps the rewards. welcome to business as usual in the good ol' usa...

okay, so yeah it is a sick joke...and the joke is on us!

kaneui

Oct 9, 2010, 1:23 AM

Without addressing the city's latest four requirements for the TCC hotel deal, the Rio Nuevo Board has sent the council a notice to proceed, provided the city addresses 13 of their own concerns. (Councilman Kozachik says the city shouldn't even bother with this latest request....can this process get any more convoluted?):

Rio Nuevo sends letter to proceed
Gives city 13 stipulations

By Joe Pangburn
Inside Tucson Business
October 08, 2010

The hot potato game that is the plan for a downtown convention center hotel keeps getting tossed around. The Rio Nuevo Multipurpose Facilities District board voted 8-2 Oct. 7 to send a notice to proceed to the City of Tucson on the hotel project with 13 hard and soft concerns the board wants to see happen. This follows the four requirements the council put on the project when it sent it back to Rio Nuevo late last month.

Major issues for the district board include:

- A ground lease on the property--which the district owns and calculates is worth $438,000 annually--will be free to the city for five years but will reset to market rate after that.

- District participation will be 100 percent of the hotel site-generated TIF money for the first 10 years and then reduced by 5 percent annually with a floor of 50 percent.

- Design plans will be purchased by the city for $10 million.

- Income will be distributed 50/50 between the city and the district.

- The district will have representation at the table at negotiations for all project contracts.

- Any reduction in the GMP shall be used for a face-lift to the TCC.

The notice to proceed from the district is only good for 90 days. The motion was made by Dan Cavanaugh, but multiple friendly amendments to the motion made it as large as it is. "Somebody is going to have to make a bet on this town to succeed," Cavanaugh said. "I believe it will and I believe this is a good bet on the future of this city." The board voted 8-2 to proceed with the letter even though at least four said the numbers for the project "penciled out funny." "If this district had the resources to backstop this hotel itself, I still could not support this hotel in this form," said Board Member Rick Grinnell who voted against the letter. "The numbers just don't work. And I cannot agree to send this letter to proceed knowing I also have a responsibility to the taxpayers of Tucson and I can't vote for something that will hurt them."

City Councilman Steve Kozachik said the letter should not even be delivered to the city of Tucson as the board failed to address any of the concerns the council set forth in its Sept. 28 meeting. "Not only has the District Board failed to respond to any of the items contained in the Mayor and Council motion, they have instead sent back to the City a hotel proposal that increases the contribution of the taxpayers, while at the same time ensuring the District will reap both immediate rewards in the form of a $10 million charge to the City for the construction drawings as well as long-term financial rewards in both lease payments and in any potential revenues generated by the proposed hotel," Kozachik wrote in an open letter responding to the district's letter. "And now the whole project threatens to encumber the City with a risk so great that financially it is a 'poison pill.'"

He said the discussion of the hotel project should now end and the focus should turn to successfully negotiating an Intergovernmental Agreement that outlines the rights and responsibilities of each party. The council will meet Tuesday (Oct. 12) but have not outlined if they will spend time on the letter.

kaneui

Oct 9, 2010, 1:46 AM

While 20 low-end apartment complexes have recently fallen into foreclosure, developers are moving ahead with nearly 1,000 high-end units in four separate projects:

http://i12.photobucket.com/albums/a228/kaneui/LegacyAptsatDoveMountain.jpg
Due to a shortage of high-end apartments and despite the economy's current
instability, the 168-unit Legacy Apartments at Dove Mountain is under construction.
(render: Robinette Architects)

Optimistic, contrarian developers plan four new apartment complexes
By Roger Yohem
Inside Tucson Business
October 08, 2010

Due to some optimistic and contrarian developers who won’t let “the Great Recession” hold them back, four new apartment projects totaling 937 units are scheduled to open in late 2011. Already under construction is Legacy Apartments at Dove Mountain, 12100 N. Mountain Centre Road, a $14 million, Class A luxury complex in Marana. The 168-unit project is environmentally friendly on an 8.65-acre site just east of the intersection of Dove Mountain Boulevard and Tangerine Road. The other three projects are expected to break ground before the end of this year. They are The Place at Creekside, a 352-unit complex at 9971 E. Speedway; Riverside Crossing, a 301-unit complex at West River Road and North LaCholla Boulevard; and The Place at Canyon Ridge, a 116-unit project at 2656 W. Broadway Blvd.

At first glance, construction of these apartments seems to be a high-risk venture, contrary to the financial hardships caused by the down economy. Plus there are about 20 existing, local apartment complexes that have fallen into foreclosure in the last 18 months. “Actually, there is a lot of rationale to this. First, upper-end apartments do very well but a lot of the higher-quality buildings have been converted to condos. That took a lot of them off the rental market,” said Mike Chapman, apartment expert and first vice president of CB Richard Ellis. “Most of the vacancies and financial stress have been in the lower end.”

The shortage of quality units was compounded by a shortage of available, quality sites. Residential home builders grabbed some of the best locations, thwarting apartment growth that often numbered 4,000 new units a year, Chapman explained. Since 2005, only 1,500 units have been built. “There’s been an apartment shortage for quite some time. It’s now impossible to overbuild them like what happened in the 1980s and 90s,” he said. Another factor is the drop in construction-related costs since the frenzied peak of the housing boom. Because it costs less to build now, it is possible to save significant dollars in avoided costs.

Chapman pointed out that the apartments “will be available in the winter season, a traditionally strong rental period. And they are hoping the market and economy will be in better shape by then.” The Legacy Apartments at Dove Mountain consists of 12, two-story buildings and a clubhouse, recreation center, pool and spa, business center and putting green. It was designed by Robinette Architects, 1670 E. River Road. T.L. Roof & Associates, 710 S. Campbell Ave., is the general contractor. Public records list the owner as Legacy Apartments at Dove Mountain LLC, based in Seattle. The construction value is about $12.5 million. The land was purchased in mid-September for $1.4 million from Rita Land Corp LLC, an affiliate company of Tucson developer David Mehl’s Cottonwood Properties.

“Our design has a very strong showing of native landscaping and low water use, what I call a Southwest Contemporary blend into the desert,” said Ron Robinette, president. “There will be a big open belt on the east and north. For renters on the perimeter, they will have pretty fantastic views of the Tortolitas and toward Pusch Ridge and the Catalina Mountains. We kept it rural, other than a little pizzazz at the entry going in.” Local contractors include DC Concrete, Schuck & Sons Construction, the Grounds-keeper and Dar-Hill Corporation. Both The Place at Creekside and The Place at Canyon Ridge are being developed by MC Companies, with corporate offices in Tucson and Scottsdale. Riverside Crossing is a project of Tucson developer Humberto Lopez’s HSL Properties.

kaneui

Oct 10, 2010, 7:11 PM

ADS says The Gadsden Co. is getting a sweetheart deal from the city to develop their first project in the Mission District, a vacant 14-acre parcel on Congress St. west of I-10:

http://i12.photobucket.com/albums/a228/kaneui/MissionDistrictlow-incomehousingrender.jpg
A 143-unit low-income housing project is scheduled to begin construction in mid-2011.
(render: Lizard Rock Designs)

City pushes big flip for struggling builder
by Josh Brodesky
Arizona Daily Star
October 10, 2010

After all that's gone wrong with downtown development, you'd think the city would know better by now. Tucson is broke. But that's not stopping it from selling off a prime piece of downtown real estate to the struggling Gadsden Co. for $250,000. The day that sale goes through, Gadsden will flip the property for $1.43 million to Chicago-based Senior Housing Group LLC, which plans to build a six-story, 143-unit affordable housing project.

Gadsden says the big flip doesn't mean big profits - but that depends on perspective. The deal, which all sides are pushing to close by Dec. 1, calls for $500,000 to be placed in an escrow account, which the city and Senior Housing Group will use to pay for things like sidewalks and sewer lines. But Gadsden was supposed to pay for those kinds of improvements in the first place - its exclusive development agreement for the site requires it. Now Gadsden's going to use someone else's dough to meet those obligations. As for the rest of the money Gadsden will land from the sale? That's Gadsden's. "There is nothing creative about this," said Adam Weinstein, a Gadsden partner. "There is nothing cute about it." Actually, there is plenty of creativity here. The deal is the perfect fit for a struggling developer, a city desperate for something real to be built downtown and another developer with federal tax credits to burn. More on that later, but first, a quick bit of history:

Back in 2008 Gadsden signed a deal with the city to develop 14 acres on the west end of downtown, just west of the Santa Cruz River and south of Congress. The site has been a dust bowl for years, but Gadsden has big plans for it: roughly 400 housing units, shops, office space, and a "boutique" hotel, along the planned streetcar route. The city offered the property to Gadsden at a bargain rate - but split it into four phases. In order to claim the property's second phase, Gadsden had to complete certain goals for phase one. The original deadline was supposed to be March 2009, but Gadsden has yet to deliver, and earlier this year the city extended the date to March 2011. "So far, I've seen very little progress in that regard from Gadsden - virtually nothing," city attorney Damian Fellows wrote in a recent e-mail to staff. "Instead what I see is an urgency created by Gadsden to gain staff's assistance to effectuate its goal to profit off of land speculation. "Gadsden's overriding objective, it appears to me, is to flip this property while ignoring its obligations under the existing Development Agreement."

Why the urgency? Enter Senior Housing Group and its president Steve Greenbaum, who has a deadline to spend 10 percent of his project's overall costs in order to claim his federal tax credit. That deadline was Dec. 1, but has since been pushed to June 30. Greenbaum approached Gadsden about buying some of the city land for his tax-credit financed project. It seemed a good fit. The Gadsden development calls for affordable housing, and Greenbaum liked the overall plan and close amenities. But the property Greenbaum and Gadsden agreed to is designated for the third phase - and Gadsden still hasn't met its obligations for phase one. The cure? Turn phase three into phase one. Then give Gadsden credit for the roughly $26 million Greenbaum is spending on construction. "In our development agreement, you'll see some milestones, performance milestones we have to do," said Jerry Dixon, a Gadsden partner. "We have to do $10 million in phase one before we can take down phase two. Well, here we will do $25 million in phase one, which we think gives us the right to take down phase two and phase three."

City officials either don't see anything wrong with the Gadsden flip, or won't admit they see anything wrong with it. In an interview, Fellows, the city attorney, backed away from his earlier critical e-mails. The deal is sound, he said. Some of his criticism was based on a misunderstanding about what parcels were being flipped. Meanwhile Councilwoman Regina Romero and City Manager Mike Letcher called it a "win" for the community. Gadsden, they said, has hung tough through the recession while making a huge investment in this project and the neighboring Mercado San Augustin. "We have a developer who is really struggling," Romero said. "These developers, hate 'em or love 'em, this particular group is really looking out for the needs of the community, really trying to do the right thing."

Everyone involved insisted the city can't just cut Gadsden out, even though the city still owns the property, because Gadsden has a development agreement. Never mind that Gadsden hasn't fulfilled its obligations and would be in default if the city hadn't extended the deadline to give Gadsden time to finish the deal with Greenbaum. Jessie Sanders, Rio Nuevo project coordinator, said the city hasn't held up its end of the deal, either, noting it never delivered on any of the promised west side Rio Nuevo projects, which could put the city in a legal bind. "When you look at the development agreement, both sides have not performed up to the level, and if somebody wanted to, you know, this could get really ugly," Sanders said. "This is what I've told all sides: Our job is to find success in a way that passes the sniff test for whoever wants to be negative." Well, with that said, take a deep whiff and decide for yourself.

Butta

Oct 12, 2010, 4:35 AM

ADS says The Gadsden Co. is getting a sweetheart deal from the city to develop their first project in the Mission District, a vacant 14-acre parcel on Congress St. west of I-10:

True, and although I agree the city gives these deals to developers that end up not building anything, in this case Gadsden is one of the few that have actually built something. Also, the city has failed on the promises, like the article states, on all the heritage parks, the UA Science center, etc.

Butta

Oct 12, 2010, 5:17 AM

AZ Dept. of Transportation to finish widening on I-10
Posted: Oct 11, 2010 3:22 PM
Updated: Oct 11, 2010 7:16 PM

TUCSON- Just when you thought construction on Interstate Ten through Tucson was finished, think again.

The Arizona Department of Transportation will continue the widening project that will last two years, beginning this winter.

It took two and a half years for A-DOT to widen the freeway south of Prince Road to 29th St.

Now A-DOT will finish what they started north of Prince Road between Ruthrauff.

A-DOT's Todd Emery says construction is to start sometime in February or March, "Imagine its going to be a challenge to build this."

One side of 1-10 will be shut down for one year and then reversed the next, with the goal of relieving congestion, "The plan is to try to beat that, to plan ahead to address those need now."

Emery says the primary concern is safety at the Prince and I-10 rail road crossing, where there have been a number of accidents, "We're going to take that and move Prince up and I-10 down so that when the project is done, Prince will go over I-10 and it will also go over the railroad."

Once construction is complete, the Prince Road crossing is going to look similar to the Miracle Mile crossing, "And this is going to make that area much safer than what it is now."

The west side of the 2 mile stretch along 1-10 will be shut down first.

A-DOT says the first year of construction will be the toughest because the Prince Road area will be shut down entirely.

The price tag for this project is $115 million dollars.

http://www.kvoa.com/news/az-dept-of-transportation-to-finish-widening-on-i-10/

kaneui

Oct 12, 2010, 5:42 AM

True, and although I agree the city gives these deals to developers that end up not building anything, in this case Gadsden is one of the few that have actually built something. Also, the city has failed on the promises, like the article states, on all the heritage parks, the UA Science center, etc.

Yes, the lack of funds to build out the Heritage Park and Cultural Plaza with numerous museums and other attractions has put a damper on redevelopment west of I-10, although I suspect that the completion of the streetcar will attract more developers interested in building on those parcels, although probably with more profitable projects than museums or a convento.

Additionally, Jerry Dixon was quoted as saying that if the city doesn't do something with the big hole they dug for the Cultural Plaza parking garage, he just might pull all the plans for The Gadsden Co's. nearby projects.

kaneui

Oct 12, 2010, 10:59 AM

Anqrew

Oct 13, 2010, 12:43 AM

"We're going to take that and move Prince up and I-10 down so that when the project is done, Prince will go over I-10 and it will also go over the railroad."

This is good, i think its much more aesthetically pleasing when the roads go over the freeway rather than the freeway going over the road. IMO (plus with the railroad hugging the freeway it makes more sense to just take the road over both)

i had hoped they would do this for 29th - Prince but too late now! haha

Butta

Oct 13, 2010, 8:01 AM

With the fourth building in downtown's facade improvement program under renovation, more RFPs will go out next month for a second phase with $160k of matching funds, including $40k allocated for smaller "paint and awning" projects:

http://i12.photobucket.com/albums/a228/kaneui/BeowulfAlleyTheatrefacaderestoration.jpg
(photo: A.E. Araiza)

Theatre gets new facade
Arizona Daily Star
October 12, 2010

The frame of the marquee (middle) on the facade at the Beowulf Alley Theatre Company at 11 S. Sixth Ave. is in place as work continues on Monday, October 11. The 2,500 pound marquee is part of a renovation that includes an entryway with a glass blocks, new lighting, tile work and a new window wall, Fred Conelly with W.F. Conelly Construction said. The work is expected to be completed by mid November.

Although small, I think these facade improvements have gone a long way to put a new (old) face on downtown. I like them.

Kaneui, have you ever been to San Jose, CA or familiar with its downtown?

Some similarities:

Proximity to the local University (San Jose State)
Adjacent to mostly dry river (Guadalupe river)
Proximity to rail road tracks (Big difference is San Jose's is a transportation hub for the area)
Relatively small compared to bigger cities' downtown near them (San Francisco/Oakland)
Urban sprawl surrounding city

Back in the mid-nineties San Jose's downtown was pretty blighted until the Arena and light rail was built, sound familiar? Now every time I go there it amazes me how far it has come.

I think people fail by trying to compare Tucson to Portland, I think San Jose is a better example.

http://upload.wikimedia.org/wikipedia/commons/thumb/1/18/Panoramic_Downtown_San_Jose.jpg/1200px-Panoramic_Downtown_San_Jose.jpg

I think downtown Tucson has potential to be something like San Jose's rejuvenated downtown. How about Jim Click buying the bankrupt Coyotes and moving them to Tucson? Just a pipe dream I guess.

Butta

Oct 13, 2010, 8:07 AM

This is good, i think its much more aesthetically pleasing when the roads go over the freeway rather than the freeway going over the road. IMO (plus with the railroad hugging the freeway it makes more sense to just take the road over both)

i had hoped they would do this for 29th - Prince but too late now! haha

Agreed, I like dug in freeways better than elevated ones.

kaneui

Oct 13, 2010, 8:39 PM

Kaneui, have you ever been to San Jose, CA or familiar with its downtown?

Some similarities:

Proximity to the local University (San Jose State)
Adjacent to mostly dry river (Guadalupe river)
Proximity to rail road tracks (Big difference is San Jose's is a transportation hub for the area)
Relatively small compared to bigger cities' downtown near them (San Francisco/Oakland)
Urban sprawl surrounding city

Back in the mid-nineties San Jose's downtown was pretty blighted until the Arena and light rail was built, sound familiar? Now every time I go there it amazes me how far it has come.

I think people fail by trying to compare Tucson to Portland, I think San Jose is a better example.

I think downtown Tucson has potential to be something like San Jose's rejuvenated downtown. How about Jim Click buying the bankrupt Coyotes and moving them to Tucson? Just a pipe dream I guess.

Yes, I am familiar with San Jose, but comparing it to Tucson is more like apples and oranges. Geographical similarities aside, San Jose is twice the size of Tucson and in a metro area with a larger population than all of Arizona. Additionally, the Silicon Valley/Bay Area has some of the highest per-capita incomes in the nation, while Tucson is mostly a low-wage town, in spite of the UofA and the emerging biotech hubs. Even the Downtown Tucson Partnership's plan for downtown revitalization acknowledges that it will probably never regain its position as the region's employment center, and suggests that it focus on becoming an arts and entertainment mecca, while continuing as the government/legal hub for southern Arizona. (Note that the recently announced 500 additional Roche employees will be based in suburban Oro Valley.)

The current wave of new restaurants and businesses opening downtown and the addition of the modern streetcar will definitely spruce up the historic core, injecting much-needed life into the city center. But with few corporate headquarters and their legions of well-paid workers, downtown will have to be content looking like something from a metro area much smaller than a million people.

kaneui

Oct 14, 2010, 9:25 AM

Some big announcements for the Oro Valley bioscience corridor--in addition to Sanofi-Aventis completing its new research facility last year, Roche will invest $180M to enlarge its Ventana Medical Systems campus for 500 more employees, and the UofA's Bio5 Institute will expand to Oro Valley, occupying the former Sanofi-Aventis building:

http://i12.photobucket.com/albums/a228/kaneui/Roche-VentanacampusOroValley.jpg
Both Pima County and the state offered incentives for the expansion of Ventana,
which provides products and services for cancer diagnostics.
(photo: Greg Bryan)

Roche solidifies local presence
Ventana Medical Systems due for $180M expansion

by David Wichner
Arizona Daily Star
October 14, 2010

Swiss drug giant Roche has further cemented its commitment to the Tucson area, unveiling a $180 million expansion plan for Ventana Medical Systems' Oro Valley campus. The growth plan announced Wednesday will bring up to 500 new jobs as Ventana, a University of Arizona spinoff acquired by Roche in 2008, boosts its work force by up to 50 percent over the next five years. "We are poised to keep growing to meet the demand, both national and international, for our products and services in the cancer-diagnostics arena," Ventana President Hany Massarany said during an announcement event held at Ventana's main building at 1910 E. Innovation Park Drive.

But despite the fact that Roche has accelerated Ventana's already steep growth curve since buying the company - boosting its payroll and buying up property for expansion - its decision to expand here was no slam dunk. State and local economic-development officials said they spent nearly a year courting Ventana for the major expansion. The effort included officials of Tucson Regional Economic Opportunities Inc. (TREO), the Arizona Commerce Authority, Pima County and the town of Oro Valley. The local area competed for the expansion against at least three other markets - Indianapolis, home to Roche Diagnostics' U.S. headquarters and some 3,000 employees; and proposed sites in Southern California and northern New Jersey, TREO President and CEO Joe Snell said. The results were well worth the effort, Gov. Jan Brewer said in remarks to about 200 people at the expansion announcement. "This project raises Arizona global competitiveness in bioscience and will have a lasting impact as we compete to attract other global companies," Brewer said.

Although budget woes have caused the state to halt a job-training grant program formerly used as a carrot to lure companies, the state and county managed to sweeten the deal. Pima County offered to waive $8.5 million in property taxes over time, though the company will still pay school and fire taxes. The state is offering $2 million in discretionary stimulus funds, officials said. "This illustrates that we can compete, and compete successfully, for top-notch jobs," Pima County Supervisor Sharon Bronson said. The town of Oro Valley did not offer monetary incentives to Ventana but offered expedited development services that could save the company substantial amounts of money, Mayor Satish Hiremath said. Massarany declined to comment Wednesday on the incentives, saying they have not been finalized.

The Ventana chief said a variety of other factors contributed to the decision, including the availability of skilled workers and scientists. He also cited Ventana's ties to the University of Arizona, noting that Ventana was founded in 1985 by UA pathologist and Arizona Cancer Center member Dr. Thomas Grogan, who still serves as chief scientific adviser to the company. Massarany also pointed to critical research links with the UA's Bio5 Institute, the university's genomics research arm; and the Critical Path Institute, a Tucson-based partnership of the UA and the U.S. Food and Drug Administration researching ways to improve new-drug development and safety.

The company's development plans, which call for $180 million in capital investment, have not yet been finalized, but Massarany said the company plans to build on its 60-acre campus. "We have some capacity to add more people ... but there's no question we'll have to expand facilities," Massarany said. Ventana expects to add workers across the board in the coming years, including scientists, sales, manufacturing and administrative positions, as the company expands its sales and enters new global markets. While there are no plans to move jobs from elsewhere to Oro Valley, some jobs may be moved here from future acquisitions, he added. Massarany said Ventana's growth is being driven by advances in so-called "personalized" medicine that uses genetics to match patients to therapies for the best results. One example is a Ventana test for a certain type of breast cancer that is identified through a genetic trait and responds to a specific drug, marketed by Roche subsidiary Genentech. Another factor is Roche's reach into international markets, including Russia, that Ventana would have had difficulty reaching as a stand-alone company, Massarany said.

Not everyone is happy about the incentives offered to Ventana. John Kromko, president of the Pima Taxpayers Association, said he considers financial incentives such as Pima County's tax-break offer illegal, and he's skeptical they are necessary. "People don't pay their fair share and everybody else pays more," said Kromko, a former legislator and retired teacher. "Big corporations are not lured by this. ... If you don't offer it, they'll probably come anyway, but they play one (area) against the other." But an economist who's helped map out Arizona's bioscience development effort said winning Ventana's expansion here will help the area attract other companies and talent. "It's not just the direct jobs, it's raising the profile of Southern Arizona as a real player," said Mitch Horowitz, vice president and managing director of the Battelle Technology Partnership Practice. "It doesn't take a lot of growth for a region like Tucson to really feel the benefit of the bioscience."

________________________________________________________

http://i12.photobucket.com/albums/a228/kaneui/Bio5InstituteOroValley.jpg
The University of Arizona's Bio5 will expand into the former Sanofi-Aventis
building in Oro Valley.
(photo: Greg Bryan)

Bio5 opening Oro Valley branch
by Becky Pallack
Arizona Daily Star
October 14, 2010

The Bio5 Institute, a research group at the University of Arizona, is expanding to Oro Valley. Bio5 director Fernando Martinez said he is eager for "a new point of collaboration." That will come with growing pharmaceutical companies Roche/Ventana Medical Systems - which announced a major Oro Valley expansion Wednesday - and Sanofi-Aventis, as well as other companies in the neighborhood, to further Bio5's work "transforming scientific advances into medicines that can treat patients," Martinez said. It will be called Bio5 Oro Valley.

Bio5 brings together about 225 UA faculty in agriculture, medicine, pharmacy, science and engineering. The group has been growing - and running out of lab space on campus. One of the Bio5 projects that will move to Oro Valley next month is the Arizona Drug Discovery Center. That 12-person group, led by associate professor Chris Hulme, works on finding chemical compounds that can be used as treatments for illnesses including cancer, Alzheimer's and heart disease. There will be additional Bio5 teams located there to work on cancer treatment, Martinez said. Initially, 50 to 75 people will work there, Martinez said, and eventually up to 150. Students will work alongside faculty as they do on campus.

In June, the UA paid about $3 million for the 27,464-square-foot building at 1580 E. Hanley Blvd., near North Oracle Road and North First Avenue. That's a great deal because it would cost more than $25 million to build labs in a shell building that size - plus, this building came with much of the special equipment needed to do the chemistry, as well as land for future buildings, said Bob Davis, who represented the UA in the purchase. The UA is spending $800,000 to renovate some areas in the 23-year-old building. The building was once home to a UA startup that became the Tucson arm of Sanofi-Aventis. That company moved to a larger space at Oro Valley's Innovation Park last year. Along with the Innovation Park businesses and Biosphere 2, Oro Valley is growing a life-sciences corridor, Davis said.

Did you know
The Bio5 Institute's main hub is the Keating Bioresearch Building, built in 2006 at 1657 E. Helen St., near East Speedway and North Campbell Avenue. It is named for Bio5 benefactor, businessman and UA alumnus Thomas Keating, a self-confessed former "party frat boy."

kaneui

Oct 16, 2010, 1:37 AM

Looks like Tucson Electric Park may have a new baseball tenant for next year and maybe longer, as San Diego relocates its AAA farm club from Portland:

Triple-A baseball team sets move here, at least for a year
by Shannon Conner and Ryan Finley
Arizona Daily Star
October 15, 2010

Minor-league baseball will return to Tucson temporarily. A Tucson city councilman said late Thursday that Triple-A baseball will return to Tucson this spring, when the San Diego Padres' Triple-A club relocates here while a new stadium is built in Escondido, Calif. "To the best of my knowledge, it's happening," Ward 6 City Councilman Steve Kozachik told the Star. "I hope they do well here, and hope the fans embrace them with open arms." Tucson has not had a major-league farm team since 2008, when the Tucson Sidewinders, who were the Triple-A affiliate of the Arizona Diamondbacks, left to play in Reno, Nev.

The most likely site for the relocated Portland Beavers of the Pacific Coast League would be Tucson Electric Park, which has lacked a permanent tenant since the Sidewinders left. The return of Triple-A baseball to Tucson resulted from events set in motion Thursday when the Portland Beavers confirmed they will be sold to an ownership group headed by San Diego Padres owner Jeff Moorad. Beavers owner Merritt Paulson confirmed the sale of the Padres affiliate, which had been expected for months. Moorad's group will likely bring the team to Escondido, 27 miles north of San Diego. However, the city of Escondido must approve, by Nov. 30, construction of a $45 million to $50 million ballpark to be completed in 2012.

That's where Tucson comes in. Because the Beavers - who'll likely be renamed - need a temporary home for at least a year, the Old Pueblo is a logical choice. "Tucson is in very serious consideration, and it might be the preferred option," Escondido Mayor Lori Holt Pfeiler told the Star on Thursday night. The other option for a home besides Tucson is Lake Elsinore, Calif., home of the Padres' Single-A affiliate Storm, Holt Pfeiler said. "Elsinore and Tucson are options and the only two seriously discussed. Elsinore causes serious disruptions for their Single-A schedule," she said. A San Diego-affiliated team would be a good fit, said Mike Feder, director of the Pima County Sports and Tourism Authority. Tucson has two ballparks that have been used by professional baseball teams.

Currently the Tucson Toros, a Golden Baseball League team, play during the summer at Hi Corbett Field in midtown. The Golden Baseball League is an independent league not affiliated with Major League Baseball or Minor League Baseball. Toros owner Jay Zucker told Baseball America magazine he would be interested in operating the Beavers here and has discussed that with baseball officials. The Toros would "take a hiatus" temporarily to operate the Triple-A team, Zucker said in a story posted on the magazine's website Thursday. Calls and texts from the Star to Zucker were not returned Thursday night.

The Beavers' sale is expected to be completed in December and must be approved by Major League Baseball. Tucson would be a day's drive or one-hour flight for players demoted by the Padres; many Arizonans vacation in San Diego during the summer and are familiar with the parent club. "We'd love to have them," Feder said. "I think a lot of people in Tucson have an affinity for San Diego, and this would certainly help that." Beavers owner Paulson tried unsuccessfully over the last 18 months to find a temporary home for the team in Portland after the team moved out of PGE Park in the heart of the city. PGE will be the home of Major League Soccer's Portland Timbers next season.

kaneui

Oct 16, 2010, 1:55 AM

Tenants relocated from the old MLK Apartments will be first in line to move into the new building at Depot Plaza--a six-story, 68-unit structure completed over two years after construction began on the underground parking garage, which opened this month:

http://i12.photobucket.com/albums/a228/kaneui/MLKaptslookingeast8-27-10.jpg
View from the Ronstadt Transit Center of the new MLK Apartments (left), and the
former building (far right), now known as One North Fifth.
(photo: city of Tucson)

MLK dedication opens doors for new residents
by Teya Vitu
Downtown Tucsonan
October 15, 2010

Low-income elderly and disabled are moving into the new incarnation of the Martin Luther King Jr. Apartments, 55 N. Fifth Ave., in early November. Fifteen residents got their first look at a model MLK apartment Oct. 15 at the dedication ceremony for the $23 million, six-story, 68-unit complex neighboring the Ronstadt Transit Center. These 15 all used to live in the original MLK Apartments next door, which were redeveloped into the One North Fifth Apartments.

“Very nice,” Jeff Strom, 42, who has multiple sclerosis, said while being wheeled through the model apartment. “I like it very much. I just hope all my stuff fits in.” “Look at all the counter space,” said Sean Watts, 41, who is nearly blind. “There are big closets.” Strom and Watts had lived at the old MLK Apartments for 10 years before all the residents were moved to other public housing in fall 2006. This duo ended up at Tucson House on Oracle Road. “You could walk to Walgreens, that’s about it,” Watts said about Tucson House. “Otherwise you had to take the bus. Now we have the library and post office.” The new MLK has 68 one-bedroom apartments ranging from 628 to 780 square feet. They appear larger than their square footage because no wall separates the kitchen from the dining/living room; the bathroom is large as is the walk-in closet and there are expansive balconies. The building has a rooftop garden and there are a computer lab, library, multipurpose and recreation rooms. “I am very happy,” Strom said. “I can go more places now.”

MLK is a federal HOPE VI project designed to take an eyesore that creates “blockage” to downtown growth and redevelop the area to entice development, said Ron Ashford, director of public housing services for the U.S. Department of Housing and Urban Development. The MLK project, an anchor of the city’s Depot Plaza development, spurred additional Downtown East End projects such as the Historic Train Depot, Maynards Kitchen, MacArthur Building renovations by Madden Media, a plaza outside Hotel Congress, the Rialto Block, the One North Fifth Apartments, the Fourth Avenue Underpass, the Depot Plaza Garage and the Pennington Street Garage. “We want this to be more than just a new place for them to live,” said Albert Elias, director of the city Housing and Community Development Department. “This is going to be their community.”

HOPE VI provided $8.9 million; the Arizona Department of Housing arranged $8.5 million in tax credits; city and state HOME funds added up to $2.9 million; Pima County bonds supplied $1.2 million and the balance came from Federal Home Loan Bank, lands sales proceeds, Community Development Block Grants and other city funds. Former residents of the original MLK have first dibs on these apartments. Depot Plaza Project Manager Ann Vargas expects all 68 units to be rented by the end of the year.

kaneui

Oct 17, 2010, 7:47 PM

While Rio Nuevo continues to spit and sputter, private development along with initiatives such as the Facade Improvement Program are driving downtown revitalization:

http://i12.photobucket.com/albums/a228/kaneui/UniSourceBldgconstr10-10.jpg
The new UniSource headquarters, being built on the site of the former Santa Rita Hotel,
should have steel up to the third floor by Thanksgiving.

http://i12.photobucket.com/albums/a228/kaneui/DowntownKitchen.jpg
Janos Wilder's Downtown Kitchen + Cocktails replaces the former Barrio Grill on the ground
floor of the 1914 Odd Fellows Hall, with a new entrance fronting Sixth Ave.

http://i12.photobucket.com/albums/a228/kaneui/50EBroadway.jpg
Interior renovations of the 1915 building at 50 E. Broadway, slated for a new restaurant and office space.

http://i12.photobucket.com/albums/a228/kaneui/44EBroadway.jpg
The gutted interior of the former Courthouse Annex at 44 E. Broadway
frames St. Augustine Cathedral, and will feature a mix of retail and offices,
with condos on the fourth floor.
(photos: Jill Torrance)

3 projects promising new life to downtown
by David Wichner
Arizona Daily Star
October 17, 2010

Just as the emergence of SoHo helped revitalize Manhattan in the 1960s, "SoCo" is helping fuel a renaissance in downtown Tucson. A tower crane looms over the construction site of UniSource Energy Corp.'s new headquarters building at 88 E. Broadway, in the area of downtown Tucson that's become known as SoCo - south of Congress Street.

Below, shielded from street-level view by screened fencing, workers last week busily rigged rebar for decking on the planned nine-story, $60 million UniSource building, scheduled for completion by the end of next year. Nearby, work on other private redevelopment projects continued apace. Nationally acclaimed Chef Janos Wilder was finishing work on his new Downtown Kitchen + Cocktails restaurant, 135 S. Sixth Ave., ahead of a planned opening on Monday. And Providence Service Corp., which in May moved into a newly renovated corporate headquarters at 64 E. Broadway, continued work to turn two adjacent buildings into office, retail and loft space.

The projects share more than proximity - they are all privately funded efforts, driven in no small part by their owners' desire to see downtown become a vibrant city center. "The private sector is driving the redevelopment of downtown in the worst economic recession the state has ever faced," said Michael Keith, CEO of the Downtown Tucson Partnership. Keith said city-driven projects like the Fourth Avenue Underpass and train-station improvements deserve their due, but private-development effort, led by business owners including Hotel Congress owner Richard Oseran and, more recently, Providence CEO Fletcher McCusker have created much-needed momentum for downtown's rebirth. "At some point in the past six months, it turned the corner. . . . It's taken on a life of its own," Keith said.

Here's a look at the private projects helping to reshape downtown.

UniSource headquarters

• Address: 88 E. Broadway

• Project: Nine-story corporate headquarters of UniSource Energy Corp. and main subsidiary Tucson Electric Power Co.

• Features: About 170,000 square feet of offices housing more than 425 TEP employees; 11,000 square feet of retail space; solar-power installations; above- and underground parking for 600 cars

• History: Former site of the Santa Rita Hotel, which opened in 1904 and was razed in 2009

• Cost: $60 million

• Status: Completion expected by the end of 2011

Providence Service Corp./Peach Properties

44 E. Broadway

• Project: Four-story building being redeveloped by Peach for Providence, which purchased the foreclosed property last year; top floor with four condominiums; two floors of Providence offices; ground-level, mainly covered parking with small office/retail space

• History: Former federal court annex built in 1979; gutted for failed condo/loft project

• Cost: $2.9 million for purchase of building and nearby lot; estimated $1 million for redevelopment

• Status: Under construction, completion of facade and residential units planned around January; office space to be completed sometime later in 2011

50 E. Broadway

• Project: Providence offices, with other office space and street-level restaurant in front; next-door to company headquarters at 64 E. Broadway (completed in May); owned and co-developed by Peach Properties

• History: Built in 1915, site of Graham Brothers Truck Garage

• Cost: About $950,000 for redevelopment

• Status: Completion targeted for Jan. 1

Downtown Kitchen + Cocktails

• Address: 135 S. Sixth Ave.

• Project: Chef Janos Wilder's redo of the former Barrio Grill space.

• Features: Redesigned facade and new main entrance on kitchen and dining areas; building is owned by photographer Tim Fuller and artist Barbara Grygutis, who have studios there; Etherton Gallery occupies the second floor

• History: Former Odd Fellows Hall, designed by Henry Jaastad and built in 1914

• Cost: $300,000

• Status: Opening Monday

Locofresh55

Oct 18, 2010, 4:12 PM

I for one like the projects going on in downtown. It shows that people have had enough of Rio Nuevo and are going to do what they can to spark downtown Tucson. I will miss Barrio grill but I'm sure the new Janos restaurant will be bumpin. And I kind of like the new UniSource building too. BTW, doesn't the cathedral look immaculate?

kaneui

Oct 19, 2010, 2:06 AM

Downtown will debut another locally-owned dining option early next year when Hub Restaurant & Creamery opens next door to the planned An Congress sports bar/restaurant still under construction:

http://i12.photobucket.com/albums/a228/kaneui/264-266ECongressSt.jpg
The current storefront at 264-266 E. Congress St.
(photo: Downtown Tucsonan)

Time Market GM plans eatery on Congress
by Teya Vitu
Downtown Tucsonan
October 18, 2010

Kade Mislinski is breaking out on his own with Hub Restaurant & Creamery, set to open early next year at 264-266 E. Congress. Mislinski for the past year and a half as general manager has upgraded Peter Wilke’s Time Market, and the nine years prior to that had him at Sam Fox restaurants, including Wildflower, Bistro Zin and he opened North. “It’s like a boy realizing his dream,” Mislinski said.

He wants eating at his place to be reminiscent of 100 years ago. Mislinski said “made here” will be what Hub is all about, whether it’s the corned beef, the roast beef, the pasta or the ice cream. “We’re going back to what we had a long time ago,” he said. “It’s just food. It’s just a daily restaurant. It’s real food.” As the name suggests, ice cream is a focal point. He will make the classic flavors but he describes his ambition as “50 percent straight, 50 percent pushing the envelope.” “I don’t want the ice cream to be an afterthought,” Mislinski said.

Mislinski has neighboring store fronts separated by a brick wall where three filled-in arches are evident. He is reopening the arches. The front arch connects the bar and lounge in 266 with the main dining room at 264. The middle arch will connect the kitchen with the dining room, and that’s the inspiration of the name Hub – the kitchen at the hub of the property. Downtown made all the sense in the world to Mislinski, who lives a few blocks away in Elysian Grove.

bleunick

Oct 20, 2010, 12:48 AM

I know this is off topic, but does anybody know of a good site for old photos of downtown? I love to see what all the cool buildings looked like before they ruined them with facades.

Anqrew

Oct 20, 2010, 11:39 PM

I drive through downtown regularly. Today it appears that construction on the new Unisource Building is about 15 feet above ground now. It's going up pretty quick. :tup:

kaneui

Oct 22, 2010, 6:41 AM

I know this is off topic, but does anybody know of a good site for old photos of downtown? I love to see what all the cool buildings looked like before they ruined them with facades.

I have yet to find a comprehensive Tucson historical photo library online--your best bet is probably the archives at the local Arizona Historical Society. Online, Peg Price has numerous photos of historic Tucson buildings taken mostly within the last decade: http://www.pbase.com/bearpaw/historic_tucson

Otherwise, you could just google a specific building you are interested in, and might get lucky and find a historical photo posted somewhere.

kaneui

Oct 22, 2010, 9:02 PM

Speaking of historic structures--Broadway Village is receiving a $1.5M facelift to upgrade the infrastructure and restore original features of Tucson's first shopping center outside of downtown, designed by European architect Josias Joesler and completed between 1939-42:

http://i12.photobucket.com/albums/a228/kaneui/BroadwayVillage.jpg http://i12.photobucket.com/albums/a228/kaneui/BroadwayVillagedetail.jpg
Elaborately designed friezes, brick soldier courses, burnt brick and concrete painted to look like wood are additional ways Josias Joesler created textural variety.
(photos: UofA, CRI Broadway Village Partners)

Broadway Village reflects early 20th century Tucson
By Christy Krueger
Inside Tucson Business
October 22, 2010

There’s nothing like taking a stroll back in time to the simpler days of Tucson’s past – to the 1940s when families met in friendly gathering spots; when gas lamps lined the streets; and the market, pharmacy and hardware store could all be visited in one leisurely stop. Those memories still linger at Broadway Village – the Josias Joesler designed treasure that is said to be Tucson’s first neighborhood shopping center outside downtown, according to co-owner Craig Finfrock. He and partners Randy Finfrock and Fred Howard, collectively CRI Broadway Village Partners LLC, purchased the property in January 2008 from the Murphey Trust, which had held ownership since the village was built. Records show that the buildings were completed in phases between 1939 and 1942, which means a 70th birthday celebration is due, noted Randy Finfrock. The partners plan to hold a public event once a majority of renovations are finished, likely in conjunction with the opening of Sushi Garden in spring 2011.

The restaurant will move from the location where it has been for 20 years, 15 N. Alvernon Way, into the space that until recently had been Elle Wine Country Restaurant, which moved to Campbell Plaza. Nearly $1.5 million is being spent on upgrades and renovations of the restaurant space, with extensive work to the infrastructure. “The landlord’s involvement is to replace the plumbing, the electrical and the HVAC, which were old and poorly cared for,” said Howard. In addition to interior updates, the owners are revitalizing the center’s exterior, including Dry Ice blasting some of the adobe brick and sealing all brick surfaces.

The charm and unique character of the village reflect Joesler’s insight about architecture, his attention to detail and his use of various textures, explained Randy Finfrock. “Joesler helped establish the architectural baseline in Tucson. He was recruited by the Murpheys (John and Helen) from Santa Barbara, which is known for its Spanish style. He was a European architect who concentrated on Spanish-Moorish design. His level of detail surprises most people,” he said. A look around and overhead while wandering through the courtyard provides proof of these signature Joesler elements.. Embellished archways, exterior alcoves, decorative Spanish tile and a variety of brick placement and finishes are prevalent in the architectural design. Those with a keen eye will even spot a Madonna statue or two standing guard from above. “Joesler liked to use textural effects,” Craig Finfrock noted. “He has mortar seeping out in one area and finished mortar in another.”

These details are being restored in a manner that preserves the historic integrity of the property and honors Joesler’s distinct style – high priorities of the current owners. For consulting services during the process, they’ve turned to Tucson’s foremost authority on Joesler, R. Brooks Jeffery, coordinator of preservation studies at the University of Arizona’s College of Architecture. “He describes the architecture as Spanish Colonial Revival. Other architects may disagree, but he’s the expert,” Howard said of Jeffery. “Murpheys and Joesler went to Mexico and got architectural ideas and based the center on those trips.” A re-energizing of the village and a return to the vibrant gathering place it once was will come about, Craig Finfrock believes, once restorations are complete and Sushi Garden opens. The restaurant, which he considers to be the center’s anchor, is expected to have a daily draw of 400 diners on weekdays and 800 on weekends, translating into a significant number of potential shoppers.

Until that time, the partners of Broadway Village are finding ways to boost traffic for merchants through advertising, Friday farmers markets and a summer arts bazaar. “What’s fun about Broadway Village,” Craig Finfrock said, “is there are so many stories about it.” In the early days, a family lived upstairs above a gift shop. In the 1940s a horse and buggy delivered beer to the gas station that sat on the center’s northeast corner. Where Zocalo now stands was once a market. “Broadway Village was a showcase for families around the university and lots of people grew up nearby,” said Randy Finfrock. “During the anniversary celebration, we will solicit neighbors for stories to share,” Howard said. “This is a destination, a gathering place. Spanish culture revolved around plazas and courtyards. This served the purpose of that.”

Biz Facts

2926 E. Broadway, southwest corner of Broadway and Country Club Road

Broadway Village

CRI Broadway Village Partners LLC

www.broadwayvillagetucson.com/

kaneui

Oct 22, 2010, 9:49 PM

Tucson was not among the recipients of TIGER II funds announced Wednesday by the U.S. Dept. of Transportation, nor was any other project in Arizona. The denial of the city's $26M proposal was the second recent setback for additional monies requested for the modern streetcar, which was also denied $19M in July for an Urban Circulator Grant. (However, Tucson did receive $63M from the TIGER I grants announced in February, the fourth largest award.)

Competition was again fierce for this round, as over $19B in projects were vying for only $600M in available funds. The two cities awarded TIGER II funding for streetcar projects were Atlanta ($47M) and Salt Lake City ($26M).

For more info.: http://www.dot.gov/affairs/2010/dot18810.html

Anqrew

Oct 22, 2010, 11:20 PM

I know this is off topic, but does anybody know of a good site for old photos of downtown? I love to see what all the cool buildings looked like before they ruined them with facades.

http://www.pima.gov/JointCourts/Photos/Historic.html

kaneui

Oct 23, 2010, 4:14 AM

Rumor has it that Councilman Kozachik has four votes lined up to kill the proposed TCC expansion and hotel:

City Council to vote on hotel Oct. 26
Inside Tucson Business blog
22 October 2010

The Tucson City Council will vote on the future of the proposed $192 million downtown convention center hotel Tuesday (Oct. 26) following a public hearing at 5:30. The council meeting that day has been moved to the Tucson Convention Center, 260 S. Church.

Both sides are beginning to rally the troops to show up. Councilman Steve Kozachik is urging people who has questions about the project or believe the numbers don’t pencil out, to show up so the room isn’t overrun with those who want the short-term jobs without considering the long term costs to the community. “The risks of negative consequences of building this Convention Center Hotel are too great,” Kozachik said in a letter he sent out. “Other communities have gone down the public subsidy path, only to find their General Fund at risk and being placed in the position of having to take on further debt to cover losses.” He continues to contend too much of the risk is on the taxpayers and the city and not on anyone else.

On the other side, an e-mail from Kurt Wadlington, an employee owner of Sundt asks for contractors to contact the city councilmembers and show up for the hearing to “remind our city council how important this project is to Tucson and our crippled construction economy,” the e-mail said. The e-mail asks for an even bigger turnout than several hundred that showed up at the Rio Nuevo meeting held June 23.

kaneui

Oct 24, 2010, 8:51 AM

Providence Service Corp. is not only expanding its new downtown headquarters for 100 additional employees in an adjacent building, but is now a major sponsor of the Façade Improvement Program and Second Saturdays:

http://i12.photobucket.com/albums/a228/kaneui/ProvidenceServiceCorpHQ.jpg
Providence Service Corp. now has its headquarters downtown at 64 E. Broadway and has plans
to expand to nearby buildings.
(photo: Jill Torrance)

Providence now player in boosting downtown
by David Wichner
Arizona Daily Star
October 24, 2010

Social-services provider Providence Service Corp. wound up moving its headquarters to downtown Tucson through a happy accident of timing and a desire to help boost downtown. Now, the relatively low-profile Providence is among the private companies helping to drive downtown's renaissance. Providence converted the historic Scott Building at 64 E. Broadway into its snappy new headquarters, across the street from where UniSource Energy Corp. is building its nine-story, $60 million headquarters. Providence, led by CEO Fletcher McCusker, also is working with Peach Properties to develop two adjacent buildings into office and retail and residential spaces. And Providence is a major sponsor of the Second Saturdays downtown events series, and it's raising money for a second phase of a downtown façade improvement program.

But the most visible symbol of Providence's commitment to downtown is its new headquarters in the Scott, home to about 35 corporate employees. Co-developed by Providence and its landlord, Peach Properties, the headquarters building is a mix of historic and industrial styles. Exposed original brick walls from 1907 give way to polished concrete floors. Natural light filters through one-way mirrored glass exterior panels to offices partitioned with glass panels framed in welded steel, while lighting hangs from a black metal-screen drop ceiling. The project used materials reclaimed from the old Santa Rita Hotel, which was razed in 2009 to make way for the new UniSource building. The reception desk is made from Mount Lemmon pine planks and a section of sidewalk from the Santa Rita. Massive, rustic furniture from Lost Barrio shops graces halls and offices - including a converted ox cart serving as McCusker's desk - while the walls feature a rotating gallery from the Museum of Contemporary Art (MOCA).

But when Providence started looking for room to grow last year, downtown wasn't in the picture. "We were actually looking on the east side; we hadn't really thought much about downtown," McCusker said. "One of our staff said we could make a big difference downtown, and the rest of my staff went 'Oh, please.' " But McCusker and some of his staff came downtown and met with Kevin Madden, CEO of the marketing firm Madden Media - one of the first local companies to move downtown. "Their staff loved it, and it kind of became contagious," McCusker said. Mindy Maksinchuk, Providence's controller, said she likes the new location despite the longer commute from her home in Corona de Tucson on the southeast side. "It's a neat neighborhood, and you can always find something new to eat, to see, people to meet," Maksinchuk said. "My commute's a little longer, but that's OK too - it's a whole different attitude." "One thing we found, you now interact with people. We walk to lunch; we bump into people we know, try new restaurants - it's like you've moved to a new town," McCusker said.

More Providence operations are headed downtown. Peach bought the property next door to the Scott, 50 E. Broadway, and is converting the truck garage to offices for Providence with ground-level retail stores. Providence - which employs about 330 people locally and about 11,000 in 44 states - plans to move about 100 more corporate employees into that space from other local offices. Providence itself later bought the next adjoining property, 44 E. Broadway, in a foreclosure sale. The four-story former federal court annex had been stripped for a luxury condo project before the developer went belly up; Providence is building offices and retail space topped by condos.

McCusker said downtown has become the company's community project, just as it supports charities and community projects in each of its locations nationwide. "But I have to tell you, it has been dramatic in terms of staff morale, and it's also helped us recruit," McCusker said. "We had a young man who took a position here, came here from Baltimore, and he fell in love with the urban lifestyle ... he actually lives in a loft not far from here and bikes to work."