Rio Nuevo problems and the proposed TCC hotel have become focal points of the city council election contest in Ward 6:
Ward 6: Contest is centered on downtown hotel
Kozachik is convinced Trasoff-backed plan could bankrupt city
By Rhonda Bodfield
ARIZONA DAILY STAR
10.18.2009
To hear City Council incumbent Nina Trasoff tell it, a proposed publicly financed Convention Center hotel downtown will employ 500 people for the next few years and generate millions of dollars by securing conventions that Tucson is losing now or at risk of losing.
To hear Republican challenger Steve Kozachik tell it, it could bankrupt the city. He's been pounding away at the fact the city is moving forward and spending $15 million to rebuild a convention center entrance and finalize the design of a project that it hasn't even secured funding for. He's convinced it won't get built and the city will have dumped millions of more dollars down the same sinkhole that consumed other Rio Nuevo funding.
Like the other Democratic incumbent up for election, Karin Uhlich, Trasoff rode into office on a wave of anger over the imposition of a new garbage tax, even though it was never overturned. But it's the downtown redevelopment project and a perceived anti-business mood that have been at the forefront of the campaign. And the hotel has become symbolic of the differences between the two candidates in what is arguably the most heated race on the ticket, in part because it's more personal. Most of downtown lies in Trasoff's Ward 6, so, for better or worse, she and City Councilwoman Regina Romero are largely considered the queen and duchess of Rio Nuevo.
Kozachik has been the most aggressive of all of the Republicans on the stump, saying the city has botched deal after deal and then made ill-advised moves because officials were desperate to show progress. He spent the bulk of his time at the microphone at a recent large tea party to blast the $15 million move. Beyond that, Kozachik has said the bigger issue is that taxpayers shouldn't be paying for a new hotel without first exploring the viability of private-sector plans. He has held up Hotel Arizona as an example, and invited its owner, Humberto Lopez, to join in his press conference to take the city to task. "There were private-sector-funded proposals on the table three years ago. Unfortunately, they got shoved aside," Kozachik complained. He's not convinced there's even a market for the hotel, he said, refusing to buy into Trasoff's contention that money is being left on the table the longer the project brews. "We are not going to be a Phoenix or an L.A. or a San Diego. We are what we are. Accept that for now and take the small steps moving forward," he said at a recent editorial board appearance.
Arizona Daily Star stories on the Hotel Arizona deal say it fell through because its owners wanted millions more than the appraisal said the property was worth.
Trasoff noted the city is being careful to minimize risk to taxpayers, saying the city won't move forward with a hotel unless the numbers work out. "Without a convention hotel, we will always be third-rate and will lose the conventions we have even now. And we cannot afford to do that," Trasoff said, maintaining that the gem show and the $100 million it generates will be the first to go. She agreed the market hasn't developed yet, which is why the private sector hasn't stepped up, even though a convention hotel has been talked about for decades. But this will set the stage for future investment, she said. And it will be a city-owned asset. "I'm hoping this is the very last thing that we do of this sort," she said. "But we cannot afford to wait. We have to have this kick-start. We have to stop waiting."
Kozachik said the hotel is only one example of misguided city efforts, criticizing the city for approving several $1 leases to art and community groups, or offering rent breaks for businesses such as Maynard's Market and Kitchen at the Historic Train Depot. The council recently voted to approve a rent reduction for an advertising and marketing firm. And there has been renewed interest in the $1 lease to the Museum of Contemporary Art at the Tucson Fire Department headquarters — to the point that tea party members are planning to picket Monday. "As soon as you start offering deals like that, it has a systemic effect," Kozachik said. "It will drive the whole market down. If you have been given a piece of property for half the market rate, and I'm someone who's looking at investing in Tucson, what incentive do I have to offer market rate? It provides a disincentive for other developers and property owners to offer market rates for their properties." It's also a problem from a revenue standpoint, he said. "We all agree we have a budget problem. And if the city is not maximizing its potential, then we're just exacerbating that problem when we miss opportunities."
But Trasoff said the city's job is to provide the infrastructure that will draw people to spend their money downtown. "If people go downtown, they'll see that Maynard's is bustling and they'll see long lines of people waiting to get into the Rialto (Theatre)." The Tucson Museum of Art draws hundreds of thousands of dollars, as, she predicted, will the Museum of Contemporary Art once it has the appropriate facility. Maynard's got the deal it got, she said, because the city did not do tenant improvements, leaving the owner to bear those costs. "This is economic development at work. Local companies are having a hard time keeping young talent because they want a lifestyle and a place to be. And that's starting to happen now," she said. She said she's gotten a bad rap for Rio Nuevo. The council has asked for an audit, although Kozachik questions why it's taking so long. It has put more financial information online, she said, although Kozachik counters that only happened after media accounts detailed expenditures. She said she inherited a bad plan and had to work to refocus on a new plan, although Kozachik notes most of the money has been spent under her watch and it has taken too long to see progress.
Both agree the city has developed an image of being business-unfriendly, in part because of an unwieldy and confusing land-use code that is too often inconsistently applied. "The business community right now is telling me all over the city — not just downtown, but in any sector of the city — and they are saying that we cannot work with that thing. We cannot operate in this city effectively with that code. It is absolutely an impediment," Kozachik maintains. Trasoff said she agrees, which is why she's been working to make fixes to it. Now, she said, when someone comes in for a permit, one list of requirements is distributed. And no matter who is at the counter when the person comes back, the list remains intact. "Yes, there are contradictions within our code. And we are trying to adjust them. It is a massive thing to adjust."
Ward 6 City Council Candidates
Steve Kozachik
Age: 55
Party: Republican
Occupation: assistant athletic director for facilities, University of Arizona
Why are you running? "Because it matters. It makes me crazy to use out-of-towners for Rio Nuevo. I'm tired of seeing tax money wasted. Now I'm at the point, if you can't join them, beat them. I have a track record of doing the stuff they're trying to do, on time, on budget and in the public sector."
Endorsements include: Tucson Association of Realtors, Tucson Metropolitan Chamber of Commerce, Southern Arizona Home Builders Association, Southern Arizona Lodging and Resort Association, Tucson Police Officers Association
Nina Trasoff
Age: 63
Party: Democrat
Occupation: Tucson City Council member
Why are you running? "I remain committed to moving this community forward, helping to get us out of this recession and ensuring that Tucson rises to its fullest potential. I would like to continue working toward my vision for Tucson — creating a vibrant city with new, higher-wage jobs, a re-energized downtown, strong neighborhoods and open spaces preserved for future generations.
Endorsements include: U.S. Raúl Grijalva, U.S. Rep. Gabrielle Giffords, Pima County Attorney Barbara LaWall, Pima County Sheriff Clarence Dupnik, the Arizona Women's Political Caucus, Planned Parenthood of Arizona, the American Federation of State, County and Municipal Employees, Sierra Club – Rincon Group
See an Arizona Illustrated forum with both candidates: http://ondemand.azpm.org/videoshorts/watch/2009/10/9/kuat-tucson-ward6-forum/
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