Downtown NOW

Rio Nuevo Approves Caterpillar Financing Package, 2017-2018 District Budget- June 23, 2017

On Tuesday June 20th the Rio Nuevo Board accepted the final language for the $43 million financing package component of the Caterpillar Surface Mining & Technology Division headquarters. On Thursday, June 23rd the final Notice to Proceed for the initial stage of construction was issued.

The Board convened its regular monthly meeting on Tuesday to review the 2017-2018 Rio Nuevo Multipurpose Facilities District budget and to move forward with negotiations with Caterpillar for the headquarters project being built at the base of A Mountain.

Sundt Construction is expected to begin site preparation on Monday, June 26.

The Board unanimously approved the budget for the year ending June 30, 2018. The budget projects revenue of $15,720,225 and expenses of $ $18,541,000. Expenses include $4.9 million for Caterpillar site preparation work.

The $2.8 million deficit will be covered by the District’s cash on hand, long planned as part of the Caterpillar project.

The creation of the Rio Nuevo Multipurpose Facilities District was approved by Tucson voters in 1999, along with an appointed Board, to invest state tax dollars in public and public/private projects to create a vibrant Tucson core. For every dollar the Board invests, the community reaps $10 of construction activity with projects like the AC Hotel Tucson by Marriott, the Arena, Greyhound, the Mercado Annex, City Park, the Marist project and Caterpillar. For more information, visit http://rionuevo.org.

 

 

123 S. Stone Avenue

Rio Nuevo Approves Caterpillar Lease, Issues Notices to Proceed with Construction- June 16, 2017

The Rio Nuevo Board this week unanimously authorized its chairman and secretary to sign the lease, when complete, with Caterpillar’s Surface Mining & Technologies (SM&T) division. The Board also issued Notices to Proceed that will allow Sundt Construction to start on the $43 million SM&T division headquarters project being built at the base of A Mountain.

The Board convened a special meeting Monday to review the Caterpillar lease because construction on the project needed to begin within a week to ensure that Caterpillar would have a certificate of occupancy by March 1, 2019, a deadline set by Caterpillar in the draft lease.

Under the draft 25-year lease, Rio Nuevo will issue the bonds for the construction project and Caterpillar will pay the principal, interest and costs. Interest will be capped at 3 percent for the first 10 years.

In addition, Rio Nuevo has acquired title to the property for the building for $7 million and will remediate the landfill at the site at a cost of $4.8 million.

The creation of the Rio Nuevo Multipurpose Facilities District was approved by Tucson voters in 1999, along with an appointed Board, to invest state tax dollars in public and public/private projects to create a vibrant Tucson core. For every dollar the Board invests, the community reaps $10 of construction activity with projects like the AC Hotel Tucson by Marriott, the Arena, Greyhound, the Mercado Annex, City Park, the Marist project and Caterpillar. For more information, visit http://rionuevo.org.

Special Board Meeting Scheduled to Move Forward on Caterpillar Project- June 9, 2017

A special board meeting has been scheduled for Monday, June 12, 2017 at 2:00 p.m. to discuss the Caterpillar project.  See Agenda http://rionuevo.org/wp-content/uploads/2011/08/June-12-2017-Rio-Nuevo-Special-Board-Meeting-Agenda-1.pdf for more information.

Rio Nuevo Advances Downtown CVS, Bianco Eatery, TCC Hotel- June 2, 2017

The Rio Nuevo Board of Directors moved forward this week with partnerships that plan to bring a drug store and a Bianco eatery back to downtown Tucson.

At its meeting Tuesday, May 30, the Board unanimously approved rebating site‐specific sales tax to the Ron Schwabe/Marcel Dabdoub developer group for their projects at 123 S. Stone and in the East Congress Street block from the former Chicago Store at South Sixth Avenue to Wig‐O‐Rama at South Scott Avenue.

Schwabe/Dabdoub is in negotiation with the CVS pharmacy/drug store chain to occupy the Chicago Store. Downtown hasn’t had a drug store since 2003.

Schwabe/Dabdoub has a letter of intent from Chris Bianco for the first floor of 123 S. Stone. Bianco closed his popular Pizzeria Bianco in September 2016 after operating it for more than two years.

The developer group is also talking to The Loft Cinema about locating a theater in the East Congress Street block.

Rio Nuevo is funded by state sales tax generated in the Rio Nuevo Tax Increment Financing (TIF) District that stretches from west of Interstate 10 through downtown and along Broadway to El Con Mall and Park Place. Instead of supporting the Schwabe/Dabdoub projects with cash, the Board agreed to rebate its share of state sales tax from those projects to the developers.

The Board also unanimously approved the site for a new 125‐room hotel on the grounds of the Tucson Convention Center. Representatives of Caliber Hospitality of Scottsdale proposed to build the hotel on the southeast corner of the convention center in what they and the board described as an underutilized space. The location would give hotel patrons direct access to the convention center. Board representatives agreed to meet with City of Tucson officials to discuss ways to increase parking in the area.

In other business, the Board:

  • Unanimously agreed to support the Catholic Diocese of Tucson’s remodel of the historic cathedral square by contributing $1 million to the $17 million project, which will include a café/coffee shop that is expected to generate sales tax income.
  • Postponed the approval of $6.4 million of site preparation work for a Caterpillar division headquarters being built on the west side of downtown and offered instead to hold a special meeting when the Rio Nuevo/Caterpillar lease is signed.
The creation of the Rio Nuevo Multipurpose Facilities District was approved by Tucson voters in 1999, along with an appointed Board, to invest state tax dollars in public and public/private projects to create a vibrant Tucson core. For every dollar the Board invests, the community reaps $10 of construction activity with projects like the AC Hotel Tucson by Marriott, the Arena, Greyhound, the Mercado Annex, City Park, the Marist project and Caterpillar. For more information, visit http://rionuevo.org.

 

Rio Nuevo Advances Downtown Hotel and Retail-Restaurant Block- May 1, 2017

The Rio Nuevo Board of Directors took steps last week to advance the development of a hotel and nearby retail and restaurant block in downtown Tucson.

At its meeting Tuesday, April 25, the Board unanimously approved rebating site‐specific sales tax to the developer of a Marriott Moxy Hotel on 5th Avenue and Toole and the “200 Block” of East Congress Street.  Rio Nuevo will rebate sales tax generated both by the hotel and by the new businesses of the “200 Block” to the developers. The Board commissioned an independent economic analysis of the two projects and will review the results before signing off on final approval of the agreements. Approval is also subject to agreement by the City of Tucson.

Scott Stiteler is developing both the Marriott boutique hotel above the Depot Garage just west of Hotel Congress and the “200 Block.” Stiteler is also nearing completion of the AC Marriott Hotel at Broadway and 5th Avenue. Rio Nuevo is also rebating sales tax that would have been collected from that project.

“This takes us closer to seeing three major additions to our thriving downtown,” said Rio Nuevo Board Chairman Fletcher McCusker. “We’ll have two innovative hotels within a few blocks of each other and, with a re‐energized ‘200 Block,’ there will be a new retail and restaurant center in between them.” The “200 Block” encompasses the south side of Congress Street from 5th Avenue west to Arizona Avenue.

The Board also reaffirmed its plan to partner with private developers, where appropriate, to repurpose remnants of properties acquired by the City of Tucson in its effort to widen two miles of Broadway Boulevard between Euclid Avenue and Country Club Road. Rio Nuevo’s efforts are driven by the desire both to replace the sales tax revenue lost as a result of the expansion of Broadway and to enhance the appeal of the entire area with new retail and restaurant activity, all while working closely with the City and the Regional Transportation Authority. The Board has also retained New York‐based Project for Public Spaces to provide input into its involvement with these roadway properties.

The creation of the Rio Nuevo Multipurpose Facilities District was approved by Tucson voters in 1999, along with an appointed Board, to invest state tax dollars in public and public/private projects to create a vibrant Tucson core. For every dollar the Board invests, the community reaps $10 of construction activity with projects like the AC Hotel Tucson by Marriott, the Arena, Greyhound, the Mercado Annex, City Park, the Marist project and Caterpillar. For more information, visit http://rionuevo.org.

 

Rio Nuevo Approval Brings Two New Hotels Downtown- March 1, 2017

Adding to Downtown Tucson’s continued rapid growth, the Rio Nuevo Board provided major assistance Tuesday to two new proposed downtown hotels – creating an agreement that will allow both developers to move forward quickly with their projects.

Even before the AC Marriott being built at Broadway and 5th Avenue opens, Marriott has committed to a second hotel just a block away with the same development team. Scott Stiteler announced a Moxy Hotel, which will be located above the Depot Garage just west of Hotel Congress.

Another sign that national interest in Downtown Tucson’s vibrant evolution continues to grow, Caliber Hospitality, based in Scottsdale, plans to build a 125‐bed hotel in the east parking lot of the recently remodeled Tucson Convention Center.

The Rio Nuevo Board at its meeting Tuesday, February 28, approved term sheets that would provide for both hotel developers to be rebated their portions of the state sales tax (TIF) that Rio Nuevo receives. “We‘re making the difference,” said Rio Nuevo Chairman Fletcher McCusker. “Bridging the financial gap for both hotels makes the plans work and can bring these exciting new facilities to our growing downtown.”  Additional coordination with the City of Tucson will be needed to finalize both hotels.

“Tucson is definitely on the national radar,” said McCusker, following the Board’s meeting on Tuesday at which the board approved the two proposals. “With the creativity shown by Rio Nuevo in participating in deal structures through rebates, gap financing, equity participation, build/ lease and infrastructure support, we have become a huge partner in a variety of developments in addition to hotels:  retail and restaurant, corporate headquarters, bus terminals, concert venues, entertainment halls and residential. We are hitting on all cylinders with a mission to finish our downtown in five years and substantially increase the tax base.”

The Moxy describes itself as a “free‐spirited” hotel and is geared to the millennial traveler with smart phone room access, a 24‐hour bar, and a reputation as a hotel with attitude. Tucson is evolving into a city like New Orleans, San Francisco, New York, Miami, Los Angeles and Chicago – an elite place among urban, hip and walkable downtowns.

Caliber’s development also includes a new parking garage to serve the hotel and downtown and increases available parking for TCC events.

“Downtown Tucson is currently home to 65 restaurants, 2,200 new apartment units, two of the most successful concert venues in the United States, sold‐out arena shows, and more of everything coming,” McCusker said. “It is a great time to be involved with our downtown and the Rio Nuevo Board has found unique and creative ways to help fund these developments.”

The creation of the Rio Nuevo Multipurpose Facilities District was approved by Tucson voters in 1999, along with an appointed Board, to invest state tax dollars in public and public/private projects to create a vibrant Tucson core. For every dollar the Board invests, the community reaps approximately $10 of construction activity with projects like the AC Hotel Tucson by Marriott, The Arena, Greyhound, The Mercado Annex, City Park, The Marist project, and Caterpillar. For more information, visit http://rionuevo.org

Marist College2

Marist College1

MSA Annex

City Park

Moxy Hotel

TCC

Greyhound

Rio Nuevo Approves Arizona-based Architects and Contractor for Caterpillar Surface Mining & Technology Tucson Facility

Rio Nuevo selects team for Caterpillar division hub 1 24 17 – FINAL

The Rio Nuevo Board would like to welcome you to the Official Web Site for the Rio Nuevo downtown redevelopment and revitalization district.

© 2017 RNMFD. All rights reserved.