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

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