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.
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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