By Karen Schutte for Stewart Title Real Estate Daily News
Last week the Tucson City Council signed off on a development agreement that makes it possible for a hotel development in downtown Tucson, the final approval needed to proceed with this private-public-partnership (P3) project.
The city agreed to give the developer nearly $6.7M in tax abatements for the first eight years, while bringing Tucson a gain of $17M in revenue during that same time.
Developer Scott Stiteler and partners will build the 8-story, 150-room AC Hotel by Marriott at 5th Avenue, between Broadway and Congress in downtown Tucson. The Rio Nuevo Board along with the City of Tucson have been working on this project for many months and on June 3, the hotel got its final go ahead from the City.
The developer behind Proper, Diablo Burger, Hub, Sparkroot, Playground and other popular locations downtown, Stiteler has been a placemaker for downtown for some time, developing and promoting the downtown core as a truly urban destination that models the live, work, play ideal.
AC Hotels by Marriott was launched in 2011 through a joint venture between Marriott International and Spanish hotelier Antonio Catalán. Other AC hotels are in San Diego’s Gaslamp Quarter, New Orleans and Miami.
Expansion in the U.S. will come from a mix of new builds and conversions with an average cost per key between $100K and $110K
The private-public-partnership will add not only to the Rio Nuevo District; the hotel will add significantly to the tax base and further put downtown Tucson on the map as a walkable, urban oasis. It will attract other projects, international visitors, make the convention center more viable, create jobs and attract additional restaurant and retail activity.
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