By Roland Murphy for AZBEX
The Rio Nuevo District Board has issued the draft of its proposed Master Plan for January 2024-December 2035.
The document is intended to set the planning goals for the next decade of development, redevelopment and revitalization in the Tax Increment Financing District, which the Arizona Auditor General’s Office has referred to as “the most successful TIF in the United States.”
TIFs are a public financing method to subsidize economic development and redevelopment for community improvement. The governing body usually diverts future property tax revenue increases in the target area toward economic development goals or public improvement projects.
The Arizona Legislature banned TIFs as a municipal option in 1999, but they are allowed at the state level. According to the draft plan introduction, the current Rio Nuevo public-private partnership was created in 2012 “after the state seized control of the TIF District from the City of Tucson after ten years of mismanagement, off-mission spending, and $240M of state dollars wasted on the plans for museums, a Science Center, a Native American village, and a restored convent, all located on the westside landfill, which remains toxic despite the quarter of a billion dollars spent by the early version of Rio Nuevo.”
The current incarnation of Rio Nuevo reports it has spent $100M of state money while attracting $1.2B in private investment, which has doubled the tax base in the District. After expenses, the District brings in approximately $4M/year in funds that can be reinvested.
While that level is sufficient for smaller project investment, Rio Nuevo expects it will need three times the money it currently has available if it intends to address the needs of unattended open spaces in the District. Rio Nuevo expects it would need $100M to build out the entire boundary of the TIF area, but it projects a $100M state investment would attract $1B in private sector money.
Rio Nuevo Sub-areas
The District is divided into four primary sub-areas. The first, Downtown, has been the primary investment focus over the past 10 years. Downtown includes the Tucson Convention Center, the Fox Theatre, The Rialto Theatre and the Hotel Congress, along with dozens of storefronts from the early 1900s and other points of local interest.
The second sub-area is The Westside. This area is considered the District’s greatest redevelopment challenge, in large part because of the presence of a former landfill that remains toxic. According to the plan overview, “Portions of the landfill have been remediated and developed at a cost of over $1,000,000 an acre, leaving a necessary budget of approximately $50M just to eliminate the toxicity, let alone develop the vacant land. Landfill remediation will not occur without establishing a plan for the vacant westside land that includes economic generators that can support the remediation expense.”
The third sub-area is The Sunshine Mile: Euclid to County Club Road. This section was largely established in the 1950s as an automobile-centric destination and has a significant amount of mid-century modern architecture and character points. The District persuaded Tucson and the Regional Transportation Authority to cede properties to it in an attempt to reinject vitality to the mid-century modern properties. The resulting Sunshine Mile Overlay focuses on recapturing 1950s elements as points of character and attraction.
The last sub-area is The Commercial Corridor: County Club Road to Park Place Mall. This section features multiple commercial enterprises, including shopping malls, big-box stores, vacant space and parking areas. A key focus for redevelopment efforts given changes in the large-scale commercial/retail market is a shift to mixed-use and multifamily development, including multifamily with an affordable housing component.
10-year Goals
Members of the District Board, staff and the general public held a retreat in January to establish the focus of the new 10-year General Plan. A set of 15 goals and target areas were identified and expanded. A summary of the goals and key highlights are:
Goal 1: Funding.
- Increase funding;
- Work with the Legislature to extend the District sunset from 2035 to 2050;
- Seek a one-time appropriation for accelerated P3 development.
Goal 2: Safety.
- Continue contracting with Tucson Police for off-duty personnel, and
- Meet with merchants, police and other stakeholders for improved safety protocols.
Goal 3: Improve Parking and Transportation.
- Increase valet service;
- Explore shuttle and other transportation services, particularly along Broadway, and
- Consider a subsidy for rideshare services to reduce rates Downtown.
Goal 4: Increase Housing Opportunities at All Income Levels.
- Partner with the Industrial Development Authority, City of Tucson, Pima County and state and federal outlets to incentivize mixed-use commercial/housing opportunities, including affordable-designated housing;
- Identify parcels for mixed-use housing Request for Proposal opportunities, and
- Identify gap funding for affordable units.
Goal 5: Continue Upgrades to Tucson Convention Center.
- Negotiate with Tucson for assistance with the planned $15M in Center upgrades;
- Research Certificates of Participation or tax-exempt bonds to help fund TCC projects, and
- Create a TCC master plan for housing, mixed-use and cultural projects.
Goal 6: Encourage small businesses to locate in Rio Nuevo.
Goal 7: Incentivize Hotel Development.
- Finalize agreements for Obie Companies to develop a boutique hotel;
- Incentivize a new Downtown hotel in partnership with the Ronstadt Transit Center, and
- Hold an open house for hotel firms to view available properties.
Goal 8: Market Downtown.
Goal 9: Develop a strategic plan for Park Place Mall and El Con Mall District.
- Partner with developers for more retail;
- Use Government Property Lease Excise Tax incentives for mixed-use housing, and
- Identify funding partners for integrated housing on vacant land around malls.
Goal 10: Accelerate food and retail project development.
Goal 11: Resolve and remediate A Mountain landfill toxicity.
- Work with partner agencies to remove toxic organic material;
- Advocate for mixed-use development on remediated land, and
- Create a sense of vision and place.
Goal 12: Increase Rio Nuevo staffing levels.
Goal 13: Support Downtown events.
Goal 14: Bring a grocery store to the urban core.
Goal 15: Streamline zoning and urban planning.
- Coordinate multiple overlays in collaboration with City staff;
- Explore zoning mechanisms to facilitate different development types, and
- Improve energy efficiency for buildings and adjacent areas.
The complete draft plan is available here. Rio Nuevo is currently accepting public comments and feedback.