The Tucson Metro Chamber is a membership-based business advocacy and networking organization that represents more than 1,480 businesses, employing more than 160,000 employees in Tucson and Pima County. Small business makes up approximately 60 percent of Chamber membership.

The following letter from the Tucson Metro Chamber was delivered prior to Tuesday’s public hearing as part of the comments on the 30% Broadway Corridor improvement project.

Dear Mayor Rothschild and City Council Members,

As you recall, the RTA Board voted in December of 2014 to reduce the Broadway plan to a six-lane arterial plan with the use of bus pullouts to the “maximum” extent possible.  At that time, the Chamber expressed concern about changing the voter approved RTA project, but understood the final decision. The Citizen’s Task Force (CTF), established by the City of Tucson to provide input, recommended a “Starting Small Approach” focused on saving the maximum number of buildings.  The CTF’s recommendation was adopted as the baseline for the design. 

At that point, city engineers and planners began working towards final design of the future Broadway Boulevard.  The city’s planning team has completed the 30% design plan. It is a significant improvement on the CTF plan and includes numerous important changes. The plan now will directly impact 27 buildings, compared to the original +/- 150, with a maximum 50 buildings having a full or partial “take.” Those supporting the CTF plan support less demolition, but that plan would impact a maximum of 87 buildings for partial or full “take” – at significant cost and significant impact to the business sector adjacent to Broadway.

To kick back the design of the Broadway widening to the CTF would have a disastrous effect on the sensible completion of this important project in a timely manner and without any further downsizing. It would cause additional unnecessary delays to the project. The City staff in the Department of Transportation is the best trained and equipped to complete this project.

Although not perfect, this design is a good compromise.  It is time for this project to get moving.  Decades of indecision have led this stretch of Broadway to becoming an eyesore and a postcard for urban decay; it is time to end that impression. It also does not fairly reflect the revitalization occurring downtown and serves as the gateway into the central business district. This vote will appear on our report card.

On behalf of the Tucson Metro Chamber Board of Directors and membership, I ask that you SUPPORT the 30% design plan and move the project forward.

Robert Medler, IOM, VP Government Affairs

This project is a Regional Transportation Authority Plan  roadway improvement managed by the City of Tucson that will widen Broadway: Euclid to Country Club to a 6-lane arterial, with bike lanes, sidewalks, and landscape.  The project is currently in the design phase.  Acquisition is to begin in 2016.  Construction is not anticipated until late 2017-2018. 

Visit the project’s Design and Construction web site at www.broadwayboulevard.info for the most current information, to find contact emails and phone numbers, and to provide comments.  Details about the RTA plan are available at www.RTAmobility.com.

It’s not too late to be heard, questions and comments can be submitted to the Tucson Department of Transportation before April 15^th. Take 1-2 minutes now and submit a quick “I support the Broadway 30% plan” by clicking on the following link: https://www.broadwayboulevard.info/comments.php

Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz of the day will be.

The Dow Jones industrial average lost 174.09 points, or 1 percent, to 17,541.96. The Standard & Poor’s 500 index tumbled 24.75 points, or 1.2 percent, to 2,041.91. The Nasdaq composite index skidded 72.35 points, or 1.5 percent, to 4,848.37.

Benchmark U.S. crude fell 49 cents, or 1.3 percent, to $37.26 per barrel in New York. Brent crude, used to price international oils, dropped 41 cents to $39.43 a barrel in London. In other energy trading, wholesale gasoline fell 1 cent to $1.38 a gallon. Heating oil slipped 1 cent to $1.13 a gallon. Natural gas rose 11 cents, or 5.6 percent, to $2.02 per 1,000 cubic feet.

Google Driverless Cars Coming To Arizona – Governor Ducey and Google announced Thursday the launch of driverless car testing in Arizona — the fourth place in the country to have the program. Here’s what Governor Ducey said,“Google’s selection of Arizona for this testing program is just another sign that Arizona is on the cutting-edge when it comes to innovation. When you think of companies changing the way we live, Google is at the top of the list, and their self-driving car technology is transformational. We welcome them to our state, and look forward to being part of this innovative project.” Here’s what Google said about Arizona, “Arizona is known as a place where research and development is welcome, innovation can thrive, and companies can set up roots.”

MetLife’s Shedding of ‘Too Big To Fail’ Designation Could Boost Commercial Real Estate Lending “Ultimately, we can reasonably expect MetLife’s commercial real estate lending to increase in the medium-to-long term since by reducing the government-imposed capital requirements required of SIFIs, money has been freed up that can be put toward other purposes, such as lending activity. In addition to the funds freed up directly from the capital requirements, getting rid of the SIFI designation could also provide indirect savings by limiting the stricter reporting requirements and auditing processes.” (Forbes)

Towers of Dabble: Commercial Real Estate Signals Trouble Ahead? “Man’s long determined history of dabbling in the building of touted towers, surely not for his self-gratification, but rather to bring him closer to God, has rarely been met with benevolence. Maybe God doesn’t like man, who He created after all, attempting to smash through His glass ceiling. Consider, if you will, the first known example of such an attempt. Having heeded Noah’s warnings, a postdiluvian band of survivors just couldn’t resist taking a stab at the celestials, raising the Tower of Babel they were sure would be gloriously received.” (Nasdaq)

After Six Years of Commercial Real Estate Growth, New Forecast Isn’t So Sunny “Nationwide commercial real estate activity is expected to decline during the next three years, according to a new industry forecast. Commercial property prices are also likely to grow at a slower rate, according to the new survey by the Urban Land Institute. The Washington, D.C.-based industry trade group surveyed top real estate economists and analysts for its new consensus forecast.” (The Dallas Morning News)

Pacific Sunwear Latest Retailer to File for Bankruptcy “Pacific Sunwear has filed for bankruptcy protection, suffocating under the weight of high rent and a large debt load. The teen retailer, known for its surf- and other beachwear, said on Thursday morning that private equity firm Golden Gate will convert 65% of PacSun’s debt in exchange for equity and inject at least another $20 million in capital. The company also landed $100 million in bankruptcy financing from Wells Fargo and said this Chapter 11 filing would not affect its operations or ability to pay vendors.” (Fortune)

After Years of Ultra-Luxury Condo Development, Lenders are Tightening the Purse Strings “Buyer interest has slackened with financial turmoil in markets like China and Russia potentially dampening foreign demand for super high-end Manhattan condos. This, in turn, has led to a tightened financing environment for such developments, a number of industry experts told the Commercial Observer. While money is still available for the right projects, lenders and investors have become more circumspect with regard to ultra-luxury deals. (Commercial Observer)

What Private Real Estate Investors Are Targeting This Year “In the first of a five-part “Industry Insights” event series, The Real Estate Council and Real Estate Deal Sheet gathered top executives in the private investment realm to find out where they plan to focus their time and capital in 2016. Held at the Dallas Country Club, the morning event began with a keynote presentation from Albert Rabil III of Kayne Anderson Capital Advisors, one of the nation’s largest investors in its asset classes.” (D Real Estate Daily)

Secret Criminal Investigation Targeted Fraud at Trump Soho: Report “The Donald Trump document load from decades of civil lawsuits could already fill the floors of several Trump Towers, but a recent and previously unreported criminal investigation with the presidential candidate’s name on it has been hiding in the archives.  In 2010, Donald Trump and partners Bayrock Group and the Sapir Organization were hit with a lawsuit for lying about how many units they sold at the condo-hotel tower known as Trump Soho at 246 Spring Street. According to the suit, apartment buyers were led to believe that they were buying into a highly-coveted new building, with over half the apartments already sold.” (The Real Deal)

Axio: Annual Effective Rent Growth Surpasses 4% Once More “For the seventh straight quarter, annual effective rent growth eclipsed 4% in 2016’s first quarter, according to Dallas-based Axiometrics. That streak of growth has only happened one other time (the fourth quarter of 2010 through the second quarter of 2012) in the company’s 21-year history. But annual effective rent growth did dip in the first quarter. It was 4.1% in Axiometrics’ most recent report, 52 basis points lower than the 4.6% reported in the fourth quarter of 2015 and 89 basis points lower than the 5.0% growth one year earlier.” (Multifamily Executive)

San Francisco Real Estate Prices among Most Inflated in the World “It’s old news by now that San Francisco has some of the most expensive real estate in America, to the point that if you want to keep things interesting it may be time to start making comparisons overseas. In an Economist study of housing prices in 26 countries around the world, San Francisco beat out nearly every other cited city. The study found roughly a 5.1 percent annual increase in home prices in wealthy countries worldwide, and an average of an 8.3 percent increase in major cities in those countries.” (Curbed San Francisco)

Whole Foods Sets Opening Date for New ‘365’ Store Chain “Whole Foods Market will open the first store under its new “365” banner on May 25 in the Silver Lake neighborhood of Los Angeles, the company said this morning. The opening date is set for just more than a year after the grocer announced plans to build out a new store concept that would offer customers lower prices than its original stores. The name of the new chain comes from Whole Foods’ private label brand, whose products are modestly priced relative to other brands in the original stores.” (Fortune)

On Tuesday evening, the Tucson Mayor and Council held a public hearing for comments on the 30% Broadway Corridor improvement project, named for its 30% reduction in scope that was sent for concept design on June 9, 2015, to the Tucson Department of Transportation. The meeting outgrew its normal meeting space and was moved to the Pima County Board of Supervisors meeting room that holds 250 people. The room still wasn’t large enough, and had to proceed with standing room only.

The 30% Broadway Improvement Project reduced the number of buildings to be demolished from 87 to 50, from eight to six lanes, with bike lanes, bus pull outs, sidewalks and landscaping, taking into account all the recommendations made by the prior Citizen Task Forces.

Comments were heard for over an hour on the 30% Plan, with much repetition in talking points from those opposed to the project. However, the conversation needs to continue and we encourage those who were unable to speak at this public forum to submit their comments for publication as an open letter to Mayor and Council’s consideration in their decision-making to be made on April 19^th.

Gary Andros, a property owner from the area who will be affected by the road widening, was one who was not called to speak to Mayor and Council of the City of Tucson. Gary had this to say:

Mr. Mayor and Members of the Council,

I’ve heard it said that ‘all decisions are good decisions, just some are better than others’. We all have different opinions and that’s fine; it makes us human. That said, at Tuesday’s City Council meeting, it became abundantly clear that the goal of some Tucsonans present was not to discuss how best to complete the voter-approved project, but rather to attempt to sway City Council to override the vote and cancel the project.

During the meeting, Councilman Steve Kozachik stated that he ‘does not believe it makes sense to incur the cost of expansion so that people can leave downtown one minute faster in twenty years’. In reality, the travel time information provided by the staff was taken out of context in this statement. What they actually said was that if the current proposed expansion were to take place, eastbound traffic in 20 years would still progress one minute faster than it does today, implying that it would progress even faster in the interim. They also stated that their modeling software would not accept current conditions as applied to the predicted traffic patterns of twenty years from now, as it simply showed the street as “gridlocked”.

The existing congestion causes a number of problems, one of which is the difficulty of merging with Broadway traffic in the first place. Trying to turn left (west) during the day, one is forced to wait for minutes. If you are lucky, a pedestrian might use a crosswalk to stop traffic momentarily and allow you to make your turn. On the south side of Broadway there are many commercial businesses with large trucks. These trucks have to work their way through small side streets, exit onto Campbell and then turn onto Broadway at the light just to join the seemingly endless line of vehicles. Turning east onto Broadway from southbound Campbell is also quite difficult.

Realistically, only three cars will get through the light before it changes. When you are finally on Broadway, traffic is reduced to a single lane as soon as a bus stops. If you are unlucky enough to be behind that bus, you will likely be there until the nearest light behind you turns red and pauses the line of vehicles on the inside lane long enough for you to pass.

We have six lanes east of Country Club and six lanes west of Euclid. Why allow a four lane bottleneck to exist in-between? When I moved to Tucson in 1985, a bypass highway was the topic of discussion. It was replaced with the promise of larger interior arterial roads. The citizens of Tucson voted and expansion of Broadway was approved. To not proceed is to tell Tucson voters that their votes have no meaning or value.

The most common point brought forth by the opposition was that historic buildings along Broadway should be protected. As a contractor and a real estate broker, I have seen many so called “historic buildings” designated as such as a ploy to limit property taxes.

Many of the properties along the corridor in question are not maintained, and still more are obsolete for the requirements of today’s commercial tenants.

Furthermore, City of Tucson codes regarding change of use for a certificate of occupancy may restrict the utilization of many existing structures and parking. Historic buildings of merit have already been identified and protected.

Regarding the buildings that have not received protected status, I’m of the opinion that if you bury a tin can and dig it up two hundred years later, it may be historic, but it’s still just a tin can.

Thanks for listening,

Gary Andros

This project is a Regional Transportation Authority Plan  roadway improvement managed by the City of Tucson that will widen Broadway: Euclid to Country Club to a 6-lane arterial, with bike lanes, sidewalks, and landscape.  The project is currently in the design phase.  Acquisition is to begin in 2016.  Construction is not anticipated until late 2017-2018. 

Visit the project’s Design and Construction web site at www.broadwayboulevard.info for the most current information, to find contact emails and phone numbers, and to provide comments.  Details about the RTA plan are available at www.RTAmobility.com.

It’s not too late to be heard, questions and comments can be submitted to the Tucson Department of Transportation before April 15^th. Take 1-2 minutes now and submit a quick “I support the Broadway 30% plan” by clicking on the following link: https://www.broadwayboulevard.info/comments.php