Rio Nuevo Update: 1 South Church Project Moves Forward

TUCSON, ARIZONA – Work at 75 E. Broadway could soon recommence after the Rio Nuevo Board reached an agreement with the developers of the mixed-use project planned for the site.

Last year, the Board learned that JE Dunn, the original developer/general contractor, wanted to transfer its ownership share to its co-developer Dabdoub Schwabe Properties. Marcel Dabdoub said that an agreement had been reached with a Boston-based lender to provide the funding for such a transfer. The Board unanimously voted to give the group a 60-day extension, beyond the original deadline of Jan. 31, to finalize the deal.

Dabdoub said the potential investors have expressed a desire to increase the size of the development at East Broadway Boulevard and South Sixth Avenue, and that it could reach 19 stories. Plans are for two floors of retail, five to seven parking levels with about 350 parking spaces, five floors of office space and two to four floors for residential.

In other business, the Board took steps to alleviate potential parking challenges as a result of construction being done in and around the Tucson Convention Center. After meeting with residents of the nearby Barrio Viejo neighborhood, City of Tucson officials decided to issue parking permits for people who live nearby. The Rio Nuevo Board unanimously voted to reimburse the City up to $35,000 each year, until construction is completed, to cover the cost of the permits.

Board members took additional steps to make sure guests at the Doubletree Hotel, scheduled to be completed in December 2020, would not park in the surrounding neighborhoods. The new parking garage, being built just east of the TCC, will designate an additional 58 spots to supplement the surface parking to match the 170 beds in the hotel.

 The $38 million conversion plan for 1 S. Church moved forward after the Board voted to spend up to $10,000 to hire an appraiser and property tax consultant for the project. Those experts will give Rio Nuevo a third-party independent evaluation on the property and how the plans for the site will affect the building’s value.

Opwest Partners plans to revitalize the 23-story tower and convert eight lower floors into a hotel with about 150 rooms, 1,500-square-feet of meeting space, a 4,000-square-foot restaurant and a fitness center. Floors 11 through 23 would remain office space.

Opwest Partners is an investment and development firm with expertise in mixed-use, hospitality, resort, residential, entertainment, office, retail and recreational properties. The principals of Opwest have invested in and developed more than $4.5 billion of real estate throughout the United States, including the Curio Hotel in Scottsdale; Montage Beverly Hills; Montage Deer Valley in Park City, Utah; Pendry Hotel in San Diego; and the Everly Hotel in Hollywood.

More information on these projects and downtown can be found at RioNuevo.org.