Rio Nuevo / City of Tucson Agree to Expedite Bus Station Relocation

city-of-tucson-announces-development-depart-staff-changesThe City of Tucson gave the go-ahead Thursday to a major new project in downtown Tucson when it signed an agreement with Rio Nuevo and Nor-Generations (Nor-Gen).

The agreement lets Rio Nuevo take over as landlord of the temporary Greyhound bus station currently on the site known as the arena for a proposed a 120,000-square-foot exhibition hall connecting to the Tucson Convention Center and new convention hotel and a visual arts center. The integrated plaza is intended to be a “dry” version of the San Antonio Riverwalk. Its layout includes a 2.5 acre public festival and events space shared with an adjoining museum complex and theater. With the purchase or property, Norville put forward an agreement with the University of Arizona for an art exhibition building and gem museum. West of the exhibition hall and festival space, Nor-Gen proposes a 140 room convention center hotel and 96 Class-A apartments. More than 1,400 parking spaces will also fill a pair of four-level parking structures.

The agreement will expedite the relocation of the station, allow Rio Nuevo to close on the sale of its part of the site to developer Nor-Gen, and allow the developer to move more quickly onto construction.

Rio Nuevo chair Fletcher McCusker told the council this project is an opportunity to preserve the gem shows, which are major contributors to Tucson’s economy and which need more hotel and exhibition space downtown.

The District Board had granted Nor-Gen an extension through the end of September to close on its $5.6M agreement to purchase the Arena Lot.  Attorneys for Nor-Gen indicated they were ready to close, having satisfied all the Rio Nuevo pre-closing requirements but were negotiating with the city on the relocation of the temporary greyhound passenger terminal located in the middle of the lot.




Rio Nuevo Takes Next Steps to Refinance $80 Million Bond

rio nuevo logo2At its August 25th meeting the Rio Nuevo Board unanimously agreed to move toward refinancing the last bond issued by the city controlled District in 2008.  The District’s financial advisors indicated that the refinancing could save $5.4 million of interest over the next ten years.  Attorneys for the District were authorized to seek the required bond insurance and credit ratings and prepare a resolution for a future board meeting.  Assuming interest rates hold the Board could quickly authorize the bonds once all the pieces are in place.

In other action the Board agreed to explore its possible participation in a new multi-use development proposed by The Gadsen Company, LLC, developers of the west side Mercado.  The proposed development would be at the corner of Cushing and Avenida del Convento along the street car line south of the Mercado. The $3 million project is expected to generate over $400,000 a year in new sales tax, activate the vacant property along the street car and expand the success Gadsen has enjoyed with the very popular Mercado. Hopefully a presentation will be ready for the Board at their September meeting.

The District Board also granted Nor-Gen an extension through the end of September to close on its $5.6M agreement to purchase the Arena Lot.  Attorneys for Nor-Gen indicated they are ready to close, have satisfied all the Rio Nuevo pre-closing requirements but are negotiating with the city on the relocation of the temporary greyhound passenger terminal located in the middle of the lot.

The Board also unanimously renewed Jonathan Paton‘s $65,000 annual contract to provide legislative and government relations for the District.

 

 




Rio Nuevo Update: Sale of Rialto Theatre finalized and other business

Rio Nuevo LogoAt its April 22, 2015 meeting, the Rio Nuevo District Board unanimously agreed to complete the sale of the Rialto Theatre to the Rialto Foundation for $1.3 million; more than its appraised value. The Board intends to repurpose those funds into other downtown projects, hopefully leveraging the sales proceeds with other private developers.

In other action, the Board unanimously directed its counsel and executive officers to complete the First Amendment to the Ground Lease and Loan Modification agreement with the Fox Theatre Foundation in accordance with the terms currently before the Foundation. Those terms include governance restrictions on the Foundation’s actions until its $2,900,000 debt to the District has been paid. The parties have already agreed to several restrictions, including prohibiting the Foundation from (1) changing its CEO until January 1, 2019, (2) forming or acquiring an entity for which any the Foundation will serve as the sole or controlling member, (3) approving the sale or transfer of a substantial portion of the Foundation’s assets, (4) making material changes in most of the Foundation’s governing documents, or (5) incurring substantial additional debt. The parties have also agreed that the District will appoint five members to the Foundation’s Board of Directors and will have the right to inspect the Foundations’ financial records. Finally, the Foundation will make a bi-annual presentation to the District on its present and projected financial conditions and answer the District’s questions. The remaining issues and details of the arrangement are under discussion.

In response to comments of patrons, the Board also approved $166,000 to install handrails on the steep steps into the Tucson Convention Center Arena. Although these handrails are not required by the ADA, the Board felt the handrails were an important safety feature. The TCC Arena project is now complete and totaled just under $8,000,000 with this final addition. The Arena remodel has won both the local and state Public Works Project of the Year and is up for the National Public Works Project as a result.

The District Board authorized an $86,000 amendment to its contract with Swaim Associates, Ltd. to help design and estimate Phase II of the TCC remodel, focused now on the meeting rooms, exhibition space and remaining bathrooms

The Nor Gen project is still on schedule. Nor-Gen has until the 27th of May to complete the due diligence. Phase II environmental testing has been complete.