Tucson Development Thread

[Azstar]

His proposal to renovate the hotel for Rio Nuevo was a viable one. He was only asking for tax breaks, and for Rio Nuevo (or the city) to pay for a parking structure. The City Council, on the other hand, was determined to forge ahead with a totally unrealistic, unattainable plan to build a 30+ story hotel from the ground up. No developer was interested in that plan unless the city/Rio Nuevo was willing to practically guarantee its success, financially. It would have cost much, much more in the long run.

[Ted Lyons]

Originally Posted by Azstar

His proposal to renovate the hotel for Rio Nuevo was a viable one. He was only asking for tax breaks, and for Rio Nuevo (or the city) to pay for a parking structure. The City Council, on the other hand, was determined to forge ahead with a totally unrealistic, unattainable plan to build a 30+ story hotel from the ground up. No developer was interested in that plan unless the city/Rio Nuevo was willing to practically guarantee its success, financially. It would have cost much, much more in the long run.

His proposal was only made viable by the fact that he (I bet purposely) let the property fall into such disrepair that some sort of public financing deal was absolutely necessary.This mentality was evidenced by his threats to close the hotel unless the city acquiesced to his demands years after the Rio Nuevo bidding was over. If the property had been kept up as most any other hotel is, his losses would not have necessitated outside intervention, but that was the crux of the game.

[ILikeEyeballs]

Anyone know when construction downtown on the AC Hotel by Marriot is going to start? The last news story I could find is from June, 2014 and says construction was expected to begin by the end of the year.

http://realestatedaily-news.com/down...hes-milestone/

[Ted Lyons]

Originally Posted by ILikeEyeballs

Anyone know when construction downtown on the AC Hotel by Marriot is going to start? The last news story I could find is from June, 2014 and says construction was expected to begin by the end of the year.

http://realestatedaily-news.com/down...hes-milestone/

Construction permits are still under review according to PRO. Plans were submitted back in October.

[ComplotDesigner]

Ronstadt Transit Center Joint Development

[Ted Lyons]

Originally Posted by ComplotDesigner

Ronstadt Transit Center Joint Development

Good find. Felt like it took forever for this to be updated.

[Patrick S]

Don't know if anyone saw this today as it was buried in an AZ Daily Star article about TUSD allowing TPD back into their schools, but there was an update on the new hotel by the U of A.

"The council also paved the way for a new, six-story hotel and retail complex near the University of Arizona.

The council granted development company 7one4 Tucson LLC permission to tear down four dilapidated, historic buildings on the northeast corner of Euclid Avenue and Fourth Street and replace them with an approximately 140-room hotel and underground parking garage.

Some neighborhood groups opposed the destruction of the historic buildings.

But city code allows an historic building to be torn down if the structure is beyond a “reasonable economic use.”

The four buildings, three two-story apartment buildings and a single-story business, fit the description.

Records provided by the company indicate it would cost $2.7 million to rehabilitate the four buildings, but only net $44,250 a year in profit.

Based on those numbers, it would take 110 years on average to break even, records show.​"

Here's the article, with a map of the development location: http://tucson.com/news/local/govt-an...994f5a4aa.html

[Patrick S]

Originally Posted by aznate27

Is the Guggenheim Coming to Sixth Street and Stone? We're Guessing No



Anyone know what this is all about?? Tucson Weekly says it's a hoax, which I tend to agree with, but why?? I was all excited when I drove by on my way to work today, kinda sucks if it is a hoax.

Of course it's a hoax - The sign has a picture of a Tucson Weekly cover article about the museum, which the Tucson Weekly says is a fake. There's also the idea that the Guggenheim is one of the most famous museum's in the world. I've got a bridge to sell to anyone who actually believed this would be put in Tucson.

[Ted Lyons]

Originally Posted by Patrick S

Don't know if anyone saw this today as it was buried in an AZ Daily Star article about TUSD allowing TPD back into their schools, but there was an update on the new hotel by the U of A.

"The council also paved the way for a new, six-story hotel and retail complex near the University of Arizona.

The council granted development company 7one4 Tucson LLC permission to tear down four dilapidated, historic buildings on the northeast corner of Euclid Avenue and Fourth Street and replace them with an approximately 140-room hotel and underground parking garage.

Some neighborhood groups opposed the destruction of the historic buildings.

But city code allows an historic building to be torn down if the structure is beyond a “reasonable economic use.”

The four buildings, three two-story apartment buildings and a single-story business, fit the description.

Records provided by the company indicate it would cost $2.7 million to rehabilitate the four buildings, but only net $44,250 a year in profit.

Based on those numbers, it would take 110 years on average to break even, records show.​"

Here's the article, with a map of the development location: http://tucson.com/news/local/govt-an...994f5a4aa.html

This is good news. The West University Historic Zone Advisory Board voted unanimously against tearing down the buildings so I was a little concerned about this vote. The buildings are nice but they are outsized for the limited lot size and don't visually add much value.

Now, I just hope the Design Review Board rips the current hotel design apart. It's hideous as is.

[Ted Lyons]

More Main Gate Square news.

http://tucson.com/business/local/lan...html?id=201408

Landmark Clothing, near UA Main Gate, liquidating inventory

. . .

The property was purchased in June for $1.25 million by D&F Holdings LLC of Colorado, Pima County Recorder’s Office documents show.

D&F Holdings officials could not be reached Wednesday for comment, but Edberg said it plans a restaurant and bar for the site and will probably start construction in March. He said D&F will make renovations to the distinctive two-story house, built in about 1910, that the men’s clothing store was known for.

. . .

So, when the group from Colorado made an offer to purchase the business, Edberg and Finkelstein decided it was time — and not just because of slow sales. “I’m in my 70s and my partner is in his 50s, so it’s time,” Edberg said.

The reference to a group from Colorado has me thinking this relates to this: http://www.tucsonweekly.com/TheRange...-illegal-petes

EDIT: Yup. D&F Holdings owner: Craig R. Hahn. http://www.manta.com/c/mbyn7qx/d-f-holdings-llc. Craig Hahn, CPA for Illegal Pete's: http://www.ptindirectory.com/tax-pre...craig-hahn-cpa.

[southtucsonboy77]

Originally Posted by Ted Lyons

Good find. Felt like it took forever for this to be updated.

Did anyone catch on page 26 of the Alexander proposal a Design/Conceptual of a 14-story The Post?

Is that out-dated...or new? I've never seen that rendering before.

[Ted Lyons]

Originally Posted by southtucsonboy77

Did anyone catch on page 26 of the Alexander proposal a Design/Conceptual of a 14-story The Post?

Is that out-dated...or new? I've never seen that rendering before.

Yeah. I noticed that and thought it looked good. I can't believe it's the current design, though. Also, it's another project with no movement in months (other than interior demo on the building next door) that was supposed to begin by year's end.

[InTheBurbs]

Originally Posted by southtucsonboy77

Did anyone catch on page 26 of the Alexander proposal a Design/Conceptual of a 14-story The Post?

Is that out-dated...or new? I've never seen that rendering before.

Here's a shot of one of the earlier proposals for the Thrifty Block. It may have been taller at one point, and there was talk of incorporating a hotel, but was then scaled back before it was cancelled. It was also going to include the lot where One East is now.


Photo: Tucson Citizen Archives

[ppdd]

Originally Posted by InTheBurbs

Here's a shot of one of the earlier proposals for the Thrifty Block. It may have been taller at one point, and there was talk of incorporating a hotel, but was then scaled back before it was cancelled. It was also going to include the lot where One East is now.


Photo: Tucson Citizen Archives

I think that's the original Post rendering, but that never happened and never will. The other rendering looks like a taller version of the more recent proposal.

[kaneui]

Originally Posted by Patrick S

Don't know if anyone saw this today as it was buried in an AZ Daily Star article about TUSD allowing TPD back into their schools, but there was an update on the new hotel by the U of A.

"The council also paved the way for a new, six-story hotel and retail complex near the University of Arizona.

The council granted development company 7one4 Tucson LLC permission to tear down four dilapidated, historic buildings on the northeast corner of Euclid Avenue and Fourth Street and replace them with an approximately 140-room hotel and underground parking garage.

The last proposal we saw for this site was a few years ago for a 13-story student housing tower, before all the national developers swooped in and got their projects built first. Here is a preliminary rendering of the proposed "Hotel Euclid" from Steve Kozachik's latest newsletter:



This is now the fourth hotel project announced in proximity to the modern streetcar (the others being the downtown AC Marriott, a hotel at the Arena Site project, and a Residence Inn at Main Gate Square). These numerous proposals are somewhat puzzling, as a recent Urban Land Institute real estate forecast ranked Tucson dead last nationally among 75 metro areas for hotel investment in 2015 (see page 60 on the following link: http://uli.org/wp-content/uploads/UL...state-2015.pdf).

However, developers are apparently bullish on future hotel demand along the streetcar route to meet the needs of the UofA, downtown's redevelopment boom, and anticipated tourism growth.

[Ted Lyons]

Originally Posted by kaneui

The last proposal we saw for this site was a few years ago for a 13-story student housing tower, before all the national developers swooped in and got their projects built first. Here is a preliminary rendering of the proposed "Hotel Euclid" from Steve Kozachik's latest newsletter:



This is now the fourth hotel project announced in proximity to the modern streetcar (the others being the downtown AC Marriott, a hotel at the Arena Site project, and a Residence Inn at Main Gate Square). These numerous proposals are somewhat puzzling, as a recent Urban Land Institute real estate forecast ranked Tucson dead last nationally among 75 metro areas for hotel investment in 2015 (see page 60 on the following link: http://uli.org/wp-content/uploads/UL...state-2015.pdf).

However, developers are apparently bullish on future hotel demand along the streetcar route to meet the needs of the UofA, downtown's redevelopment boom, and anticipated tourism growth.

I think this is from the second round of reviews from the Main Gate District Design Review Committee where the materials were adjusted but the design was not. Still ugly as hell as I mentioned in my previous post.

[Patrick S]

Originally Posted by kaneui

The last proposal we saw for this site was a few years ago for a 13-story student housing tower, before all the national developers swooped in and got their projects built first. Here is a preliminary rendering of the proposed "Hotel Euclid" from Steve Kozachik's latest newsletter:



This is now the fourth hotel project announced in proximity to the modern streetcar (the others being the downtown AC Marriott, a hotel at the Arena Site project, and a Residence Inn at Main Gate Square). These numerous proposals are somewhat puzzling, as a recent Urban Land Institute real estate forecast ranked Tucson dead last nationally among 75 metro areas for hotel investment in 2015 (see page 60 on the following link: http://uli.org/wp-content/uploads/UL...state-2015.pdf).

However, developers are apparently bullish on future hotel demand along the streetcar route to meet the needs of the UofA, downtown's redevelopment boom, and anticipated tourism growth.

This may be a good sign, in relation to your comments. This comes from an article from the AZ Daily Star dated 8/24/14 (this is the first part of a longer article), which states that Tucson is projected to have the highest growth rate in the country in tourism in 2015.

Forecast says demand for Tucson tourism will grow

"Tucson’s tourism industry is ready for a comeback, a new forecast says.

Tucson will be the top market for demand growth in 2015, with a projected 7.1 percent increase, according to a study by Atlanta-based PKF Hospitality Research. That compares to a 2.9 percent growth in demand nationwide.

The city has been slower to recover than others in the West and Southwest, said Visit Tucson CEO Brent DeRaad. “It’s certainly our time to enjoy the recovery many cities have already experienced,” he said.

Local hotels haven’t returned to prerecession occupancy levels, but they saw a stronger peak season, January through April, compared to last year, DeRaad said."

[Ted Lyons]

Some updates from Tim Steller on stalled projects downtown. I wish his ultimatums were as easy to effect as he'd like.

http://tucson.com/news/local/column/...4dd873b8a.html

[aznate27]

Originally Posted by Ted Lyons

Some updates from Tim Steller on stalled projects downtown. I wish his ultimatums were as easy to effect as he'd like.

http://tucson.com/news/local/column/...4dd873b8a.html

I'll believe it when I see it.

[Azstar]

Originally Posted by aznate27

I'll believe it when I see it.

Reality check. None of these projects is likely to go anywhere. Between local developers, who are underfunded and lack resources, to the City Council, which has shown itself to be uncooperative and obstructionist at every turn.