The Data Port

The Latest on The State Budget Negotiations

In an exclusive interview with Representative David Bradley (D District 28) The Data Port has learned the current state of progress on balancing Arizona’s budget. The first action to be taken was to correct one of the consequences of Governor Brewer’s vetoing of the education budget. She vetoed all of it, which would have left the schools with no money at all and unable to open in the fall.

According to Bradley the legislators “fixed the eduction budget” and corrected another consequence of the veto that would have made it impossible for Arizona to receive Federal stimulus funds.

Bradley reports that the Democrats are sitting at the negotiating table with the Republicans and the Governor is closeted with Republican leaders. She continues to refuse to talk to anyone in the Democratic leadership.

According to Bradley a sales tax deal is in the works under which the state sales tax would be extended to all services except medicine and food, but reduced from 5% to 3.4%. This would greatly increase income but would save the average family $275 a year.

Bradley wryly commented that progress is slow but that “We should have a state budget by August.”

The Long Republican Nose and Tucson City Elections

As the Republican-dominated legislature rushed toward adjournment it decided it didn’t like the way we elect our council members.

In Tucson each ward decides in a primary who its Democratic and Republican candidates will be. However, in the general election the vote is city-wide. A consequence of this may be that even though a ward is predominantly Republican it may find itself with a Democratic council person, or vice-versa.

The legislature decided that “first ward and then city-wide” was out. Also out were  partisan elections. All candidates for the council would run as no-party-declared candidates. No one The Data Port contacted, including Democratic and Republican Party  headquarters in Tucson, knew whether Governor Brewer had actually signed the bill. It probably won’t matter if she does, since Tucson is organized by a City Charter, and the state Supreme Court decided in 1951 that the Lege has no power to alter or control a city charter.

Meanwhile, Back at The Rialto

Rob O’Dell, writing in today’s Arizona Daily Star, reports that the City Council and developers Martin and Stiteler yet again failed to reach agreement on a plan to preserve Rialto Theater access to its Green Room and office space. The theater has been using that space rent free.

“Martin and Stiteler were rebuffed last month for a development agreement that would have given them $4 million in city land for $1.7 million worth of developer improvements downtown,” O’Dell reports.

What followed was a spitting match in which the developers threatened to collect back rent, then threatened eviction, and the city threatened to start proceedings to condemn the property.

Some of us thought this was a truly bad deal from the get-go, since many of the developments that were promised would be in the developers’ own property…the building that’s next the Rialto.

Based on quotes in today’s O’Dell article, council members Trasoff and Glassman think this is a great deal, swapping $4 million worth of property for $1.7 million worth of improvements, gifts and develpment, most of it in the developers’ own property. As a bonus gob of icing on the cake there was no guarantee that the $4 million worth of property would  ever be developed. 

A Man With A Motorcycle Parks Anywhere

Well, almost anywhere. You can’t park in any University of Arizona parking structure, or short term parking at the airport, or in most city parking structures. In short, anywhere with an electronic gate. One reason for this may be that the metal sensor plate buried in the ground before the gate is not wide enough to catch the narrow footprint of a motorcycle or scooter. Another reason, according to the University, is that the noise of a motorcycle sets off car alarms. Frankly, my dears, I think this is a heap of whale waste. There’s no evidence that this claim has ever been tested.

When I did a volunteer reading for a University professor the UofA apparently thought it would be all right to arrive in my 32 mpg car but not on my primary form of transportation, my 60 MPG BMW f650cs motorcycle.  I think it’s time to organize a protest “park-in”

Here’s an Action Item for Arts and Development Bloggers

The Downtown Tucson Partnership is holding a public meeting on Monday, June 29.  ”Arts, History, and Culture Organizations” are invited to hear a presentation titled “Building The New Pueblo.” It’s the Partnership plan for revitalizing downtown  (Oh, Goody! Another plan !) and  it wants our participation. My guess is that Arts and Development bloggers ought to attend

Here are the details:

WHEN: Monday, June 29, 5 p.m.
WHERE: Beowulf Alley Theatre, 11 S. Sixth Ave.
RSVP: Teresa Bommarito – teresa@downtowntucson.org or call 547-3338, ext. 2.
Please RSVP by June 26.

WHAT TO EXPECT:
Glenn Lyons, CEO of the Downtown Partnership, will reveal his strategy behind recruiting private investment into Downtown as part of the larger picture of ensuring an economically strong and culturally rich city core. The goal is to find Downtown’s niche in a broader development plan that includes projects led by the City of Tucson as well as areas that are outside traditional Downtown boundaries.

Shameless Plug

Well two really, but they’re connected. I’ve been privileged to appear in a number of Rogue productions and will get a chance to play with the Rogues again later this year.  After the curtain call and after cleaning off my makeup and getting dressed I’m far too wired to go home to bed. I want a Martini and I want a meal. But it’s now 10:30

or later and in many (maybe most) of our better restaurants the cooks are cleaning pots and the waiters are counting tips. Not at Pastiche, my favorite bistro. You’re always going to find a mixture of all sorts of folks, although at the post-ten-PM hour it is as likely as not after-theatre diners, actors, dancers and musicians. Hope to see you there, so say hello.My favorite table?  #59, in the bar.

Councilwoman Nina Trasoff has forwarded The Data Port a copy of the letter she sent to constituents explaining why she supports the Stiteler development plan. As you see the focus of her concerns was the Rialto Theatre.

I am posting the letter (slightly edited for length) so that readers may make their own judgements abut Trasoff’s arguments. I invite your comments, and have invited the councilwoman to join us. Trasoff writes:

“I am concerned about the future of the Rialto Theatre.

“Tuesday, we had an opportunity to support a Development Agreement [DA] that’s been in the works for 6 months.  It is important to note this was an Incentives agreement.  The Developers already own the entire Rialto block except for the Theatre itself, which is owned by the City of Tucson through the Rio Nuevo Facilities District.  This agreement was designed to get redevelopment of this block under way NOW, despite the dismal state of the economy, setting the stage for other developers to want to invest in the area without future incentives.

“The Development Agreement included several important ‘gives’ on behalf of the Rialto:

“§         The Developers would have given the Rialto Theatre a 1,000 sq. foot bay for new bathrooms;

“§         The Developers would have given the Rialto Theatre 450 sq. feet at the northeast corner of the building to provide adequate space and a great entrance for the Theatre’s own bar, downstairs.

“§         The Developers would have provided $400,000 to the Foundation for development of the bathrooms and the bar. [This was NOT a loan! No repayment was required.]

“§         The Developers would have installed an elevator that would have made the balcony of the Theatre handicap accessible for the first time. In exchange, the Foundation would have provided access so balcony patrons could go to the Developers’ bar upstairs before and after shows, with appropriate protections both to assure they’ve paid to enter the Theatre and that liquor law provisos are met.

“There was intense pressure from the Rialto board that the Developers also had to give them the 2,500 square foot Green Room/Office space.  The problem is the Developers have other plans for that building.  But, I believe that issue was taken care of with this additional concession:

“§         The Theatre would be given use of the Green Room rent-free guaranteed for 5 years. After that, a series of 5-year leases would be negotiated at market rate.  When the Developers were ready to raze the Broadway building for redevelopment, Green Room facilities would always be made available to the Theatre on the Rialto Block at market rate rent.

“There were many other elements in the DA, including incentives to move forward NOW with renovating the ground floor of the Rialto Block, bringing in a major art gallery and JANOS, in his important return to Downtown.  Several small nonprofits would have received important funding support, including WAMO, Skrappy’s youth program and the new artist in residence program called ‘Distributor’, creating an important upgrade of one of the gateways to Downtown.

“My motion to express strong support for the Development Agreement, just working to retool a couple of language points to clarify the deal, failed to gain support.  Yes, there were a few changes needed, but I believe the basic framework was in place and felt we needed to confirm it since the deadline to which we agreed was June 17^th (the next day). I believe we had a deal that would greatly benefit Downtown’s East End, the Rialto Theatre and Downtown revitalization as a whole.  The developers would also reap benefits in the form of City property earned in exchange for their risking their cash redeveloping before the economy turned around.  Instead, Council voted to delay the decision for three weeks so the parties could continue to talk and work out details.

“Bottom line: I believe this multi-faceted development agreement was in the best interest of our community as a whole: it protected and strengthened an important City asset, the Rialto Theatre; it provided a necessary ‘push’ or incentive to getting this project moving quickly, providing a boost to other local restaurants, retail, commercial business, neighborhoods; and it gave the business community the confidence that the City would be a partner in getting our economy moving again.

“I’ll keep you posted.

“Nina J. Trasoff

Councilmember - Ward VI”

Comments? Criticisms? Objections?

There is an issue with the Stiteler development that has gone unreported. I suspect that’s because, like so many economic issues, it hasn’t been understood. It surely hasn’t been understood by the City Council.

I will now perform the death-defying feat of trying to explain it. Before I do, let me remind you that a great deal of development and improvement has gone on downtown fueled by purely private investment. I.E: with little or no public support.

Mr. Private Developer, henceforth PD, sees a downtown property he thinks is ripe for re-development. He buys it, and does all the preparatory and clean-up work to start building his lofts, or studios, or restaurant space–whatever his plan is. Let’s say that he invests a million bucks in all that, in buying the property and in development preparation. Now PD goes to the bank. He needs a two million dollar loan for his project.

Mr Banker, henceforth MB, takes a look at the projections, PD’s pro-formas and so forth.

MB: See here, PD, you have a cost basis of a million dollars in this project and now you want a two million dollar loan. That means you’ll be into the project for a total of three million bucks. In order for it to cash flow you’ll have to charge rent at so-and-so many dollars a square foot.

MB: Now here’s my problem. There’s another developer in the neighborhood who has been given his land by the City. His cost basis is zero, zip, nada. He’s come to me for a loan, too. Like you he wants 2 million. In order to cash flow he could charge fewer dollars per square foot than you. But even if he charges what you plan to charge, he is a better risk because he’ll be into the project for only two million.

He’s a better risk and I have limited resources so if I make your loan at all it will have to be for a higher interest rate.

Hence it is at least arguable that giving away City property makes it harder for private developers, not easier. In the attempt to spur development the City Council has placed all other development at a disadvantage.

The Data Port checked in with City Council offices to see what the levels of e-mail traffic were prior to last night’s vote.

A spokesman at Regina Romero’s Ward One office estimated that the office received approximately 140 e-mails in support of the Rialto Theater.

Rodney Glassman’s Ward 2 office: 100, mostly Rialto related.

Shirley Scott, Ward 4:  ”Mayor and Council comment line was bombarded” according to a spokesperson. In addition the office estimates that they received about 50, concerned about the future of the Rialto Theater.

Steve Leal’s Ward 5 spokesman, Barbara Jordan, estimated that they received about 300 e-mails to “save the Rialto.”

Nina Trasoff, Ward 6 : The Data Port spoke with Trasoff, who estimated that e-mail traffic related to last night’s vote was between 150 and 200. Trasoff sent The Data Port a copy of the e-mail she sent to people who had e-mailed her. The Data Port will discuss that in a later post.

Karen Uhlich’s Ward Three office will be getting back to us.

It’s apparent that most of the concern about the Stiteler plan centered around the Rialto Theater. There are other issues, of course, mostly about the overall financial wisdom of the deal. Those are the subject of a future post.

By a 7-0 vote the City Council last night voted to delay a decision on the Stiteler  development deal

Perhaps it finally occurred to them that giving Stiteler four million bucks worth of land as a reward for developing his own property didn’t make as much sense as they once thought.

In case you’re still puzzled by the wizardry of the Stiteler deal you might want to read this piece from The Tucson Weekly.

As a former Chicagoan this deal fills me with a sweet nostalgia for my old hometown. I think it must be the aroma of the stockyards hanging over it.

Donovan Durband’s blog- Meet Me Downtown- should be must reading for all the members of the Tucson City Council. Below are some highlights of his post, but I urge you to read all of Durband’s post.

“The main element of this agreement is the giveaway of $4 million or more in City-owned real estate to DTDC, Downtown Tucson Development Company, with contributions from DTDC to the Rialto Theatre, WAMO, and Skrappy’s that add up to far less than $4 million in real value.

“Last December, desperation led the City Council to approve the Pre-development Agreement for this deal, without proper due diligence, without proper consideration of the consequences, without proper public vetting. People were warned that they had to fall in line behind it, or else.”

And, let me add, with no performance guarantees imposed on the developer.

“Now, six months later, the City Council is up against a deadline it never should have faced; make a deal now with DTDC or pay up. Around $950,000 to reimburse DTDC for costs they’ve incurred. Wow, I know of developers who were induced to spend a lot more than that on projects they thought they were being awarded in Downtown Tucson, and they didn’t get reimbursed a nickel.

Here is the  contact information for the City Council. Call five friends and ask them to call or e-mail the Council to protest this deal.

Karen Uhlich

Ward III
1510 East Grant Road
Tucson, Arizona 85719
Phone: (520)  791-4711
FAX: (520)  791-5391
E-Mail: ward3@tucsonaz.gov

Steve Leal

Southside Ward Five
4300 South Park Avenue
Tucson, Arizona 85714
Phone: (520)  791-4231
FAX: (520)  791-3188
E-Mail: steve.leal@tucsonaz.gov

Nina Trasoff

Midtown Ward Six
3202 East 1st Street
Tucson, Arizona 85716
Phone: (520)  791-4601
Fax: (520)  791-3211
E-Mail: ward6@tucsonaz.gov

Shirley Scott

Southeast Ward Four
8123 E. Poinciana
Tucson, Arizona 85730
Phone: (520)  791-3199
FAX: (520)  791-4717
E-Mail: ward4@tucsonaz.govRegina

Regina Romero

Ward 1 – Westside/Southside/Downtown
940 W. Alameda Street
Tucson, Arizona 85745
Phone: (520)  791-4040
FAX: (520)  791-5393
Email: ward1@tucsonaz.gov

Rodney Glassman

Northeast Ward Two
7575 E. Speedway
Tucson, Arizona 85710
Phone: (520) 791-4687
FAX: (520) 791-5380
E-Mail: ward2@tucsonaz.gov

While The Data port was getting ready for the move to TucsonCitizen.com I set up a test WordPress site. Frankly, I wanted to practice with the new blogging platform. That’s where what follows originally appeared. It’s my judgement that the only folks any longer truly in favor of it are Councilwoman Trasoff, one developer who is the primary beneficiary of the City Council’s largesse, and people who make their money by “planning.”

Is Rio Nuevo Based on A Mistake?

I’d like to suggest that it is. The mistake is a mixture of two things: A sentimental yearning for something that never quite existed  here, and the failure to see that much of what we might realistically expect of a downtown already exists.

This nostalgia for something that never was quite real here is captured in this song by Petula Clark. Remember? A kind of fantasy land where all the good stuff was; lit by neon. My guess is that underlying our businesslike arguments for “development” is some similar emotional engine.

In the meantime we easily forget what is already there. Museums and galleries and the public library. The Symphony, Opera, a variety musicals, and performances at the Leo Rich. Is there theater? You bet: ATC, Beowulf Alley Theater, the Rogue Theatre upstairs at The Temple of Music and Art . At either end of Congress The Fox and The Rialto. Club Congress of course, although not for elderly ears.

It’s not likely that you’ll go hungry, either: Poca Cosa, The Cup Cafe, Barrio Grill, Maynards, El Minuto, and others that I can’t name.

Fourth Avenue is alive and well and no more removed from the places I’ve named than are some venues in Manhattan or Chicago’s Loop.

Finally, there’s more of Tucson’s great “downtown” actually spread all across the city, at its theaters, galleries and truly wonderful restaurants. Frankly I’m glad it isn’t all crammed into the handful of blocks in the old downtown area.

So… let’s build a new hotel and convention center, which I believe might actually be an important economic resource, get the trolley rolling… and then call it quits.