The Rio Nuevo board last week approved new funding for several downtown business projects, including a loan for Cornish Pasty and plans to revitalize the former HiFi Kitchen and Cocktails space, while also preparing for staffing changes within the organization.

The board has about $7.6 million in available cash and about $21 million in commitments.

Board members voted unanimously to approve a funding request from the U.K.-style pub Cornish Pasty for a $375,000 loan, with reimbursement to be completed by next June.

They also approved a $250,000 request by Nate Ares, founder of Ares Collective Restaurant Group, Prep & Pastry, and Commoner & Co.,  for parking lot improvements for his state-of-the-art golf simulator at the Broadmoor Sporting Club.

The board also unanimously approved the acceptance of interest forms and proposals from groups and businesses looking to rent space in the El Presidio neighborhood.

Restaurateur Grant Krueger presented plans for a new business venture downtown that would replace HiFi Kitchen and Cocktails, which closed in February.

It’s time to “remove the ghost of HiFi Kitchen and Cocktails,” Krueger said.

HiFi occupied a 6,000-square-foot indoor space with a 3,000-square-foot patio and developed a reputation for frequent disturbances downtown, leading Tucson police in 2020 to arrest three employees and a patron on charges related to narcotics sales and overserving alcohol.

The club also drew criticism because its operator was based in Scottsdale rather than Tucson.

While HiFi was located in the downtown area, the nightclub was never registered within the Tucson Business Improvement District, a special tax district that funds cleaning, safety, and marketing services in the city’s downtown core.

The district is managed by the Downtown Tucson Partnership. Property owners within the roughly 54-block area who are registered with the district pay an assessment to support programs that keep downtown vibrant, safe, and well-maintained.

Krueger plans to register the space with the Tucson Business Improvement District. He wants to turn the space into a true sports bar, saying this is what downtown is lacking.

“The focus is a little more pub and a little less club,” he said.

The sports bar will include a scratch kitchen that prepares pub-style food and will be open late to appeal to service industry workers. Krueger owns Union Hospitality Group, which owns and operates a trio of restaurants and bars across Tucson, including Union Public House, Reforma, and Proof.

Coined “Block A” during the meeting, Krueger said he wants the space to be related to the University of Arizona to leverage Tucson’s passion for Arizona Athletics.

“This is going to help you reach that goal,” he told board members, referencing Rio Nuevo’s aim to strengthen the University of Arizona’s presence downtown.

The space needs improvements to the kitchen equipment, outside patio and seating, inside bar and seating, A/V system replacement, and security updates. Krueger has hired a team from Las Vegas to come and reinvent the space.

He told board members he wants the space to serve as a venue for performances, events, and community gatherings.

“We’d love to collaborate with other local organizations on events,” he said.

Krueger will be partnering with the Sugar Skulls, Roadrunners, and other local sports teams. He also plans to increase the security presence.

The permitting process for Block A will be complete in a month, with the Series 6 liquor license hearing scheduled for Nov. 5. The expected completion date is February. The estimated cost for the concept is $1.8 million in tenant improvements.

Krueger requested a 50% tenant improvement match from the Rio Nuevo board. It will vote on this request during its next meeting.

Arilynn Hyatt is a journalism major at the University of Arizona and Tucson Spotlight intern. Contact her at arilynndhyatt@arizona.edu.

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