Rio Nuevo expects to begin taking applications this month for its first executive director, after a community survey found respondents want an “active, transparent civic convener.”

Rio Nuevo is downtown Tucson’s development district. Earlier this year, its board authorized a search for an executive director, a position Rio Nuevo has never had, as part of an effort to improve its current staff model. It commissioned a survey in August to learn the community’s priorities and to give the search committee and its consultant a clear profile of the candidate residents want.

The board presented the survey results at its Sept. 22 meeting, saying respondents named the traits they think the person in that role should have.

The survey went to about 11,000 people and drew about 100 responses.

Mary Davis, a public relations consultant for Rio Nuevo, said respondents want a director who works with the community and not only on deals.

Respondents also commented on the state of downtown, with 84% saying it has significantly or somewhat improved over the past 10 to 15 years and 83% crediting Rio Nuevo as a catalyst for that transformation.

However, respondents criticized the district over security and sanitation.

“We’re not naive to recognize some of the challenges that we have. As successful as we are, we see some common themes around the safety and cleanliness and activation of our alleyways,” board Chairman Fletcher McCusker said in response to the criticism. “As we rethink next year, I think you’ll see us try to add some resources to those efforts.”

McCusker said the board has worked and will continue to work with the city to improve safety downtown and address cleanliness concerns wherever they arise.

The board also approved contract extensions for two downtown businesses and weighed financial support for a hotel expansion and a new nightclub, after hearing a financial report from Chief Financial Officer Dan Myers.

The board received an estimate from the state showing that its tax increment financing revenue from July will be $1.6 million. But after accounting for existing cash commitments, the district has only about $725,000 to spend over the next 12 months.

Rio Nuevo’s revenue has yet to fully recover from the pandemic.

“We’re hoping that our economy recovers a little bit. But in the meantime, we’re going to be bringing on some significant merchants and developments that I think will give us a little boost,” Myers said. “It’s important to deal with what we actually have in the bank now and not live in guesses going forward.”

Turning to the extensions, the board unanimously approved a request from Jaqueleen Larson, owner and operator of social wellness studio El Ritual, to extend her agreement with the district. Larson said she expects construction to be completed in about a month.

The board also considered a one-year extension of Empire Pizza’s three-year agreement for its expansion into the neighboring building at 145 E. Congress St. McCusker and board counsel Tim Medcoff confirmed that the city is processing Empire’s building permit, and the board unanimously approved an extension through September 2027.

Board members also discussed a request for financial aid for a new project by Greg Fay, managing partner at Fayth Hospitality Group.

In August 2021, Fayth Hospitality completed construction on the Hampton Inn/Home2 Suites dual-branded hotel downtown at 141 S. Stone Ave. The property has 199 rooms and two retail spaces, one of which is already occupied by La Estrella Bakery.

The other space is set to be leased to another local business, Teseros Mesquite Furniture Gallery.

The shell of the expansion is finished, but it still needs electrical work, flooring, an HVAC system and a restroom before it can open. Fay is asking Rio Nuevo for help with those improvements because of downtown Tucson’s market rental rates.

The proposed cost of the improvements is $200,000. Fay is requesting 50%, or $100,000 in cash, from the board.

Board members questioned part of Fay’s budget, specifically a portion labeled “other costs.” Corky Poster, an architect and board member, said Rio Nuevo’s policy is to contribute up to 50% of a project’s hard construction costs, not its total cost. He recommended that Fay leave out architectural costs and include only expenses that qualify under the district’s guidelines.

“I think we’d be happy to participate in 50% of that new number,” Poster said.

The project will return to the board’s agenda at the next meeting. If Fay has a contractor quote by then, the board is likely to vote on whether to participate.

Next, the board revisited a new multi-concept nightclub proposed at its last meeting by Fernando Minjarez, managing partner of hospitality group Eleven Eleven Tucson LLC.

Minjarez returned with a revised proposal. Instead of asking for the full $355,368.38 in cash, the group now wants half that amount as a direct cash commitment, with rebates covering the rest.

The board unanimously voted to support the project with its revisions.

Board members then heard an update on Bungalow Block, one of the 39 properties acquired by Rio Nuevo along the Sunshine Mile. As part of preservation, the district will aid in transforming seven historic bungalow buildings into restaurants, retail and other businesses to create a new community destination.

Lead developer Peter Anadranastakis has signed leases for five of the bungalows, including one with a local coffee business. He’s in discussion with a few other potential tenants and hopes to have signed letters of intent or leases soon.

The board also discussed approving a search for a naming rights sponsor for the Tucson Convention Center. Legends Global, which manages entertainment venues, would lead the search.

Sponsorships are estimated to bring in $750,000 to $1 million a year, minus a 25% commission for Legends.

The board took no action at the meeting but is likely to approve the search at its next one.

Finally, the board discussed potential uses for its land at “A” Mountain. Rio Nuevo acquired 27 acres at the base of the mountain in 2013 but was not aware that the site had been the city’s landfill until the late 1960s.

Although the landfill has been capped, the site still has contamination concerns.

Some organizations have approached the board about contributing to or taking ownership of the land. To move forward, the board needs to research the parcel’s status.

“We would love to see somebody who has the resources do something with this precious piece of land,” McCusker said.

Some potential uses include public gardens, a wildlife park or a celebration of the land’s history, which is known to be pre-Hohokam.

The board plans to vote at its next meeting on a proposal to commit just under $10,000 to a phase one survey of the land.

Ahva Ghazanfari is a University of Arizona student and Tucson Spotlight intern. Contact her at ahvanghazanfari@arizona.edu.

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