Extension of redevelopment tax d

Extension of redevelopment tax district moves forward


Feb 8, 2006
Channel 4
KVOA Tucson

Efforts to extend the life of a special tax district designed to generate money for an ambitious downtown Tucson redevelopment project are advancing in the Legislature.

But many hurdles remain for a bill to add three decades to the Rio Nuevo special tax district approved by city voters in 1999 as a 10-year plan.

Tucson city leaders are pushing the bill, which was approved by the House Ways and Means Committee Monday on a 7 to 2 vote. The 30-year extension would pump as much as $1.2 billion in sales tax money into downtown redevelopment.

The extension of the special tax district is being championed by a Republican lawmaker, Rep. Steve Huffman of Oro Valley, and Tucson Mayor Bob Walkup.

The split committee vote worried Walkup, who said its failure to garner unanimous approval shows that supporters will have to work hard to get it passed. The bill now goes to the full House for consideration.

One Democratic lawmaker who needs convincing is Rep. Ted Downing. The Tucson Democrat took the unusual step of appearing before the committee to argue against the proposal, saying it would be "wise and prudent" to put the measure to a public vote.

"I support the concept of Downtown renewal," Downing said. But "I have concerns about the way that concept has been carried out so far."

The president of the Arizona Tax Research Association, Kevin McCarthy, also spoke against the bill, arguing it was bad public policy to finance redevelopment projects with tax money.

Besides Tucson officials, the bill was supported by a construction industry executive, Eric Hedlund, who said the tax was needed to stimulate private investment in the area.

The Rio Nuevo district, generally the area of downtown Tucson and just west of downtown, was created in 1999 to collect an extra sales tax and spend it on public improvements.

The city recently decided that the 10-year life of the district wasn't enough to provide the stream of investment cash needed and began to push for the 30 year extension.