Rio Nuevo wants to buy the City of Tucson's stake in an agreement to develop 14 acres on the west side of downtown. The $1.2 million amount would equal what the City would receive if it decided developer Gadsden Co. has defaulted on a performance bond tied to the development agreement.
Gadsden agreed in 2008 to buy and develop the land in phases, but the company hasn't completed all of the agreed-upon work. The City granted the developer several extensions.
Under the proposal from Rio Nuevo, the special taxing district created to develop downtown would lease the property to Gadsden and receive sales tax revenue from new retail stores. Any agreement would have to be approved by the Tucson City Council, Rio Nuevo Board, attorneys, and bond underwriters.
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