The Koz says the ‘do nothing’ State of Maricopa-appointed Rio Nuevo Board is the problem

Posted by AzBlueMeanie:

Will the Tea-Publican candidates for mayor and council continue to sing the praises of Steve Kozachik (The Koz) and cite in their campaign materials this most recent in a series of guest opinions in the Arizona Daily Star placing the blame for downtown squarely on the "do nothing" State of Maricopa-appointed Rio Nuevo Board?  "Rio Nuevo" Rick Grinnell, who sits on the board, and is the Tea-Publican's "Hail Mary pass" write-in candidate for mayor must be blowing a gasket this morning.

And what will the Arizona Daily Star's "B & O Railroad" team of Josh Brodesky and Rob O'Dell do to demonize the Tucson City Council even further while completely ignoring the inaction of the State of Maricopa-appointed Rio Nuevo Board to sell the public a false narrative on downtown? I am sure they will speed dial Jonathan "Payday" Paton for another ready-made quote smearing the Tucson City Council. The Koz, however, disagrees.

The Koz writes today, New Rio Nuevo Board neglecting its responsibility to maintain TCC:

In most sporting events, there are winners and losers. In the sport of political football that the Rio Nuevo Board has made out of making needed repairs to the Tucson Convention Center, I can identify losers, but finding any winners is more difficult. 

The Rio Nuevo Multipurpose Facilities District Board is in possession of a facilities "needs list." There are nearly $40 million in repairs identified. Many of these are safety and code compliance items. Many are items needed in order to make the TCC more marketable to incoming groups. All are items that are within the purview of the Rio Nuevo Board to assist in funding.

The current board was appointed in early 2010 by the state Legislature and the governor. Despite the clear precedent of the previous board having funded repairs, and the clear terms of the lease agreement that exists between the city of Tucson and Rio Nuevo that allows for that to occur, the current board has invested zero dollars in upkeep of the TCC.

So, who is the loser when the Rio Nuevo Board disregards history, disregards its status as owner of the facility and refuses to invest in its upkeep? All of the users of the facility who are forced to adjust to its inadequacies, adapt to its code-compliance issues, and generally work around the items that appear on the "needs list" that the current Rio Nuevo Board has left untouched. 

In 2008 and 2009, the Rio Nuevo District sold bonds, which may be invested only in the TCC. According to its own financial statements, there is more than $6 million left in the 2008 package, and nearly $500,000 left in the 2009 package. Some of the board members say that there may be bond money, but they don't know how much. 

So who is the loser when the present Rio Board does not heed its own financial statements, does not heed the restrictions placed on how that bond money can be spent and generally ignores the facts as they appear on paper? The event workers who rely on the employment that incoming events offer – concessions, security, ticketing and more. All suffer the impact of Rio Nuevo failing to use its bond proceeds for fixing the TCC and making it a more attractive venue. 

Rio Nuevo is funded by taxes generated by sales that occur within the footprint of the district. As a result of an improving economy, and to the diligent efforts of the city of Tucson Finance Department staff, the tax increment finance (TIF) revenues flowing into the district have been steadily increasing.

Currently, the net of annual income over debt service and administrative expenses that the district has taken on is approximately $3.5 million to the positive.

So who is the loser when the district refuses to acknowledge the increasing TIF dollars, continues to cry poverty even as it authorizes nearly $1 million in "administrative expenses" in its own current budget, and routinely ignores the fact that the same legislation through which they were appointed limits excess TIF to funding work on the TCC? All of the small-business operators who have invested their own money and sweat equity in taking a chance on a revitalized downtown core.

Tens of millions of private dollars have poured into the downtown area since early 2010 on the hope that this new Rio Nuevo Board would produce on its side of the bargain and invest in the TCC, drawing visitors into their shops before and after events. These entrepreneurs are struggling to survive while this Rio Nuevo Board struggles to read its own bank statements. 

So who is the loser while the bond money sits gathering dust while the TCC falls into disrepair? The taxpaying public in the city of Tucson. 

I can point to plenty of losers who sit and watch while this Rio Nuevo Board abdicates, obfuscates and, some might say, confiscates. I leave it to the Rio Nuevo Board to identify anybody who is a winner in any of this.

UPDATE: Well that didn't take long, On Wednesday the Arizona Daily Star published an editorial opinion obviously by Josh Brodesky attempting to give equal blame to the Tucson City Council and the State of Maricopa-appointed Rio Nuevo Board. Public deserves firm numbers on Rio Nuevo. "That's my false narrative and I'm sticking to it."