A mixed-use project in the Mercado District will receive $2.4 million in support from the Rio Nuevo Multipurpose Facilities District, the group’s governing board decided on Tuesday, Aug. 28.
The Rio Nuevo Board voted unanimously to contribute the funds to The Gadsden Company to assist in launching a west side project to include 122 courtyard housing units, nearly 13,000-square-feet of retail space and an underground garage. The apartments will include studio, one- and two-bedroom units. Gadsden Company President & CEO Adam Weinstein told the board that during the U.S. Department of Housing and Urban Development approval process for the $35 million Monier Building, construction costs increased 12.3 percent, adding to the total cost.
Weinstein said that the financing is in place, including $9 million of private money, and with the Rio Nuevo investment the project could break ground as early as October.
According to a press release from Rio Nuevo, construction sales tax will be about $1.4 million and annual sales tax estimates are about $460,000. The leverage far exceeds the Rio Nuevo average of $10 dollars of private investment for every $1 of state investment.
"This is a great project," said Board Chairman Fletcher McCusker, in a release. "It is with partners we have worked with before, has dramatic sales tax revenue and continues to fill out the District's western sector."
The Monier Project is named after Quintus Monier, who founded the Tucson Pressed Brick Co. in 1896 near Sentinel Peak on the west side. Monier was a famous 19th-century French architect and designed several buildings in town, including the St. Augustine Cathedral in 1897.