Central Business District (CBD) - Findings of Conditions in the Proposed Modified City of Tucson - Prepared by the City of Tucson Office of ...
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Findings of Conditions in the Proposed Modified City of Tucson
Central Business District (CBD)
Prepared by the City of Tucson Office of Economic Initiatives
June 22, 2021
Contents Findings of Conditions in the Proposed Modified Central Business District | 1 Government Property Lease Excise Tax (GPLET) | 3 Community Engagement | 6 Proposed Modifications to the Central Business District | 15 Conclusion | 39
Findings of Conditions in the Proposed
Modified Central Business District
Per ARS § 42‐6209, “Central Business District” means a single and contiguous geographical area that is
designated by resolution of the governing body of the city. The Central Business District (CBD) may not be
more than 2.5% of the total land area of the City, and any expanded areas of the existing CBD may not be
more than twice as long as they are wide. The CBD is an area in which the City has determined that sound
municipal growth is substantially arrested.
The City of Tucson’s single Central Business District was adopted by City Council Resolution 21883 on April
17, 2012 and renewed by Resolution 23246 on September 22, 2020.
On May 7, 2019, Mayor and Council provided direction to consider an expansion of the boundary of the
existing CBD, to the extent allowed by ARS § 42‐6209(A)(1)(c), to adjacent areas per ARS § 36‐1471.
1
This report, in conjunction with a Resolution prepared for Mayor and Council consideration, provides
findings of fact regarding the Proposed Modified Central Business District, and establishes the modified
Central Business District designation in accordance with ARS § 36‐1471 and ARS § 42‐6209. Approval of
this Resolution will allow the City to use the Government Property Lease Excise Tax as an economic
development tool within the modified boundary of the Central Business District.
In accordance with ARS § 36‐1471, the City finds that both of the following are true within the Proposed
Modified Central Business District:
a) There is a predominance of buildings or improvements, whether residential or nonresidential.
b) The public health, safety or welfare is threatened because of any of the following:
(i) Dilapidated, deteriorated, aging or obsolescent buildings or improvements.
(ii) The inadequate provision for ventilation, light, air, sanitation or open spaces.
(iii) Overcrowding.
(iv) The existence of conditions that endanger life or property by fire and other causes.
2
Government Property
Lease Excise Tax (GPLET)
Arizona State statute grants the City of Tucson authority to abate property tax for up to eight years if a
property is located within a designated Central Business District and meets other specific criteria. This tool
is commonly referred to as the GPLET (locally pronounced Gee‐plet). The GPLET allows the City to facilitate
the development, and redevelopment, of real property in and around Downtown Tucson by providing a
significant financial incentive to projects that would not be economically feasible but for the value realized
through the property tax abatement.
To date, the City has entered into twenty‐four GPLET agreements. These projects have created new
market‐rate housing, new retail space, new office space, and revitalized blighted buildings to generate jobs
for the community, and tax revenue for the City and other taxing jurisdictions. The total revenue impact of
these projects is expected to exceed $155 million. The GPLET incentive tool has also been used to bring
new life to outdated, poorly maintained properties that were hotspots for crime, and now contribute to
the economic sustainability of Tucson.
Click to view an interactive map that provides details on the City’s use of the GPLET tool
3
4
The City commissioned an independent third‐party to conduct research and analysis of the City’s GPLET
program. Equity and Sustainability Assessment of Tucson's Government Property Lease Excise Tax
(GPLET) Program was presented to Mayor and Council on February 23, 2021.
This report examines the potential effects of the City of Tucson’s Government Property Lease Excise Tax
(GPLET) program on certain equity and sustainability issues, and how the program might do more for social
and environmental progress. Topics covered include gentrification, displacement, affordable housing,
employment equity, legacy and locally owned business, sustainable urban form and green building, the
journey to work, equitable spending, abatements and real estate returns, real estate performance, and
increasing equity and sustainability benefits from GPLET incentives.
The report was conducted by Dr. Gary Pivo, Professor of Real Estate Development and Urban Planning at
the University of Arizona. He works in the areas of responsible property investing, urban form, and
sustainable cities. He holds professorships in the MS Urban Planning Program and the School of Natural
Resources at the University of Arizona where he teaches courses on the land development process and
sustainable cities. Dr. Pivo’s research has been cited by scholars in many different fields including urban
studies, transportation, environmental studies, planning, public health, engineering, geography,
economics, and more.
5
Community Engagement
The City’s earnest intention has been to engage the community, with its rich and diverse perspectives, in
the process of designating the Proposed Modified Central Business District. In January 2021, the Mayor
and Council and the Office of Economic Initiatives hosted a series of seven virtual meetings to engage the
community in co‐creating a shared vision for the future of the CBD. Each meeting was recorded and can be
viewed online. Collectively, the seven virtual meetings have garnered more than 700 views on YouTube.
Community engagement was facilitated by Punam Mather, a skilled communicator who ensured that each
virtual meeting provided opportunities for education and for a diverse range of voices to be heard.
The image on the following page is a "visual note" depicting the first virtual meeting that was created by a
participant, Angie Moline, of MolineCREATIVE.
The results of this community engagement were presented to Mayor and Council February 9, 2021.
6
7
community survey
In addition to the virtual meetings, the City of Tucson conducted an informal survey to better understand
who is interested in the Central Business District, their perspectives on Downtown development, and what
the City should focus on for the future of the Central Business District. The virtual meeting sessions and
survey were actively promoted to the community on television and radio news, social media channels, and
via email. The survey was printed in English and Spanish and published in the Arizona Daily Star.
Click to view the full survey results
8additional communication
Bilingual Communication Email Communication
Recorded Meetings on
YouTube.
Viewed more than 703 times
Surveys published in the Daily Follow up email sent to all
Star & La Estrella attendees
9what we learned
Our Shared Challenges Our Shared Vision
“In a single word, what do you think is the biggest “In one word, which adjective would you like to claim as a
challenge we will face in achieving this amazing vision?” description of Tucson in 2030? What will be true about our
[165 responses] community in 2030?”
[183 responses]
10the bridge‐builders
Francisca Villegas Corky Poster Sharayah Jimenez
The City of Tucson engaged three prominent community members to serve as "Bridge‐Builders“ for the
duration of the community engagement process. The Bridge‐Builders helped to refine the engagement
process, and advanced our objectives of education and engagement by contributing their knowledge and
experience to each of the virtual meetings. The Bridge‐Builders played a key role fostering open and
informed dialogue during our January meetings and during the CBD Stakeholder meetings. In April, they
presented a full report to Mayor and Council.
11“The Bridge‐Builders were please to be part of an innovative and effective outreach effort to a spectrum of
community voices. We heard both positive and negative comments on the CBD and GPLET. We heard form
participants and survey results, that there are other goals that are not being addressed by the IID and
GPLET and that the Mayor and Council should direct staff to creatively develop additional tools and
resources. Specifically, the highest priority goals and directives that we heard were:
• Affordable and workforce housing as a key priority
• Small and local business job creation
• Invest in the neighborhoods that adjoin the CBD
We heard that community members were not against development, but rather want the community to
have a say in what is developed; to benefit, not be forced out. Finally, we need to do a better job of
engaging the Spanish‐speaking community in the process.”
Click here to see the full Bridge Builders’ report
12stakeholder meetings
On February 23, 2021, Mayor and Council directed staff to develop an Action Plan that includes a
new auditing strategy going forward to ensure that GPLET projects are delivering what they
promised; and to convene a special steering committee to review the results of the CBD public
engagement and Dr. Pivo’s study and provide informed recommendations on next steps.
Between March 3, 2021 and April 14, 2021, the Office of Economic Initiatives convened weekly
meetings of the CBD Stakeholder Working Group. As requested by Mayor & Council, the Working
Group was comprised of members of the public, including the “Bridge‐Builders,” members of the
Commission on Equitable Housing & Development, Community Advocates representing the barrios
in, and adjacent to, the Central Business District, Legacy Small Business Owners, and Local
Developers.
On April 20, 2021, the Office of Economic Initiatives reported on the Stakeholder Working Group’s
review of the CBD boundary, as well as the GPLET policy and process. Click here to view the FINAL
DRAFT GPLET Policy Framework, as recommended by the Stakeholder Working Group and
subsequently modified by Mayor and Council.
1314
Proposed Modifications to the
Central Business District
The City of Tucson is considering modifications to the existing Central Business District (CBD), as shown on
Map 1. In accordance with Arizona Revised Statutes 36‐1471, the City has determined that the Proposed
Modified Central Business District is a slum area where sound municipal growth is substantially arrested.
Land use characteristics of the Proposed Modified Central Business District:
3,793 Total Parcels
4.93 square miles
1.38% area of Tucson Current
2.05% area of Tucson Proposed
Area of Tucson: 241.29 square miles
15While the City finds that the Proposed Modified Central Business District meets the statutory definition of
slum, this does not, by any means, signify that every property in the District fits this description. In our
efforts to designate a CBD area that will facilitate much needed new development and capital investment,
we have endeavored to minimize the number of single‐family residential parcels within the district;
however, it is not possible to exclude all such properties.
In alignment with the shared vision expressed by community stakeholders through an extensive
engagement process, the City’s goal and intent is to grant the GPLET 8‐year abatement incentive to assist
with the private development, financing, construction and management of urban and mixed‐use
development and redevelopment projects within the Proposed Modified Central Business District. Projects
will help the City achieve its vision of an equitable, vibrant, sustainable, inclusive, diverse, thriving, and
affordable community.
16Map 1
Proposed Modifications
to the Tucson Central
Business District
17Table 1
Code Violations
The Code Enforcement Division of the
Environmental and General Services
Department is responsible for investigating
code complaints that affect the health and
safety of residents. They also address
property maintenance issues by enforcing
several City regulations such as the
Neighborhood Preservation Ordinance
provisions of the Unified Development Code
(UDC), and Sign Code. An analysis of reported
code violations in the proposed Central
Business District modification area from
January 2016 through May 2021 showed that
there were a total of 344 complaints
investigated in the area. Of those complaints,
approximately 36% were exterior nuisance
complaints, such as reports of junk cars in
yards, illegal dumping on vacant lots or
washes, visible refuse and vegetation
nuisances. Another 31% of complaints
concerned emergency violations, such as
unsecured pools and minimum housing
standards, such as lack of heat, inferior
plumbing, or insects.
18Map 2
Code Violations
19Table 2
Crime Statistics
Crime in the Proposed Modified Central
Business District has increased by 15.2%
(1,867 to 2,151) from 2013 to 2020.
From 2017 to 2018, crime increased by
36.2% in the Proposed Modified CBD, while
citywide crime decreased by 1.2%.
In the Proposed Modified CBD, larcenies
(28.4%; 3,231) account for the highest
percentages of total crime from 2013 to
2021.
20Map 3
Police Incidents
21Map 4
Zoning by Parcel
22Map 5
Year Built
23Map 6
Percent of Population
whose income is below
the poverty level
24Map 7
Percent of Population with less
than a High School Education
25Map 8
Median Household Income
26Map 9
Percent of Population that is
Unemployed
27visual indicators
The images on the following pages document existing conditions within the Proposed Modified Central
Business District. All images were captured by City staff during normal business hours, from the public
right‐of‐way within the Proposed Modified CBD Area, the area depicted in yellow on Map 1.
Taken together, the visual indicators demonstrate that there is a predominance of buildings or
improvements, whether residential or nonresidential, and that the public health, safety or welfare is
threatened because of dilapidated, deteriorated, aging or obsolescent buildings or improvements,
inadequate provision for sanitation or open spaces, and the existence of conditions that endanger life or
property by fire and other causes.
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Conclusion
The findings provided in this report support the conclusion that both of the following are true within the
Proposed Modified Central Business District:
a) There is a predominance of buildings or improvements, whether residential or nonresidential.
b) The public health, safety or welfare is threatened because of any of the following:
(i) Dilapidated, deteriorated, aging or obsolescent buildings or improvements.
(ii) The inadequate provision for ventilation, light, air, sanitation or open spaces.
(iii) Overcrowding.
(iv) The existence of conditions that endanger life or property by fire and other causes.
In accordance with ARS § 36‐1471, the City finds that these conditions singly and in combination are
enough to substantially impair and arrest the sound growth of the Proposed Modified Central Business
District and consequently the City of Tucson.
39City of Tucson Office of Economic Initiatives 520.837.4100 https://connecttucson.com
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