The owner of La Placita Village downtown is asking the city of Tucson for a tax break to help redevelop the property.
Demolition on the brightly colored buildings is scheduled for May, the property’s owner said.
City officials confirm HSL Properties recently applied for the city’s Proposed Revision to Government Property Lease Excise Tax incentive, paying the $5,000 application fee.
Omar Mireles, president of HSL Properties, says the 43-year-old property is an excellent candidate for the tax incentive, which requires the redevelopment to increase the property’s value by at least 100 percent.
Early plans call for a new six-story building with up to 230 apartments while still protecting three existing historic buildings in the iconic development at 110 S. Church Ave.
There are also plans to open some retail shops on the first floor, including plans for a restaurant and a coffee shop inside the project.
City officials said the application is still being evaluated and that no estimate exists on how much the tax incentive would be worth.
The Tucson City Council recently signed off on a tax incentive to help developer Don Bourn build a five-story building that is a few blocks away from La Placita. The tax reduction for the City Park development, which will feature a food hall and bowling alley, would cost various taxing districts, including the city of Tucson, an estimated total of $1.2 million over an eight-year period.
HSL closed La Placita Village earlier last year, telling the remaining tenants to vacate the property in the summer and putting up a chain-link fence around the property.
Mireles said the city has not given him any indication how long it will take to evaluate his application, but said plans to demolish the existing structures are expected to proceed in April. The City Council is expected to discuss the tax break next month during a closed-door executive session.
Mayor Jonathan Rothschild hadn’t seen the application but said the city would carefully review the it to see if it meets the city’s guidelines to encourage redevelopment throughout the community.
He added that depending on the independent economic analysis, the council has the option to offer a partial incentive to HSL Properties and has done so in the past with other projects.
Councilman Steve Kozachik said he would be keeping an eye on the state’s gift clause provision to ensure that if the city offers an incentive to HSL that it is similar to tax breaks the city has already signed off on for other developers.
La Placita Village, which opened in 1973, had before it closed more than 200,000 square feet of office and restaurant space and a 500-space parking garage, which remains open.
