Retail, short-term rentals planned at downtown Tucson's former Wig-O-Rama building

Plans for the former Wig-O-Rama building in downtown Tucson call for the structure to rise up, literally.

A $10 million project, approved by the Rio Nuevo board, would add three floors to the building at 98 E. Congress Street.

The existing 10,000-square-foot ground floor would be used for retail while the three new floors topping it would house 30 units that could be used as extended-stay or short-term rentals, Rio Nuevo said.

The three new floors, at 8,000-square-feet per floor, would feature 10 units each.

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CID Holdings’ Marcel Dabdoub partnered with Ron Schwabe of Peach Properties to buy the Wig-O-Rama building and the adjacent business spaces in 2017, according to Rio Nuevo.

Once an economic study is approved, the board could grant the developers a Government Property Lease Excise Tax and a rebate of incremental site-specific sales taxes, not to exceed $2.175 million.

The Rio Nuevo district would take ownership of the property and lease it back to the developers for the next 25 years.