The Tucson City Council unanimously signed off on an eight-year property tax incentive deal worth more than $1.6 million Tuesday night to help renovate a 134-room hotel just west of downtown Tucson.
Brian Corbell, the owner of the Riverpark Inn Hotel, wants to return the roughly 40-year-old hotel back to its former glory. He has pledged to invest $2.2 million to completely renovate the hotel, at 777 W. Cushing St.
Such an investment, he hopes, will make the hotel more competitive for conventions in downtown Tucson and help expand the Pueblo Gem & Mineral Show.
Planned renovations include new finishes and furniture, and fixtures and equipment for common areas and rooms. Room improvements include new bathrooms, heating and air conditioning upgrades, and sliding glass doors.
By one estimate, the renovations would result in about $16,500 worth of improvements for each room of the hotel.
As part of the Government Property Lease Excise Tax deal with Corbell, the city would receive a one-time deposit of $200,000 from the hotel.
The funds would be held by the city until all conditions of the deal are met, including revenue projections.
City Manager Michael Ortega called the deposit part of a “fail-safe” for the project itself, saying the city would audit the hotel every two years to monitor its progress.
A third-party economic assessment suggests the project will generate $1,204,061 in direct revenue and $520,059 in indirect revenue over the eight-year period.
Councilman Paul Cunningham was supportive, saying he liked the fail-safe for the project to protect the taxpayers and that there is economic development west of downtown.
The GPLET program was created to help spur development by allowing agreements between local government and private parties that replace a building’s property tax with an excise tax based on the property’s size and use.
Corbell said he hopes to restore the hotel to its golden days, noting the hotel’s quality will be on par with brand new name-brand hotels while retaining the charm of the 40-year-old hotel.
