The Rio Nuevo board has helped bring over $1 billion in investment to the district, whose boundaries are downtown Tucson, west to a panhandle just west of Interstate 10 and east to Park Place mall, along Broadway.

Gov. Katie Hobbs has replaced some members of the Rio Nuevo board, mostly with Democrats, in a move seen as bewildering to business leaders in Tucson.

“These new appointees will continue to advance the work of Rio Nuevo while also bringing in new ideas, opportunities for investment and projects for people in their communities,” the governor said in a statement. “With their collaborative efforts, I’m confident Tucson will continue growing, attracting businesses and creating good-paying jobs for Arizona.

“I have full faith that by bringing together such a diverse group of individuals, we will help Tucson reach its full potential.”

But local business leaders questioned the partisan move, given the success the Rio Nuevo board has had since it was restructured following 10 years of failed projects and criminal investigations when it was run by the original board and the city of Tucson.

“The issue I have is the adage, ‘If it’s not broken, don’t fix it,’” said Michael Guymon, president and CEO of the Tucson Metro Chamber. “There was a time when the Rio Nuevo board was broken and the governor and legislature stepped in, but that’s not the case today.”

He noted that the board has helped bring over $1 billion in investment to the Rio Nuevo district, whose boundaries are downtown Tucson, west to a panhandle just west of Interstate 10 and east to Park Place mall, along Broadway.

Guymon said the district collected $17 million in taxes last year.

“I understand that we live in a very political world, and when administrations change, appointed bodies change,” he said. “The big issue that I have with this, is why change something that has proven to be a great success?”

His concern is not a reflection of the new appointees.

“I’ve worked with many of them and I think they are good people who care about downtown,” Guymon said.

Although the governor’s office had offered assurances that the chamber would be informed if changes were made to the Rio Nuevo board, that did not happen.

Guymon said the chamber will continue to work with the new Rio Nuevo board and be active with its projects.

The nine-member board is made up of five appointments by the governor, two by the House and two by the Senate.

The governor’s appointments are:

Fletcher McCusker, a Tucson native and current chairman of the Rio Nuevo board.

Sharayah Jimenez, a fifth-generation Tucsonan and principal designer and founder of Cuadro. She has spent a decade working in the field of architecture and brings experience in affordable housing development, historic preservation and community planning with a focus on desert dwelling.

Richard Osern, owner of the historic Hotel Congress. He is an entrepreneur and lawyer, having practiced law for many years, arguing before the U.S. Supreme Court.

Corky Poster, principal at Poster, Mirto & McDonald. He is a professor emeritus at the University of Arizona College of Architecture, Planning, and Landscape Architecture.

Taunya Villicana is a native Tucsonan and CEO of Aspirational Wealth Management. She has over 20 years of experience in financial planning, starting her career with Merrill Lynch before co-founding her own firm.

Created in 1999 via voter-approved Proposition 400, the Rio Nuevo District is a municipal tax collection district and special taxing district.

Rio Nuevo receives an incremental portion of state-shared funds from sales taxes collected within its boundary. Known as a TIF (Tax Increment Financing), the special finance mechanism is used by the state to fund improvement projects.

When the Rio Nuevo District was formed, the Tucson Convention Center was designated as a priority of funding to bring it up to a nationally competitive level, but 10 years later, it was determined that TCC had not received any significant enhancement and the state seized control of Rio Nuevo from the city of Tucson and a new board was appointed.

The members replaced were Janie Cox, Jeffrey Hill, Edmund Marquez and Ross McAllister. Two existing board members, Chris Sheafe and Mike Levine remain, and two seats will be appointed by the legislative side, likely creating a mix of four Democrats, four Republicans and one independent.

“I don’t know what’s behind it, beside trying to create a nonpartisan board,” said McCusker, the independent.

He agreed to stay on the board to help avoid missteps of the past.

“We have great things ahead of us, new restaurants, hotels and apartments,” McCusker said. “I’m looking forward to welcoming new members.”

The Rio Nuevo board’s next scheduled meeting is Oct. 24.

P18 will be a cocktail bar in the basement with a 51-passenger train car and a rolling video in the windows that gives the illusion of being on a moving train. Video courtesy of Rio Nuevo.


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Contact reporter Gabriela Rico at grico@tucson.com