Archive for January 20th, 2010

The City of Tucson caved to neighborhood pressure in 1999 and passed an ordinance limiting the size of retail ‘big box’ stores in the city limits to under 100,000 square feet. 

To appease a few neighbors (surrounding what was El Con Mall) the geniuses leading the city of Tucson cut off a revenue stream  equal to more than $100m. One large retail store can generate $2 to $4 million per year in general fund sales tax collection for a municipality. Two to five big boxes hitting the streets per year and you can see how the dollars add up. The reality is that these retailers  will still come to Pima County but locate outside of city limits. Marana, OroValley and Sahuarita benefit and you as a consumer have to drive a little further to buy you a years supply of pickles.

From today’s paper a new Costco has finally made it through the planning stage after years of wrangling with neighborhoods, bureaucrats and politicians. Not only did it take years to launch but they went through the shake down of kick backs to job training fluff organizations, grants to non profits and neighborhood improvements.  Really makes you want to come to Tucson doesn’t it.

The new Costco would measure 180,000 square feet, which is a “big-box” under Tucson code that classifies every store of more than 100,000 square feet as a big-box store that has to follow special rules.

After years of city debate about the property, the City Council voted 6-1 in March 2007 to allow a big box on site, but with extra conditions put on Eastbourne, including $2 million to pay for job training, business-assistance programs, neighborhood improvements, economic-improvement grants to area nonprofit organizations, and improvements for pedestrian access and roads. That money will be matched with $4.5 million the city expects from construction sales taxes at the site.

Jim Portner, a consultant for the project’s developers, said the 14 acres will be sold to Costco after the final construction permits are obtained from the city. The remaining retail will be developed by Eastbourne and Retail West, he said, although there are no other stores currently signed on to move in.

It’s a great first step maybe next time we can get one approved quicker without shaking down the big bad developer.