Tucson - The rocky road for the downtown Presidio Terrace luxury condominium development hit a dead end Wednesday when the city terminated its development agreement with builder Peggy Noonan. That means no 101-unit, seven-story luxury condo complex on Paseo Redondo west of the Tucson Museum of Art. It's the first high-profile Rio Nuevo project to crash and burn.
Rio Nuevo director Greg Shelko on Sept. 28 gave Noonan 30 days' notice that the agreement would be canceled if she did not adequately address financing, marketing and design issues. Noonan submitted a response Oct. 26.
"When you cut right through it, it's a package of information of somebody still looking for partners, still looking for financing," Shelko said. "Marketing doesn't start for another year. So we're nowhere closer than we were a year ago."
The agreement gave Noonan the exclusive right to purchase former art museum parking lot land directly behind the Tucson Water building. The property is open again for new proposals, though Rio Nuevo staff is occupied with downtown hotel proposals, proposals for the 14.3 acres on West Congress Street, and the streetcar plan. "We're terminating the agreement," Shelko said. "The door is closed."
Shelko sent the termination notice Wednesday afternoon to Noonan and the City Council.
Presidio Terrace has had a stormy history, with neighborhood complaints about building height and several delays in start dates for construction. Noonan has had a development agreement since October 2005 to build on the city-owned parking lot.
"At this point what I have to say is, I turned it over to my counsel," Noonan said. "As soon I get through reviewing it with counsel, I'll make a statement."
Source: TucsonCitizen.com