State lawmakers agreed to let Tucson’s Rio Nuevo downtown redevelopment district live on, but the City of Tucson will have far less control over its future.

Overseeing the district will be a board of directors composed of nine members, up from the current four, but none of them will be appointed by city officials. Five are to be appointed by the governor and two each are to be appointed by the speaker of the state House of Representatives and the president of the state Senate.

Current members will be permitted to serve out there terms, which will make for a 13-member board of directors until May 2011.

Print this story Email this story Post a Comment ADVERTISEMENT

Further, the responsibilities of treasurer of Rio Nuevo will be taken away from the city and given to a board member or someone appointed by the new board of directors.

Otherwise, the boundaries of the district and the sales tax collection mechanism remains unchanged but the money collected must be used for debt service on bonds sold before January and contractual obligations made as of June and specifically for the design and construction of a hotel and convention center. Money may also be used for other legal and administrative expenses.

The Rio Nuevo board will be required to report on a website each payment it makes.

There will also be a performance audit every three years of the district’s finances, practices and policies.

“It is a pretty significant reform package,” said Jason Baran, of the city’s office of intergovernmental relations. “But it leaves intact the district and the funding sources. We’re waiting to see if it becomes law.”

In her initial review of the state budget package, Gov. Jan Brewer vetoed of the changes for Rio Nuevo.