Stimulus money begins to funnel into Tucson

By Nicholas Smith, Inside Tucson Business
Published on Tuesday, August 11, 2009

Tens of millions of federal stimulus dollars has been awarded for projects in the Tucson region under the American Recovery and Reinvestment Act, but only a small amount of it has actually made its way here. 

The City of Tucson has so far been approved for $41.2 million in funding. One project in particular, $2.1 million for public housing improvements, will receive federal funds once expenditures are made against the account.

“The ones that have been awarded, those aren’t (from the) application processes; those are formula programs where the money is just awarded,” said Tucson Director of Intergovernmental Relations Mary Okoye, who added that Tucson will have to prove it’s projects will better create job opportunities than other areas if it wants to snag the competitive grants.

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Statewide, $952 million has already been paid out from the $5.1 billion announced so far, according to the Recovery Accountability and Transparency Board. The board also estimated 70,000 jobs will be saved or created in Arizona over the next 2 years. By the end of July, more than $73 billion has been paid out nationwide.

The city isn’t the only area organization to get these funds.

To date, Pima County government has been awarded $20.7 million. The county is waiting on word for another $27 million in outstanding grants and other applications.

“It’s a whole variety, everything from low-income residential home weatherization, that’s $1.7 million, to homeless prevention and rapid re-housing grants for $1 million,” said Pima County Federal Stimulus Program Manager Tedra Fox. “Then we have a series of workforce investment act funds to help employ youth as well as adults.”

Pima County was also awarded $10 million to its Regional Wastewater Reclamation Department for the construction of pipelines that would carry wastewater between the Roger Road and Ina Road treatment facilities.

Some of these funds have already come into the county, but getting the full amount depends on the success of each program over the life of the grants.

“Most of these grants are on a three-year basis, and so you show performance and you receive more money,” Fox said.

On the private side, local company AdValue Photonics received almost $90,000 from the Department of Commerce for a six-month project to develop specialty lasers.

“Eventually it can be used for the spectroscope application,” said AdValue President Shibin Jiang, who added that the lasers have medical and defense applications.  

Though the first of the monies is coming in, it doesn’t mean there is an end to the available funding. Last week, the City Council approved a measure to partner with the county on a stimulus application for $22.1 million in neighborhood stabilization grants.

“The big picture goal is to stabilize neighborhoods, increase property values and reduce the negative aspects of foreclosure,” said Tucson Planning Director Albert Elias.

The money from this grant project would be used to purchase up to 400 foreclosed properties over three years in an effort to keep these houses from adversely affecting property values or the aesthetics and safety of the neighborhoods.

“We have applied for or are intending to apply for $120.5 million, which are more competitive grants,” Okoye said.

The City of Tucson is planning on applying for grants that would fund everything from firefighter assistance to energy programs to narcotics enforcement.

The University of Arizona is no stranger to applying for money.

“We go after research funding all the time; we’re one of the top universities in the country for getting federal agency funding for research,” said UA Director of Corporate and Business Relations Nancy Smith. “Its certainly been amped up with the additional funds through the stimulus program, and we’ve certainly seen a heightened level of activity here at the university that’s gone after those awards.”

Researchers and professors must already apply for grants in order to finance their work. Funds from the stimulus have simply added to that pot; already the university has submitted 343 proposals for the federal dollars.

“You don’t win the lottery without buying a ticket,” said UA Vice President of Research Andrew Comrie.

So far, the school has received about $35 million (the biggest award being $13 million for solar research) and expects to hear back on the outstanding applications over the next year or so.

The money that is already coming in is coming directly from the federal agencies themselves. Money being funneled through the state will likely have to wait until the budget is finalized.

Last week, the governor announced Arizona’s three universities would be getting $154 million, with the UA seeing $61 million of that amount.

Eight projects in Pima County have been identified as shovel-ready by the Arizona Department of Transportation with an estimated cumulative cost of $46 million. These include rehabilitating the deck of the Santa Cruz River Bridge on Ajo Way and resurfacing a portion of Interstate 10 between Rita and Houghton roads. Two of the eight projects have yet to go to bid. Statewide, ADOT has received $350 million in stimulus finding from road projects.

Additionally, the state has been awarded more than $100 million for public transportation projects, but Tucson and other municipalities are waiting to see how much of that will come their way.

The first quarterly report on funding uses and the jobs they created or saved is due in October.

Here are some other projects with approved funding:

• $2.07 million for temporary youth employment and training in Pima  County.

• A combined $790,000 will go toward to installing disabled-friendly side walks and lighting along a half-mile stretch of 4th Avenue in a neighborhood south of downtown.

• $360,000 to the City Prosecutor’s  Office for the prosecution of misdemeanor drug offences.

• $16 million to finish building the

 Northwest Sun Tran Bus Storage and Maintenance Facility, which would accommodate 250 vehicles.

• The state has received $15 million for Project Based Renters Assistance,  though Tucson’s cut has yet to be  determined.

• $5.1 million as part of the Energy  Efficiency and Conservation Block  Grant, which would be used for  cheap and clean energy technologies  as well as the creation of related jobs.

Contact reporter Nicholas Smith at nsmith@azbiz.com or (520) 295-4238.

Correction: The original article stated a housing assistance program was already receiving money. That program will get money once expenditures are made against the project's account.
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Comments

KD wrote on Aug 10, 2009 11:38 AM:

" Can someone point out to me how any of this stimulates the private sector which creates the jobs which pays the taxes. "

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