the downtown tucson partnership then & now€¦ · the downtown tucson partnership then &...

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The goal of Downtown Tucson Partnership, Inc. (DTP) is to act as a catalyst for the redevelopment of downtown Tucson, creating a vibrant and safe downtown while growing small business and increasing the number of people who choose to visit and live in the urban center. DTP, formerly the Tucson Downtown Alliance, is a non-profit, 501 (c)(6) corporation created in 1998 to implement the services of the downtown business improvement district* (BID). Business leaders recognized a need to focus on making downtown Tucson a safe and clean area for business owners and visitors. Activities and expenditures are governed by a diverse Board of Directors, comprised of Downtown property owners and businesses, representatives of surrounding neighborhoods, leaders of non-profit stakeholders, and representatives of the DTP’s primary partner, the City of Tucson. Advisory Committees of the Board offer a forum in which the diverse stakeholders and community at large provide their input. DTP partners with several local organizations that are involved with or benefit from promoting Downtown and its development including TREO, MTCVB, Chambers of Commerce and others. There are 1400 similar Partnerships across the U.S. providing maintenance, security, parking, advocacy and marketing. Funding structures for each one varies, but the great majority do have both public and private funding. In addition to BID funding, both Pima County and the City of Tucson contribute amounts equivalent to a percentage of what they would owe under the BID if they were private property owners. Pima County may be increasing their payments this fiscal year, but those increases will still only reach 25% of the total amount of County BID assessments if all County buildings were included. County funding last fiscal year totaled $15,531.76. Due to budget constraints, from July 2007 through June 2012 the City of Tucson will have cut a total of $624,282, or 31%, from the Partnership’s ESA, or City BID, contract. This seriously reduces DTP’s ability to meet its clean and safe, marketing/PR, advocacy, festival and economic development obligations. Even in the face of these drastic cuts, DTP has restructured and retooled operations. In order for DTP to fulfill their mission and serve downtown Tucson this gap in funding must be addressed. Through good management and board leadership DTP was able to stabilize and support the $125M of capital invested in downtown in the last year. However the Partnership cannot continue to move forward without diversifying funding and procuring investment from the private sector. In strategically implementing these concepts, the leadership of DTP has engaged in a Feasibility Study. The Study is designed to determine whether stakeholders and community members are supportive of the plans for resource development for larger scale investment in Downtown Tucson. THE DOWNTOWN TUCSON PARTNERSHIP THEN & NOW *A business improvement district (BID) is a defined area within which businesses pay an additional tax or fee in order to fund improvements within the district’s boundaries. BIDs provide services, such as cleaning streets, providing security, making capital improvements, construction of pedestrian and streetscape enhancements, and marketing the area. The services provided by BIDs are supplemental to those already provided by the municipality. BIDs have been public private partnerships since the mid-90’s. Photo credit: David Smith

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ThegoalofDowntownTucsonPartnership,Inc.(DTP)istoactasacatalystfortheredevelopmentofdowntownTucson,creatingavibrantandsafedowntownwhilegrowingsmallbusinessandincreasingthenumberofpeoplewhochoosetovisitandliveintheurbancenter. DTP,formerlytheTucsonDowntownAlliance,isanon-profit,501(c)(6)corporationcreatedin1998toimplementtheservicesofthedowntownbusinessimprovementdistrict*(BID).BusinessleadersrecognizedaneedtofocusonmakingdowntownTucsonasafeandcleanareaforbusinessownersandvisitors. ActivitiesandexpendituresaregovernedbyadiverseBoardofDirectors,comprisedofDowntownpropertyownersandbusinesses,representativesofsurroundingneighborhoods,leadersofnon-profitstakeholders,andrepresentativesoftheDTP’sprimarypartner,theCityofTucson.AdvisoryCommitteesoftheBoardofferaforuminwhichthediversestakeholdersandcommunityatlargeprovidetheirinput. DTPpartnerswithseverallocalorganizationsthatareinvolvedwithorbenefitfrompromotingDowntownanditsdevelopmentincludingTREO,MTCVB,ChambersofCommerceandothers. Thereare1400similarPartnershipsacrosstheU.S.providingmaintenance,security,parking,advocacyandmarketing.Fundingstructuresforeachonevaries,butthegreatmajoritydohavebothpublicandprivatefunding. InadditiontoBIDfunding,bothPimaCountyandtheCityofTucsoncontributeamountsequivalenttoapercentageofwhattheywouldoweundertheBIDiftheywereprivatepropertyowners.PimaCountymaybeincreasingtheirpaymentsthisfiscalyear,but

thoseincreaseswillstillonlyreach25%ofthetotalamountofCountyBIDassessmentsifallCountybuildingswereincluded.Countyfundinglastfiscalyeartotaled$15,531.76. Duetobudgetconstraints,fromJuly2007throughJune2012theCityofTucsonwillhavecutatotalof$624,282,or31%,fromthePartnership’sESA,orCityBID,contract.ThisseriouslyreducesDTP’sabilitytomeetitsclean

andsafe,marketing/PR,advocacy,festivalandeconomicdevelopmentobligations.Eveninthefaceofthesedrasticcuts,DTPhasrestructuredandretooledoperations.InorderforDTPtofulfilltheirmissionandservedowntownTucsonthisgapinfundingmustbeaddressed.ThroughgoodmanagementandboardleadershipDTPwas

abletostabilizeandsupportthe$125Mofcapitalinvestedindowntowninthelastyear.HoweverthePartnershipcannotcontinuetomoveforwardwithoutdiversifyingfundingandprocuringinvestmentfromtheprivatesector. Instrategicallyimplementingtheseconcepts,theleadershipofDTPhasengagedinaFeasibilityStudy.TheStudyisdesignedtodeterminewhetherstakeholdersandcommunitymembersaresupportiveoftheplansforresourcedevelopmentforlargerscaleinvestmentinDowntownTucson.

THE DOWNTOWN TUCSON PARTNERSHIP THEN & NOW

*A business improvement district (BID) is a defined area

within which businesses pay an additional tax or fee in order

to fund improvements within the district’s boundaries. BIDs

provide services, such as cleaning streets, providing security,

making capital improvements, construction of pedestrian and

streetscapeenhancements,andmarketingthearea.Theservices

provided by BIDs are supplemental to those already provided

bythemunicipality.BIDshavebeenpublicprivatepartnerships

sincethemid-90’s.

Photo credit: David Smith

VisionDowntownTucsonisthemostdynamicurbancenterintheSouthwest,andisTHEcenterforthearts,commerceandentertainment,andcelebratesthehistoryandculturalheritageoftheregion.

MissionTheDowntownTucsonPartnershipchampionsacompetitivebusinessenvironment,theintegrationofTucson’seconomic,socialandculturalprosperity,principlesofurbanism,andthedifferentiationofDowntowninthemarketplace.

MISSION & VISION OfDOWNTOWN TUCSON PARTNERSHIP

Maintenance & SecurityThe‘PurplePeople’arethefriendlySecurityandMaintenanceAmbassadorsoftheDowntownTucsonPartnership.

TheSecurityAmbassadorspatrolDowntownTucson18-20hourseachday,providingassistanceasneededtovisitors,businessesandDowntownworkers.TheyactastheeyesandearsfortheTucsonPoliceDepartment,providingavisualdeterrenttocriminalbehavior.

TheMaintenanceAmbassadorsprovidepower-washingofDowntownsidewalks,fast-responsegraffitiremoval,sweepingandlitterpickup,treetrimming,landscaping,andmaintenanceoftheDowntownflowerpots.

Economic DevelopmentCurrentlyDTPservesasaresourceforbusinesseslookingtomoveintoDowntownTucsonbyproviding

informationonavailablesites/buildings,providinga‘roadmap’throughthedevelopment/relocationprocess,andresearchingotheravailablefundstoincreasedevelopmentdowntown.

Marketing ThroughsupportandcoordinationoffestivalsandeventshappeningDowntown,creationofanewcuttingedgewebsite,andimagemarketingandbranding,DTPencouragesnewvisitorsfromtheareaandregiontospendmoretimeanddollarsdowntown.DTPalsoservesasaninformation‘clearinghouse’toencouragenewbusinessandrelocationtoDowntown.

Advocacy DTPfunctionsasanofficialpublicrepresentativeofthedowntowncommunity,providingrepresentationtogovernmentandotheragenciesthatpromulgatepublicpolicythatimpactsDowntownTucson.

CHALLENGE: IT’S WORKING, AND THE COMMUNITy WANTS MORE!

In spite of severe funding cuts DTP has maintained and even expanded services to downtown.DTP currently provides the following services for a safe, clean and convenient Downtown:

Rialto Block - Before Rialto Block - After

PROPOSED CAMPAIGN PLANS fOR fy 2011-2012

Benefits to Downtown and the Community at Large

• Landscape&Maintenance(formoreareasofdowntown)

• CapitalImprovements(beautification&restorationofstreetsandproperties)

• Marketing&PromotionofDowntown(increasedroleinFestivals&Events,brandcampaign)

• EconomicDevelopment(bringmorepeopledowntowntolive,work,shopandplay)

DowntownTucsonPartnershiprecognizesthatasubstantialresourcedevelopmentcampaignwillneedtobeundertakentorecognizethefullpotentialofthePartnership.Withoutprivatefunds,onlypubliclyfundedprojectscanbeimplemented,andpublicfundsarebecominglessandlessreliable.Thereissimplytoomuchpotentialandmomentumindowntowntonotpursueadditionalfundingtoexecutethevisionsharedbysomanyfordecadesnow.Wemustsupporttheeffortstorevitalizeourdowntown.

OPPORTUNITy: WHAT DOWNTOWN TUCSON PARTNERSHIP WOULD LIKE TO DO

DTP is contemplating a fund development campaign to raise resources for the following services to support and complement their current work. These

monies raised would be over and above the current operating budget.

The Screening Room - Before The Screening Room - After

Options Being Explored to fund This Work:

Expand the Business Improvement Districttoincludeallthosewho aren’tcurrentlyparticipating

Membership Modelathree-tierduesstructuresoinclusivityisstillprovided

Individual and Corporate Supportviataxdeductiblegiving

Event Revenuesfromticketsalesandsponsorships

GrantsfrombothPublicandPrivatesources

BOARD Of DIRECTORSChair LisaLovallo,VicePresident CoxCommunicationsVice-ChairElect FletcherMcCusker,Chair/CEO ProvidenceCorporation/TREOSecretary NancyLutz,BoardMember TucsonPimaArtsCouncilTreasurer JohnO’Dowd,TaxManager O’DowdKeeganLinscott&KenonPC

DonBourn ChiefExecutiveOfficer BournPartnersJanCervelli Dean UofArizona-CollegeofArchitectureStaceyCollins DevelopmentandITDirector AbbyOfficeCentersMichaelCrawford Partner Mesch,Clark&RothschildP.C.BethDell ManagingDirector BeowulfAlleyTheatreCompanyDarrylDobras President DBDInvestmentsRandiDorman Chair MuseumofContemporaryArtSusanGamble Owner SantaTheresaTileWorks BoardMember WAMOKarenGreene NeighborhoodActivist DNARCKevinHeath BusinessBankingManager WellsFargoLarryHecker Principal Hecker&MuehlebachChuckHuckelberry Administrator PimaCountyJohnHumenik PublisherandEditor ArizonaDailyStarMarkIrvin ViceChairperson RioNuevoDistrictBoardRogerKarber Partner DiamondRockVenturesMikeKasser CEOandFounder HolualoaCompanyMaricellaSolisdeKester DirectorofFinancialDevelopment YWCAMikeLetcher CityManager CityofTucsonSteveLynn VicePresident TucsonElectricPowerCo. UniSourceEnergyCorp.JillMadden FounderandCo-owner MaddenMediaOmarMireles ExecutiveVicePresident HSLAssetManagementReneeMorton Owner HomeStyleGalleriesRickMyers Member,BoardofDirectors SouthernArizonaLeadershipCouncilColleenNiccum VP,Communications&ExternalAffairs RaytheonRichardOseran Owner HotelCongressSteveQuinlan Chairman LongRealtyTravisReece Owner 47ScottWalterRichter AdministratorofCorporatePublicAffairs SouthwestGasRonSchwabe Owner PeachPropertiesJohnSedwick ExecutiveDirector FourthAvenueMerchantsAssociationCraigSumberg ExecutiveDirector FoxTucsonTheatreMargoSusco Owner HydraLeatherandMoreLeslieTolbert VicePresidentforResearch, UniversityofArizona GraduateStudies,andEconomicDevelopmentBobVint Architect/Principal Vint&AssociatesArchitectsTomWarne ManagingPartner JLInvestmentsAdamWeinstein Partner GadsdenCompany

Ex OffICIO DIRECTORSRobertoBedoya ExecutiveDirector TucsonPimaArtsCouncilRichardElias Supervisor PimaCountyBoardofSupervisors, District5MichaelHammond PresidentandManagingShareholder, BusinessDevelopment PICOR FinanceCorporationGaryHayes ExecutiveDirector RegionalTransportationAuthorityBillHolmes ChiefOperatingOfficer ChamberofCommerceSiSchorr Partner,Lewis&Roca ADOT,PimaCountyRepresentativeMichaelKeith CEO DowntownTucsonPartnershipSteveKozachik TucsonCityCouncil Ward6MarilynRobinson President TucsonIndustrial DevelopmentAuthorityReginaRomero CouncilMember TucsonCityCouncil,Ward1RonShoopman President SouthernArizonaLeadershipCouncilJonathanWalker PresidentandCEO MCTVB

Proposed Campaign Goals for 2011/2012 to increase productivity and viability of The Partnership is $900,000 over and above current funding levels.

Approved Operating Budget for 2011/2012Thecurrentapprovedannualoperatingbudgetis$1.5M,andthoserevenuesarederivedfromthefollowingsources:

•BIDFees(BusinessImprovementDistrict)•ContractsfromCityandCountytoprovide:

o ManagementandMaintenance ofParkingFacilities

o Clean&Safe(‘PurpleShirt’ambassadors/ security,powerwashing,streetsweeping, landscapemaintenance)

o MarketingandPromotion

The Goals for the additional $900,000 include:

DTP Capacity Building $85,000(ServeasthehubforallDowntownrelatedinformation,brandingofDTP,Foundation/501(c)3creation,revolvingloanfundestablishment,increasedadvocacyfordowntown)

Marketing/Promotion/Economic Development $125,000(Festivals&Events,MarketResearch&Programming,NationalMediaBuys,Partnership/Collaborations)

Operations $130,000(Increasedlandscapemaintenanceandstreetscape,professionalstaffingforplanning,marketing,economicdevelopment)

financial Stability $110,000(Workingcapital,debtretirement)

Capital Improvements $450,000(Façadematchinggrantprogram,TooleAvenueImprovementProject,underpassmaintenanceandimprovement,graffitiabatement)

Downtown Tucson Partnership is a key

factor in the growth and revitalization of

downtown. After 13 years big things are

finally happening and private investment

is the key to more stable, efficient and

meaningful change.