Councilwoman hails annexation OK

BYLINE: Rob O'Dell, The Arizona Daily Star, Tucson

Nov. 22--Calling it a historic agreement, the City Council unanimously approved the annexation of 573 acres on the Southeast Side to bring a resort hotel, a golf course and commercial development at the University of Arizona's Science and Technology Park into the city.

Councilwoman Shirley Scott, who represents the area, called the development the "single most important economic development package to benefit this community in decades." The 573 acres will include about 600 homes to be built by KB Home, a golf course and resort hotels to be built by the UA, and a 4-acre site for the city to build a fire station.

Scott said this agreement clears the way for all three entities and Eastbourne Investments Ltd. to reach a deal for a separate UA biosciences park, housing and commercial project at East 36th Street and South Kino Parkway. Councilman Steve Leal was absent from the meeting.

It set the stage for the KB-UA land swap that is critical for the biosciences park at 36th and Kino. Plans for that project include a retail development as large as Tucson Mall, known as "The Bridges," and an upscale KB housing project, as well as the 65-acre biosciences park to be developed by the university.

As part of the deal, KB will swap the 65 acres at 36th and Kino to the UA for the biosciences park. In return, the UA will turn over land at the tech park for a KB subdivision.

The agreement will bring the city $5.5 million over 10 years, city staffers said.

The annexation has been on hold for four months because of a dispute over how to water the planned golf course. The agreement forbids using groundwater on the course, but the parties haven't determined yet how the course will be watered. A post-annexation task force will be convened to come up with a plan.

Councilwoman Carol West said it was smart to delay the annexation when the UA and the city were at loggerheads this summer because she believes the city got a better deal now.

John Bremond, president of KB Home's Tucson division, said he sees both the UA Tech Park and the 36th and Kino retail/housing/biosciences park as "landmark opportunities."

"This is the outcome we have worked very hard for," Bremond said. "It certainly sets the stage for the exchange that will lead to the bioresearch park."

In other business, the council unanimously approved the development agreement with Williams and Dame Development to renovate the former Martin Luther King housing project, transforming it into about 80 market-rate apartments and 11 low-income units, complemented by more than 7,000 square feet of new retail space.

The renovation of the MLK and addition of commercial space will cost about $8 million, and could be finished in 12 to 14 months, said Matt Brown, the project manager for Williams and Dame.

The renovation of the MLK will be coupled with a second phase, where two residential towers will be built on top of a 300-space parking garage planned immediately north of the MLK, to be developed with Rio Nuevo money. One of the towers is planned as a $16 million, 68-unit assisted-living center to be built and run by the city. The second is to be a four- to seven-story residential building built by Williams and Dame with more than 3,000 square feet of retail, and about 45 market-rate apartments or condominiums and 11 affordable-housing units.

--Contact reporter Rob O'Dell at 573-4240 or rodell@azstarnet.com.

Copyright (c) 2006, The Arizona Daily Star, Tucson Distributed by McClatchy-Tribune Business News. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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Source
Arizona Daily Star (Tucson)
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Staff News