HB2702 - 472R - House Bill Summary

House of Representatives

HB 2702

Rio Nuevo; shared revenue

Sponsors: Representative Huffman, Representative Bradley, Representative Cajero Bedford, Representative Hershberger et al

X	Committee on Ways and Means
	Caucus and COW
	As Engrossed and As Passed the House

HB 2702 increases the length of time a qualifying multipurpose facility district can receive matching state funds from 10 years to 40 years.

History

Rio Nuevo Multipurpose Facilities District is Tucson’s downtown redevelopment project. The District includes the Tucson Convention Center and currently has building plans for a downtown science center as well as museums and historical sites. Other proposals include new hotels, residential housing, shops and parking.

Laws 1999, Chapter 162 allowed the Rio Nuevo Multipurpose Facilities District to be formed and to receive one-half of state transaction privilege tax (TPT) revenues collected in the District. To receive the state funds, the District must agree to match the funds. The District also had to be approved by the voters in the municipality where the district is located. Voters in the cities of Tucson and South Tucson approved the formation of the district on November 2, 1999. Although the District was formed in 1999, state TPT revenues did not begin until the District met the statutory requirements for acquisition and the commencement of the construction of improvements to a qualifying multipurpose facility. The Tucson Convention Center is the qualifying multipurpose facility of the District.

According to the City of Tucson, the Rio Nuevo District has received $17,135,000 in state TPT revenues through November of 2005 and has provided $32,270,000 in matching funds. This bill will allow a longer period of time to receive state TPT funds so that better financing arrangements can be negotiated for the District projects. The bill will also allow other governmental entities to participate in the matching funds requirement.

Provisions

· Increases the length of time a multipurpose facility district can receive state payments from ten to forty years.

· Allows matching funds to be contributed by any governmental entity.

· Allows the district to acquire land adjacent to the district for any incidental and necessary project in the district.

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Forty-seventh Legislature Analyst Initials _______