Tomorrow’s Rio Nuevo board meeting has been moved to Zoom; not because of scheduling or logistics, but because of social media posts calling for hate and violence during the meeting. It’s a troubling escalation, especially since many community members had planned to attend in person to advocate for thoughtful, constructive reform. They’ll still have a chance to speak virtually; but as we all know, in-person dialogue fosters more accountability, nuance and collaboration.
The uproar stems from the proposed deal to bring a Live Nation-operated comedy club to 119 E. Toole Ave.
When the deal was first announced and bomb threats were called in to both Rio Nuevo and Peach Properties’ offices, I made the decision to temporarily take Tucson Foodie’s Instagram post down to help de-escalate the drama. We also changed the title of our article, a move I initially regretted but later came to see as the right call after learning more about the reality of Borderlands’ financial struggles — a story that continues to unfold thanks to reporter Cathalena Burch at the Arizona Daily Star.
It was an uncomfortable situation for me personally. I’m not an investigative reporter. I’m a recovering people-pleaser who was trying to do right by everyone. Tucson Foodie has partnered with both Borderlands and Rio Nuevo over the years, always with positive results. With “local is better” core to our mission, I didn’t love the idea of Live Nation coming in. That said, I love comedy and believe that “a rising tide lifts all boats.” I honestly think Tucson’s existing comedy clubs would benefit from the increased attention and audience.
While I stand by our decision to help de-escalate the hate spiral that was unfolding, I also learned a lesson: When possible, be proactive. Today, I’m trying to do just that.
Ahead of the now-virtual Rio Nuevo board meeting, I want to offer a fresh look at what Rio Nuevo is currently funding, and what it has funded historically, to help us all better understand the reality. If you’re one of the many people calling for change, I hope this article helps ensure those calls are informed and constructive.
What Rio Nuevo Is Actually Funding
So far in fiscal year 2025, Rio Nuevo has invested $6.1 million of $8.4 million total (73%) into restaurant and retail businesses.
Here are the businesses receiving support this year:
- Copal – Latin restaurant by Alex Bohon (local)
- Thunder Bacon Bar & Deli – Expansion by Lindy Reilly (local)
- Zeke’s Pizza – New spot by Zeke Gebrekidane (local)
- Gibson’s Food Hall – Market concept by Nick Wayne (local)
- De Novo – Restaurant, market and tap by Will Moyer (local)
- Herbert’s Deli & Commissary – At MSA Annex, by Gadsden (local)
- Vertigo Wines – Barrel-to-glass tasting room by Kristel & Dominic Johnson (local)
- Café Francais – French bakery by Noelle & Daniel Martinez (local)
- Elliott’s – Expansion project (local)
- Cold Beer & Cheeseburgers – The only franchise on the list (non-local)
- The Rodger – Café and club by Charlie Levy and David Slutes (local)
Only one restaurant project so far in FY25 is non-local. That’s one out of thirteen. Welcome Diner may also reopen with Rio Nuevo support.
Outside the food sector, Rio Nuevo is also funding:
- Local mural projects
- A community skate park
- Small business microgrants with Groundswell Capital (all local)
- Improvements to MSA Annex
- The Downtown Tucson Partnership
- The Roadrunners hockey team (regional franchise)
- A new Indoor Football League team (regional franchise)
Yes, the Roadrunners and the IFL team are sports franchises, but they are regional entertainment anchors that activate venues and drive foot traffic downtown.
Food and beverage recipients of Rio Nuevo’s small business grant program with Groundswell Capital included Urban Pita, Desert Biscuit Company, CP’s Wings, La Raíz Mexican Kitchen, Café Sin Fronteras Coffee, Hermosa Coffee Roasters, Berry Greens Juice Bar, Sumaj Bolivian Street Food, Scented Leaf Tea House, and Dolce Pastello.
Looking farther back in time, these restaurants also received funding from Rio Nuevo:
- Antojitos
- BATA
- Basqueria
- Batch Whiskey and Donuts
- Caps & Corks
- Chela’s Latin Cuisine
- HUB Ice Cream Factory
- La Chingada
- La Cruda
- La Estrella Bakery
- Le Macaron
- Miss Saigon
- Obon Sushi & Ramen
- Playground
- Reilly Craft Pizza
- Roadrunner Coffee
- Rocco’s Little Chicago
- Sonoran Moonshine Co.
- Tabu
- Tap Room at the Rialto
- Ten55 Brewing
- The Broadway
- The Century Room
- CORBETT’S
- The Grand
- The Kava Den
- The Monica
- The National
- The Neighborhood
- Treasury 1929
- Vertigo Wines
- Whole Slvce
Let’s not forget Rio Nuevo’s support of major cultural institutions like the Fox Theatre, Rialto Theatre, and the Children’s Museum – all of which contribute to Tucson’s unique cultural fabric.
And from their discretionary “sponsorship” fund, Rio Nuevo has helped events like DUSK Festival, TenWest, Tucson Meet Yourself, the Tucson Jazz Festival, Tucson Foodie’s own Tucson Craft Beer Crawl, and many more continue to thrive.
As someone who has personally benefited from that funding, I can tell you: these events don’t always break even. Rio Nuevo’s early sponsorship often serves as a signal to other funders, helping organizers secure the rest of what’s needed to make these events a success.
Calls for Reform, Not Destruction
Most of the calls for change are warranted. People want more transparency, better communication, and a way to share input on high-profile deals before they’re approved.
To that end, Rio Nuevo has already implemented some meaningful changes:
- A mandatory two-week diligence period before major votes
- A new public listening session during each board meeting
- A soon-to-launch online comment portal to collect public feedback
Unfortunately, a small number of voices have gone beyond criticism and are calling for the entire Rio Nuevo system to be dismantled. In several cases, those same voices are tied to anonymous threats of violence, which is why tomorrow’s board meeting is no longer being held in person.
What the TIF Actually Does
Obviously, the threats need to stop. But I doubt the people making them are still reading, so let me speak to the rest of you.
While the angry voices are loud, consider these details before forming your judgment.
Rio Nuevo is funded through a Tax Increment Finance (TIF) district, a mechanism that allows a portion of state sales tax generated in downtown Tucson to be reinvested locally. That means the dollars you spend downtown at restaurants, shops, and events are the same dollars helping make new businesses, public spaces, and cultural venues possible.
This kind of public investment tool is incredibly rare. Rio Nuevo is the only district in the country with a standing arrangement to reinvest a portion of state-collected sales tax into local development. The only comparable example is Oklahoma City’s MAPS program, which uses a temporary, voter-approved local sales tax to fund major civic projects.
Many of the restaurants Rio Nuevo supports are housed in preserved historic buildings, keeping Tucson’s aesthetic charm intact. Without this system, those same buildings could sit vacant or be sold to out-of-town developers who replace them with bland high-rises and chain tenants.
Is there room for improvement? Absolutely. But the data overwhelmingly shows that Rio Nuevo is a net benefit to our community.
A Better Way Forward
We should continue pushing Rio Nuevo to improve its transparency and engagement. But we should also be honest about what they’re getting right.
According to my calculations using data from presentations from past Rio Nuevo board meetings, more than 80% of Rio Nuevo’s funding goes to local businesses and cultural infrastructure. They’ve helped over 100 small businesses open or expand. They recycle our sales tax dollars into things we can see and experience. And now, they’re implementing changes to serve us better.
Instead of trying to shut them down, let’s work together to improve the system and keep investing in the Tucson we all love.
Put Your Money Where Your Mouth Is
There’s one more thing worth saying: If we want local businesses to thrive, we have to show up for them.
I love Borderlands. The salmon burger in their food truck Pinches (paid for by Rio Nuevo, by the way) is awesome. But the last few times I stopped by, the place was empty.
We can’t demand that local businesses be protected if we’re not supporting them with our dollars. Borderlands made great beer. Their space was warm and inviting. Maybe they wouldn’t be in such a tough financial position if more of us had turned out for them.
Buying local is more than a bumper sticker; it’s the most powerful tool we have. It’s what keeps places like this alive.
So if you want to protect Tucson’s local businesses? Go eat. Go drink. Go buy the thing. Go back again. That’s how we build the kind of city we all want to live in.
Studies referenced
- Local businesses recirculate 2–4 times more money in the local economy than chains.
- Spending at local businesses generates significantly more economic impact than spending at national chains.
- Comprehensive roundup of research showing how local businesses contribute to job growth, civic well-being, tax efficiency, and economic resilience.
- Every $100 spent at a local business generated $58 in local economic activity versus $33 at a chain store.
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