Gadsden Co. pays city $2.3M for streetcar construction

2014-07-03T17:45:00Z 2014-07-05T10:18:19Z Gadsden Co. pays city $2.3M for streetcar constructionDarren DaRonco Arizona Daily Star Arizona Daily Star

Gadsden Co. made its June 30 deadline to close a major part of a six-year-old agreement with the city.

The company paid about $2.3 million to the city for 14-acres of land just west of the Santa Cruz River.

The payment satisfies the stipulation in the original deal that the company pay the city $3.3 million for streetcar construction.

The company had already paid $947,000 to the city towards the original deal.

The company’s next performance deadline is December 31. If the company misses it, the city could collect on a performance bond.

Gadsden's deal with Tucson goes back to 2008, when the company agreed to buy and develop the land in phases.

The original plans called for apartments, a hotel and commercial buildings, but then the economy collapsed.

When the developer missed deadlines, the city granted an extension, and then allowed the developer to make changes to Phase 1 of the plan three years ago.

Phase 2 was scheduled to be completed in May 2013. But the council extended that deadline until June 14, 2014.

The council then stretched that deadline back about two weeks to allow the company a little more time to make the payment.

Gadsden’s current plans call for a 160-unit, $15 million-plus affordable housing development, which expects to break ground this fall.

Other projects are in the works for the remaining acres, but details on those are unknown at this time.

Contact reporter Darren DaRonco at 573-4243 or Follow on twitter @DarrenDaRonco​

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