A high-rise residential and commercial project in downtown Tucson called One East Broadway is in the process of becoming the first proposed new downtown development to qualify for the new Government Property Lease Excise Tax. It already is the first planned building to complete the first of the three steps needed for qualification, and city officials have hailed this as a good indicator for approval, as the initial screening is quite thorough.
The Government Property Lease Excise Tax works by taking over the completed building for up to 8 years and leasing it back to the owners for a minimal fee, allowing the owners to operate their business and establish cash flow without having to pay property taxes, which the city is exempt from. The aim is to aid the business in establishing itself as a long-term revenue producer for the city.
One East Broadway hopes to benefit from its location along the future streetcar line and is planned to be finished by November 2013, in time for the opening of the new streetcar. The Pima Association of Governments and the Regional Transportation Authority, both major players in bringing the streetcar to downtown, have signed leases for the new office space at One East Broadway; an act intended to show their support for those spurring new development along the streetcar route.