The chairman of a Tucson taxing district said the board “screwed up†in its haste to support bringing a comedy club downtown and commits to change how it votes on funding future projects.
The change was in response to public criticism over the decision by Rio Nuevo to provide financial assistance to Live Nation to open its chain comedy club, Punch Line, and displace a local bar and children’s play club to do so.
“We screwed up the Live Nation deal,†board chairman Fletcher McCusker said during his opening remarks at Rio Nuevo’s May 14 meeting. “As fast as we move, we sometimes get swept up.â€
Going forward, McCusker said, the board will hear presentations about proposed projects and requests for financial assistance, but not always vote on the proposals during the same meeting. That will give the public a chance to provide feedback, he said.
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The board spent over an hour in executive session discussing the matter prior to emerging into a public session on Zoom.
Rio Nuevo, Tucson’s tax-increment financing district, was widely criticized for a financial package and displacement of Borderlands Brewing and another business to bring a chain comedy club to Tucson.
On April 22, Rio Nuevo voted to contribute $2.1 million to help the property’s landlord, Peach Properties, bring Live Nation’s Punch Line comedy club to Tucson. The projected revenues were said to be between $10.7 million in the first year and up to $12.1 million in the fifth year of operations.
Rio Nuevo is a tax-increment financing district. That means it is funded by a portion of the sales-tax revenue created within the district, an area that mostly stretches from downtown and along East Broadway to Park Place.
The comedy club was proposed to take over the building at 119 E. Toole St., where Borderlands Brewing and currently reside.
Borderlands took to TV and social media to decry the decision after the Star first reported on the deal.
Even though the brewery was having financial difficulties before the Rio Nuevo decision, backlash was swift and included death threats to board members.
“Everybody could have done a better job communicating,†McCusker said, noting that a lease between Live Nation and the landlord has not yet been signed. “It’s not a done deal.â€
The next Rio Nuevo board meeting is scheduled for May 27 at 1 p.m. Visit for more information on the district and its projects. The meeting agenda will be posted 24 hours prior to start time, per open meeting laws.
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