REFERENCE TITLE: Rio Nuevo; multipurpose facilities district

State of Arizona Senate Fiftieth Legislature Second Regular Session 2012

SCM 1005

Introduced by Senator Melvin

 

A CONCURRENT MEMORIAL

 

urging the city of tucson, the pima county board of supervisors and other entities to work in the best interests of arizona's taxpayers in resolving the dispute regarding the rio nuevo multipurpose facilities district board.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

To the Mayor, City Attorney and City Manager of the City of Tucson, the Tucson City Council, the Pima County Board of Supervisors, the Pima County Manager, the Arizona Attorney General, the Director of the Federal Bureau of Investigation and the Director of the United States Department of Justice:

      Your memorialist respectfully represents:

Whereas, in 1999 the Rio Nuevo Multipurpose Facilities District (District) was established to redevelop and revitalize the downtown corridor in Tucson, Arizona through an independent and separate financing stadium district board and program; and

Whereas, the Arizona Legislature reconstituted, appointed and seated a new Rio Nuevo Multipurpose Facilities District Board (new District Board) along with Governor appointments in 2010; and

Whereas, the reconstitution of the governing board of this stadium district was a significant reminder and reprimand to the City of Tucson government, the Mayor and Council and the City Staff and Officials (City) that the allocation, management and expenditure of Arizona funds by them are a public trust that is to be faithfully administered and managed for the taxpayers' benefit; and

Whereas, the taxpaying citizens of Arizona rely on the proper management and use of the stadium district development funds as an economic stimulator to harness important commercial and recreational industries to fuel the state's economy and tax base, bringing vibrancy to a designated area; and

Whereas, this reconstitution significantly reprimanded the City for its administration and management of this program and its funding source since its inception; and

Whereas, the pre-2010 management and administration of the District inappropriately focused on general municipal obligations such as street infrastructure properly belonging to the City, not the District, and disproportionately exhausted and obligated the funding source for this District; and

Whereas, the Arizona Legislature applauds the control exercised by the new District Board, its careful financial review and ordering of the ongoing forensic audits of the significant large projects, ceasing to fund projects not within its actual boundaries and its continued struggle for receipt of its funds and assets as well as independence from the City; and

Whereas, the Arizona Legislature appreciates the new District Board's service as an agent of the State of Arizona; and

Whereas, the new District Board has diligently worked through complex issues, including numerous inherited projects, contracts and expenditures; and

Whereas, the new District Board has endeavored to ascertain the true financial status of the District, identify its assets and secure an accounting for the taxpayers of Arizona through forensic and financial audits combined with the findings of the performance audit by the State Auditor General and the institution of legal action; and   

Whereas, the District has retained competent consultants, including financial accounting institutions and legal counsel, separately and distinct from the previous management by the City of Tucson, and has examined District leases, financing instruments, intergovernmental agreements and other agreements to protect the taxpayer; and

Whereas, the new District Board has been a good steward of Arizona's funds through its diligence in facilitating this accounting and assessment of District assets and expenditures.  Forensic audits and continued development of independent controls and procedural management is exactly what the reconstitution of the District was meant to facilitate; and

Whereas, the Arizona Legislature supports the new District Board in its continued efforts to ensure a solid financial and asset accounting; and

Whereas, the District remains in dispute with the City regarding the return and recovery of its assets; and

Whereas, it is important to safeguard accountability for the taxpaying citizens of Arizona.

Wherefore your memorialist, the Senate of the State of Arizona, the House of Representatives concurring, prays:

1.  That the City act in good faith and work with the new District Board to reach a significant and meaningful accord on the cash and property assets due to the District for more than $250,000,000 of state funds expended since 1999.

2.  That the City refrain from negative rhetoric and act in good faith for and during dispute resolution proceedings of whatever nature and recognize the independence and autonomy of the District.

3.  That the Office of the Arizona Attorney General and the Federal Bureau of Investigation continue their investigation and review of civil and criminal violations of the law.

4.  That the City work with the new District Board to effectuate actual development and progress pursuant to the District's purpose and mission during the remaining duration of the District, as directed by the new District Board.

5.  That the new District Board continue its successful pursuit to secure an accurate accounting, to secure the taxpayers' assets, to promote development as a governing autonomous development state entity, to harness its asset and hold responsible for the egregious actions accountable to such accounting for the taxpayers of the State of Arizona.

6.  That the Secretary of State of the State of Arizona transmit copies of this Memorial to the Mayor, City Attorney and City Manager of the City of Tucson, each Member of the City Council of the City of Tucson, each Member of the Pima County Board of Supervisors, the Pima County Manager, the Arizona Attorney General, the Director of the Federal Bureau of Investigation, the Director of the United States Department of Justice and each Member of Congress from the State of Arizona.