“Our staff is thrilled to be downtown,” said Fletcher McCusker, Providence Chairman and CEO. “We walk everywhere,
bike to work, and are involved in every aspect of downtown life from the museums to the theatres to helping organize
entertainment. The new building will allow us to consolidate our IT functions, save multiple leases and secure adjacent
parking for our employees.” The 44 East Broadway purchase will add 50 jobs downtown, bringing the total Providence
employment in Tucson to 400 (100 downtown).

Providence has been very active in downtown Tucson since March when McCusker announced the company’s intent
to locate its corporate headquarters at Scott and Broadway, across the street from Unisource’s new corporate
headquarters. McCusker has since become one of TREO’s Chairman’s Circle members and will represent TREO on
the Downtown Tucson Partnership board.

“Urban Renaissance is a key component of the Economic Blueprint and momentum is building, led by private sector
entrepreneurs (big and small) who are investing private money into downtown urban redevelopment. The block will
now showcase two Tucson-based public companies, two blocks of restaurant and retail space anchored by a streetcar
stop. This private sector momentum is critical to downtown success,” said Joe Snell, president & CEO, TREO.

“This represents yet another great step forward towards the goal of activating the downtown area. Fletcher McCusker
and Providence Corporation are truly ‘making a difference’ in and for our community,” said Steve Kozachik, Ward 6
Council Member, City of Tucson.

TUCSON – Tucson’s downtown warehouse district has long been a haven for the local artist community. Clustered around the railroad, these buildings are known for solid construction, large floor plans, and cheap rent. Until recently, the future many of these structures seemed uncertain, and they appeared headed for demolition. But, now the downtown links project has been redesigned and many of the buildings are being sold by the Arizona Department of Transportation.

Ron Schwabe is owner of Peach Properties, a real estate development company that specializes in existing properties. He recently purchased two historic warehouses on Toole Avenue in the historic arts district. One of the buildings is the former Zee’s Warehouse, which has been vacant for several years. He says that he’s happy to have the opportunity to invest in these buildings and he thinks the area is poised for change. Schwabe acknowledges that developing a property like this means that a certain number of artists may be priced out of the area. The cheap rents may not be around after all the work is done, but he also says that it’s important to keep the artistic community as part of the overall mix. “We’re going to have arts-related uses here… but it’s probably not going to be the painter, sculptor with 2,000 square feet, paying 200 dollars a month.”

Marvin Saver is an artist and the president of Warehouse Arts Management Organization, the non profit organization that was awarded control of several buildings within the warehouse district.

Shaver says that WAMO’s mission is to cultivate and manage Tucson’s Historic Warehouse Arts District into a center for production, exhibition, education, and management of the arts. He points out that this is an important part of a master plan developed by the city. “It’s a great plan, and now we’re stepping closer to getting that,” by creating these partnerships within the community.

The dream plan to have Tucson’s rich artistic community provide some of the stimulus for growth has been elusive in the past. But, if you talk to Michael Kieth, the interim CEO of the Downtown Tucson Partnership, you’ll hear that we might be reaching a tipping point. “It already has this magical vibe,” he says and points out that the plan allows for artists to be active participants and part of the economic engine of the warehouse arts district. He says he’s not too worried that the arts community could be entirely priced out of the area, and as property becomes more valuable it creates diversity around the edges.

Michael Kieth is confident about the direction that the downtown warehouse district is headed… and a person in charge of creating Partnerships, he’s also excited about the collaborative work that is taking place between private companies, government, and non-profits like WAMO.

TUCSON – Investors are buying up state owned property in the downtown Historic Warehouse Arts District.

Ron Schwabe, owner of Peach Properties, says he’s been investing in downtown Tucson since the late 1980’s. He says this is the time to start investing more.

“Downtown is finally starting to come around. It’s become more viable in the last year than the last 20 years,” Schwabe said.

He recently purchased two historic warehouses on Toole Avenue in the Arts District. One of the buildings is the former Zee’s Warehouse, 1 East Toole Avenue. It’s been vacant the last few years.

Schwabe says it was built in 1903 and now he is working to clean it out, restore it and eventually rent it out. He says he already has a few interested tenants like a brewery and an art gallery.

The Arizona Department of Transportation has sold some of the historic warehouses but some of them are still for sale.

Steve Fenton, developer, also purchased several of the warehouses.

Marvin Shaver, president of the Warehouse Arts Management Organization, WAMO, wants to make sure whoever buys in the area, preserves the warehouses and keeps the Arts District in mind.

“We’re working with anybody who owns property down here to make it into an Arts District,” Shaver said.

He says on top of trying to keep the rent affordable to artists, they want the Arts District to really get going.

“We envision this being a real happening place that everybody would want to come to,” he added.

He says they want to see art walks, coffee shops, retail and restaurants. He says the area needs private investors like Schwabe to make it a reality and this is just the beginning.

“This is a key to making downtown come alive again,” Shaver said.

Click here to see more properties for sale,

http://www.azdot.gov/Highways/ROW/PropMgmt/index.asp

On Tuesday, the state of Arizona sold three of its downtown Tucson properties at auction.

The largest parcel went to Geoff Shephard, president of Arizona Autopark, who paid $652,000 for a 46,569-square-foot lot on Toole Avenue, between Sixth and Seventh Avenues.

Shephard said he would continue to use the lot, which the city has rented since 1987, for parking.

“We’ll be offering a very good deal to city employees – the cheapest in downtown,” he said.

This is the second time that Shephard’s company has owned the parking lot; years ago he sold it to the state – one of 37 properties that the Arizona Department of Transportation bought between 1986 and 1991 for a proposed expansion of the Aviation Parkway corridor through downtown.

The city’s easement over six of the properties expired in February, and control of the lands reverted to the state.

Now ADOT is divesting itself of its Tucson properties.

Developer Steve Fenton and Peach Properties’ Patricia Schwabe bought the other two lots sold at Tuesday’s auction.

Fenton paid $402,000 for a 17,358-square-foot lot at 35 E. Toole Ave. Previously, the building there was home to ArtWorks, an inner-city program for high school youths. Before that, it was called the Crane Plumbing Supply Warehouse.

Fenton said he would restore the building and use it as an “arts-related warehouse.”

The building might house artist studios or gallery space, he said.

Peach Properties paid $360,000 for an 18,375-square-foot lot at 119 E. Toole Ave. Once home to Baker Bros. Produce Warehouse, the building there was most recently occupied by RISE, a nonprofit social-service agency.

Both of the buildings bought by Fenton and Peach Properties have their warts.

In 2007, an Arizona Daily Star investigation documented fire damage to the ceiling of the Baker Bros. building and noted that the east and west sides of the warehouse had been condemned.

At the Crane Plumbing Supply Warehouse, there were extensive amounts of friable and non-friable asbestos, as well as substantial water damage to the roof and ceiling.

Schwabe said she would refurbish the Baker Bros. warehouse, then convert it into a restaurant.

“It needs a lot of work,” she said.

Both Peach Properties and Fenton have been aggressively buying downtown buildings since ADOT started selling them last year.

In October, Peach Properties paid $252,000 for Zee’s Warehouse, 1 E. Toole Ave., which is vacant but once was home to Zee Haag, an artist.

In November, Fenton paid $101,000 for the building that is home to Solar Culture, 31 E. Toole Ave., a gallery and music venue.

The next month, Fenton paid $512,000 for the building at 15-19 E. Toole Ave., which housed the rehearsal space of Salvador Duran, a Latin singer and flamenco guitar player, in addition to Astro Fab furniture makers and artist Jessica McCain’s studio. All have since moved out.

Both of the warehouses Fenton bought face a vacant lot where Pima County and the city of Tucson plan to build a new courthouse.

That project is on hold.

Seven properties went unsold at Tuesday’s auction.

The Gloo Factory, a nonprofit media-resource center at 106 E. Council St., was one of the properties that didn’t receive a bid.

Gloo Factory owner Dwight Metzger, who has been raising funds to buy the building but still has a way to go, said he was happy to live to fight another day.

“Maybe time is on our side,” Metzger said.

ADOT will continue to market the unsold properties, spokeswoman Teresa Welborn said.

“They’ll stay on the ADOT Web site on the page that says ‘properties for sale,’ ” she said.

If ADOT receives an offer for one of its remaining properties, it will trigger a 30-day clock. A second offer during that time will send the property to auction.

If no other offer is made, the original bidder can purchase the property.

Contact reporter Coley Ward at 807-8429 or cward@azstarnet.com

Social services provider Providence Service Corp. says it will relocate its corporate headquarters to downtown Tucson from its current east-central location by this summer.

Providence – one of Tucson’s few publicly traded companies – said it will remodel and lease the vacant building at 64 E. Broadway, at the southwest corner of North Scott Avenue and West Broadway. It is across the street from the site of UniSource Energy Corp.’s planned new headquarters.

Providence is now headquartered at 5524 E. Fourth St., just east of North Craycroft Road.

Providence plans to move its executive and corporate staff of about 50 people as soon as the remodeling is finished, the company said in a news release.

UniSource, parent of Tucson Electric Power Co. and the only Tucson-based company listed on the New York Stock Exchange, plans to move from the tower that bears its name at 1 S. Church Ave. to a new building at 88 E. Broadway by the end of 2011.

“This will put two of Tucson’s public companies side by side and should further support the downtown area as a developing business environment,” Providence Chairman and CEO Fletcher McCusker said in a news release.

Providence has been traded on the Nasdaq Stock Market since 2003.

McCusker cited recent improvements downtown, such as the Scott Avenue streetscape, Rialto block facade improvements, new restaurants, retail and fitness space “along with the promise of a more friendly business environment” as factors that helped persuade the company to relocate.

The planned headquarters building is owned by Ron and Patricia Schwabe. Providence is leasing the property through Peach Properties, which is also owned by the Schwabes.

“The commitment of one of the biggest businesses in Tucson is huge” for downtown redevelopment, Ron Schwabe said.

He noted that the company’s employees will join other downtown workers that form a “captive” clientele for restaurants and other businesses in the area.

Mayor Bob Walkup said he hopes that Providence’s relocation will be “another spark to get local and national businesses to see the value and long term prospects of a downtown Tucson location.”

The mayor’s office, along with the Downtown Tucson Partnership, Madden Media and Tucson Electric Power, were actively involved in recruiting Providence to move downtown, the company said.

Providence, which provides counseling, nonemergency medical transportation and other social services under government contracts, employs more than 11,000 people nationwide.

DID YOU KNOW

The building at 64 E. Broadway, dubbed “The Scott,” was originally built in 1909 and added onto in 1919, according to Peach Properties.

The building was occupied by a gold-weighing business and later housed doctors’ offices and a pharmacy. The most recent tenant was the nonprofit Southern Arizona Legal Aid.

Posted at http://www.azstarnet.com/business/local/article_96335ce3-a3d6-518b-9112-09404ce42c29.html

http://www.tucsoncitizen.com/ss/frontpage/94869.php

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http://www.tucsonweekly.com/tucson/Currents/Content?oid=oid%3A114952