How did the Town of Marana select a developer to partner on the Downtown Marana project?
On May 17, 2024, the Town released a Request for Proposals (RFP) for the Lease and Development of Town-Owned Property Located at Marana Main Street and Civic Center Drive.
The Town sought proposals from developers to lease and develop approximately 20 acres of Town-owned land as part of a vibrant Downtown Marana. The Town received one proposal in response to the RFP, from Marana Urban LLC.
An evaluation committee consisting of Town staff from Development Services, Economic Development, Town Manager's Office, Water, and Legal evaluated the initial response and submitted additional clarifying questions to the proposer. Marana Urban responded to those additional questions and provided a preliminary infrastructure cost estimate for the Downtown Marana development.
On November 19, 2024, at a public meeting, the evaluation committee recommended that the Marana Town Council direct Town staff to commence negotiations with Marana Urban LLC on a final form of lease agreement for the Town-owned property subject to the provisions of the RFP. That direction was provided by Council. The lease agreement was formally adopted by Town Council on December 16, 2025.
How much will it cost the Town to do this?
Public infrastructure
The Town will be responsible for funding public infrastructure such as utilities, parking, the brick road, and the archways. Funding will come primarily from the bed tax fund (which can only be utilized for tourism related projects) and the Downtown Marana Reinvestment Fund (which can only be used for the Downtown District). The total cost of all public infrastructure is not yet determined, but an estimate for phase one will be provided by the developer prior to construction. The cost will then be capped at that amount for phase one. The costs of public improvements for subsequent phases will be determined prior to construction of each phase.
Commercial improvements
The Town of Marana will also reimburse the developer for the commercial improvements (i.e., the buildings) through retail sales tax and construction sales tax reimbursements - 45% of retail sales tax collected on the property and 75% of construction sales tax collected on the property. The estimated cost to construct the buildings in 2025 dollars is $84 million.
Is the Town of Marana giving the Developer $84 million?
The Town will reimburse the Developer up to the full cost to build the commercial buildings on the property. The current estimated cost of construction of the commercial buildings is $84 million.
As the Developer completes the buildings, the Developer must provide the Town with statements of the Developer’s costs to construct the buildings and any supporting documentation required by the Town. The Town will then reimburse the Developer up to the Developer’s costs of construction of the buildings through retail sales tax revenues and construction sales tax revenues generated from the Downtown development.
In other words, as restaurants, bars, retail establishments, and other businesses open on the property and generate sales tax revenues, a portion of those revenues (45%) will be used to reimburse the Developer for the costs to construct the buildings. Similarly, 75% of construction sales tax revenues generated from the construction activity on the property will go toward that reimbursement. The reimbursement will take place over time.
The Developer will own and maintain the buildings during the lease term and then the Developer must convey title to the Town at no cost upon the expiration or termination of the lease. When the Town takes ownership of the buildings, they will have a depreciated reversionary value of approximately $362.9 million at Year 75 and $477.5 million at Year 100, based on an appraisal commissioned by the Town.
Moreover, according to the findings of an independent third-party report prepared by Elliott D. Pollack & Company, in the first 20 years of the lease, the project is expected to generate approximately $37.5 million in direct tax revenues for the Town; over 75 years, $180.1 million; and over 100 years, $244.9 million, resulting in a net fiscal benefit to the Town of $96.1 - $160.9 million. View the report by Elliot D. Pollack and Company here.(PDF, 1MB)
When will the Downtown be completed?
Currently, there is not a set completion date for the Downtown project. After the contract is finalized, the design phase will take approximately 12 to 18 months. Phase One of the Downtown Marana development will begin once the design phase concludes, with Phase Two following.
Who is Scott Stitler and his team?
Scott Stitler is the principal owner of Marana Urban LLC, Tucson Urban LLC, and several related entities. In 1990 Mr. Stiteler formed Stellar Homes, Inc. to build urban, infill, residential projects in the San Francisco Bay Area. In 1994, he expanded development activities to Tucson, AZ. He has developed approximately 25 projects in the Tucson area.
The Marana project team is made up of:
- Rudy Dabdoub who has had a long-standing career in real estate development and hospitality management.
- Regan Jasper who was a founding partner of Fox Restaurant Concepts.
- Cory Creath the president and CEO of AXIS Architecture + Design.
- Ruiairi O’Connell Design Director at AXIS Architecture + Design.
What other projects has Scott Stiteler completed?
- Mercado District in Tucson
- Renovated the historic Rialto building in Downtown Tucson
- The Hub Restaurant
- Hub Ice Cream Factory
- Playground
- Good Oak Bar
- Love Burger
- AC by Marriott Hotel in Downtown Tucson
- Corbett building on 6th Avenue
- Sky Ranch in Marana