Rio Nuevo Board votes to preserve TCC lawsuit, not proceed

The newly reconstructed Rio Nuevo District Board voted to tender an offer to the City of Tucson today. The move was part of Rio Nuevo’s continuing campaign to move forward on behalf of the Arizona taxpayers and the residents of Tucson.

The District Board had hoped that the City would consider the offer at the Mayor and Council meeting scheduled for tomorrow, November 19, 2012. The Board’s attorney was led to believe he City’s attorney, Mike Rankin that the counter-offer was to be presented to the Mayor and Council tomorrow, however the item did not appear on today’s agenda.

One City insider said, “The City does not want to cooperate. I should say, Mike Rankin does not want to cooperate. Hell, half the City Council members probably don’t even know that they were supposed to receive a counter offer. Mike Rankin is controlling the operation of all these negotiations. Everyone is trying to walk on egg shells not to have the City drag this on, or an eruption of a Kozachik rant, and have the whole thing fall apart.”

For over a year now, City of Tucson Council members have complained that the Rio Nuevo Board was being obstructionist and preventing progress. However; the Rio Nuevo Board says it has done everything it could to delay proceeding with lawsuits in a good faith effort to work with the City toward a reasonable resolution. “ I am reaching out to the COT every where I can so to avoid another lawsuit, we are too close to a settlement.”

To that end, the the Board voted to request a tolling agreement from the City on a lawsuit which addresses their breach of the TCC lease agreement. The Rio Nuevo Board has not yet heard from the City on their offer to further extend the tolling agreement.

As a result, the newly reconstituted District Board voted unanimously today to “preserve the TCC lawsuit” against the City. The Board’s attorney, Sean Brearcliffe made it clear that the action was to “preserve the Board’s lawsuit” and not “proceed.” The Board does not want to engage in a costly lawsuit, but the City has left it no choice but to preserve its standing. The decision was based on the fact that without a new tolling agreement, the District would either have to proceed with the suit or drop it altogether. The suit was initiated last year by the Rio Nuevo Board, under the leadership of Jodi Bain. If the Board has failed to meet the Court’s deadline, it would be require to re-file, this costing taxpayers further expense.

The Board, under the leadership of Fletcher McCusker, has continued the audits and lawsuits demanded by the taxpayer while at the same time tried to work with the City to reach an amicable agreement. The Rio Nuevo Board is concerned that the City of Tucson is comfortable with the status quo.

Today the Board gave the City until Wednesday, noon, to decide whether they want to operate in good faith or not. If the Board does receive an extension of the tolling agreement by then Brearcliffe is instructed to proceed with the suit. New Board member Cody Ritchie expressed the frustration felt by many on the Board, “This is getting beyond ridiculous now. I would hope the City of Tucson would not force us into this action. It is a waste of taxpayer money.”

Alberto Moore was the only member of the Board to vote against the settlement offer. Moore said it was not because he objected to the offer, but he was, “disgusted with the City. They pretend to act as if they want progress, as if they are acting in good faith, but it is what they do behind the scenes that is destructive.” Moore said, “now we see that the new Mayor is simply a newer version of Walkup. He has been in office one year now, and he owns this failure to move forward and create jobs. Rothschild shows up at ribbon cuttings for projects that have been in the works for years, because it takes years to get anything done in this city. He should work to cut the ribbon on something developed in his administration instead of letting Rankin pull the strings. I am convinced that that the City is not serious about coming up with a settlement.” Moore reiterated the city source, “I absolutely believe that Rankin is behind this.”

Mike Rankin, the City’s attorney, has been instrumental in the drafting off nearly all past Rio Nuevo/City of Tucson contracts. In that capacity, most of the contracts now at issue, which were supposed to be mutually beneficial, favor the City and not Rio Nuevo and not the taxpayers.

city of tucsonFletcher McCuskermike rankinrio nuevo