The Downtown Power Structure Does It Their Way.
By Margaret Regan
DESPITE LAST WEEK'S soaring temps, the board of the new
Tucson Downtown Alliance Business Improvement District (BID) was
hardly sluggish at a meeting early on the morning of July 15.
In quick succession, the members hired Carol Carpenter as executive
director in a secret ballot; agreed to lease out offices in a
building managed by a company where board member Sheila King is
a partner; signed on La Placita as a new dues-paying partner;
and ousted from the board still another member, Julia Latané,
co-owner of the Grill on Congress.
Their actions not only left Latané out roasting in the
sun while the meeting continued without her inside the Temple
of Music and Art, they prompted a follow-up resolution declaring
that there was no conflict of interest in the hiring of Carpenter,
a BID board member and city staffer who was instrumental in shaping
the BID.
The lease for office space at 100 N. Stone required still further
elaboration, in the form of a letter from King officially disclosing
her status as partner with PICOR Commercial Real Estate Services.
PICOR has the leasing contract for the building at the corner
of Stone and Pennington, where the BID will now occupy a suite
of ground-floor offices.
Renting the space benefits her company, but King wrote that she
"will receive no direct compensation for this transaction."
Board member Larry Paul, a Realtor who helped negotiate the lease,
said the 2,177-square-foot office will require a monthly rent
of $2,812. Utilities are included and the first three months are
free. Several downtown offices were considered, Paul said, but
the prime Stone Avenue location will give the BID a desirable
"streetfront presence...it's smack dab in the middle of downtown."
Carpenter, the new occupant of these digs, gets a big boost in
salary as she heads for a job in the private sector. She said
she'll earn about $65,000 a year, up from the $41,390 she's been
earning as the downtown development specialist in the city's Office
of Economic Development. On August 3, Carpenter will switch to
her new job, which will require her to market the downtown, hire
and supervise street workers and formulate long-range plans for
the district.
Her candidacy was criticized last month by some City Council
members, who said it had the appearance of an insider deal, with
Carpenter working on city time to craft a lucrative new job for
herself. Her new bosses, the BID board members, said they have
no problem with her employment history, and unanimously passed
a resolution declaring, in part, "the Corporation hereby
determines that no conflict of interest exists between Carol Carpenter
and the Corporation because of her position as a member of the
Board of Directors (or) her work for the City of Tucson in establishing
the (BID)."
Board member Sarah Clements, executive director of the Tucson
Arts District Partnership, said later that she abstained from
voting on Carpenter's appointment "because I had an objection
with the process. It had nothing to do with Carol or her skills.
It had to do with the fact that the committee shouldn't have accepted
her application" because of Carpenter's involvement with
the BID. "It's a matter of what's good practice for a nonprofit."
After the meeting, Carpenter spoke to the issue herself.
"I was asked as part of my job to assist the private sector
in the formation of the BID," she said. "They (the steering
committee) had been working on it for about two years. It just
so happened that they were thinking of hiring a consultant for
about $90,000. The city asked me to do it--I provided the technical
expertise" gleaned from her work with BIDs around Baltimore.
"I didn't just say, Let's go out and form a BID.' Helping
form the BID was just one part of my job. I worked on other projects
for the city."
Carpenter, who said she's been in and out of the private sector
during her 13-year career, said she never thought to apply for
the position until the ads went out. Board member Thomas Laursen
said Carpenter was selected by the nine-member organizing committee
out of an initial pool of 27 candidates. He sees her hometown
status as an advantage.
"She has experience formulating BIDs, operating BIDs in
Baltimore. She's worked for the City of Tucson and should be able
to help us establish a good working relationship with the city...She's
ready to hit the ground running."
And indeed Carpenter, who accepted the job from the organizing
committee a week before the meeting, showed up after the vote
with a 90-day action plan. Her chart shows that she wants all
staff hired no later than October 12. She hopes to get maintenance
workers and uniformed street "ambassadors" on the job
well before the busy Christmas season. She pledged that "in
the next six months merchants will see things change."
The board voted unanimously to remove fellow member Latané
because she was holding a seat reserved for a property owner,
Laursen said, and Latané and her husband, James Graham,
have not yet acquired the property that houses their business,
The Grill on Congress. She couldn't have one of the business-owner
seats or at-large seats either, he said, because she had specifically
requested a seat on the property-owner council, which wields more
budgetary power than the others. He said if the couple acquires
the property they should alert the BID board; otherwise he wants
the now-empty seat filled by some other small-property owner from
the east end of downtown.
Paul later suggested an additional reason for the ouster. Latané
and Graham were early critics of the BID, and the board member
said the pair's outspokenness caused some hard feelings. "They
were not in favor of (the BID). They denounced it and suddenly
they wanted to be on it."
Latané thinks the board practiced "selective enforcement"
in her case, since several members of the property council are
not property owners at all, but employees of property owners.
Latané and her husband hope to close on their property
in August or September, and she may re-apply to the board then.
"I want to know what's going on," she added. "I
want to participate."
Laursen claimed that, in general, downtowners have gotten behind
the BID. Case in point was newly seated board member Jane McCollum,
a vice president for MRO, new owner of La Placita. McCollum told
the board the BID was a strong selling point for her company as
it considered buying into the downtown. "You don't know how
great it is what you're doing, what you've accomplished downtown."
MRO will plunk an additional $30,000 into the BID's coffers annually.
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