Tucson Mayor and City Council Meetings, October 20, 2026
Approves Incentive / development agreement direction for the Clara Hotel at 755 East Benson Highway, unanimous
What happened
Tucson Mayor and Council gave unanimous direction to formalize a development agreement for a sales- and hotel-tax reimbursement incentive (projected $500,000 over five years, capped at $100,000 per year) for Benson Hospitality Manager, LLC's renovation of the vacant former hotel…
- Jurisdiction
- Tucson, AZ
- Governing body
- Final authority
- Date
- October 20, 2026
- Decisions
- 10 zoning decisions
- Outcome
- Approved, unanimous
Free sample: decision 1 of 10
Incentive / development agreement direction for the Clara Hotel at 755 East Benson Highway
Council gave direction to formalize a development agreement with Benson Hospitality Manager, LLC to renovate the vacant former hotel at 755 East Benson Highway into 'the Clara' boutique hotel. The incentive reimburses city sales and hotel tax at 45% of collections, capped at $100,000 per year, for a projected $500,000 over five years. The project is projected to net the city $1.3 million and create 17 construction jobs, 5 full-time jobs and 4 part-time jobs. A legal notice of intent and final development agreement will return to council. The voice vote was unanimous.
- no reimbursement until project completion and verification of costs and taxes collected
- capped at 45% of city sales tax collected, not to exceed $100,000 per year
The other decisions are listed below by title. The full write-up, verbatim conditions, and the audio at each vote are in Pro.
Meeting Summary
Tucson Mayor and Council gave unanimous direction to formalize a development agreement for a sales- and hotel-tax reimbursement incentive (projected $500,000 over five years, capped at $100,000 per year) for Benson Hospitality Manager, LLC's renovation of the vacant former hotel…
Key Decisions (10)
Incentive / development agreement direction for the Clara Hotel at 755 East Benson Highway
Direction on next phase of UDC amendments (parking and housing reform)
Work plan for phased pedestrian-focused street closures
Pima County 2027 bond program submittal
Direction to negotiate/litigate with Union Pacific Railroad
FY2027 Housing Choice Voucher payment standards
Consent agenda including telecom leases
TPD–ATF NIBIN MOU
Arizona Vehicle Theft Task Force IGA
Reconsideration and approval of Series 12 liquor license for Tortillas Chivas
Development Activity (3)
The Clara Hotel (former Minsk hotel)
Commercial
Center East mixed-use affordable housing
Mixed-Use
Old Vail Road widening (Rita to Houghton)
Infrastructure
Market Signals (4)
Infrastructure
Old Vail Road widening on the 2027 county bond list…
Housing Demand
Code Tucson 26 would allow middle housing subdivisions citywide, opening…
Commercial Demand
Tucson continues using sales and hotel tax reimbursement incentives for…
Other
Battery energy storage system zoning standards were pulled from the…
Who Spoke (32)
On the record: the mayor, 5 councilmembers, a commissioner, 8 staff members, an attorney, and 6 members of the public.
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