Rialto Theatre's Tucson Hotel Project Called Off

TUCSON, AZ — A vision to remake downtown's historical Rialto Theatre district has been abandoned, with developers now focusing on the Corbett House instead.

An $88 million proposal to renovate the nearly 100-year-old building and add two hotels on top came about last year from Dabdoub and Stiteler families, developers who built the AC Marriot across the street.

"Ultimately the parties who own the portion of the Rialto block that is not the Theatre could not come to mutually satisfactory terms, and the project has been withdrawn," Rialto Foundation Executive Director Curtis McCrary said in an email.

The upgrade would've added two so-called boutique hotels— one brand catering to Millennials, the other to business-types— with some 100 rooms each. Beyond the lodging, needed improvements to the Rialto Theatre itself were planned, including new concessions, expanded seating and new green rooms, the Arizona Daily Star reported.

McCrary shared his disapointment in an email sent to members:

The Rialto had no role in that decision, and although we are disappointed, we understand the nuances of large, complex, and expensive projects are such that sometimes they turn out not to be possible.

MCrary added the money raised from donors will still be used on improving the Rialto, but the list will have to be prioritized.

Developer Scott Stiteler told the Daily Star he's focused now on the corner of Sixth Avenue and Seventh Street where the Corbett building is. There are preliminary talks of a project there that includes office space, housing and hotel space.