A project that will see the construction of three new floors topping off a well-known downtown Tucson building may be eligible for significant incentives.
CID Holdings and Peach Properties, both based in Tucson, want to convert what was formally known as the Wig-O-Rama building at 98 E. Congress Street and turn it into a mixed-use property.
As planned, the ground floor of the structure would be devoted to retail space, while the new upper three floors would be all residential, with at least 30 apartment units.
The project, which is expected to cost around $10 million to complete, has won the approval of the Rio Nuevo downtown development agency board.
Pending the results of an economic study, that same board could provide to the developers a sales tax rebate of up to $2.1 million.
The developers purchased the Wig-O-Rama building and an adjacent retail space in the spring of 2017 for $950,000.
The structure, originally known as the Central Block Building, was built during the first decade of the last century. For many decades it housed a pharmacy, small grocery store, and soda fountain.
The Wig-O-Rama store opened in 1976, but moved to another location after a small 2013 fire in the building.
Developers earlier peeled away the 1950s-style stucco façade of the 98 E. Congress Street property, revealing its original red brick front.
By Garry Boulard
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