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'We screwed up:' Rio Nuevo-backed, Live Nation comedy club deal on pause

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TUCSON, Ariz. (KGUN) — A proposed comedy club in downtown Tucson, backed by Rio Nuevo and Live Nation, has sparked public concern and prompted a pause in the project.

The plan involves converting the current space occupied by Borderlands Brewing Co. and Playformance into a Live Nation-operated Punch Line Comedy Club.

Fletcher McCusker, chairman of Rio Nuevo, acknowledged missteps in the process that led to recent public outcry.

"We screwed up the Live Nation deal," he said.

McCusker explained the challenges of rapid development in announcing the proposed deal.

"As fast as we move, sometimes we get swept up in the economics of all this," he said.

He did, however, defend the use of public funds, asserting that, "for every dollar of state money we invest, our private sector partners invest about eight."

Community organizer Maria Elena Pakulis initiated an online petition urging Rio Nuevo and property owner Peach Properties to reconsider the project.

She expressed appreciation for the pause.

"I really appreciate that they are taking a pause and waiting to actually hear from the public before making any further decisions on any project," Pakulis said.

She also emphasized the importance of public accountability.

"The board of Rio Nuevo is made up of folks who haven’t had their wrist slapped in maybe a really long time," she said. "And this was a good opportunity for us as a public to do a little of that."

McCusker confirmed that the deal with Live Nation is not finalized.

"I was informed by Peach Properties they still do not have a deal with Live Nation," he said.

He assured that future decisions would involve the public: "So that everybody has a chance to have input."

Rio Nuevo's next board meeting is scheduled for Tuesday, May 27, and will be held in person.

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Eddie Celaya is a multimedia journalist at KGUN 9. Born in Tucson and raised in the Phoenix area, Eddie is a life-long Arizonan and graduate of the University of Arizona who loves the desert and mountains and hates the cold. Previously, Eddie worked in print media at the Arizona Daily Star. Share your story ideas with Eddie at edward.celaya@kgun9.com, or by connecting on Facebook or Instagram.