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Rising rents squeezing 4th Ave businesses

Advocates fear locals will be driven out
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TUCSON, Ariz. - Rising rents and other pressures are squeezing part of the heart of Tucson.

Businesses along Fourth Avenue say -- the pressures of prosperity and rising prices -- are running some of them out of business.

If you want to see a window into Tucson's personality go to Fourth Avenue but after years of waiting for a boom to lift business in the area the boom that arrived is in danger of busting the businesses that made 4th what it is.

Fourth Avenue has a special personality, a quirky character with shops and restaurants that strive to be unique reflections of Tucson.

Just as giant construction cranes are casting a shadow over Fourth Avenue, new construction, rising property values and rising rents are squeezing some of the businesses.

At Irene's Holy Donuts the owner says she was already leaning towards taking a break but rising rents were part of her decision to close next month. She says her landlord gave her a discount to start but it was always agreed the rent would rise to market rates---in this case 14 thousand dollars.

At the Historic 4th Avenue Coalition activists like Dee Dee Koenen worry rising rents could kill the Avenue's character.

"And then what happens when small business can't afford that and then what happens is the chains that can afford it moves in and that starts to change the ecosystem here on the Avenue."

Koenen says landlords might keep rents lower if Pima County reduces property taxes along Fourth.

Kimberly Flagg says her health is prompting her to sell Epic Café. She says her landlord's been great about keeping rent reasonable and sees other issues threatening small business on Fourth.

"Parking's a huge issue. So that would probably be the biggest thing. Signage is difficult, we're in a historic area. I know they don't want us to all have neon signs up, but having some signage to really let people know who you are what you've got to welcome them to the avenue I think would be helpful."

Fourth Avenue is in Councilmember Steve Kozachik's ward. He says the city's backing off plans to tighten up parking on Fourth and is using zoning to keep shops in new construction small enough for local businesses to afford.

“We cannot compel a certain market rate we can't compel you're going to keep your rents below a certain level. We can say, don't put a 40,000 square foot footprint in there where no local businesses going to be able to afford that anyway.”

Kozachik says state law prevents the city from controlling rent and it wouldn't be wise to try to control them but he also says rising rents are a problem for more than Fourth Avenue, they're rising across the country and affecting apartments as well and commercial property.