Tucson's iconic Arizona Inn to add rental homes to its property

Residents near the Arizona Inn could soon see new rental housing added to one of Tucson’s most recognizable historic properties. Plans filed with the city call for 25 townhome style casitas on the inn’s southwest corner, near Lee Street and Olsen Avenue, along with three single family casitas beside the property’s Elm Street parking lot. The homes would be owned, managed and rented by the Arizona Inn, creating a new residential presence within the 14 acre campus at 2200 E. Elm St.

The proposed townhomes would include one and two story buildings reaching up to 25 feet. The three additional casitas would have one or two bedrooms and would be built on the east side of the parking lot. They are intended to resemble House Six, an existing rental home on the west side of the lot that is set apart from the rest of the property by hedges. City documents show that the townhome section would occupy a vacant lot along Olsen Street, at the southwest corner of the inn’s grounds.

For neighbors, the central question is how new housing will fit alongside a property known for its quiet landscaping, distinctive architecture and long history. A notice sent to nearby residents said the project would be designed to match and complement the existing inn. Linda Morales, chief executive of The Planning Center, the architecture firm working with the property, said the design process is still in its early stages, so there are not yet renderings available. The stated goal is for the residences to share the inn’s style and character rather than appear as separate, unrelated development.

The project is expected to be completed by early 2028, although rental prices will not be set until closer to completion and will depend on market conditions. Philip Amos, a member of the new ownership group, said the team sees possible tenants including University of Arizona professors, doctors and parents of university students. Residents would live close to the inn and, in the ownership group’s view, could become regular customers at its restaurant, bar and library. The proposal would therefore add housing while also potentially expanding the inn’s customer base.

The owners say the rental income is part of a broader plan to strengthen the property financially and preserve its future. Brian Underwood, principal with The Planning Center, wrote to neighbors that the ownership team is committed to protecting the quality, character and historic hospitality associated with the Arizona Inn. The additional revenue, he said, would support the inn’s long term financial stability. Amos said income from the rentals would help fund improvements and upgrades at the hotel.

The ownership group took control of the inn last fall after the family of founder Isabella Greenway put the property up for sale last spring. The Tucson investor group includes Steve and Margot Kerr, Greg and Marla Amado, Philip and Mimi Amos, Kirk Saunders and Ann Peterson, Brian and Shamra Strange, and Jim and Kerrin Berwick. Since taking over, the group has upgraded the lobby and Audubon Bar, added a spa, installed a Jacuzzi and private pool cabanas, renovated most of the rooms, and created a tennis membership for people who are not hotel guests. The former Greenway House at the west end of the property is planned for conversion into a larger spa, and the owners also intend to offer memberships providing access to hotel facilities.

The rental plan comes as Tucson and Arizona have adopted measures intended to encourage more housing in established urban areas. According to the submitted plans, the proposal meets the requirements of those new state and city laws. Tucson City Council member Miranda Schubert, whose Ward 6 includes the property, said in a constituent newsletter that the inn can use the Community Corridors Tool. That zoning option makes it easier to add density and height to certain vacant city parcels or parking lots. Schubert acknowledged that some people may object to changes at such a beloved historic property, while noting the ownership team’s commitment to preserving its character.

The Arizona Inn opened in 1930 and was built by Greenway, an important figure in Tucson’s history. Its design combines Pueblo Revival and Colonial Revival elements, and the property was placed on the National Register of Historic Places in 1988. Earlier this year, it was among three local hotels added to Historic Hotels of America, an organization that recognizes properties for maintaining their historic integrity. Those designations add significance to the owners’ promise that the new casitas will use features associated with the inn, including pink stucco, blue awnings and shutters.

The new laws mean the project is not required to go through public hearings, but the ownership team plans to meet with neighbors next month as a courtesy. Representatives of the ownership group and The Planning Center are expected to explain the proposal and answer questions. Separate from the casitas, Amos said land on Wilson Avenue and Elm Street will be sold as three parcels for single family homes. The buyers are expected to build homes that enhance the surrounding appearance, with sale proceeds also directed toward improvements at the inn. No response had been received from the Blenman Elm Neighborhood Association by the reported deadline.