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The Rio Nuevo District Board is considering spending $4.3 million on a parking garage that would accompany a privately developed downtown Tucson hotel.

If the board decides to pursue the project, it would pay for and own the garage, said Michele Bettini, operations administrator for Rio Nuevo.

The garage would be built near East Broadway and North Fifth Avenue, and would be beneath a Marriott hotel. Downtown developer Scott Stiteler would develop the hotel, which would be privately owned.

Stiteler wants to use some of the tax funds the district has for downtown redevelopment.

“He is asking $4.3 million from the Rio Nuevo Board to build the parking garage portion of that hotel," Bettini said. "And, with that $4.3 million the board would own that garage."

The board has not made a final decision.

“They’ve instructed (their legal) counsel to move forward and investigate the ins and outs of that,” Bettini said.

The next board meeting is scheduled for Aug. 26, and Bettini said she anticipates the board will talk about the proposed project at that meeting.

The district is allowed to spend tax revenue on the Tucson Convention Center or a downtown hotel, according to the state legislature, which restricted the downtown redevelopment district's activities after it spent hundreds of millions of dollars with little to show.