South Tucson is studying the possibility of lowering its tax rate to keep its only large grocery store from closing.
Food City, at 2950 S. Sixth Ave., has announced it is scheduled to close Oct. 3, a spokesperson for its parent company Bashas’ said. Store employees will have the opportunity to transfer to another Bashas’ or Food City location.
The company did not provide the number of employees impacted.
Mayor Roxanna Valenzuela said the city was told the reason was inconsistent business and crime.
City officials, the plaza’s owners and brokers are scheduled to meet with representatives from Bashas’ in the coming weeks, Valenzuela said.
The plaza’s owners did not respond to the Star’s request for comment.
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One challenge for , which opened in South Tucson nearly 25 years ago, is the unique sales tax structure within the municipality.
In 2019, the city voted to increase its sales tax to 11.1%, compared to 8.7% in the city of Tucson.
It is the highest tax rate in . The lowest, at 6.1%, is in unincorporated Pima County.

The Food City at 2950 S. Sixth Ave., anchor for the Fiesta Mercado shopping center.Â
Meanwhile, El Super grocery store at 3372 S. Sixth Ave., across the interstate from Food City, is in the city of Tucson’s jurisdiction.
There is also a Walmart and Costco near Park Avenue and Interstate 10 in the Tucson Marketplace.
But for South Tucson residents without vehicles, those distances present a challenge.
“We are trying to convince them to stay because it is such a pillar in the community,†Valenzuela said of Food City.
She said plans are underway to improve the plaza and locate a South Tucson police substation there.
South Tucson is also exploring the possibility of getting rid of the extra tax, which brings in between $160,000 and $200,000 in annual revenue.
Should those efforts fail to keep Food City, Valenzuela said, the city is working with commercial brokers to find another business for the 47,000-square-foot space.
Other big box vacancies across the Tucson area have found success in recruiting entertainment venues.
In their existing state, some empty big box spaces have been able to convert to pickleball courts, trampoline parks and arcades.
The empty Bed, Bath & Beyond on Grant and Swan roads, for example, is being occupied by neighboring Roadhouse Cinemas with bowling and arcade games; the former Joann’s Fabrics on Broadway and Kolb will become a waterless slide park; and the former Conn’s store at River and Orange Grove roads is being remodeled into Lava Island, a playground for kids and adults.
Barring a change of heart from Food City, the store closing will be preceded with a liquidation sale with details yet to be announced.