KRISTIN ELVES/Arizona Daily Wildcat
A new, partially-UA-leased building at the corner of East University Boulevard and North Park Avenue will take the place of University Drug and other retailers at that corner. Current tenants in that area will also be offered leases in the new, five-story building.
By Cyndy Cole
Arizona Daily Wildcat
Monday Feb. 4, 2002
UA will receive $1.5 million annually from the deal
The university will rent new facilities to be constructed at North Park Avenue and East Second Street, in exchange for a $1.5 million annual contribution from the Marshall Foundation, in a plan the regents unanimously approved Friday.
Joel Valdez, senior vice president of business affairs, said the University of Arizona is "pioneering creative financing techniques" for this project.
Those techniques include paying for the project using tax-exempt bonds. The university will also pay rent using the annual contribution from the Marshall Foundation as well as funds from research grants and general UA funds.
But UA may opt out of the deal at any point and must approve design plans as the building is constructed.
"We're always in need of space, but we don't want to build and own," Valdez said.
The planned five-story building is scheduled for completion in spring 2003. It will provide laboratory space for a study on sustainable water use in arid lands. The media arts department, now located in the Harvill building, and the journalism department, now located in the Franklin building, will move to the new building.
The Marshall Foundation, a non-profit organization that raises funds for community service and educational organizations, is obligated by its by-laws to donate all of its proceeds from development of the five blocks west of UA to charity.
Over the past five years, UA has received $1.65 million - or 60 percent of the Marshall Foundation's net profits from rental properties in that area.
The Marriott Hotel, University Services building and Main Gate Garage are some of the other projects with which the Marshall Foundation has been involved.
Businesses currently located on the north side of East University Boulevard will also be offered space in the building, but many owners have said they are concerned they will not be able to afford rent costs, which are expected to be more than 250 percent of current levels.
The estimated cost of the new building has not been released.