Marshall Foundation business donates to UA, local charaties
Tom Warne, consultant for the Marshall Foundation, looks out onto University Boulevard from the balcony at Gentle Ben's. Warne says the purpose of the foundation is to maintain successful business on University and continue donating to UA and the community.
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At the beginning of each month, renters in houses and apartments across Tucson trudge down to their landlord's office to pay the month's rent, never to see a dime of it again.
The same thing occurs with the business tenants on East University Boulevard - except they are paying a much larger bill to a different kind of landlord.
The Marshall Foundation, a non-profit organization founded by a former UA professor in 1930, is that landlord. With the exceptions of Chen's Cafe, Landmark Clothing and Shoes, Frog & Firkin and No Anchovies, all the businesses along University Boulevard pay rent to the 72-year-old foundation. But what the foundation does with that rent in turn is vastly different from the average landlord.
Every year, the foundation donates 50 percent to 60 percent of its net revenue to the University of Arizona in the form of scholarship funds and assistance for projects, like the half-million dollars it gave to the UA College of Medicine to help with the addition to the Sarver Heart Center, said Charles Jackson, Marshall Foundation president.
Louise Foucar Marshall, UA's first female professor, made the foundation's original UA investment in 1922. It was her dream to create a permanent scholarship fund to aid "deserving men and women" who wanted to attend UA.
"This a really unique and wonderful situation," said Tom Warne, consultant for the Marshall Foundation. "Profits are coming back to the university and the town. That's a great thing."
"I was looking at one of our tenant's sales report, and their sales have almost gone up 100 percent in the last three years. We think that's because we're bringing more people into the area."
Charles Jackson
Marshall Foundation president
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The foundation, which is run by a four-member board of directors including student representative and former ASUA president Francisco Aguilar, garners funds through properties it leases on University Boulevard and the Main Gate Square area along with the other foundation investments. No other donations are accepted. Most of that money then goes toward educational organizations and certain charities such as the Tucson Urban League and Chicanos Por La Causa.
Because it is a non-profit organization, the Marshall Foundation is required by law to return 5 percent of its net worth every year in the form of donations. The foundation gave UA $176,012 in 2001.
Other than the 50 percent to 60 percent the foundation gives UA, it gives about 25 percent of its revenue to other educational institutions like Pima Community College and about 25 percent to general charities.
Furthermore, the more revenue the foundation gets from these buildings, the more UA benefits. This is already happening with the increased sales of businesses in the new buildings.
"I was looking at one of our tenant's sales report, and their sales have almost gone up 100 percent in the last three years," Jackson said. "We think that's because we're bringing more people into area."
The foundation's total rental income is now about $1.8 million, compared to about $1.2 million in 1990, due to higher earnings.
"It is very useful to have available space nearby. Where else could the university go literally across the street?" said Dick Roberts, UA budget director. "By and large, the majority of the Marshall Foundation revenue is distributed to the university in the form of scholarships. We will lease space, and the extra money goes to fund scholarships."
High-earning businesses such as the Marriott University Park Hotel and the University Services building have contributed to larger funds.
The newest structure will be a five-story facility on North Park Avenue and East Second Street and will cost an estimated $14 million to $18 million.
While the foundation is still working on filling the building, it could include several UA departments.
"We're a small foundation, and we have to have leases in place to convince lenders," Jackson said. "We can't just build a building and say they will come."
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