By Ann McBride
Arizona Daily Wildcat
Microsoft Corp. moved one step closer to expanding its technical support division in Tucson when UA President Manuel Pacheco approved a non-binding letter of intent Friday.
The letter of intent was signed between the Redmond, Wash.-based computer giant and the Rita Road Campus Corp., which oversees the University of Arizona Science and Technology Park.
The park, located on Rita Road in southeast Tucson, was purchased from IBM by the Arizona Board of Regents in 1994, for $98 million.
Pacheco's decision was announced Friday at 5 p.m., in a news release distributed by Sharon Kha, President's Office spokeswoman.
The news release states that negotiations on the terms of the lease continue, and that Microsoft has not requested any subsidy from the Campus Corp. or the UA.
It goes on to explain that the non-profit corporation and the UA have requested $4 million in economic assistance from the state, city and county.
The money will be used "to advance economic development and employment creation in the state, city and county," the half-page release states. "These funds are necessary ... to offer a competitive facility that serves the needs and meets the requirements of the marketplace for significant and desirable employers."
Recent media reports indicate strong support from all parties, which was imperative to Pacheco's supporting the move.
The city and county have been asked to commit $1 million each. They are expected to formally approve the funding today during their regularly scheduled meetings.
The state is expected to contribute $2 million, but it must first be approved by the state Legislature.
The release says the $4 million package is independent of Microsoft's potential tenure as a tenant at the UA-owned property. It says a similar funding request would have been made if another major tenant had wanted to locate at the park.
Due to a confidentiality agreement, Kha said that no further comments regarding the negotiations would be made by either the UA or the Campus Corp.