What's Hot

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 2025

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [August 1, 2025] - Eloy P&Z Hears Dual Requests for Major Land Use Overhaul
    • [August 1, 2025] - State’s Largest Data Center Project Part of Vermaland Pinal Plan
    • [August 1, 2025] - Pinal Considering 215-Acre Data Center Development
    • [August 1, 2025] - Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction
    • [August 1, 2025] - Arizona Projects 08-01-25
    • [July 29, 2025] - Scottsdale Hospitals War May Heat Up with New Banner Request
    • [July 29, 2025] - Dominium Planning 304-Unit BTR in Surprise
    • [July 29, 2025] - Next Steps Coming for Bartlett Dam Expansion
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

      August 1, 2025

      State’s Largest Data Center Project Part of Vermaland Pinal Plan

      August 1, 2025

      Pinal Considering 215-Acre Data Center Development

      August 1, 2025

      Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

      August 1, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      Scottsdale Report Shows Multifamily Pipeline Half of Common Estimate

      July 22, 2025

      Alleging Breaches, ZenniHome Closes NGS Operations

      July 21, 2025

      Scottsdale Hospitals War May Heat Up with New Banner Request

      July 29, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      State Government Shutdown Averted as Hobbs Signs Budget

      July 1, 2025

      Arterial Life Cycle Program Covers 20 Years of Street Development

      June 27, 2025

      $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

      June 24, 2025

      Commercial Real Estate 07-29-25

      July 29, 2025

      Commercial Real Estate 07-22-25

      July 22, 2025

      Commercial Real Estate 07-15-25

      July 15, 2025

      Commercial Real Estate 07-08-25

      July 8, 2025

      Industry Professionals 07-29-25

      July 29, 2025

      Industry Professionals 07-22-25

      July 22, 2025

      Industry Professionals 07-15-25

      July 15, 2025

      Industry Professionals 07-08-25

      July 8, 2025

      Arizona Projects 08-01-25

      August 1, 2025

      Arizona Projects 07-25-25

      July 25, 2025

      Arizona Projects 07-18-25

      July 18, 2025

      Arizona Projects 07-11-25

      July 11, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Alleging Breaches, ZenniHome Closes NGS Operations

      July 21, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      Tax Bill Would Make LIHTC Permanent

      July 2, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      BEX Updates Construction Sector Projections in Annual Mid-Year Update

      July 18, 2025

      Phoenix Industrial Sees First Vacancy Drop in Years; YoY Completions Drop 75%

      July 18, 2025

      Phoenix Construction Costs See 4.42% Q2 Annual Change

      July 15, 2025

      Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

      August 1, 2025

      State’s Largest Data Center Project Part of Vermaland Pinal Plan

      August 1, 2025

      Pinal Considering 215-Acre Data Center Development

      August 1, 2025

      Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

      August 1, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Mid-Year Update
      • 2025 Industrial LMS
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    • CIP Special Report
    AZBEX
    Home » Legislation & Regulations » Arizona State Pushes Back in Real Estate Fight
    Legislation & Regulations

    Arizona State Pushes Back in Real Estate Fight

    BEX StaffBy BEX StaffFebruary 17, 2018No Comments4 Mins Read
    Credit: DAVIS
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Mike Sunnucks for Phoenix Business Journal

    For Morgan Olsen it circles back to the well-worn adage of ‘teach a man to fish.’

    But the problem for Olsen – CFO at Arizona State University – is that some fiscal conservatives at the Arizona Legislature don’t want the school to fish for real estate deals and its own revenue streams even after the same state assembly cut higher education budgets during and after the last recession.

    Olsen said ASU lost $200M in state funding over four years between 2008 and 2012. From 2009 to 2012, the state cut $400M in funding to the three state universities, including.

    To backfill those cuts, the ASU CFO said the school started looking more at creating its own revenue streams.

    Consequently, ASU has turned to real estate and its land holdings to bring in revenue, finance improvements at Sun Devil Stadium and Wells Fargo Arena as well as foster more research and development activity.

    The school owns the 320-acre ASU Research Park in south Tempe.

    It also owns land in downtown Tempe within as well as next to its main campus. ASU also has real estate holdings in north and downtown Phoenix, Scottsdale at the SkySong development (which is owned by the ASU Foundation) and at its West and Polytechnic campuses on either ends of the region.

    ASU is partnering with Catellus Development Corp. for development of a 330-acre high-tech office development called the Novus Innovation Corridor.

    But ASU’s other real estate deals and ventures involving public university lands are rubbing some fiscal conservatives the wrong way.

    They point to the $928M sale of the 2MSF Marina Heights development in Tempe.

    The development was built for $600M by Sunbelt Holdings and Ryan Cos. It sits on land owned by the Arizona Board of Regents.

    Olsen and Nick Wood, a prominent land-use attorney for Snell & Wilmer LLP, said where State Farm now has 6,500 employees and a regional operations (center) was long empty and used for parking for ASU football games.

    Raised Eyebrows

    But the $928M sale of the development has raised the eyebrows of fiscal conservatives.

    It’s also brought to the forefront the ASU Research Park and a similar development owned by the University of Arizona in Tucson.

    State Rep. Vince Leach has introduced House Bill 2280.

    The legislation would put new rules on university research parks.

    Those include expansions of the research parks beyond their current boundaries and requiring private tenants there to be R&D related or linked to the university’s mission.

    (It) would also restrict future sale leaseback deals on university-owned land. The land was donated to ABOR years ago.

    Cutting Deals

    While Olsen and ASU officials see economic development and needed revenue, fiscal conservatives such as Leach, the Arizona Tax Research Association and Commercial Real-estate Executives for Economic Development and Arizona Free Enterprise Club worry about real estate deals struck on university land.

    That land isn’t taxed like private property and brings up some of the same concerns voiced about Government Property Lease Excise Taxes.

    Leach is also running a bill on GPLETs this year and says the university real estate bill is about fairness.

    Wood contends the State Farm deal is not a sale leaseback and that HB 2280 steps on universities’ and ABOR’s constitutional powers.

    Olsen said ASU is worried about potential state restrictions that could impact development and real estate deals in downtown Tempe, downtown Phoenix and north Phoenix where the school owns land near the Mayo Clinic.

    Cut Out

    ATRA Senior Research Analyst Sean McCarthy contends the Marina Heights development avoids $12.1M in property taxes per year by being on university land.

    Wood counters that the land otherwise would have been empty and the Marina Heights development produces jobs, construction sales tax revenue during its construction and the project is paying some payments via a deal struck with ASU and ABOR.

    Constitutional Arguments

    Tim Lawless, president of the CREED group, said there are other constitutional considerations in the mix including the uniformity and gift clauses. The former deals with uniform treatment of tax classes and the latter restricts government gifts to businesses.

    For Lawless, it comes down to one office building or development paying traditional property taxes compared “to a competing facility a few miles away which is tax free but engages in the same activities”.

    Wood points out that a number of state-owned buildings in the State Capitol area are actually owned by U.S. Bank in a sale leaseback deal struck during the recession when the state was in financial distress.

    Read more at Phoenix Business Journal.

    ABOR Arizona Board of Regents Arizona Free Enterprise Club Arizona Legislature Arizona State University Arizona Tax Research Association ASU ASU Foundation ASU Research Park ATRA Catellus Development Corp. Novus Innovation Corridor. Commercial Real-estate Executives for Economic Development CREED Government Property Lease Excise Taxes GPLET House Bill 2280 Marina Heights Nick Wood Ryan Cos. SkySong development Snell & Wilmer Sun Devil Stadium Sunbelt Holdings University of Arizona Vince Leach Wells Fargo Arena
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Developer Proposing 83-Unit Condo Project in Flagstaff

    July 25, 2025

    GO Industrial Planning Car Storage Facility in Phoenix

    July 25, 2025

    Mohave County May Remove Data Centers as Economic Development Goal

    July 23, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 2025

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025

    Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

    August 1, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 20250

    By Roland Murphy for AZBEX In its July 16 meeting, the Eloy Planning and Zoning…

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025

    Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

    August 1, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 2025

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.