What's Hot

    383-Unit Multifamily Project Recommended by Goodyear P&Z

    August 22, 2025

    Aviation Training Center Planned for Mesa-Gateway Airport

    August 22, 2025

    Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

    August 22, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [August 22, 2025] - 383-Unit Multifamily Project Recommended by Goodyear P&Z
    • [August 22, 2025] - Aviation Training Center Planned for Mesa-Gateway Airport
    • [August 22, 2025] - Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades
    • [August 22, 2025] - Rezoning Recommended for 236KSF Mesa Industrial Plan
    • [August 22, 2025] - Arizona Projects 08-22-25
    • [August 20, 2025] - Old Town Scottsdale to See $40M in Improvements
    • [August 19, 2025] - Ariz. Construction Lost 400 Jobs in July
    • [August 19, 2025] - Astra Construction Delayed Due to Financing
    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

      383-Unit Multifamily Project Recommended by Goodyear P&Z

      August 22, 2025

      Aviation Training Center Planned for Mesa-Gateway Airport

      August 22, 2025

      Rezoning Recommended for 236KSF Mesa Industrial Plan

      August 22, 2025

      Astra Construction Delayed Due to Financing

      August 19, 2025

      Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

      August 22, 2025

      Old Town Scottsdale to See $40M in Improvements

      August 20, 2025

      Ariz. Construction Lost 400 Jobs in July

      August 19, 2025

      Experts Share on the Latest Industrial Trends at BEX Panel

      August 15, 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

      RTA Funding Proposal Stirs Controversy

      August 15, 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

      Commercial Real Estate 08-19-25

      August 19, 2025

      Commercial Real Estate 08-12-25

      August 12, 2025

      Commercial Real Estate 08-05-25

      August 5, 2025

      Commercial Real Estate 07-29-25

      July 29, 2025

      Industry Professionals 08-19-25

      August 19, 2025

      Industry Professionals 08-12-25

      August 12, 2025

      Industry Professionals 08-05-25

      August 5, 2025

      Industry Professionals 07-29-25

      July 29, 2025

      Arizona Projects 08-22-25

      August 22, 2025

      Arizona Projects 08-15-25

      August 15, 2025

      Arizona Projects 08-08-25

      August 8, 2025

      Arizona Projects 08-01-25

      August 1, 2025

      Tucson City Council Likely to Approve Water Restriction on Large

      August 19, 2025

      Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

      August 15, 2025

      Ariz. Supreme Court Upholds Citizens’ Right to Halt Local Projects

      August 8, 2025

      Proposed Legislation Aims to Increase Housing Supply

      August 5, 2025

      Ariz. Construction Lost 400 Jobs in July

      August 19, 2025

      Experts Share on the Latest Industrial Trends at BEX Panel

      August 15, 2025

      Multifamily Developer Confidence Up in Q2

      August 12, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      383-Unit Multifamily Project Recommended by Goodyear P&Z

      August 22, 2025

      Aviation Training Center Planned for Mesa-Gateway Airport

      August 22, 2025

      Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

      August 22, 2025

      Rezoning Recommended for 236KSF Mesa Industrial Plan

      August 22, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • DATABEX Log-In
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Hospitality LMS
      • 2025 Public Works Conference
    • 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

    Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

    August 22, 2025

    Old Town Scottsdale to See $40M in Improvements

    August 20, 2025

    Ariz. Construction Lost 400 Jobs in July

    August 19, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    383-Unit Multifamily Project Recommended by Goodyear P&Z

    August 22, 2025

    Aviation Training Center Planned for Mesa-Gateway Airport

    August 22, 2025

    Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

    August 22, 2025

    Rezoning Recommended for 236KSF Mesa Industrial Plan

    August 22, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    383-Unit Multifamily Project Recommended by Goodyear P&Z

    August 22, 20250

    By Roland Murphy for AZBEX The Goodyear Planning and Zoning Commission voted last week to…

    Aviation Training Center Planned for Mesa-Gateway Airport

    August 22, 2025

    Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

    August 22, 2025

    Rezoning Recommended for 236KSF Mesa Industrial Plan

    August 22, 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

    383-Unit Multifamily Project Recommended by Goodyear P&Z

    August 22, 2025

    Aviation Training Center Planned for Mesa-Gateway Airport

    August 22, 2025

    Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

    August 22, 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.