By Eric Jay Toll for Arizona Builder’s Exchange
The New Year will open with good news for Arizona’s three public universities as the Arizona Board of Regents (ABOR) OK’d more than $426M in construction for 2013. Adding to the projects already approved by ABOR, just under $1B in university construction is on the books through June 30, 2014.
The ABOR action is the final step in the three-step process to move from concept to construction for the schools’ capital development.
University of Arizona
With a new president coming on board this summer, UA of re-evaluated its CIP priorities since an October extension from the Regents. The revisions put $162M in new construction into the program—all of which was approved by ABOR.
UA had its three top priorities approved. The $80M renovation to McKale Memorial Center—a solicitation for architects is on the street for this one; a $79M rehab of the Interdisciplinary Chemical Sciences building renovation in Tucson; and $10M to finish the shell of the inpatient cancer center at the UA Phoenix Biomedical Center campus.
The South Stadium Parking Structure ($18.5M) rounds out the list, joining $295M in already active construction projects in Tucson and the $100M cancer center shell in Phoenix. ZGF Architects and Hensel Phelps is the design-build team for the medical school building.
Arizona State University
ASU’s hoped-for start of the $129M Sandra Day O’Connor College of Law is pushed back pending collections of gifts and legislative approval for bond sales. It could still be put into the Fiscal 2013 or Fiscal 2014 capital programs if major funding comes from outside sources. Otherwise, the college is looking at $35M in infrastructure enhancements and classroom renovations for the coming year. With $58M in already-approved projects, ASU’s capital construction total comes to $91M for the year.
Northern Arizona University
The smallest college in the trio has $100M in construction already approved for a Science and Health building and a Multi-Purpose Events Center. ABOR approved an additional $7.5M to build out the Health Sciences Education Building shell space.
$100M More for Fiscal 2014
ABOR passed its budget recommendation on to the governor at the December meeting last Thursday. The budget, which the Regents are calling an 11 percent increase over 2013, includes an additional $100M for the colleges to make headway into the additional $375M proposed for capital construction through 2017.
Early noise from the Chair of the Arizona Senate budget committee indicates some heartburn with the Regents request. AZBEX reported December 4th on comments by State Senator Don Shooter (R-Yuma) calling the board “delusional” and pegging the universities’ request as a “29 percent increase.” No reason was given for the discrepancy in the percentages.
Gilbert OKs $35M incentive package for Nationwide’s Rivulon
By Eric Jay Toll for Arizona Builder’s Exchange
“This site has significant potential for Gilbert,” Economic Development Director Dan Henderson told AZBEX in May, while pointing to an undeveloped site adjoining Loop 202. “We see corporate offices, retail, mixed uses.”
His vision is on the road to reality with the December 6th council approval of a notice of intent to okay $35M in economic incentives for Nationwide Realty Investors’ 300 acre commercial center on the Santan Freeway corridor at Gilbert Rd. Starting with a spec four story, 120K SF office complex, full buildout projects 3.1M SF for office space, 500K SF in retail and commercial, and a 250-plus room hotel.
The city is now on the road to fund street improvements and utility infrastructure construction for the developer, if two-thirds of the council okays the final pact at a future meeting.
Set on a primarily undeveloped field bordered by Gilbert, Lindsay and Pecos roads, and Loop 202, the development will start with the four-story office complex, and another 250K SF in two 2-story office buildings and a mix of restaurants, shops and anchor tenants.
Sales tax generated by the project will pay for infrastructure necessary for “pad-ready” development. Henderson told AZBEX, “Being able to tell a developer the site is ready for pads makes a big difference in closing deals. ‘Shovel-ready’ is an important concept when pitching the city.”
“We’re looking for first class office space,” Mayor John Lewis said in a statement, “and this type of development by a stellar developer helps Gilbert strongly compete in the market.
An economic analysis prepared by Applied Economics says the first phase of the project will generate $1.4M in annual tax revenues for the city. The $35M is reimbursed from these collections. When built out, the project is expected to generate more than $2.6M in tax revenue. The city will reimburse the developer as each 100K SF of pads are ready for development.
Henderson said that this scale of development will double the amount of office space in the city and help attract mode high way jobs.
