Efforts to put together a financing deal for the basketball-themed “USA Place” development on Arizona State University land in Tempe have gone into overtime.
The $350-450 million hotel-and-conference-center project was announced to the public in July 2013, with an expected groundbreaking that year. But it’s so far been unable to lock down any financial backers.
A 99-year lease for the project on the southeast corner of Mill Avenue and University was signed with ASU in September, requiring the financing to be in place by December 31, New Times has learned.
With that deadline and another expected groundbreaking date now blown, USA Place LLC is prepared to put $4 million down as a deposit in order to keep the deal with ASU alive.
UPDATE: Minutes after this article was published, Sarah Harper of ABOR told New Times that ASU released the following statement:
“Arizona State University and USA Place, LLC were unable to reach agreement regarding USA Place’s proposed development at University and Mill prior to the expiration of the exclusive negotiating period. ASU remains committed to developing a first-class hotel and conference center at the site and intends to pursue other options to move forward with the City of Tempe to realize that goal.”