Action Item Discussion Item Information Item

Download (0)

Full text

(1)

Contact Information:

Bruce A. Wright, Associate Vice President for Economic Development, (520) 621-4088, wrightb@email.arizona.edu

Infrastructure Improvements at The Bridges/Arizona Bioscience Park (UA)

Action Item Discussion Item Information Item

Previous Board Actions:

March 2007 the Board approved a land exchange with KB Home/Lennar Homes of 124 acres land at the UA Science and Technology Park (UASTP) for 54.5 acres of land and the option for an additional 11.5 acres of land at Kino Parkway and 36th Street for the Arizona Bioscience Park (Bio Park).

July 2008 the Board approved a master lease for the Bio Park with the Research Park Development Corporation (RPDC) contingent upon approval of a master land-use plan.

Project Justification/Strategic Implications:

The goal of the Bio Park is to create a leading-edge research park that supports and promotes scientific exploration and education, technology innovation and

commercialization and high technology business development and attraction. The Bio Park will assist Tucson and Southern Arizona to develop and capitalize on

its emerging bioscience industry.

The Bio Park is being developed in collaboration with the Bioscience Leadership Council of Southern Arizona and complements Tucson’s other major bioscience initiatives including the BIO5 Institute, Critical Paths Institute, and Innovation Place.

The Bio Park will have a significant economic impact on the Tucson metropolitan region and will generate high wages for area residents and university graduates. Project Description and Scope:

The Bio Park is located on 54.5 acres of land at 36th Street and Kino Parkway three miles south of the University main campus.

Issue: The University of Arizona requests Board Approval of a Master Declaration of Covenants for Maintenance of Enhanced Infrastructure Improvements at The Bridges/Arizona Bioscience Park Planned Area Development.

(2)

The Bio Park is part of a 350-acre Planned Area Development (PAD) known as The Bridges. The Bridges includes 110 acres of retail and commercial development and 175 acres of residential development.

Under the terms of the proposed Master Declaration, the development partners in the PAD: ABOR/The University of Arizona; 5151 East, LLC (KB Home/Lennar Homes); and Tucson Retail, LLC (Eastbourne Investments), are responsible for the cost of constructing and maintaining common and “enhanced” infrastructure within the PAD.

The “enhanced infrastructure ” includes paving, street furniture, landscaping, lighting, signage, and art/sculpture.

The University’s obligations were established in the original land exchange agreement between ABOR and 5151 East.

The University or its assignee participates as a voting member of The Bridges Property Owners’ Association (Master Association), which will determine the annual assessment for common area expenses.

The University or its assignee is also a voting member of The Bridges Design

Review Committee (DRC), which determines the design and development standards for the common areas and enhanced infrastructure.

ABOR has no direct, contingent, corporate or recourse liability for payment of the common expenses under the Master Declaration. No liens may be placed on the ABOR property.

ABOR responsibilities under the terms of the original land exchange agreement and the terms of the Master Declaration will be assigned to the Campus Research Corporation (CRC) through a master land lease between ABOR and CRC. The Master Declaration of Covenants was reviewed by UA Counsel and outside

counsel representing the University and the Campus Research Corporation. Statutory/Policy Requirements:

Board Policy 7-102 requires Capital Committee review and Board approval of projects.

Additional Project Considerations:

The University has applied to the U.S. Department of Commerce, Economic Development Administration for a $4.7 million grant to fund construction of the on-site infrastructure (roads, water, sewer, electricity, natural gas, telecommunications) for the Bio Park. This grant will be funded from federal stimulus funds.

(3)

The University must initiate construction of these improvements within 120 days of the award.

The construction of the on-site improvements must be coordinated with installation of the common area and enhanced infrastructure in The Bridges.

Project Delivery Method and Process:

Under the terms of the Master Declaration, Tucson Retail and 5151 East will serve as the developers of the common area and enhanced infrastructure improvements. Project Costs:

Under the terms of the original land exchange, the University or its assignee (CRC) is obligated to pay the pro rata share of the common and enhanced infrastructure improvements costs at The Bridges. The University’s financial obligation is capped at $3.5 million. It has eight years to pay for its share of these improvements. These costs will be capitalized by revenues generated from ground leases at the Bio Park. As ABOR’s assignee, CRC would be responsible for paying the annual common

expenses assessed by the Master Association. Funds for these expenses would be generated from a common service fee assessed by CRC on all tenants.

Should CRC fail to pay its common area assessment, it could be subject to a late fee or charge, or a lien against its leasehold interest in the Bio Park. The Master

Association will have no recourse against the University or ABOR.

Fiscal Impact and Financing Plan:

The Master Declaration does not create financial obligations for ABOR or the University.

Project Status & Schedule:

The Master Declaration needs to be approved and executed by the development partners by August 1, 2009, to allow for the construction of a regional shopping center.

The Master Declaration needs to be approved by August 1, 2009, to allow for the design of on-site improvements to the Bio Park and the award of a federal grant.

(4)

Capital Committee Review and Recommendation:

The Capital Committee favorably reviewed this item at its meeting on May 21, 2009, and recommended Board approval.

Recommendation: It is requested that the Board approve the Master Declaration of Enhanced Infrastructure Improvements at The Bridges/Arizona Bioscience Park as described in this executive summary.

(5)

Figure

Updating...

References

Related subjects :