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ASU, CITY OF PHOENIX ANNOUNCE AGREEMENT ON DOWNTOWN CAMPUS
April 22 , 2005 by EditorArizona State University and City of Phoenix staff have outlined the key elements of a proposed intergovernmental agreement (IGA) to begin developing a 15,000-student campus in the city’s downtown area. The agreement now moves on to the Phoenix City Council and the Arizona Board of Regents for approval.ASU will move five schools to the new Downtown Campus: the existing schools of Nursing, Journalism, and Public Programs, and the new University College and School of Global Health. KAET, the university’s PBS affiliate which has links to the College of Journalism, will also move downtown. The campus will comprise an urban mix of academic facilities, residential facilities, ground-level dining and retail stores, park space, and open pedestrian spaces.
According to the proposed agreement, the city will acquire approximately 20 acres of land within the Downtown Redevelopment Area, bound by Van Buren Street, Fillmore Street, First Avenue, and Third Street; develop and finance academic and academic support space through both the renovation of existing buildings and new construction; and build any necessary public infrastructure.
ASU will commit to operate and maintain all Downtown Campus facilities. The university estimates an annual investment of $40 to $50 million for the costs of academic programs, administrative operations, maintenance and facility operations, and reserve fund contributions after all of the programs are moved and in place in phase 2. These funds would be a combination of transferred funding of the relocated schools from Tempe to downtown Phoenix and enrollment growth occurring in the downtown campus. The university will also be responsible for the development of student housing and campus parking. On- and off-campus residential housing will be funded and constructed by the private sector.
According to city leaders, the ASU Downtown Campus will be a major step in building a vital downtown urban core that will serve as a magnet for new residential opportunities, expanded recreational opportunities for neighborhood residents, and new commercial development, dining and entertainment opportunities.
“The ASU Downtown campus is the critical mass that will ignite downtown and the ripples will be felt throughout the city, the Valley and statewide,” said Phoenix Mayor Phil Gordon.
“This project is the legacy of this generation of city and university leadership. No other city has ever invested in a state university this way and no university has partnered with a city in this fashion. You cannot point to anything else that we’ve done in Phoenix that is, or will be, as important as ASU Downtown,” he said.
The proposed agreement will be voted on first by a city council subcommittee chaired by Councilman Greg Stanton, who has been a proponent of education and a downtown campus.
“If the city can play a role in providing accessible higher education to the residents of Phoenix and can enhance downtown at the same time, then I believe it’s something we should do,” Stanton said. “ASU is growing, the city of Phoenix is growing, and this is a partnership that can work for everyone.”
The development of the downtown campus will provide a significant economic impact for the city of Phoenix – as well as the State of Arizona and Maricopa County. In addition to the economic impact, the fiscal impact from both the one-time construction of the project and the ongoing operations of the campus is significant. According to the 2004 Elliot Pollack economic impact study on ASU downtown:
- An average of 1,300 jobs will be created annually with an economic output of $166.8 million.
- At full build-out, the project is expected to create 7,700 jobs with annual ongoing operational impact of $569.5 million.
- During the construction phase, the state of Arizona would collect an average of $5.2 million annually in taxes and fees. Revenues for Maricopa County would be $1.5 million, with $1.7 million going to the city of Phoenix.
- The annual operational impact of a fully built-out campus will create revenues for the state of $18.7 annually, with another $8 million going to the county and $7.3 million to the city of Phoenix.
The new campus will also significantly benefit ASU and the state’s university system.
“Post-secondary student enrollment growth and demographic projections suggest that the increases we have experienced in recent years will continue for the foreseeable future,” said ASU President Michael M. Crow. “We believe that the State of Arizona will be best served by providing affordable and convenient educational pathways for Arizona residents, as well as providing geographically and academically diverse program offerings.”
Although ASU currently offers programs on three campuses and has limited offerings at its downtown facility, the university is constrained by a lack of adequate facilities to accommodate current and projected student growth.
“Through the proposed partnership with the City of Phoenix, ASU will be able to acquire the space it requires at lower cost than would otherwise be possible, and will be able to extend its outreach in a very important part of the Valley,” said Crow.
The first phase of the project, to be completed by fall, 2006, would involve moving the College of Public Programs, which includes the Schools of Public Affairs, Social Work and Community Resources and Development, and College of Nursing downtown. The new University College would begin operation downtown and ASU will continue to offer existing extended education programs.
Phase I would develop 300,000 square feet of academic and academic support space to accommodate a student body of 2,500 students with on-campus housing for 250 students. It would cost approximately $100 million.
Phase II involves further expansion of the campus, planned for Fall 2008, using proceeds from a bond program that will be presented to the electorate of Phoenix in March 2006. The second phase will include renovation of the historic Post Office as well as the addition of two new academic buildings, which will house the School of Journalism and KAET. This would provide an additional 470,000 square feet of academic and academic support space to accommodate a total of 7,000 to 8,000 students. Phase II would cost approximately $133 million.
The City of Phoenix and ASU will work together over the next five years to find the means to create additional academic space needed to allow the campus to grow to its target size of 15,000 students.
According to the terms of the IGA, ASU and Phoenix will cooperate in a number of ways:
- Phoenix will apply revenue from retail uses and other commercial endeavors first to the renewal and replacement account and second to reduce the city’s debt.
- ASU and Phoenix will share equally the “interim financing” costs for up to three years.
- ASU and Phoenix will jointly pursue public private partnerships in developing the campus.
- ASU will engage in fund raising to support the campus and its operations. Funds obtained for capital facilities will be utilized to reduce the city’s debt.
In addition, ASU will transfer the Mercado property, its current Downtown facility, to the city upon retirement of the existing debt.
To address public safety issues associated with ASU Downtown, the Phoenix Police Department and the ASU Department of Public Safety will cooperate to develop a security plan for the Campus. ASU will provide all building security and Phoenix Police will provide police services.
City of Phoenix, Arizona State University Intergovernmental Agreement Details
