New State Farm office facility at ASU

The decision of the State Farm Mutual Automobile Insurance Company to build 2 million gross square feet of office space along Tempe Town Lake, on land owned by Arizona State University, is a major step in the campaign to fund new sports facilities for ASU.

ASU is leasing the 19.85-acre parcel to State Farm on a long-term basis.

"We look forward to having State Farm as a neighbor and to working with the company on a variety of programs, including employee recruitment and academic programs for their staff,” said ASU President Michael M. Crow. “State Farm’s decision to build on land owned by the university immediately adjacent to the ASU Athletic Facilities District is the first major step in the campaign to fund new and renovated sports facilities for the university. The Athletic Facilities District will be home to an exciting mixed-use development, reflecting high quality and the best practices of sustainability. A high stature tenant such as State Farm will add to the luster of the district and validates its attractiveness.”

ASU plans to renovate or rebuild several of its athletic facilities, transforming the area into a major amateur sports destination. Renovation of Sun Devil Stadium is central to the development of this plan.

Sports facilities renovations will be accomplished through a special revenue district created by Maricopa County, which allows ASU to collect revenue from commercial developments within the district. Under state law, anything built on university land doesn’t pay property taxes. Instead of charging property taxes, ASU will lease the land to developers and collect a fee up to the amount that could be charged for property taxes. This payment “in lieu” of property taxes is based on the value of the lease and the revenue will be used for improvements to ASU athletic facilities.

At approximately 325 acres of property, the district would be one of the nation’s largest redevelopment projects with a sustainability focus. It will be a mixed-use district that will include multi-family housing, research facilities, and retail and office space.

The district also is expected to be a catalyst for redevelopment of the downtown Tempe area.

Design of the State Farm building is currently underway. The plan is for State Farm to gain first-phase occupancy in the first quarter of 2015.