AOL/Compuserve BldgAOL/Compuserve BldgUA’s Most Important Commercial Asset

•15.8 acres – largest office parcel

•252,000 sq ft – largest office building–#2 = Ortho Center – 95,000 sq ft–#3 = 5025 Arlington Centre – 66,000 sq ft

•Approx 15% of all office land and sq ft

Timeline of Building Actions

Announced AOL Closure 03/12/09Press Release without direct

communication with the City

Listing of Property 05/21/09

UACIC meets with Broker; Intent to market silently and will work on marketing materials with City

Building Vacated by AOL 07/01/09AOL was a Top 25 Income Tax Payer

through 2008

Broker Update  

City learns of an interest for a non-profit school; City indicates desire to preserve tax base and a rezoning would be required

UACIC inquiry on status how to assist  10/13/09

City learns property in contract; broker would not identify user

TOL Intent to Purchase Announced 11/01/09

City informs TOL and media that rezoning required directly

Timeline of Building Actions

TOL Submits Development Application  12/21/09

Conditional Use Application submitted; City denies per previous discussions

TOL Appeals Definition as "Residential Use"

12/28 to 4/26/10    

Five Suitors express interest in property – TOL option to purchase has priority; TOL contract inhibits interest

3/4/103/1/10

4/19/10

4/5/10

Masco Industries – Cabinet Div.Tech CompanyTech CompanyCommercial DeveloperCorporate HQ

TOL Appeals Definition as "Church"

3/3 to 8/16/10    

TOL Announces Purchase of Property 08/12/10

 TOL purchases with complete awareness they have no right to operate a school 

COMPARISON OF USES 

Tree of Life/ Expedient Office Reuse AOL/Compuserve

Employees Total 160 597 444 (98-04 avg)Subtotal T = 86; E = 12  

Payroll Estimate Total $3,220,000 $23,880,000

$43,000,000 (98-04 avg)

 Subtotal T = $2.5m, E = $.72m 

Average Salary Total $20,125 $40,000 $96,847

 Subtotal T = $29K; E = $60K 

Employees per 1000 sq Total 0.385 2.5 1.74

 Subtotal T = .37; E = .6 

Comparison – Potential Comparison – Potential UsersUsers

COMPARISON - PROPERTY TAXES  

Tree of Life/Expedient Office Reuse

AOL/Time Warner

$23,000,000 valuedue

1/1/09 0 0 $646,215

$23,000,000 valuedue

1/1/10 $646,215 * Pending Board of Revisions 

$6,500,000 value (sale price)

due 1/1/11 $182,626 $182,626  

Fully Tax Exempt  $0 $182,626 N/A

Partially Tax Exempt  $14,380 N/A N/A

Comparison – Property TaxComparison – Property Tax

COMPARISON - INCOME TAXES  

Tree of Life/Expedi

ent Office Reuse AOL/Time Warner

$64,400 $477,600 $860,000

per sq ft $0.25 $1.88 $3.39 CONCLUSIONS OF COMPARISON   

Property Taxes/Yr (if tax exempt) ($168,246)

Any lost property tax revenue recouped from all other commercial

property owners

Income Tax ($413,200)

 Approx 3% of 10 Avg - all Income TaxApprox 5% of 10 Avg - Withholdings

Comparison – Income TaxComparison – Income Tax

Comparison – Comparison – Endorsed AgreementsEndorsed Agreements

Actions of ConcernedActions of Concerned3/8/10 – UA School Board Resolution to Maximize

Commercial Tax Base

*/*/10 - UA Chamber Resolution

4/15/10 - UACIC Resolution Supporting Economic Development Maximization of the AOL Building

UA Chamber and three property owners file legal **** supporting BZAP and City Council decisions

Adjacent Condo Associations file letters against the proposal

ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTfiscally responsiblefiscally responsible

responsive to citizensresponsive to citizensforward-thinkingforward-thinking

LEARN MORE

www.UACIC.org