A view of Lot 59 from “A” Mountain. State Farm plans to build their newest headquarters on this parking lot, facing Tempe Town Lake. (photo by Dominic Valente.)ASU will soon be leasing some of its land to the self-glossed good neighbor as insurance giant State Farm will be the main tenant in a new 2-million square foot office complex, according to a city of Tempe press release.
The $600 million complex, which will be located just north of Rio Salado Parkway on what is currently known as Lot 59, will be called Marina Heights and will be the largest office development in Arizona history, spanning more than 20 acres.
The development will include coffee shops, restaurants, business services, fitness facilities and a 10-acre lakeside plaza, which will be open to the public.
With growing enrollment and parking already an issue, director of university physical planning Steve Nielsen said the University will put further emphasis on public transit and use a parking strategy that will put parking closer to the campus.
"The property north of Rio Salado Parkway has always been identified as surplus to the ASU mission," he said. "We're looking at commercial development to create long-term revenue streams for the University."
Nielsen said the University is looking for business partners that will help create job training and employment for students. State Farm will lease the land from the University, which will collect the equivalent of a property tax from the corporation to fund new athletic facilities, Nielson said.
"It won't 100 percent fund a new football stadium, but over time, this will be a significant revenue generator to offset the cost of building and maintaining our athletic facilities," he said
State Farm spokesman
Robert Villegas said the company, which currently employs 2,100 people in the Tempe and Phoenix areas, has chosen to expand its operations so it can increase customer support.
"We feel like the Tempe area is going to provide us access to the kind of talent pool and the kind of people that will make great employees," he said. "We have had success in the Tempe area, and we want to continue to be able to hire the kind of people that will help make us successful."
Villegas said the company has had past success with hiring students and will continue to provide part-time and full-time job opportunities, some which include tuition assistance after one year of employment.
"We can also allow students to qualify for benefits, even if they can only work part time," he said, "which is kind of a big deal in the current economic climate."
He said State Farm, along with ASU and the land developers Ryan Companies US, Inc. and Sunbelt Holdings, will hold an event in July to unveil the building's design.
Construction is set to begin shortly after the event, and State Farm expects to move into the building by 2017, Villegas said.
Marketing sophomore Carly Cutshaw said she thinks the partnership is in the University's best interests, even if parking becomes increasingly difficult.
Cutshaw, a member of the business fraternity Alpha Kappa Psi, said she is excited about corporations having an interest in becoming a part of the ASU campus.
"The reason we are all here is to get a job," she said. "If State Farm will be able to offer jobs to our alumni, then having trouble finding a parking spot is something we should work with."
Reach the reporter at npmendo@asu.edu or follow him on Twitter @NPMendoza
Correction: A previous version of the article incorrectly stated the area of the office complex. The office complex project will actually be 2 million square feet.
