AOL/Compuserve Bldg

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AOL/Compuserve Bldg

• UAs 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

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Timeline of Building Actions Timeline of Building Actions Timeline of Building Actions
Announced AOL Closure 03/12/09 Press 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 07/01/09 AOL 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
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Timeline of Building Actions Timeline of Building Actions Timeline of Building Actions Timeline of Building Actions
TOL Submits Development Application  12/21/09 Conditional Use Application submitted City denies per previous discussions 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 3/4/10 3/1/10 4/19/10 4/5/10 Masco Industries Cabinet Div. Tech Company Tech Company Commercial Developer Corporate HQ Masco Industries Cabinet Div. Tech Company Tech Company Commercial Developer Corporate 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   TOL purchases with complete awareness they have no right to operate a school 
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Comparison Potential Users
COMPARISON OF USES   COMPARISON OF USES   Tree of Life/ Expedient Office Reuse AOL/Compuserve
Employees Total 160 597 444 (98-04 avg)
Subtotal Subtotal T 86 E 12   T 86 E 12   T 86 E 12  
Payroll Estimate Total 3,220,000 23,880,000 43,000,000 (98-04 avg)
 Subtotal  Subtotal T 2.5m, E .72m  T 2.5m, E .72m  T 2.5m, E .72m 
Average Salary Total 20,125 40,000 96,847
 Subtotal  Subtotal T 29K E 60K  T 29K E 60K  T 29K E 60K 
Employees per 1000 sq Total 0.385 2.5 1.74
 Subtotal  Subtotal T .37 E .6  T .37 E .6  T .37 E .6 
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Comparison Property Tax
COMPARISON - PROPERTY TAXES   Tree of Life/Expedient Office Reuse AOL/Time Warner
23,000,000 value due 1/1/09 0 0 646,215
23,000,000 value due 1/1/10 646,215 Pending Board of Revisions  Pending Board of Revisions 
6,500,000 value (sale price) due 1/1/11 182,626 182,626  
Fully Tax Exempt  Fully Tax Exempt  0 182,626 N/A
Partially Tax Exempt  Partially Tax Exempt  14,380 N/A N/A
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Comparison Income Tax
COMPARISON - INCOME TAXES     Tree of Life/Expedient Office Reuse AOL/Time Warner
64,400 477,600 860,000
per sq ft per sq ft per sq ft 0.25 1.88 3.39
CONCLUSIONS OF COMPARISON  CONCLUSIONS OF COMPARISON  CONCLUSIONS OF COMPARISON  CONCLUSIONS OF COMPARISON     
Property Taxes/Yr (if tax exempt) Property Taxes/Yr (if tax exempt) (168,246) (168,246) Any lost property tax revenue recouped from all other commercial property owners Any lost property tax revenue recouped from all other commercial property owners
Income Tax (413,200) (413,200)   Approx 3 of 10 Avg - all Income Tax Approx 5 of 10 Avg - Withholdings   Approx 3 of 10 Avg - all Income Tax Approx 5 of 10 Avg - Withholdings
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Comparison Endorsed Agreements
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Actions of Concerned

• 3/8/10 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

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ECONOMIC DEVELOPMENTfiscally responsibleresponsi
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• www.UACIC.org

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