$600M project set for Tempe Town Lake area; State Farm the major tenant - East Valley Tribune: Business

$600M project set for Tempe Town Lake area; State Farm the major tenant

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Posted: Friday, May 24, 2013 1:37 pm | Updated: 6:42 pm, Wed Nov 26, 2014.

Tempe has announced a $600 million office development deal to be built near Tempe Town Lake.

Officials said Friday that the deal is subject to City Council approval of development agreement details next month.

They say the State Farm insurance company will lease office space and anchor the multi-use development called the Marina Heights project.

The development will cover more than 2 million square feet to be constructed on more than 20 acres.

City officials say up to 60,000 square feet of retail amenities will complement the transit-oriented development including food service, coffee shops, restaurants, business services, and fitness facilities.

The site also will feature a nearly 10-acre lakeside plaza, which will be open to the public.

The Marina Heights project is touted as the largest office development deal in Arizona history,

The project is being developed by Ryan Companies US, Inc. and Sunbelt Holdings.

In a press release distributed Friday, the City of Tempe announced that Ryan Companies US, Inc., and Sunbelt Holdings will develop a site owned by Arizona State University, adjacent the Lake.

“This is a proud day for Tempe and everyone involved. We are tremendously excited about what the addition of State Farm will mean to our community over the decades to come,” said Tempe Mayor Mark Mitchell in the release. “These employees, buildings, and amenities will further contribute to and showcase the vibrancy of Tempe Town Lake, Mill Avenue, and Arizona State University, and serve as a catalyst for more high-quality development.”

Added Gov. Jan Brewer: “We are thrilled that State Farm will be expanding in Arizona. ... The jobs that will be created to make this project a reality will be a tremendous boon to our economy. This is a great example of how our plan to build an Arizona that is attractive to high value employers is hitting the mark.”

According to the release, the five-building site will be leased by State Farm, and will house a combination of new hires and existing employees who will services claims, customer service inquiries, and provide sales support to customers.

“State Farm selected Tempe because it has a growing population with skill sets that match our customers’ needs,” said State Farm Senior Vice President Mary Crego in the release. “The site along Tempe Town Lake gives our employees access to nearby amenities as well as easy connections to public transportation.”

ASU President Michael Crow was quoted as well, connecting the project to the long-discussed renovation project for ASU’s sports facilities, including Sun Devil Stadium.

“State Farm’s decision to lease the 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,” he said. “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.”

The Associated Press contributed to this report.

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