Novus Innovative Corridor
Engineering News-Record (ENR) summarized the partnership and plans for the Novus Innovation Corridor. The article states:
ASU’s foray into real estate development is in part a matter of necessity, the result of diminishing state funds for university operations, Olsen says. However, a 2010 state initiative to create districts for athletic facilities at Arizona’s three state universities allows private developers to build on university land, which is exempt from property taxes.
As planned, ASU will use the funds from assessments and ground leases generated by Novus to develop an athletic village near the Novus parcel, where existing football and basketball stadiums are located. As a result, “Novus will allow us to maintain and construct sports facilities for our 23 sports programs,” Olsen says. Those include the ASU Sun Devils’ football, basketball and baseball teams.
Upon undertaking the Novus partnership, “ASU recognized it wasn’t in the business of real estate development,” Creer says. “We knew we needed to partner with a development firm with experience in the public sector as well as a firm well versed in long-term projects—and with the financial wherewithal to participate in a project of this scope.”
Catellus filled the bill, he says.
In addition to recruiting other developers, Catellus is charged with overall planning, securing entitlements, designing and installing infrastructure, negotiating 99-year prepaid ground leases on behalf of ASU and administering design reviews for each Novus project.