If IBM and Fluor do indeed move into an office building planned to be built on USC’s campus, the school will finally be on its way to rectifying wrongs brought about by the poor management and economic climate that initially crippled the Innovista venture.
Innovista, a $144 million investment that sought to mix the private sector with university research in one place, had mostly been a failure for years. Even its parking garages operated in the red.
Thankfully, USC found a private developer, Atlanta-based Holder Properties, that wants to build a $25 million, five-story office building on the Innovista research campus. In turn, the companies could occupy most of the 120,000-square-foot building on the corner of Blossom and Assembly streets.
If everything goes through, the businesses’ presence will provide tantalizing opportunities and benefits to USC and the local economy alike.
Obviously, it’s easy to get excited about the prospect, but frankly there’s still a long road of bureaucracy, negotiations and financial planning ahead before USC reaps the rewards of the project.
IBM has had ties to Innovista for almost a decade ago, but if USC wants to land the big fish once and for all, it needs the state Budget and Control Board to grant an exemption to its procurement rules today.
Should USC’s request be granted, the university would then need to negotiate a contract with IBM to provide services to the university. We also need the budget board to approve Holder Properties’ lease request on Wednesday.
There’s a lot of protocol that needs to be satisfied before we can even begin to cash in.
At the least, if all goes correctly, USC will receive $72,600 a year in rent from the office building, plus a 15 percent share of its profits. Between them, and with the rent Holder will pay for an apartment complex by the Carolina Coliseum, USC is expected to make about $169 million.
The cherry on top is USC’s right to rent a third of the office space in the building, which will open by summer 2017.
It’s a sweet deal, especially compared to the financial woes of USC’s past … and present, for that matter.
But the potential is absolutely mouthwatering. Attracting big names like IBM and Fluor will obviously have immediate impacts like economic stimulus, a healthier job market and improved campus research and development.
However, the presence of a Fortune 100 company indicates the potential of attracting another. Big-name tenants typically attract more businesses, and if Columbia is a good host, the city could build off this fortuitous cycle.
This is exactly the kind of move that USC and Columbia need in order to improve. Maybe this good fortune is a little serendipitous, but the university deserves credit for siezing the opportunity. In any case, it’s a boon that should reap further rewards.
But if there’s anything the first round of Innovista troubles taught us, it’s that we should also be cautious. Well before these recent developments emerged, Innovista also promised grand results.
We’re encouraged by the promise of the latest deals, but first, USC needs to convert that potential into reality.