University of Michigan credit union considers purchase of ex-Ann Arbor News building
A University of Michigan Credit Union official says the not-for-profit financial institution is exploring real estate options - including the purchase of the former Ann Arbor News building in downtown Ann Arbor.
“We have not decided we’re purchasing that building,” said Jeff Schillag, UMCU’s vice president of marketing and community relations. “This is all speculative at this point.”
Schillag made the comments Monday after the Ann Arbor Chronicle reported that the credit union was looking for a new home for its administrative offices.
The vacant Ann Arbor News building is for sale.
The credit union owns its headquarters at 333 E. William, which is among its seven offices. Six are in the Ann Arbor area, and one is in Dearborn.
“We’ll maintain seven offices,” Schillag said. And one of those offices would remain the East William office, he said. Unclear is which office could close.
Schillag declined to answer further questions, such as whether the property is under contract, or whether a potential deal could involve a sale to a third party, with a lease-back to the credit union.
He also declined to say what types of strategic factors are going into the credit union’s facilities decision.
“This is just something we’re trying to look at right now because of market conditions,” Schillag said.
The ex-Ann Arbor News building is listed with Colliers International for $9 million. It’s owned by Advance Publications, a corporate entity related to AnnArbor.com. Nobody at Advance or any of their representatives would comment for this story, citing confidentiality contracts.
The credit union has assets of $401 million as of Feb. 28. It also employed 129, according to 2008 IRS filings.
The credit union services U-M employees, faculty and staff, Schillag said, but it's not an arm of the university.
Comments
will turner
Wed, Jun 9, 2010 : 6:09 p.m.
Thanks for sharing. I learnt a lot from your site.
seldon
Tue, Apr 27, 2010 : 9:21 a.m.
@Paula Gardner: one thing I really like about this format is the ability to rebut incorrect statements quickly with facts. Thanks for doing that.
MB111
Tue, Apr 27, 2010 : 9:15 a.m.
The building will not net anywhere close to the asking price - so don't bank on huge property tax payments
Chris
Tue, Apr 27, 2010 : 9:02 a.m.
I'm a big fan of the credit union. I joined while an undergrad at the U (80s) and remain a member. Simple and solid services.
Thomas Jones
Tue, Apr 27, 2010 : 7:32 a.m.
FYI The Credit Union is a "not-for-profit" financial cooperative operating to serve their members. The owners are the members who have opened accounts. They also post University of Michigan Credit Unions Financial statements on their website umcu.org you all should check them out they look like a sound company.
Rod Johnson
Mon, Apr 26, 2010 : 9:17 p.m.
What would have made it a great police/courts building? Just the fact that it's a building?
annarbor
Mon, Apr 26, 2010 : 7:35 p.m.
Sadly, the A2 News building would have made a great Police/Courts building. Too bad the business folded after they started building that hideous monstrosity on the corner of 5th and Huron.
Paula Gardner
Mon, Apr 26, 2010 : 7:20 p.m.
The credit union does pay property taxes. That totaled just over $69,000 on the building at 333 E. William in 2009.
Lokalisierung
Mon, Apr 26, 2010 : 6:52 p.m.
"I am pretty sure nonprofit organizations are tax exempt." Egads...yeah I should have figured that. Onto your point that I've heard a billion times and don't care about, I don't care about it. If the U wasn't here, I wouldn't be hear, so there's no point in talking about it. "Would anyone complain about the tax exempt status of a Medal of Honor recipient?" I have no idea what you're tlaking about here. Are you likening a war hero with a college that psys no property tax in this city?
Bear
Mon, Apr 26, 2010 : 6:27 p.m.
correction, I meant to say that "I am pretty sure nonprofit organizations are tax exempt." Didn't catch my editing mistake until too late. thank you
Bear
Mon, Apr 26, 2010 : 6:24 p.m.
Um, Loka, I am not sure if nonprofit organizations are also tax exempt. Don't know what your beef is with that, but I do know that this would be quite the backwater little town without the university's influence and the benefits outweigh drawbacks. It amazes me that a lot of folks who would decry using 'their' (laughable) tax money for the public good, are also so quick to point a finger at organizations that are tax exempt. Would anyone complain about the tax exempt status of a Medal of Honor recipient? I pay my taxes, and when I do, I am aware that it isn't MY money. It belongs to the government. Otherwise it would be in MY pocket. Thank you.
Lokalisierung
Mon, Apr 26, 2010 : 5:24 p.m.
" but it's not an arm of the university." Phew...Taxes Ahoy.
AlfaElan
Mon, Apr 26, 2010 : 5:09 p.m.
UMCU also serves Students and Alumni of the University, as well as Washtenaw Community College and other trade schools in the area. They have served me well ever since I was a UofM student many years ago.