ICA and Starbucks: An Update on ICA Headquarters
When ICA purchased our office building in May 2006, the purchase was reported to our membership in the ICA Newsletter. Almost 6 years later, this article is a follow-up on the importance of the investment, including an update on some recent changes.
The board's mission then and now is to provide long-term stability for the organization. The purchase of the building was one way to accomplish this goal by providing a permanent home for the organization and its records, thus furthering the board's commitment to scholars in the field of communication.
ICA initially purchased the building for $2,400,000 USD and we currently owe $1,084,000 USD on our loan. The primary goal for the building was to eventually provide financial stability by saving money without lease fees for our office and to provide for a nondues source of revenue. The building has a commercial space that is currently on a long term lease by the Starbucks Corporation. The tenant arrangement with Starbucks was one of the primary reasons ICA chose to purchase the building in 2006, and the lease provides substantial income for ICA. The rent paid by Starbucks to ICA has enabled the association to provide an increasing number of member services without having to raise dues or substantially alter other fees such as conference registration, while also enabling us to make significant payments on the building. The ultimate goal is to have all the lease payments from Starbucks available for member programs. We are making significant strides towards reaching that goal and anticipate meeting it in the next 5 to 6 years.
Starbucks recently asked permission to remodel their commercial space. As part of the negotiation, Starbucks is financing all of their remodeling and upgrades and they have agreed to a 5-year extension of their lease agreement with four additional 5-year renewal clauses with escalating lease clauses built in. This new agreement essentially secures a tenant for our commercial space for the next 25 years, marking a significant step toward accomplishing the mission set by the board in 2006.