So, Auto Owners is the new owner of property that includes a Blue Cross office building in Delta Township. The presumption is that this is a sell-leaseback situation. Blue Cross sells its property, leases back its office space and generates some cash.
That would generate cash for the Blues, which has claimed severe financial distress, but will Blue Cross staffers stay in Delta for long?
BCBS subsidiary Accident Fund has well-known plans to relocate to the old Ottawa Station downtown. That move, scheduled to occur in early 2011, would vacate AF’s current HQ on S. Capitol Avenue.
Is that the eventual new home for Blue Cross workers? If so, it could be a mixed blessing for the city of Lansing.
AF is getting huge local tax breaks for the Ottawa project. An argument for all that is the old power plant wasn’t generating taxes anyway. OK.
AF does pay taxes at its S. Capitol location. According to the county Web site, AF’s property in the 200 block of S. Capitol (land and equipment) had a taxable value in 2008 of nearly $12 million.
AF is a for-profit arm of Blue Cross, which is itself a nonprofit firm that operates under PA 350. As such, BCBS is exempt from state and local taxes. So, if Blue Cross became the new owner of the AF building, it would leave the tax rolls.
A Blue Cross move would answer the question of what will occupy AF after 2010, but I doubt the folks at Lansing City Hall are eager to see $12 million leave the tax rolls.
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