The University is set to acquire The Breazzano Family Center for Business Education in November, further expanding Cornell’s presence in Collegetown.
The Breazzano Family Center is named after David Breazzano, M.B.A. ’80 and member of Cornell’s board of trustees, whose $25 million gift in 2016 helped establish the building, offering classrooms and office spaces for Johnson School M.B.A. and M.P.S. students.
The center was established with a for-profit owner, and was approved for a 50-year payment in lieu of taxes. In an email sent to The Sun, Kelly Bauda, administrative director of Tompkins County Industrial Development Authority, explained the status of the PILOT lease after Cornell’s purchase of the building.
“It was decided that should Cornell ever take ownership of the property, they would be required to fulfill the terms of the 50-year lease and continue to pay property taxes,” Bauda wrote.
Bauda also said approving the sale was an “an easy and unanimous decision” for TCIDA board members since extending the PILOT would allow for the continued payment of taxes, according to Bauda
“Because the prior owner was a for profit company, the property was taxable,” Bauda explained. “When Cornell assumed ownership, it would normally have become tax exempt property. Keeping the PILOT in place means that it will still pay taxes.”
However, after the 50-year lease ends, the property will become tax exempt as a result of the University's status as an educational institution per the Association of American Universities code. This concern was not discussed during the TCIDA board meeting when voting to approve the sale which Bauda stated could impact the City of Ithaca, Tompkins County and the Ithaca City School District.
“What happens at that point [after the 50-year lease ends] would largely be a decision for Cornell,” Bauda explained. “This question was not discussed at the meeting. In the event property is taken off the tax rolls, there is a reduction in the overall tax base.”
In an email sent to The Sun, a University spokesperson highlighted the long term benefits of this purchase. This measure was taken in light of recent efforts to reduce university finances alongside staff cuts and hiring restrictions.
“The acquisition replaces a long-term lease initiated in 2018, allowing Cornell to reduce operating costs while saving resources in the long-term,” the University spokesperson wrote. “Cornell plans to maintain the existing payment in lieu of taxes agreement with the Industrial Development Agency and all relevant taxing jurisdictions.”
This intended purchase comes after the University reached a $60 million settlement with the Trump Administration to restore federal funding and after budget cuts of nearly $11 million to the College of Arts and Sciences in September.
Breazzano explained what this purchase means for the Cornell SC Johnson College of Business and the future of the Breazzano Family Center.
“In my opinion, it’s an important resource for the business school,” Breazzano said. “It benefits the whole Cornell business education experience and provides a state of the art center that students, faculty and staff could use.”
Hussam Kher Bek is a member of the Class of 2028 in the College of Arts and Sciences. He is a staff writer for the News department and can be reached at hkherbek@cornellsun.com.
