Despite rumors that Google might not establish its new AdWords office in Ann Arbor, the web search giant has announced plans to open a temporary location on South Main Street this morning.

Twenty Google employees will start working at the AdWords office at 112 S. Main St. today, said Grady Burnett, head of online sales and operations for the Ann Arbor office.

AdWords, which manages site-targeted advertising sales, is Google's biggest source of revenue.

The Main Street office is only temporary, but Google said it plans to stick around. The company announced in July it will build a permanent AdWords office in the Ann Arbor area. But whether it will build within city limits is a topic of recent speculation.

Earlier this month, The Ann Arbor News published a story claiming the council had been out of touch with Google for more than a month. The story also said Google has searched at least three other nearby municipalities for properties on which to build the permanent office, which is expected to cost between $20 million and $50 million.

But Mayor John Hieftje said Friday he wasn't worried about not hearing from Google.

"I have the phone number of the gentleman at Google who's in charge of the new building, and I can call him anytime I want," Hieftje said. "The people at Google are going through their processes, and we'll have to let them."

Google spokesman Michael Mayzel said the City Council has no reason to worry.

"We've always had interest in Ann Arbor - and that interest didn't wane," Mayzel said. "We're very excited, but we don't like to go to press with no news, so that's why we were silent for a while. This is the news we wanted to announce, and we look forward to a lot more going forward."

Google is accustomed to working with the University as a result of "Google Print," an ongoing digitization project of several libraries.

By 2010, Google hopes to copy all 7 million volumes in the University's libraries and make them searchable online.

Larry Page, Google's co-founder and president for products, is also a University alum. He has tried to bring Google to Ann Arbor for years, University President Mary Sue Coleman told The Michigan Daily in July.

The University has been crucial in bringing Google and other high-tech industries to Ann Arbor, Hieftje said.

"Ann Arbor wouldn't be the same town it is without the University of Michigan," he said. "It's very hard to separate the two."

The company plans to hire about 1,000 new employees for the new division in the Ann Arbor area over the next five years.

Burnett, a University alum, said Google representatives will participate in the fall recruiting process and hold events at the University to attract new employees.

"We've had great success hiring from the University of Michigan in the past," Burnett said. "The University has made itself very available and very accommodating as we've come to town, and we look forward to working with them."

Any University graduates joining AdWords would find an office already full of fellow alumni. There are also several Michigan State University graduates, Burnett said.

Gown and Google
Spring 1995: Larry Page, Google's co-founder and president of products, receives his bachelor's degree in engineering from the University.

July 2005: Google begins working with the University to digitize all 7 million books of the library's collection. They hope to finish by 2010.

July 11, 2006: Google announces that it will open an office in the Ann Arbor area for AdWords, its advertising division.