TERRE HAUTE — Indiana State University is asking for $5.2 million in state funding to be used for renovation of the federal building, which eventually will house the College of Business.
The funding is part of ISU’s 2009-11 capital budget request, which must be approved by the state Legislature.
On Friday, the ISU board of trustees agreed to amend its original capital budget request to reflect the new priority.
In June, trustees had approved a capital budget request for $4.5 million in planning funds and $750,000 in land acquisition. The planning funds were to hire an architect/engineer to assist ISU in developing a facility for the new College of Nursing, Health and Human Services.
The university has now decided to redirect the $5.2 million request to the federal building project. “I recommend we reprioritize our capital request to the Legislature … to request the federal building as our number one priority,” Bradley said.
ISU has internal funds that could be used for initial architectural/engineering planning for Nursing, Health and Human Services, he said.
“We definitely need to move forward with the federal building,” Bradley said.
Trustee president Mike Alley said the change does not diminish the university’s commitment to Nursing, Health and Human Services.
Bradley said later that the cost to renovate the federal building is now estimated at $17 million to $20 million. ISU will take possession of the building next summer, and renovation will take at least two years.
“We need to get started on the federal building as soon as we get control of it,” Bradley said.
The ISU Foundation has agreed to raise about $11 million in private funds for the project, and ISU has identified about $2 million in its budget for the renovation.
The U.S. Postal Service, General Services Administration and ISU in 2003 signed a memorandum of understanding to allow ISU to obtain the building after upgrades by the federal government on heating, lights and interior and exterior painting. The federal government is donating the federal building to ISU.
Design work on the project is still being finalized, said Diann McKee, acting vice president for business affairs. The renovation project also will require various state approvals.
In other matters, trustees agreed to transfer property at Fifth and Cherry streets — site of the former Prudential Building — back to the ISU Foundation. In January 2004, the ISU Foundation bought the property and building for around $500,000; the Foundation then donated it to the university.
ISU had hoped to use the former Prudential Building for economic development and community outreach activities. The building also would have housed College of Business programs as well as a business incubator.
Those plans hit a snag, however, when ISU was forced to demolish the building because of structural problems too expensive to repair. The building has since been demolished and the lot has been used for parking.
On Friday, Bradley said the Foundation is working with some prospective developers, although there are no definite plans for the site.
“I think we’re looking for a public-private partnership aimed at economic development,” Bradley said. “Whatever we did there, we would want it to have an economic impact on downtown.”
Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.
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ISU seeks $5.2M for renovation of federal building
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