September 25-26, 2003

ITEM 120-2016-R0903   Authorization to Execute a Long-Term Lease for Relocation of the Great Falls Campus of the MSU-Bozeman College of Nursing; Montana State University-Bozeman

THAT: Montana State University be authorized to execute a five or ten year lease with Benefis Health Care, to locate the Great Falls Clinical Campus of the MSU-Bozeman College of Nursing in 4,800+ square feet at $12 per square foot at the North Central Montana Professional Building located at 400 15th Avenue South in Great Falls, beginning January 1, 2004. Further, that MSU be authorized to modify the lease to include up to 1600 additional square feet of additional space adjacent to the space in the current lease, should that space become necessary and available.

EXPLANATION: The difference between the five and ten year leases would be an additional $5 per square foot in re-modeling allowance with the ten year lease. This higher offer is pending.

In 1999, in Great Falls, the MSU-Bozeman programs from MSU Northern, to join the College of Technology and the Fire Services Training School in order to place all MSU educational programs under one roof.  Because of the dramatic growth of enrollments at the MSU-Great Falls College of Technology (1140 - 1360) and MSU Northern (63 - 160) and the modest enrollment increase in Great Falls of the MSU Bozeman nursing program (50 - 58), between 1999 and 2003, it was determined that, even in a one to three year horizon, it would no longer be possible to accommodate all MSU partners with the anticipated continuing enrollment increases and the current space constraints.  It was also determined that, because the College of Nursing and the Fire Services Training School are distinct programs, they could separate from the other programs with a minimum of disruption.

In the winter of 2003, College of Nursing administration, faculty and staff began to survey the Great Falls area for appropriate space to accommodate the undergraduate and graduate nursing programs. Based on the College's assessment that  (1) Benefis Healthcare will grant up to $5 per square foot for remodeling of the existing space; (2) the space is within close proximity to the West Campus of Benefis Health Care, a clinical site for students, (3) the space offers signage level visibility to the College of Nursing, (4) the space is within short driving distance from MSU-Great Falls where students and faculty  will maintain access to library, bookstore, and other services, and (5) the building offers the possibility for additional space that is large enough and easily adaptable for growth and possible faculty practice opportunities, the College and MSU find the space to offer exceptional opportunities for instruction at the Bachelors and Masters level.  

MSU's rent to the COT for FY 2004 was established at $54,000. Montana State University will expend approximately $20,000 in moving and one-time costs to execute this move. In addition, MSU has budgeted up to $50,000 for replacement of FY 2004 rent.

ATTACHMENT Copy of Lease