May 23-24, 2002
ITEM 115-2009-R0502 Authorization to Lease Space in a Private Sector Facility; Montana State University-Bozeman
THAT: The Board of Regents of the Montana University System authorizes Montana State UniversityBBozeman to lease space in a private sector facility in order to solve a critical space problem for the Veterinary Molecular Biology Department.
EXPLANATION: 1. Lone Eagle Investments LLC is building a new 39,958 square foot facility in Bozeman. Lone Eagle has proposed that MSU lease approximately 27,000 square feet of this facility at an annual cost of approximately $484,000. MSU proposes that the entire Veterinary Molecular Biology Department relocate into this leased space.
2. The research programs of the Veterinary Molecular Biology Department (VMB) have grown five-fold in grant and contract expenditures since 1996. Further growth is virtually guaranteed because the Department is: a) investigating a timely and increasingly important field, namely infectious diseases that can be transmitted among wildlife, livestock and humans; b) carving out a unique and important scientific niche; and c) taking advantage of its location in Montana where many of the diseases exist in wildlife populations. In order for VMB to continue to grow and succeed, additional facilities are needed to accommodate the current faculty growth of programs, recruit new faculty and address new technologies. Building an additional state-owned facility on the campus is a very expensive solution, and one that is not timely enough to solve VMB=s critical space shortage. Furthermore, in addition to the original cost of the facility there is also the issue of significant long-term O&M costs. A leased facility is significantly less expensive and it could be ready for occupancy in the summer of 2003.
3. The lease payment will be financed with F&A (Facilities and Administrative costs, formerly indirect costs) recovered from federal research grants awarded to VMB.
4. This project requires authorization of the Board of Regents.
ATTACHMENT Executive Summary