U regents OK request for repairs, building

An $80 million physics and nanotechnology center and a facelift for historic Folwell Hall are among $240 million in proposed capital projects that the University of Minnesota will seek funding for next year.

The university will ask state lawmakers for $193.3 million to fund the projects. It would pay for the remaining $47 million, under a budget request to the Legislature approved by the Board of Regents on Friday.

The Board of Regents unanimously approved the request at its meeting yesterday, acknowledging that the state's budget troubles might make it a tough sell. But its focus on repair and renovation could signal a strategy to focus on the basics.

About $100 million would go toward repair and infrastructure projects, such as replacing roofs, cooling systems and windows. A quarter of the buildings on the Twin Cities campus are more than 70 years old and need upgrading, U President Robert Bruininks said.

Paying for their maintenance now will save money in the long run, several regents argued.

The U already is preparing schematic designs so that, if funded, work could begin immediately. That point should be "a critical part of our lobbying efforts," said Regent Steven Hunter. "We can get into the ground as soon as you pass this."

Next in priority is the $34.5 million renovation of Folwell Hall, built in 1907. The work would update classrooms, make the building more handicap accessible and get rid of noisy air conditioners. Another $10 million would be spent to renovate various labs.

The biggest new building on the list is an $80 million physics and nanotechnology complex on the Twin Cities campus. While that's a hefty price tag, the U's competitors are building more expensive facilities for those research areas, said Kathleen O'Brien, vice president for university services.

The university's current physics laboratories in Tate Hall are nearly 80 years old.

"The whole study of physics has changed quite dramatically in that ... period," Bruininks said. "We have some catching up to do."

Creating a company

Also at its meeting Friday, the board unanimously approved the creation of a limited liability company to manage 5,000 acres of land known as UMore Park.

The land, in Rosemount and Empire townships, was purchased by the University in the 1940s. The university now is preparing for its possible development, including gravel mining on the site. Any plans for the land -- including construction, development or gravel mining -- would still need to be approved by the regents.

The UMore Development LLC will be run by a nine-person board of governors who will direct its business, while a chief manager will oversee day-to-day operations. The regents will appoint the board, while the chief manager would be a paid university employee.

The regents could consider the board's make-up as soon as November. In December, it could review a contract for gravel mining on a portion of the site.

The university hopes that mining income will help offset its $5.9 million investment in the project and another $2.6 million budgeted for this year. Much of that money has gone toward staff, consultants, an environmental review and assessing the land for development and mining opportunities, said Richard Pfutzenreuter, the university's chief financial officer.

While one regent expressed concern over that price tag, Bruininks disagreed: "I think we've gotten a bargain to date."

The regents also approved a quasi-endowment for the company that will be used for research and education.

Several regents asked to see two- or three-year financial projections for the land.

"My big fear is that we are going to start mining this gravel, and in 10 or 12 years we won't have any gravel or any money left," Regent Anthony Baraga said.

The Minnesota State Colleges and Universities system's request for state bond financing totals $301.3 million, $110 million of which would go toward repair and replacement projects. The system's Board of Trustees approved the list in June.

Jenna Ross • 612-673-7168