One and a half acres of land in Grand Rapids should be in the hands of university officials by the end of the year.
The MSU Board of Trustees unanimously approved the purchase of the property Friday at its monthly meeting.
The acquisition of the land is another step toward expanding the College of Human Medicine's campus to West Michigan. About $4.3 million will be spent on the property, which is located on the northwest corner of Michigan Street and College Avenue.
The area could be a site for the $70 million building that university officials plan to construct in Grand Rapids. It will house the college's second four-year campus and is scheduled to open by 2010.
The site was chosen because of its proximity to major partners like Spectrum Health and the Van Andel Institute, but officials are still considering other properties on Michigan Street that are even closer to the institutions for additional campus facilities.
During the meeting, College of Human Medicine Dean Marsha Rappley gave a presentation to the board — minus Trustee Scott Romney, who was not present — about the progress of the expansion.
"We're on track in the expansion … and we are gaining momentum," Rappley said about the project.
About $8 million to $9 million in annual contributions from partners in Grand Rapids is expected to help develop the campus. MSU officials plan to pay $2 million annually for five years, which will go toward educational programming and research support for the school.
Spectrum Health will also cover half the cost of MSU's bond payment — used to cover the cost of construction on the new building — by providing $55 million over 20 years, Rappley said.
Fred Poston, vice president for finance and operations, said university officials are not sure how they will use the property. The site may be used to help alleviate parking problems that could arise with the campus, or it could be used for a new medical building, he said.
"Whether it gets used as a site for a building or for overflow or extra parking, either way, we'll need both," Poston said. "That whole area is expanding greatly, so we could pick (the property) up now or regret it later."
He said the university will officially take ownership of the property by the end of the year.
Trustee Don Nugent said the property is not as close to Grand Rapids-area partners as he would like and that it seemed expensive, but its proximity to the partners still made it a good buy.
"The price seems high, particularly to a farmer like myself," said Nugent, who owns Nugent Farms in Benzie and Leelanau counties. "I'd be happy to sell one and a half acres for that."
MSU and college officials are working to ensure the university plays its role in dealing with the physicians shortage that is predicted for the state and the nation, MSU President Lou Anna K. Simon said.
"People will appreciate its value over time," Simon said of the future West Michigan campus. "It's a good investment."
Holly Klaft can be reached at klafthol@msu.edu.
