The new estimated cost for MSU’s medical school branch in Grand Rapids is approximately $20 million more than the original total, MSU officials said.
The Secchia Center, which will span seven stories and 180,000 square feet, was originally set to cost $70 million, MSU Board of Trustees finance committee chairman Donald Nugent said.
“What we’re looking into is why the differential,” Nugent said. “It’s a fair amount of money, so what’s changed? It’s not a change in location – just a change in construction costs or more refined cost, but that’s what we’re trying to figure out.”
Nugent said Fred Poston, vice president for finance and operations, informed the committee at its last meeting. Poston could not be reached for comment Monday.
The original cost could have been underestimated, Nugent said, but the Grand Rapids site has not been related to any issues that would alter building costs.
University spokesman Terry Denbow said progress for the West Michigan location, expected to accept its first four-year class in 2010, would not be delayed.
“Costs have grown,” he said.
“But momentum and excitement have grown even faster. We and the West Michigan community remain secure in the vision, the project and the fundraising.”
MSU President Lou Anna K. Simon discussed the rise in cost when she was in Grand Rapids on Sept. 24 to speak at The Economic Club of Grand Rapids.
Denbow said the Grand Rapids site is “the right place to be” and the university is intent on raising funds to meet the new quota.
“The university and community are committed to raising the dollars that match the raise in expectations,” he said.
The building, located at the corner of Michigan Street and College Avenue, is named after Peter Secchia, a 1963 MSU alumnus and Grand Rapids native. Secchia donated $20 million to the school – half of the money raised from private funds.
Officials from the medical school deferred comment to university relations.
The new branch of the medical school puts MSU in the neighborhood of multiple medical projects in the city, including Spectrum Health, Saint Mary’s Health Care and the Van Andel Institute.
Nugent did not know whether the university would trim programs and budgets to keep the cost closer to the original $70 million estimate or if fundraising efforts would increase to raise the additional $20 million.
“It’s probably going to be a combination of both,” he said.
“We’re going to look at what we need to have and what we want to have. We might not get some of the wants right now, but we’ll certainly have all the needs.”
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