Administration

Trustees approve lease-to-buy agreement with ABCD for Penn Building

UNIVERSITY PARK, Pa. — To alleviate space limitations on the Penn State Altoona campus, Penn State's Board of Trustees today (May 8) approved the proposed lease-to-purchase plan for the Penn Building in downtown Altoona.

Penn State Altoona has the second-lowest space-to-student ratio among Commonwealth Campuses. As such, the University has successfully partnered with the Altoona Blair County Development Corporation (ABCD), the local redevelopment authority, to efficiently develop downtown properties into high-quality education facilities, such as the Aaron Building, which houses classrooms, the communications suite and the nursing simulation lab.

Altoona’s continuing space challenges prompted the Accreditation Board for Engineering and Technology to point to a lack of room for the popular and successful 2+2 engineering and electro-mechanical engineering technology, or EMET, programs. The board's approval for the lease-to-purchase allows ABCD to buy the Penn Building, adjacent to the University-owned Aaron and Kazmaier buildings along 12th Avenue, and arrange low-cost financing for renovations to suit the University's needs. 

“I am thrilled about the opportunity to expand our downtown campus, and I value our partnership with ABCD Corp. in bringing this project and others to fruition,” Penn State Altoona Chancellor and Dean Lori J. Bechtel-Wherry said. “This project is a premier example of adaptive reuse in which existing buildings are repurposed to better serve our students, our college and our community. The Penn Building project will provide much-needed space in support of our academic programs, open up space on our Ivyside campus to support our engineering programs, while also creating opportunities for business development in downtown.”

Under the arrangement, ABCD will enter into a capital lease/purchase agreement with the University that will allow the University to lease the property at the cost of the financing. The agreement not only provides inexpensive financing, but also allows the University to take advantage of potential low-cost loans and grants available to ABCD. Once financing obligations have been met though the lease payments to ABCD, the property will be turned over to the University.

This lease with option to buy includes the basement, second and third floors of the Penn Building at the agreed-to-purchase price of $1.85 million. The total cost, including purchase price, fees and renovations is nearly $5.7 million.

All classes and faculty for programs in business, rail transportation engineering and security and risk analysis will move into the Penn Building, which will free up space on the Ivyside Campus for the 2+2 engineering and EMET programs.

 

Last Updated May 8, 2015