Jindal: Funds ready for LSU business center

• By JORDAN BLUM
• Advocate Capitol News Bureau
• Published: Nov 5, 2009 - Page: 6A

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Gov. Bobby Jindal reaffirmed commitment of $30 million in state funds Wednesday for construction of LSU’s planned Business Education Complex.

LSU E.J. Ourso College of Business Dean Eli Jones said the construction bidding process could begin next week with a possible groundbreaking ceremony in March.

He said opening of the $60 million complex could occur in summer 2012.

Jindal said his intent is to direct $24 million in state construction dollars initially, which the Legislature must sign off on, then give the final $6 million to LSU in 2011 to complete the project.

The planned complex will “attract the best and brightest minds” in the nation to LSU and boost the state’s economic development, Jindal said.

The delayed, decade-in-the-making project first stalled because LSU could not raise its share of $30 million in private donations for the complex, which would be a village of buildings connected by a large rotunda.

LSU has raised $18 million in cash-in-hand and private pledges thus far, Jones said.

After considering and opting against a new market tax credits option, LSU is banking on lower construction costs to come in well under $60 million.

To fill the financial gap, LSU is using $12 million in internal bridge loans. The loans are partly leveraged by LSU’s revenue increases from the Southeastern Conference’s television deals with CBS and ESPN.

LSU Chancellor Michael Martin has said the hope is LSU will not have to spend the loaned money.

“Bid prices are coming in so low right now, we’re counting on this coming in below our original estimate,” Martin said Wednesday.

The business complex would be built east of Patrick F. Taylor Hall, formerly CEBA, which houses the College of Business and the College of Engineering.

The plan is to move the College of Business into the proposed complex that would serve as a cornerstone of the campus. The College of Engineering would have Taylor Hall primarily to itself.