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Cincinnati State trustees leery about Middletown campus project

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By Jessica Heffner, Staff Writer Updated 7:22 PM Tuesday, November 23, 2010

CINCINNATI — Can Cincinnati State Technical and Community College afford a Middletown campus? That is the question its board of trustees said needs to be answered before it will be ready to launch its new campus.

Documentation was included in the board of trustees packet Tuesday for Cincinnati State to use up to $20 million through government bonds for improvements and equipment upgrades to the Manchester Inn, CG&E building and former Middletown Senior Center. The funds also would be used for possible construction at the 3.2-acre lot at 105 Main St. — the former site of the Swallens Department Store and city parking garage.

Dan Cayse, vice president of strategic initiatives and entrepreneurial development for Cincinnati State, said the information was included as an estimate to allow the school to collect planning and engineering costs associated with the properties through bonds if and when the debt is issued for the project.

Talks have centered around Middletown issuing bonds to fund renovations, which would be repaid over time through lease payments — similar to the new Greentree Health Sciences Academy. The board is not expected to vote on the information. No final estimates have been done and Cayse said he did not expect a final financing agreement to be reached with the city until at least January 2011.

Many trustees expressed feared the college may be entering “into a money pit” with a new campus in Middletown.

Trustee Robert McKenna Jr. said in light of possible state funding cuts, he had concerns of updating buildings in a city he called “a museum.”

“Transforming a museum into a profit-making organization is going to be a task,” he said.

School President O’dell Owens said he has no intention of entering into an agreement that would hurt the school financially. He added Middletown officials are aware of the debt constraints placed on Cincinnati State by the state and no deal will be made unless it can satisfy those requirements.

Michael Oestreicher, trustee chairman, said trustees need more information on project costs for both renovation and operation.

“I think it’s pretty clear from the comments we are not against the project, but we are extremely concerned with the liability of this project,” he said.

The college is collecting construction estimates. However, Cayse said initial projections show the new campus would not break even for a few years.

“In my opinion, it doesn’t necessarily have to. I believe we’re going to have to find partners to offset those costs to turn things around three to four years from now.”

Middletown already is working on securing buildings for the new campus. City Council voted last week to spend up to $500,000 from the Downtown Improvement Fund to acquire five buildings and the vacant lot.

Cayse said he expects that deal to close within the next 30 days.

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