Updated May 25 at 6:51am

Nursing ed: Expensive, steep learning curve

By Patrick Anderson
PBN Staff Writer

Building advanced nursing education centers for the University of Rhode Island and Rhode Island College was always going to be expensive. More

To continue reading this article, please do one of the following.



Sign up to receive Providence Business News' newsletters
and breaking news alerts.  

DEVELOPMENT

Nursing ed: Expensive, steep learning curve

Posted:

Building advanced nursing education centers for the University of Rhode Island and Rhode Island College was always going to be expensive.

The specialized classrooms and operating room simulators wanted by school leaders aren’t available in the kind of “off the rack” office space they could rent in downtown Providence or a suburban office park.

Throw in the complexity of building the facility in a historic former power station in Providence’s Knowledge District and the costs go even higher.

“If this were a flat, clean piece of land, we wouldn’t need to work with a developer. We build buildings all the time,” said R.I. Director of Administration Richard Licht. “But this is an extraordinarily challenging construction project because there are unknowns, and I don’t think the state is best equipped to do that. I would rather have the risk on [a private] developer.”

While the nursing center is complex, the project has a number of other moving parts that make it a much bigger project. First, the RIC/URI facility will share its footprint with Brown University administrative offices. In addition, South Street Landing includes a significant residential/commercial component as well as a new parking garage, elements that have injected that private developer, CV Properties LLC, into the process and brought the publicly stated price tag for what is known as South Street Landing to $206 million, $120 million for the redevelopment of the decommissioned South Street power station and $86 million for the rest of the project.

So how much of a premium will Rhode Island be paying to have the nursing centers located in one of the state’s largest and most prominent vacant buildings, with Connecticut-based CV Properties assuming the build-out risk?

An important piece of the financing of the project is the fact that, because the Landing, as it has become known, is being privately developed, the state has no direct construction costs to capitalize. Its costs are captured by a projected $6 million per year lease payment for 15 years, based on a plan that was made public last month, a total nominal cost of $90 million, not including options to buy or renew the lease.

06914Page One, University of Rhode Island, Rhode Island College, , construction, real estate, public policy, education, higher education, economy, workforce development, development¸ R.I. Director of Administration Richard Licht, CV Properties LLC, Interstate 195 land¸ Robinson Green Beretta Architects, MG Commercial Real Estate in¸ R.I. Public Utilities Commission, construction, real estate, public policy, education, higher education, economy, workforce development, 29~10, issue060914export.pbn
Next Page

Comments

No comments on this story | Please log in to comment by clicking here
Please log in or register to add your comment
Latest News