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RCCC to lease N.C. Research Campus space for $44M

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By Sarah Nagem

snagem@salisburypost.com

Rowan-Cabarrus Community College leaders on Monday agreed to pay the developers of the N.C. Research Campus about $44 million over 20 years so the school can operate there.

The college's board of trustees voted to enter into a lease with Castle & Cooke, the company building the science campus in Kannapolis.

RCCC will pay Castle & Cooke about $2.2 million a year for 20 years, said Robert Keeney, vice president of business and technical services for the school.

RCCC will use money set aside by state lawmakers to pay its rent. The General Assembly is appropriating $3.3 million a year to the school to pay the lease and other expenses such as utilities and insurance, Keeney said.

Community colleges normally operate with state funding that is doled out based on student enrollment.

"The research campus is a little different," Keeney said.

The school cannot use its regular state money to pay its bills in Kannapolis. Instead, RCCC will have to depend on the special state appropriation coming in every year.

That's a gamble some board members said worried them.

"I can understand why anyone would be concerned about funding from the state of North Carolina, believe me," said Sen. Fletcher Hartsell, who represents Cabarrus and Iredell counties. Hartsell has played a key role in development of the research campus.

But Hartsell told board members that lawmakers haven't argued about the state appropriations to RCCC.

"It simply was not an issue," he said.

The 60,000-square-foot building will house biotechnology and agricultural biotechnology classes, Keeney said. The building might also be used for clinical research.

Keeney recommended that the board enter into the lease. The risk of not signing on, he said, is missing out on space to train students for science jobs.

But Keeney said there are risks for entering into the contract, too.

"If the jobs don't materialize, the demand won't materialize," he said. "And we'll end up with a very expensive building not doing much."

The rent payments will stay the same throughout the years. But other costs, such as utilities and labor, will likely increase.

At some point, Cabarrus and Rowan counties might need to pitch in money to help RCCC deal with inflation, Keeney said.

"We'll have to find some additional money," he said.

The community college is the "linchpin" of the research campus, Lynne Scott Safrit, president of Castle & Cooke North Carolina, said during the meeting.

"We're just excited about the role you will play in this," Safrit said.

Ray Paradowski, president of the board of trustees, said he's excited the research campus will "fill in that tremendous void of the textile industry moving out."





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RCCC Advocate
Good Move! : Thursday, July 31, 2008 2:09 PM

This community needs all the help it can get. Go RCCC
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R Dumas
Great for the Community!!! : Thursday, July 31, 2008 2:05 PM

Certainly, the people suggesting that this is not a great idea are misinformed. Basic economic development theory suggest that you need a trained workforce to truly be a player in Biotechnology. Having RCCC at the Research Campus is critical to preparing the workforce for the new economy. I'm glad that many of you are expressing your disapproval, but at least get the facts before you start expressing your views. This community should be grateful about the Research Campus. This project could have easily gone to CA, Texas, or Tenn. I read in the news that their governor's called Murdock to try to steal the Research Campus development from Kannapolis. Get informed people!!!
Report Abuse

: Tuesday, July 29, 2008 6:00 PM

If it cost 8 million per facility and they are payinig 2.2 million per year or 44 million over 20 years this would buy 5.5 facilities. Agreeed, a total waste and RCCC's Board should be replaced.
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Former Rowan Tech Instructor
money well spent?? : Tuesday, July 29, 2008 5:49 PM

Hey - Don't worry about the cost of 2.2 million for rent!! The tax payers will pay it. It's free money!! The elitists like it when the peasants get screwed again. And RCCC won't be doing research there either. Murdock should be ashamed of himself for charging that much rent to RCCC. RCCC should be ashamed of itself for doing such a foolish thing. Why can't potential students that work at the research Center that want to take classes go to the two existing campuses?
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Concerned
Cost of Buildings : Tuesday, July 29, 2008 4:44 PM

Currently to build a decent sized classroom building and sparsely furnish it, costs roughly $8 million dollars. This is due to state institutions getting ripped off by contractors and architects. However, if you look at the alternative, this could purchase 2-1/2 of these new facilities. What a waste!
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"Community colleges normally operate with state funding that is doled out based on student enrollment" : Tuesday, July 29, 2008 3:28 PM

I wonder how how many students flunk out at RCCC each year? It certainly is not in their (RCCC's) best interests to loose students. And, if this is the case it makes one wonder about the quality of education being offered. This money could better be used on their two campuses.
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Currently Attending RCCC
You have to spend money, to make money. : Tuesday, July 29, 2008 2:36 PM

The trailer you can see passing I-85, are temp. teacher's offices. This is a great opportunity for students like myself who are majoring in Biology. This is a once in a lifetime opportunity. You have to spend money to make money. This has been in the works for years, so why are you complaining now? You had to have known this wouldn't be cheap. And I work and pay taxes myself, and yes while this research campus won't benefit everyone, I am helping to pay for people to be on welfare with my taxes and I don't get any benefit from that.
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Incredible! : Tuesday, July 29, 2008 2:20 PM

Why RCCC would choose to lease on the Research Campus, instead of off-campus, is unclear. It seems that local leadership just becomes starry-eyed and starts writing checks everytime Murdock says to do so. For RCCC to expect Cabarrus and Rowan County Commissioners to back up their risky decision with tax dollars is the real joke here. In Kannapolis, if Murdock exclaims "S***," they may ask, "What flavor?" But Rowan's Commissioners are not so inclined.
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: Tuesday, July 29, 2008 2:12 PM

Mr. Dover is 100% correct. This is a very poor decision by RCCC.
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Ben Dover
: Tuesday, July 29, 2008 1:27 PM

I am most certainly not ignorant. I am weighing the cost of heavily subsidizing the tuition and fees for an already struggling community college, and the feasibility of coming up with another $2.2m a year for rent at the research campus. Say what you will, MB, but even you must know that the community college apparently can't afford to build more buildings; there is a trailer clearly visible on 85 passing the campus. I fully acknowledge the benefits of having a presence at NCRC, but I do doubt the funding. They are overpaying for space, plain and simple. How much are UNCC, Carolina, Duke, and State paying for a space there? $2.2m would build a rather nice academics building on campus that would last many years, and maybe even more financial aid for students from poor families that want to make something of themselves, but instead they are spending that amount of money to lease space for one year. Now, you can't tell me there's something wrong with this picture?
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Chris Burke - Broker - East Coast Commercial
On the surface that lease rate is too high! : Tuesday, July 29, 2008 12:58 PM

The math works out to $36.67 per SF. That's way too high! I work in commercial real estate and can tell you that on the surface that is about double what they should be paying. Unless the building is built to suit inside and out and is all inclusive its way out of line. Even if it is all in I'd still say they are paying too much.
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perspective : Tuesday, July 29, 2008 12:33 PM

RCCC $44 million over 20 years for thousands to be educated. Bobcats $72 million over 6 years for 1 guy to play basketball.
Report Abuse

MB
RE: Ben Dover : Tuesday, July 29, 2008 12:33 PM

Why shouldn't a local college benefit from an excellent opportunity? It will give them the chance to expand their student base and curiculem. Or do you have so little faith in a local college that you don't think they can measure up? Bottom line is that you are still complaining and have nothing good to say, only negativity. Nothing is ever good enough for some people! I would say $2.2 million is cheap for the amount that could be drawn from enrollment...if citizens apply themselves. Even if Rowan's citizens do not take advantage of the courses offered, I bet out of state students will be happy to fill those empty seats resulting in higher out-of-state fees! Face it, the better the ciriculem (resulting in higher paying jobs) the higher tuition will be! It will pay for itself in the long run..have a little faith! (Besides, I wasn't aiming my opinion necessarily at you, there are a few below yours that were just ignorant, you just happened to be the one that felt guilty enough to repost a comment. Please don't take offense!) This will also open up teaching jobs and many others within the school that will benefit the community as well!
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Ben Dover
RE: MB : Tuesday, July 29, 2008 11:08 AM

I am not complaining about the research campus or RCCC being there, I am complaining about the 2.2m a year the campus is charging RCCC. To me that is rediculous. That may be acceptable for a school like Carolina or Duke, but most certainly not RCCC.
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Progress is expensive : Tuesday, July 29, 2008 10:55 AM

I hope the Board of Directors at RCCC will continue to evaluate the impact this deal will have on the community to ensure it is to the benefit of the local population. Otherwise, unless there's a positive change on the Board of commissioners, requests for local funding won't fly. I applaud sound efforts to promote educational initiatives for our citizens.
Report Abuse

MB
Complain, Complain, COMPLAIN!!!!!!!! : Tuesday, July 29, 2008 9:44 AM

Is there nothing positive people in this community can say about anything? You complain about not having a job, then not being able to get a job at the research campus, now a facility to train your sorry butts to work there! I bet the same people that are complaining are the same ones that didn't take advantage of the opportunity to go back to school after the mill closed and are STILL waiting on it to reopen! This may not benefit you, but it may benefit your children or grandchildren. Some of you can't see past the end of your nose. If you spent half as much time trying to advocate for things to change and make a difference as you do complaining all the time, maybe Rowan County and surrounding areas would be better off. Realize that this is not a sleepy little mill town that requires less than a high school diploma anymore. You are going to have to get off your butt and stop watching cars go in circles while getting drunk and get a real job if you don't want to live in or at poverty level any longer! You should want better for yourselves, children, grandchildren and generations beyond that!
Report Abuse

Ben Dover
Terrible : Tuesday, July 29, 2008 9:14 AM

I bet your Mr. Cannon would not have charged 2.2m a year for the local community college to move in to the plant and do research. Murdock is a greedy little thing, isn't he?
Report Abuse

Royal Rip Off : Tuesday, July 29, 2008 7:58 AM

This is absolutely the most stupid move so far concerning our money being spent for the research center. If RCCC does not have room to conduct a class in washing out bunson burners, and sweeping up, they can certianly build a huge one for the cost of the rent they are paying for one year. The course they will offer will be at best that of a lab assistant. How many lab assistants do they need at the research campus? This is past moronic. The need is not for facilities to train a relatively small number of people, but more rent money to enrich the ownerof the building, and we all know who that is, don't we? Take the number of low paying positions that would be filled after the non existing students signed up for the courses and divide that into the multi million dollars paid out, and see what it costs the taxpayers to train these people. It defies all logic.
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tax payer
waste : Tuesday, July 29, 2008 7:26 AM

what a waste
Report Abuse



 

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