South Plains College Board of Regents met in a special meeting on Thursday afternoon.
The Regents took action to approve a performance agreement with the Lubbock Economic Development Alliance. SPC President Dr. Robin Satterwhite said this agreement and purchase of property in Lubbock allows for greater student access and allows the college to be in downtown closer to the Texas Tech University. He stressed this is only a small part of the colleges strategic plan. He said the new Lubbock downtown campus will bring in an estimated 2.5 million dollars in extra revenue from student and fees to the college in only three years and that is net income after ALL expenses. This is according to an in depth financial analysis performed by the college. He also said the college will continue to evaluate and make sure this remains a viable solution for the college. Satterwhite also stressed that the college has a distinct focus of growing and revitalizing the Levelland campus and that this new center will allow the college to be in a better financial position.
According to the Performance Agreement the Lubbock Economic Development Alliance will pay SPC $5 million dollars at the closing of the purchase of the Lubbock City Hall plus will pay an additional $5 million dollars when construction permits are issued for remodeling plus will pay $500 thousand dollars per year for six years for operation, as long as the college maintains classes in the building. SPC agrees to operate the center for a minimum of 10 years or would agree to reimburse the LEDA on a pro-rated basis operational moneys paid. Regents approved on a unanimous vote the agreement.
Regents also approved a purchase agreement with the City of Lubbock to purchase the Lubbock City Hall at 1625 13th Street in Lubbock. SPC will purchase the building for $2 million. A recent appraisal on the building, valued the property at $7.4 million dollars. According to the agreement SPC will have 45 days from now to inspect the building and will have another 30 days following the City of Lubbock totally moving out of the building to do full inspections and can back out of the purchase within that time if building inspections reveal something not expected. The City of Lubbock will also pay closing costs and title insurance costs up to $20,000. Regents approved the purchase on a unanimous vote.
It was also reported that the CH Foundation has awarded the college $5 million for the new building renovations and the College has also applied for another grant through the CH Foundation for $1 million towards the purchase of the building.