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EWU enters into public private partnership for new housing and retail structure in downtown Cheney--140 students to move in by Fall 2002 - 2/2/2002

Company name: Eastern Washington University
Contact name: Stefanie Pettit
Contact phone: (509) 359-6335
CHENEY, Wash. &emdash; Eastern Washington University has entered into a public-private partnership with Spokane developer Rob Brewster, president of ConoverBond Development, for a new downtown Cheney housing and retail facility which will provide residential space for 140 Eastern students.

The site will also house a university-operated bookstore and a privately-operated coffee shop.

The four-story brick building to be constructed on the corner of Second and F streets, the site of the former Bonanza Ford dealership, is just two blocks away from the front entrance of Eastern's campus. It is expected to be completed for occupancy by the start of fall quarter 2002.

In a conference-call special meeting January 30, the EWU Board of Trustees voted to proceed with the project with Millennium III Partners, LLC, an affiliate of ConoverBond Development. The project has been in the planning stages since November.

"This is a fast-track project which addresses two important needs," said Rick Romero, associate vice president for business services at Eastern. "We need additional university housing to support the dramatic growth we have achieved in recent years, and the Cheney community is seeking to improve the downtown business core adjacent to campus."

Mark Mays, chair of the Board of Trustees, expressed the board's pleasure at finding a way to provide quality housing at a cost to Eastern that will be lower than if the university built it independently. "We are pleased also to be a partner in helping to revitalize downtown Cheney," he said. Trustee Mike Ormsby said the project fits well with Eastern's role and mission of building a strong residential university, one which attracts students to study and live in the community.

Under the agreement, Eastern assumes 100 percent of the cost of the housing portion of the project in the form of a 20-year lease commitment, which will amortize the developer's design and construction costs for the housing portion. Eastern will pay $385,000 per year to lease the residential portion of the building. The university also has a 20-year lease for the bookstore and nearby dedicated parking lots. The coffee shop will be leased to a private party by Brewster, whose other projects have included the remodeling and development of the Holley Mason building in downtown Spokane.

The agreement calls for the developer to be responsible for all project financing and for contracting all design and construction costs. Goebel Construction will be the builder of the 50,8000-square-foot building which will have retail space on the first floor and university housing on the upper three floors.

"I hope this building, the first phase of a multi-phase project, benefits Eastern and its students and helps bolster the economy of Cheney," Brewster said. "It's a great public-private partnership, and I hope it becomes a catalyst for further development in Cheney."

Romero said the dwelling units will provide single-bedrooms clustered in pods around common living rooms, private bathrooms and kitchenettes. There will also be a large central common room on the third floor, which will extend through the fourth floor and will contain a gas fireplace.

Students who will live in the new units will be at least at the sophomore level and will be required to purchase a base university meal plan, Romero said.

Currently at the site, there are two 10,000-square-foot build-ings which had been occupied by Bonanza Ford until the dealership relocated to Four Lakes this past fall. The structure at the corner of Second and F streets will be torn down to make way for the new four-story building, and developer Brewster has expressed plans for additional retail development in the remaining structure at a later date.

Since beginning its enrollment surge four years ago, Eastern has seen occupancy in on-campus housing rise from 955 students in 1996-97 to 1,690 in fall 2001.

"We are virtually at capacity and have been trying to determine the best and most cost-efficient way to accommodate our students' needs," Romero said. "We believe this opportunity will be a win-win situation all around."

The project also conforms to the goals of Pathways to Progress, a Cheney community action group made up of local citizens and downtown business people, who have initiated a major redevelopment plan for the central business district.

"Historic downtown areas thrive when they attract mixed use development, and this project is a great example of mixed use development in the central business district of Cheney," said Lisa Watts-McKee, Pathways president. "We think it is a great thing to happen here."