Regents approve awarding $7.7 million contract for Greek housing

Southeast Missouri State University's board of regents on Monday approved awarding a $7.7 million contract for construction of the first phase of a Greek housing project.

Kathy Mangels, vice president for finance and administration, said four construction bids were received in September, with the lowest bid at $7.7 million -- $477,787 over the university's July construction cost estimate.

"We've taken the last couple weeks to work with our architects and look at those bids and analyze the areas where we were over," Mangels told the board.

Electrical and plumbing were two trade categories that substantially exceeded cost estimates, Mangels said. There also has been a spike in wood framing prices since June.

"The timing of the bids and the market may have worked a little bit against us," she said.

Mangels said the university and architects are looking at ways to decrease the cost, from landscaping changes to potential interior and exterior finish reductions by individual house. Based on known and potential value engineering items, the difference between current construction costs and the July cost estimate is about $290,000, she said.

Southeast officials met with representatives of Pi Kappa Alpha, Sigma Chi, Sigma Nu and Sigma Phi Epsilon in September to review the current construction cost and the effect on their lease rates.

The organizations will lease the houses, and the money paid to the university would go toward debt service.

The effect on the individual fraternity lease rates of the increased construction cost and maintaining a 10 percent construction contingency ranges from an increase of $6,500 to $9,700 per year. The initial lease cost per year to the organizations was $120,000.

Floor plans have been developed that are specific to the needs of each chapter, ranging in occupancy from 22 to 35 students, and each house is expected to cost about $2 million.

All four chapters have given written notice that they agree to the increased rate. A final 12-month lease will be executed this month, and the organizations are required to have $10,000 on deposit at the time of the lease execution and an amount equal to half their first year's lease within six months before moving into the house.

"The beauty of this arrangement is that it's a true business arrangement," said Jay Knudtson, president of the board. "These costs are going to be absorbed by those fraternities and the transparency that's occurred and their willingness to continue has given me a pretty good comfort level of moving forward with the motion."

The project's schedule calls for two houses to be ready for occupancy by the fall 2016 semester and two more will be completed for the fall 2017 semester.

The site could potentially accommodate up to seven houses, two of which would have multiple stories that could house two Greek organizations.

A Greek village is one of several efforts underway to increase student participation in Greek life at Southeast, officials said.

Efforts began in fall 2013 by student leaders in the Southeast Greek community. The students developed and implemented a marketing and outreach strategy to introduce new students and their parents to Greek life as part of the campus visit and new student orientation programs.

Last December, the board approved the feasibility of the Greek village concept and gave administrators the OK to pursue design development on nine acres on the west side of North Sprigg Street.

Razing buildings

The project since has drawn criticism from local preservationists who hoped to see two historic homes at the site be incorporated into the Greek village.

Greystone Estate, built in 1921, was razed at the development site in March. Built by well-known contractor J.W. Gerhardt, the home was the first country club in Cape Girardeau. Greystone was used for years by Southeast fraternities, but was closed last year when problems were found with the roof, water infiltration and ductwork.

Soon after the demolition, the Missouri Preservation organization on its Facebook page called the razing of Greystone "one of the most callous and spiteful demolitions yet" at Southeast.

A second home, known as the Ochs-Shivelbine House, also will be razed next summer when the academic year is over and the project can proceed.

Ochs-Shivelbine was built between 1917 and 1921 and recently was placed on the Cape Girardeau Endangered Buildings list. The house is currently leased to Sigma Nu.

"We did save stone, what we could, from Greystone," Mangels said. "There is in the plans to incorporate that either on the exterior or potentially on the interior."

Mangels said repairing the houses was not economically feasible, and while Ochs-Shivelbine is a large house, "it was not designed to hold 25 individuals as a sleeping residence -- to have enough space to safely house that many people."

Mangels said there may be some woodwork or other materials that can be salvaged when the house is razed.

klamb@semissourian.com

(573) 388-3639

Pertinent address:

One University Plaza, Cape Girardeau, Mo.