Campus: CSU Stanislaus -- November 14, 2002

Agreement Clears Way For Development At CSU Stanislaus-Stockton

An agreement between the Stockton Center Site Authority and Grupe Commercial Company (“Grupe”) which paves the way for expanding educational services and commercial development of the 102-acre midtown site now occupied by California State University, Stanislaus-Stockton has been finalized.

The 50-year agreement, with four 10-year options, calls for Grupe to manage, maintain and develop the site.

The Site Authority was established as a legal, independent entity by the California State University and the City of Stockton for the purpose of developing the former Stockton Developmental Center site, which became the CSU Stanislaus-Stockton Center in 1998.
Dr. Marvalene Hughes, President of CSU Stanislaus, applauded Grupe for helping bring about what promises to be a positive future for development of the site.

“I am delighted with the final agreement with Grupe to develop what has been named University Park,” President Hughes said. “This is the culmination of a process that will accelerate the development of our fast-growing University to meet the needs of Stockton and San Joaquin County for high quality and affordable public higher education.”

“The Site Authority is responsible for providing administrative guidance and management oversight to Grupe during the life of the agreement,” said J. Patrick Drohan, executive director of the Site Authority and CSU assistant vice chancellor, capital planning, design and construction. “One of our primary objectives is to ensure the orderly development of the site in keeping with the educational mission of the CSU Stanislaus-Stockton Center. We are confident that Grupe will be able to accomplish this task.”

CSU Stanislaus-Stockton occupies a portion of Acacia Court, the largest building on the site, as well as portions of nearby Weber Square. The Magnolia Mansion will be renovated as a meeting and reception facility through a fund-raising campaign being spearheaded by CSU Stanislaus Foundation Board member John Phillips.

Site operations will be funded under an agreement between the Site Authority and Grupe. As the developer, Grupe will receive $1.3 million of the $1.7 million the Site Authority receives annually from the state. In addition, Grupe will receive all revenue from leases and contracts at the site. In exchange, Grupe accepts all development risk and beginning in year 2026 will start paying ground rent to the Site Authority.

Grupe has already commenced demolition of certain buildings at the north end of the site.
Grupe is currently working with Stockton Unified School District and the Site Authority to develop an elementary school and charter high school at the site. Additional development possibilities at University Park include research laboratories, office complexes and retail commercial businesses that blend in with the University, such as bookstores and restaurants, and housing.

President Hughes also expressed great admiration for the Grupe family’s longstanding advocacy of education.

“We are so fortunate that the Grupe Company stepped forward to take on this project, because they are renowned not only for developing the area but also for advancing education,” she said. “There have been many educational initiatives spearheaded by the Grupes over the years, including the San Joaquin A+ program.”

Enrollment at CSU Stanislaus-Stockton is expected to increase from its current 1,300 students to more than 5,000 over the next decade. Popular programs at the Stockton location are teacher education, psychology and child development, criminal justice, nursing and social work. The corporate community and CSU Stanislaus are working to raise funds to start computer information systems and digital design courses.

“We look forward to University Park being a catalyst for the revitalization of midtown Stockton,” said Kevin Huber, president of Grupe Commercial Company. “Grupe Commercial Company has already donated $30,000 in cash and services to help fund a recent community event and the development of curriculum for the bachelor of science computer information systems degree.”
CSU Stanislaus is striving to make it possible for students from the Stockton area to attain a college degree. The University’s Stockton Eighth Grade Initiative (SEGI) scholarship program, established by President Hughes, provides opportunities for Stockton middle school students to attend CSU Stanislaus after they graduate from high school.

For development information, contact Dan Keyser, senior vice president, Grupe Commercial Company at 209-473-6201.

Contacts: Don Hansen, CSU Stanislaus (209) 667-3997
Colleen Bentley-Adler, CSU (562) 951-4801
Dan Keyser, Grupe (209) 473-6201

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