Changes coming for UT system offices

AUSTIN (KXAN) - The University of Texas System Board of Regents approved a plan Thursday to consolidate UT System offices and save up to $240 million.

The plan calls for construct a new building and lease out space in some of the older surplus units.

The savings will be reinvested into program to benefiting student through the University of Texas system, the regents said.

Studies by the UT System financial and real estate staff were reviewed by J.P. Morgan, and suggest that the move will save between $60 million and $240 million over 30 years. These savings will come from decreased maintenance, repair and energy costs. Money from leasing space in three of the older buildings will count toward the savings, the regents said.

Aggressively seeking savings in operation costs and reinvesting those savings in Texas students is a primary focus on Chancellor Francisco Cigorra's " Framework for Advancing Excellence ," which the regents approved in 2011. The move is also expected to enhance effectiveness and efficiency of system operations.

“The new facility clearly yields significant cost savings over the long term while also offering greater operational and organizational efficiencies,” said Regents Chairman Gene Powell. “This project is perfectly aligned with the productivity and efficiency goals of our Framework for Advancing Excellence and the savings will directly benefit our students. ”

Construction of the new building is expected to cost $102 million, and will be funded withrRevenue financing system bonds. No tuition dollars or general revenue money will be used.

The property for the new office building is already owned by UT System, and is located in Downtown Austin on Seventh Street between Lavaca and Colorado streets.