University of Iowa plans to spend $621 million on new inpatient tower in next 5 years

IOWA CITY — Over the next five budget years, the University of Iowa and its health care enterprise plan to spend more than $1.4 billion on new construction and renovations — including $620.9 million on a new inpatient hospital tower and $212 million on a new “modern health care research facility.”

UI, Iowa State University, and University of Northern Iowa this week shared more details of their projected capital spending over the next five years in a facilities plan going before Iowa’s Board of Regents next week.

For UI, the report for the first time attached numbers and general timelines to conceptual projects the campus unveiled earlier this year as part of its 10-year master plan.

“UIHC’s five-year capital plan for other funds would be for $786 million, up 51 percent from last year’s $521 million, mainly due to a new inpatient bed tower project,” according to the new report.

Excluding UIHC spending, state-funded facility work, and previously approved or started projects, UI’s five-year capital plan involves $659 million in construction — up 72 percent from last year’s $384 million, “mainly due to a new medical education building replacement project.”

And because the list isn’t all encompassing and doesn’t include projects on previous reports or those already stamped with board approval, the campuses’ actual five-year facilities spending will be higher.

The UIHC list, for example, excludes its $24.6 million emergency room expansion in the works; UI’s excludes a $65 million west campus parking ramp it recently put out for bid.

The plans do, however, shed light on tentative campus construction expectations — including for specific projects.

A spending schedule for the new UIHC inpatient tower budgets nearly $3 million toward that project in the next budget year, jumping to $148 million for fiscal 2025 — with costs escalating through fiscal 2028, reaching a total of $620.9 million. Although spending on the project could continue beyond that fifth year, the new UIHC inpatient tower at that price would become the costliest hospital project in state history, besting UIHC’s new North Liberty campus under construction on a $525 million budget.

UIHC recently received regent and state approval to up its North Liberty build budget 33 percent from $395 million to $525.6 million — due to inflation.

Regarding the university’s new medical education building officials earlier this year announced will happen over the next decade, the UI five-year plan anticipates spending to start next year and top $35 million, $54 million, and $66 million in fiscal 2025, 2026, and 2027, respectively.

After five years, the project’s cost is expected to reach $212 million, according to the facilities plan, paid for by investment income, donations, and university building funds.

UI Athletics intends to spend $56 million over the next five years on track, field hockey, softball, and baseball-related projects and improvements, according to the schedule. Those athletics endeavors, according to board documents, will be funded with both donations and bonding.

Including UIHC projects — but excluding any supported with state funds — Iowa’s three public universities mapped out $1.8 billion in facilities spending over the next five years.

State building requests

Regarding its ask for facilities support from the state, the Board of Regents wants the Legislature to commit $30 million a year for “building renewal projects” and another $30 million annually to meet existing debt obligations related to building projects.

In making that request, the universities committed to a 50 percent match of the $30 million in state building renewal funds, bringing the total dedicated pot for those improvements to $45 million a year — aimed at shrinking mounting deferred maintenance costs.

Although the regent schools over the past decade have spent an average of $33 million annually on renewal projects, that dipped to $23 million in fiscal 2021 and $22 million in fiscal 2022, “largely due to the unprecedented financial impact of COVID-19.”

Other university projects the board wants the state to help fund:

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com