Cincinnati State officials have signed a contract with a private partner that paves the way for the opening of classes in downtown Middletown by the start of the 2012 Fall Semester.

The agreement between Cincinnati State and HEP-CSTCC Ohio, LLC is the first of its kind in the state of Ohio. In broad terms, it is a public-private partnership that makes the College responsible for academic operations while putting HEP in charge of building renovations and certain operational aspects of the project.

“We’re tremendously excited about the opportunity to extend our presence into the Middletown community,” said Cincinnati State President O’dell M. Owens. “We’ve been listening carefully and we are developing a package of courses that we believe will address the educational and workforce needs of the region. We’re enthused about our partnership with HEP and the city of Middletown.’’

Cincinnati State plans to open in the former Cincinnati Gas & Electric building at 2 North Main Street in downtown Middletown. It is one of several properties donated to or otherwise acquired by the city and offered to the College.

Cincinnati State has been involved in detailed explorations about the potential of an expansion into Middletown, and last autumn Dr. Owens unveiled a proposed public-private partnership with HEP described as protecting the College from financial risk while providing a mechanism to fund the necessary renovations. The Cincinnati State Board of Trustees approved a non-binding agreement with HEP in September, 2011; planning has been underway since then while the parties negotiated and the Ohio Attorney General’s office reviewed a contract.

Among the highlights of the contract between Cincinnati State and HEP that has now been signed:

• HEP will be responsible for the build-out of the project, as well as the operation and maintenance of the building. (The partnership anticipates that Cincinnati State will initially utilize the first, second and parts of the sixth floors of the former CG&E building, as well as the basement.)
• Cincinnati State will be responsible for academic decisions, including the design, development and adoption of academic programs, admission of students and recruitment and selection of faculty and staff.
• HEP and Cincinnati State will make joint decisions on such matters as marketing and promotional events.
• HEP will ensure that there are sufficient funds to cover 105 percent of Cincinnati State’s direct expenses for the Middletown project. In return, HEP will be entitled to then recover its direct costs and overhead, plus a 15 percent service fee, from any net revenues that arise from the Middletown operation.

The initial term of the contract is 20 years.

HEP-CSTCC Ohio, LLC is a limited liability company affiliated with Higher Education Partners, headquartered in New Bedford, Mass. The parent organization has launched similar projects with colleges in the Northeast, and is currently in talks with schools at other locations in Ohio. As with Middletown, HEP’s other projects incorporate a significant element of urban revitalization.

Cincinnati State (www.cincinnatistate.edu) offers more than 75 associate degree and certificate programs in business technologies, health and public safety, engineering technologies, humanities and sciences and information technologies. About 10,600 students are enrolled in the 2012 Winter Term. Cincinnati State has one of the largest cooperative education programs in the United States.