USA Foundation awards $30 million to medical school project

“The College of Medicine is the foundation for USA Health and has consistently produced outstanding doctors for this state and for the underserved population of this state,” Roberts said.

The Medical Sciences Building on USA’s main campus was originally built in 1974 and was last renovated in 1996, but Roberts said the building continues to show its age, so the renovations will modernize the existing 232,000-square foot building and the addition will be a 65,000 square-foot, three-story building housing labs, learning studios and administrative offices.

The $30 million gift includes about $19 million in cash over the next six years plus $11 million in real estate. As part of the deal, the Foundation is turning over its final parcels of land at the Brookley Aeroplex. The university is expected to sell a 45-acre parcel of wetlands to the city of Mobile for $2 million, while the city will have the first right of refusal to purchase a 50-acre “prime development” parcel valued at $9 million.

The cash portion of the deal will provide $10,150,000 within 45 days, then five equal payments of $1,769,800 per year beginning next year, from the Foundation’s Disproportionate Share Hospital funds.

“The suggested renovations will bring the building into the 21st century,” Roberts said. “We think of it as a transformation gift that will really endure to everyone’s benefit and further our support of the University of South Alabama.”

Interim USA President John Smith expressed gratitude for the gift, which he called “much needed assistance for a very important project for the university.”

Smith said the university is currently working through details on construction, which will likely involve moving the educational component out of the building while work is underway. He said it is expected to cost as much as $130 million total.

USA Health spokesperson Casandra Andrews explained that the medical sciences building “has reached the end of its functional life,” and the expansion is necessary due to “changes in teaching environments, as well as the growth of our research enterprise, and the expected growth in both.”

USA Health has not yet determined how to finance the remainder of the estimated costs of construction.

“We will continue to seek other funding sources including private fundraising and possibly borrowing the balance,” Andrews wrote.

Dr. John Marymont, vice president for medical affairs and dean of the College of Medicine, said he was “extremely grateful” to the USA Foundation for its commitment, which “will allow us to construct a world-class facility that matches the quality of education provided by our faculty and the discoveries made by our researchers.”

Former Alabama State Treasurer John McMillan, chairman of the Foundation Board of Directors, said the project aligns with the Foundation’s principles.

“The University of South Alabama continues to be a transformational institution for the Gulf Coast region, the State of Alabama, and the southeastern United States,” he said. “Its College of Medicine serves as the core to USA Health. One of the basic tenants of the mission of the Foundation is to assist the University in supporting its academic programs. The Board’s decision to make this significant contribution supports that mission.”

The USA Foundation is an independent nonprofit created in 1968 to support the University of South Alabama, “balancing current contributions with future growth.” The Foundation listed net assets of some $435 million in June, with roughly $238 million invested in securities and $170 million invested in timber. Management and general expenses were .55 percent the last fiscal year, “well below the national norms,” according to a monthly report.

The Foundation has contributed more than $204 million toward the support of USA since 1990, primarily for academic programs, faculty support and student scholarships, including $10.8 million awarded in fiscal year 2020-2021.