Board approves lease for student housing and revises capital-outlay priorities

The property and facilities committee presented two items: authorization for LSU Health New Orleans to lease about 15,504 square feet of apartment space from Cityscape Essen LLC to accommodate third- and fourth-year medical students during clinical rotations, and a revised first-year priority list for the system’s FY28–32 capital outlay request. The lease term is 3.5 years, initially accommodating 10 units in year one at an annual rate of $197,640 and expanding to 16 units in year two with an annual rate of $316,224 and a 2.31% annual escalation, according to the committee presenter.

The committee also recommended adding seven projects to and removing four projects from the capital outlay queue and reprioritizing some requests to emphasize research and access in light of HB2 changes during the 2026 legislative session. Both items were moved and approved by the committee members and sent forward as approved recommendations to the full board.

Why it matters: The lease moves to address student housing needs tied to clinical rotations and the capital-outlay revisions reflect shifting priorities for system infrastructure and research investments, which affect long-term campus planning and potential legislative funding requests.