Dell, MSU-B deal given initial OK

The Montana State University-Billings College of Technology received unanimous initial approval
from the Board of Regents Friday to work with Dell Corporation to bring high-tech jobs and services to
Billings.

By ERICKA SCHENCK SMITH
Gazette State Bureau

An agreement with the computer company is not final, but MSU-B Chancellor Ron Sexton said he is fairly
confident Dell will be moving at least some of its operations to the College of Technology as early as July.
Ultimately, a deal with Dell could bring in 700 or more jobs for people working in a planned tech-support center.
Under a four-phase plan under consideration, the university would first convert about 5,000 square feet of
the College of Technology facility into space the company would use to test new products and services. During
the second phase, the college would convert another 10,000 square feet of space for training sales and
technical staff. The third phase requires construction of a 10,000 square-foot addition to the college to house
sales support.
The first three phases would bring in 200 to 250 jobs by September 2003, Sexton said.

The fourth phase would add a 50,000 square-foot building, where as many as 1,000 people would work in
technical support.
The regents’ approval Friday allows the first three phases to go forward. Sexton said the fourth phase is still
"very soft," adding that the company will not decide whether to do it until after the first three stages are
completed.
The company has recently added similar tech-support centers in Twin Falls, Idaho, and Austin, Texas,
Sexton said. Before building, the company got commitments from those two states to help pay for training new
workers, with the idea that the workers, even after they leave the company, will be an asset to the states.
Approval from the regents also allows MSU-Billings to spend $250,000 from its parking fund to buy eight
acres of land from School District 2 in Billings, obtain $755,000 in financing and spend $1.7 million on the new
addition and $600,000 on new parking. Sexton said the school has secured $2.5 million in grants for the
projects.
The entire project, including the fourth phase, could cost as much as $7.5 million, and Sexton said the
university is looking for private funding and grants.
Regent John Mercer, of Polson, asked Sexton for assurances that the state will not be obligated to pay back
the money the university will spend on the project if the company declares bankruptcy or the deal falls through.
"If I didn’t have confidence that I would be able to cover that issue, I wouldn’t have brought this proposal
forward," Sexton said.
Commissioner of Higher Education Dick Crofts said his office will continue to work with Sexton on the
project to ensure any agreement will avoid dumping costs on the state if something goes wrong.
Sexton said Dell is expected to decide whether to come to Billings by the end of next week.

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