Ball State Board of Trustees approved motions Wednesday to file a complaint with Delaware County to use eminent domain to obtain the proposed site of McKinley Commons.
The building that currently houses Hiatt Printing is wanted for the project. The university has looked at offering a space in the new facility to the shop's owner, Chris Hiatt.
Randy Howard, vice president for business affairs and treasurer, said he does not think the university can offer more money than the $400,000 proposed in April.
The university is in "good faith negotiations" with the property owner of the proposed site, Howard said.
The project will add 51 student housing units and 112 guest rooms. In addition, two restaurants and 7,000 square feet of meeting space will also be in the facility.
The site was chosen for multiple reasons, including its location next to the McKinley Avenue parking garage, to save on parking facility costs.
The building also will be in close proximity to the L.A. Pittenger Student Center, Applied Technology Building and the Village.
The hotel could be used to house visiting athletic teams or "official business" guests, such as those interviewing for a position at Ball State.
"Student rooms can be quickly converted to hotel rooms [during the summer]," Howard said.
The hotel can expect $4.1 million in revenue in the first year, Howard said. According to Financial Pro Forma, project revenue would exceed expenses, even in the first year.
The payroll for McKinley Commons employees would be around $2 million.
McKinley Commons is anticipated to open in Summer or Fall 2014.
Board of Trustees President Hollis Hughes said the project holds much promise for the university.
Howard showed a quote from Muncie Mayor Dennis Tyler speaking in support of McKinley Commons.
Hiatt did not speak up when the board offered the opportunity for the audience to speak. Mediation with Hiatt is scheduled for mid-October.
In addition to McKinley Commons, President Jo Ann Gora discussed current numbers at Ball State.
Gora said Ball State enrolled 3,622 new freshmen this year. Of the newly enrolled students, 14.3 percent were of an underrepresented ethnicity, which is up from 8.6 percent five years ago.
Although many students enroll in on-campus classes, there are 3,756 students, or 21 percent, taking online classes.
Gora also mentioned the recent controversy with Chick-fil-A.
"We will continue to keep an eye on the situation," she said.
The board discussed Studebaker East and its current status. Renovation is nearly complete with landscape being done. Crews are still working on showers for Americans with Disabilities Act accessibility.