In a historic decision, Millersville University's trustees voted unanimously Wednesday to pursue a purchase of the Pennsylvania Academy of Music building.

But whether the ailing academy itself would stay in the downtown landmark and rent space from its new landlord — the university — remains to be seen.

Millersville hopes to occupy the 42 N. Prince St. structure this July, assuming it can strike a deal with the building's owner and obtain financing from the state.

The university would spend up to $14.5 million to buy, renovate and equip the 63,000-square-foot building, located a door away from the Fulton Opera House.

The investment would give Millersville a permanent center city facility for the first time in its 155-year history while ending uncertainty about the fate of a key downtown building.

"Our vision is, this building, because it was financed with both public and private dollars, is a community asset," said Michael Warfel, chairman of Millersville's Council of Trustees.

"Our primary focus is preserving that building for the community," he said after the 9-0 vote.

In the near term, the university would use the building mainly for its visual and performing arts program while its Lyte Auditorium undergoes a two-year renovation and expansion.

Longterm, Millersville views the building three miles from its campus as a platform for giving its arts program a wider audience and fostering collaborations with area arts and education organizations.

University President Francine McNairy called the venture "an opportunity for the university to go beyond the parameters of its traditional geographical boundaries and to move forward with the city, the county and the region to expand an arts agenda."

"Why wouldn't we want to partner with the symphony, with the Fulton? Why wouldn't we want to partner with some of the colleges in the area? Why wouldn't we want to partner with school districts?" McNairy said.

"This is an opportunity that presented itself. It certainly is a challenge. But we believe we're up to the challenge."

University officials see the building, to be named the Lancaster Arts Center, housing music, theater and art classes, performances and exhibits.

Yet beyond the arts, it also would be used to teach other graduate and undergraduate subjects, replacing rented space at Liberty Place.

In addition, university officials hope to rent the building for events such as receptions and meetings in order to help make the building financially self-sustaining.

Mayor Rick Gray was delighted by the trustees' vote.

"It's great news," he said. "I see nothing but positives for the city, the county and Millersville. We're excited that the building is going to be used for its intended purposes."

The academy building is described as a world-class facility, developed at a cost of $32 million.

Among its main features are a 367-seat recital hall, a glass-walled "grand salon" and a top-floor atrium.

The nonprofit academy occupied the plush building in June 2008, with the help of a $6 million state grant, $1 million county grant, $18 million in loans and generous private donations.

But within a year, the 300-student academy was rocked by a financial crisis, triggered by its huge debt and a recession-induced plunge in donations.

As part of a complex financial restructuring, the academy gave the building back to its mortgage lender, Union National Community Bank, last December in lieu of foreclosure.

The bank has put the building up for sale while leasing it to the embattled academy, which is struggling to pay its bills and cope with a massive turnover in leadership.

If the Millersville plan becomes a reality, it's unclear whether the 21-year-old academy would share the space with the university.

"They need to take care of their organizational issues," McNairy said. "And certainly once they do that, we would be amenable to sitting down and discussing what opportunities might exist in the future."

"We look forward to the possibility of having a discussion with them," said Caroline Morton, the academy's vice chairman.

University officials, however, emphasized that academy participation is not needed for the project to go forward.

"The plan is to work it without them," said Roger Bruszewski, Millersville's vice president of finance and administration.

"But if they become a viable entity, we're more than willing to listen. But we're buying the building, not the academy."

Millersville has been discussing a possible purchase of the building with Union National since January.

Wednesday's vote gives the university administration permission to go ahead and complete a deal with the bank, contingent on getting funding through the Pennsylvania State System of Higher Education.

"We're very happy to hear about the action taken by the Council of Trustees. We look forward to continued discussions with Millersville," said Mark Gainer of Union National.

"I'm excited for Lancaster. I think it's great news for the community," added Gainer, the bank's chairman, president and chief executive officer.

Funding for the project could be considered by the state system's Board of Governors as soon as their next meeting, scheduled for April 8, said spokesman Kenn Marshall.

The state General Assembly also would have to pass a bill calling for the funding, Marshall said.

If those two hurdles are cleared, the final decision on the funding would be up to Gov. Ed Rendell.

Assuming the project goes forward, the building would need a number of renovations to make it suitable for the university.

These would include enlarging the loading dock, enlarging the kitchen (so catered events could be hosted there) and removing some interior walls to convert small studios into classrooms, Millersville officials said.

Other changes would include giving the building wireless Internet capability and equipping an empty space that was designed to be a recording studio.

"We are not going to change the character of the facility," emphasized McNairy. "It was designed as a visual and performing arts facility. That will be protected and respected."

In other business, the Millersville trustees approved a 6.9 percent increase in the cost of room and board for students living on campus.

The hike, effective next fall, will boost the cost of room and board by $266 per semester, from $3,883 to $4,149.

University officials previously blamed higher costs for salaries, electricity, food and pensions for the room-and-board boost.

In addition, the trustees approved a 19.8 percent increase in undergraduate fees, also effective next fall.

This hike of $137.50 per semester will lift the fees from $693.25 to $830.75.

Most of the increase will be earmarked to help pay for the expansion of the university's student center.

Tuition for the fall semester is expected to be set by the state in July.

tmekeel@lnpnews.com