The UW Board of Regents approved a larger budget for two new Business School buildings to be built on campus in 2010.

The new budget is estimated at $95 million — $15 million higher than the previous estimate.

Executive Director of Media Relations Norm Arkans said the rise in cost is due to a higher demand for construction in Seattle.

"The number of projects I've seen in such a small area is astounding," Arkans said. "We've come into a very competitive market for building, and costs are continuing to escalate."

Instead of scaling back plans on the project, the board decided it was more beneficial to increase the budget, Arkans explained.

Phase one of the project includes the construction of two buildings between Denny Hall and Balmer Hall, with a connecting atrium in the middle. Phase two will replace Balmer Hall and is scheduled to be completed by 2012.

Dean of Business Jim Jiambalvo said classrooms in the business department are currently outdated.

The new plan is to create classrooms with a steeply-tiered U-shape, which will allow for 30 percent more space.

"The new shape will be good for classroom discussions and helpful for case studies," Jiambalvo said.

In addition, 30 break-out rooms that can hold six to eight students each will be added. The rooms will be equipped with meeting tables, whiteboards and laptop hook-ups.

Assistant Dean for Developmental Relations Steven Hatting said the Department of Business is responsible for raising funds for the project.

Funds will also be provided by private donations from alumni and various corporations, such as T-Mobile and Ernst & Young.

The Foster Foundation committed $10 million to the project, the largest donation so far.

Hatting said these companies each have their own motivations for contributing.

"We are a lifelong interest to the community, and for some of these companies, anything we can do to advance the community is good for their interest," Hatting said. "Also, with better facilities we can better train these companies' future leaders."

Planning for the project originally began in 1990. However, due to a loss of staff, it lay idle for several years.

"During that time we had a dean resign, and an interim dean took over," Jiambalvo said. "It's difficult to raise money when you are an interim dean rather than a permanent dean."

To prepare for the department's expansion, five staff members were added last year, and an additional five will be hired in the next few years.

Hatting said these changes will provide a good destination for students on campus and will look positive to the community.

"We like to bring the business community into the Business School, and we want to send a good message as far as quality," Hatting said. "When they come to recruit students, they'll receive a better message."