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CORVALLIS - Oregon State University has signed a new 10-year lease with OSU Bookstore, Inc., that will keep the Bookstore products and services in the Memorial Union on campus through June of 2014.

The previous lease was scheduled to run out in June of 2004.

The new agreement culminates an extensive 18-month review and negotiation period that began with a pricing study for textbooks and supplies offered by the non-profit Bookstore and compared with major, national chains, according to Michael Henthorne, director of the Memorial Union.

"What we found is that the Bookstore is not only competitive with those national chains," Henthorne said, "it is significantly less expensive. Cost was only one part of the equation, however. The OSU Bookstore has been a valuable partner with the university and the Memorial Union for more than 85 years."

The OSU Bookstore occupies about 32,000-square feet in the east wing of the university's Memorial Union. During the negotiations, the university looked at alternative locations for a book store elsewhere on campus, and the Bookstore's management developed a contingency plan to move its products and services into property it owned on Monroe Avenue. As part of that plan, they hired a developer to raze a series of old buildings owned by the company and began developing the site.

Both sides reached an agreement to continue having the Bookstore on campus, however, and concluded that the Memorial Union was the most advantageous location for students.

"Leasing to the non-profit Bookstore means that money spent in the store remains on campus - and that contributes to the lower prices for students, as well as for staff, faculty and visitors," said Steve Eckrich, general manager and CEO of the OSU Bookstore. "I think it reflects well on the administration that students' pocketbooks were given such strong consideration in renewing our partnership."

During the pricing study, Henthorne discovered that the OSU Bookstore charged rates for new and used textbooks that were, on average, 8 percent less expensive than Follett stores, and 12 percent less than Barnes and Noble. Combined, the two chains operate about 1,200 college stores nationwide.

Eckrich said the Bookstore will proceed with its redevelopment plan for Monroe Avenue, and will begin looking to fill the commercial spaces with tenants who will appeal to a campus community. Investment income from that property will be used to keep textbook prices down, he added.