Hoisting shovels are, from left, Bill Stensrud, Marye Anne Fox, Martin Sabarsky, Bob Sullivan and Ernest Rady. (photo/Melissa Jacobs)

UCSD’s Rady School of Management is one step closer to a permanent home, says the business school’s founding dean, Robert Sullivan. With a ceremonious turn of the shovel, business and academic leaders on Jan. 21 celebrated the impending construction of the Rady School’s new $31 million headquarters — the first of its kind at the university to be funded entirely by private contributions.

“It’s truly a magical day,” UCSD Chancellor Marye Anne Fox says, noting the Rady School will transform how students think about education, innovation and entrepreneurship.

The business school, with a particular emphasis on science and technology, was established in 2001 and admitted its first MBA class of working professionals in September. A full-time MBA program is to begin this fall. The school so far has been housed at UCSD’s Pepper Canyon Hall.

The new 50,000-square-foot building will be just north of Eleanor Roosevelt College and was designed by Minneapolis-based Ellerbe Becket. It’s slated for occupancy in fall 2006. Enrollment by 2011 is expected to exceed 1,100 full-time, part-time and doctorate students.

The building is to be called Otterson Hall, in honor of the late William Otterson, who co-founded UCSD Connect. William and Carol Stensrud have donated $5 million to the school in Otterson’s name and have challenged others to pledge matching funds. William Stensrud is a managing director and general partner at Enterprise Partners Venture Capital. The true homage to Otterson won’t be the building, but the work that is done inside, Stensrud says. “The landscape of San Diego will bear the marks of his work.”

Major contributors include lead benefactor Ernest Rady, founder and president of privately held finance and realty conglomerate American Assets Inc.; the Otterson family; Burnham Real Estate Chair Malin Burnham, with his wife Roberta; Qualcomm Inc. Chair and CEO Irwin Jacobs, with his wife Joan; Integrated Software Systems Corp. founder Peter Preuss with his wife Peggy; Forward Ventures and Silicon Valley Bank.

Although this initial building phase is expected to require $31 million, the Rady School’s total funding needs are estimated to be $201.5 million. The school hopes to find money for specialized centers within the school, at a cost of about $35 million, and a second building phase tagged at $50 million.

— Jennifer McEntee