The University of Waikato plans to build a new multimillion-dollar campus in the heart of Tauranga, to cope with demand.
Eventually the campus will become a world-class research centre.
Expansion has been considered for the past six months because of increased demand for places at the Durham St satellite campus, said Vice-Chancellor Professor Roy Crawford.
University chiefs are trying to find a short-term solution and are hoping to lease an extra site before next June.
Bay of Plenty Polytechnic's Windermere campus, the Bongard Centre on Cameron Rd or a property in the CBD are being considered as options.
Over the next two years, the university will carry out a feasibility study into building a new campus.
Professor Crawford said achieving world-class research at a new campus would be slow, but would be an essential component of the university.
A Maori capability enhancement programme, designed with iwi of Tauranga Moana, would also be created to help Maori build entrepreneurial and business skills.
The University of Waikato, which has been offering degrees in Tauranga since 1999, has 270 full-time students at Durham St - 30 more than last year.
The decision to expand in Tauranga was welcomed by the Bay of Plenty Tertiary Education Board, which was formed this year and includes the Bay of Plenty Polytechnic and the SmartGrowth Implementation Group.
Board chairman Dr Alan Hampton said: "Tertiary education and research is pivotal to the future economic, social and cultural development of our region."
The planned expansion news comes just two months after the Bay of Plenty Polytechnic announced 14 new courses.
On top of two new degrees - Bachelor of Tourism and Bachelor of Social Practice - for 2007, Bay students will have the option of five new diplomas and seven new certificate qualifications.
The polytechnic has launched "flexi-learning" options so students can study while working.
- BAY OF PLENTY TIMES
Bay demand has university considering new campus
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