CLEVELAND, Ohio - The Rascal House, a hangout for Cleveland State University students since 1980, will move a few blocks west on Euclid Avenue so that the building now housing the landmark pizzeria can be razed to make space for CSU's new Center for Health Innovation.

Owner Mike Frangos will receive $3.3 million for the building on Euclid Avenue and East 21st Street that houses the restaurant and Peabody's Concert Club.

CSU will also provide $1.9 million so Frangos can build a new Rascal House in the Union Building at 1836 Euclid Ave., which the university leases. The new restaurant will open by November and the current location will close at that time, said Niko Frangos, Mike's son and director of concept development.

Peabody's which has leased the space since 2001, will relocate, said owner Chris Zitterbart said. The club, which features local and national bands, will be open through October, then move to a new location in Cleveland. The specific site has not been chosen, he said.

The new Rascal House will include more amenities for students, including power outlets for laptops and high-speed Wi-Fi. The building will also house the corporate headquarters for the five-restaurant chain and catering business

"Rascal House has been a major part of CSU's culture for so many years," Stephanie McHenry, CSU's vice president for business affairs and finance, said in a press release. "They are one of the university's longest supporters of athletics and scholarships."

Frangos said the university is a great partner and understands the significance of Rascal House.

"It is a landmark," said Frangos, who has helped in the restaurant since he was 9 years old. "People have come to know it as a homegrown, hometown company that has grown with the university and Cleveland."

CSU is providing the space for the restaurant rent-free for 15 years and seven years of rent-free space for the offices upstairs, said CSU spokesman Joe Mosbrook.

The eight-story historic Union Building, which was originally built in 1905, recently underwent an $18 million renovation. The Northeast Ohio Medical University (NEOMED) and CSU occupy most of the building.

The Center for Health Innovation will soon be under construction at the site of the former Viking Hall dormitory and Wolfe Music building, just west of the Rascal House. It is scheduled to open in 2015.

CSU and NEOMED formed a partnership in 2011 that allows up to 35 CSU students a year to enter NEOMED. About half the curriculum will be taught at CSU or at Cleveland-area health facilities.

Frangos said it is exciting to grow as CSU grows – because the two have been linked since the restaurant opened across from campus in 1980.

He said his father chose the restaurant's name because he called his children rascals.

"And the community [of students] across the street was an extension of his kids," he said.