The 106,000-square foot building, which will be finished by 2003, will be more that double the size of the college's Danvers Campus.

"I am delighted," said state Sen. Fred Berry, D-Peabody, directing his comments to the assembled student representatives. "You deserve a first-class educational environment," he told them. "Don't let anyone tell you any differently…(You) are the core workers of our new economy."

College President Wayne Burton credited Berry, among other public and education officials, for helping to Shepard the project's direction and financing.

The $25 million building will be paid for with state money and an $8 million loan from the Massachusetts Health and Education Finance Authority.

"As we break ground today, we open the door to a world of new possibilities," Burton said.

The three-story building will include classroom and office space, a cafeteria and student service space. It will be attached by a corridor to the 70,000-square-foot building already on the site. Congress Construction of Peabody was awarded the contract to build the new facility.

Other Speakers at the Friday ceremony included David Perini, commissioner of the state Division of Capital Asset and Management, which oversees the property; Charlie Wall, deputy Chancellor of the sate Board of Higher Education; and Kathleen Dwyer, president of the college's Board of Trustees.

The college, more than 30 years old, serves 23 surrounding communities and has satellite location in a number of them including Lynn, Gloucester, Beverly, and Topsfield.

The Ferncroft Road site, which holds many of the administration offices, is considered to be the college's headquarters.

With the opening of the Ferncroft Road building, the Sohier Road facility in Beverly, which was rented space, will likely close.

The college serves more than 11,000 students, providing associate's degrees and certificates in more than 70 fields and a variety of non-credit courses.