I thought the M-II had warm-up studios, but I may have mis-read that.
I think the school thinks that it will be squeezed out this time, giving the increased demands of the ballet. It won't be a co-mingling. I'm guessing that in any case, some private money could be found to find space to create temporary studios for either the company or school, but for the students, it's important for them to be in the historic studios, with all of the history, the portaits, and the ghosts to instill a sense of continuity.
The problem is, that private money was already donated, spent and pocketed by those middlemen who stuck their fingers into the pie of the MT2. And the result is a building that does not, after --was it seven years?-- of construction, meet the needs of the ballet troupe. And so now people are scrambling to cover up the mess that could have been solved if someone had sat down for five minutes during the planning stage with the multi billions of dollars *just spent* for this specific purpose.
As an example of the poor layout, when you go to floor 2 or 3 or 4 of the MT2, there are huge corridors -- they are not hallways, they are vast open spaces (in the hallway). Then walls of tiny offices, millions of them, along the periphery. Empty rooms. Redesigning even 20% of ONE floor in the building would have created a single ballet studio. The footage (metrage) is massive. And - useless now. At least for the ballet. The opera is covered.
As an example also of what the ballet is dealing with: behind the actual stage there is a space equal to the dimensions of the stage space itself, to the right, to the left, and behind the stage (think of a "U" shape curving behind the stage). So basially five "blocks" or squares in the same dimensions of the stage. There are no mirrors or barres there -- one side (right) is a workshop with men building scenery. the other side (left) was/has been empty. So the ballet laid down a marley (the floor is not sprung!!) and in this black box, no mirror, no barre space, will rehearse ballets. Ratmansky had to do rehearsals for his DSCH ballet there...
But how convenient if they have to request more money to "redesign" the inside of the (still unfinished!) interior of the MT2. Then the construction companies, designers, everyone will pocket more money along the way, above the actual costs, and in addition to the people actually needed to do the work. Materials will be downgraded so middlemen can pocket money and rinse repeat.