University Business - November 2009 - (Page 32)

35 SMART Building ideas as collateral to borrow money. Revenue from room rents pays the debt service on the loan. the projects. The gift money is being invested and will be used to pay off the bonds over time. 19. Don’t give up hope on stimulus funds. The American Recovery and Reinvestment Act of 2009 provided hundreds of millions of dollars to education facilities for building enhancement, new construction, and more. Initially, “shovel-ready” projects—pre-existing proposals in search of funding—took precedence, and many of the submission deadlines have now passed. But there is money still available for building and infrastructure improvements, says Judy Marks, associate director of the National Clearinghouse for Education Facilities. Funding from the Treasury Department’s Build America Bonds program (see www.irs.gov/irb/2009-16_irb and click on “Notice 2009-26”) can be used for a wide range of projects, she says, including construction and modernization of higher education facilities. Additional dollars available for distribution are through Qualified Energy Conservation Bonds (see www.irs.gov /irb/2009-16_irb and click on “Notice 2009-29”). These bonds are awarded for capital expenditures that reduce energy consumption in campus buildings. Finally, there is still money available through the $2.4 billion Clean Renewable Energy Bond program (see www.irs .gov/pub/irs-drop/n-09-33.pdf ). The program allows state higher education facilities to apply for bonds to finance qualified renewable energy projects. 22. Raise funds through a foundation. Public universities must often cut through a lot of red tape to get capital projects approved, and desired special features may well get nixed. The College of William and Mary (Va.) needed more space for its Mason School of Business, and the institution now has it with Alan B. Miller Hall. The $75 million, just-completed project did not need the help of tax dollars, with the college contributing one-third of the funds and the rest being raised by the private Mason Business School Foundation. The foundation served as project leader and was responsible for the planning, timing, and cost of the operation. Designed by Robert A.M. Stern Architects, the building is awaiting LEED certification. Yet some sustainable amenities, such as the locally sourced roof and bricks from a nearby quarry, may not have been included had the project been funded by tax dollars. Halting construction was considered, but officials felt the projects were too important to the institution’s goals. Partner with government agencies to meet regional needs. This works especially well for facilities benefitting the broader community. George Mason University (Va.) officials partnered with Prince William County, the City of Manassas, and the state to jointly fund the $44 million Hylton Performing Arts Center, the first such building in the region. Each partner contributed its portion based on projected utilization: 60 percent for the county, 30 percent for GMU, and 10 percent for the city. GMU, which will own the building, also donated land. A board representing all the partners will be formed, and a permanent endowment will cover future operating expenses. Likewise, Eastern Kentucky University’s Center for the Performing Arts was funded jointly. The $30-plus million project costs were shared by EKU, the Commonwealth of Kentucky, the government of Madison County, and the cities of Richmond and Berea. The university, county, and cities will provide ongoing funding for general operations, which is the responsibility of a board representing each of the funding interests. Partner with a nonprofit. In a move that not only saves money but enhances collaboration, the $200 million Center of Excellence in Bioinformatics and Life Sciences at the University at Buffalo was built in conjunction with the Roswell Park Cancer Institute’s new Center for Genetics and Pharmacology. This allowed a larger complex to be built and brought the cost savings of shared common space. In addition, UB partnered with Kaleida Health, a regional health care provider, to piggyback its new $118 million Clinical Translational Research Center and Biosciences Incubator on top of a building under construction for universitybusiness.com Look to local banks. At Western New England College (Mass.), construction was beginning on a new 108-bed residence hall and planning had begun for a new 126,000-square-foot academic building. That’s when “the sharp realities of the economy became apparent,” says William Kelleher, vice president for finance. Halting construction was considered, but officials felt the projects were too important for fulfilling goals of enrollment growth and expanded academic offerings. The number of residence hall beds was increased to allow for an additional planned hall to be placed on hold, and then financing options for the academic building were explored. As one of the largest, most complex buildings on campus, it required external financing, but the credit markets weren’t favorable. Officials turned to local banks, which are generally willing to invest in the local economy. Working with a lead bank, officials developed a consortium of local banks to provide funds for a direct placement of the bond issue at attractive financing terms. 20. 23. 21. Turn to your trustees. In April 2007, the Centre College (Ky.) board of trustees accepted $22.5 million from a small group of trustees—a gift that provided a base to generate the $45 million needed to carry out “The Trustee Challenge.” Plans included construction of a campus center (completed this fall); expansion of the college’s primary science academic building, Young Hall (on which construction began in June); and refurbishment and renovation of a performing arts center (also completed this fall). The trustees conceived this idea, and their initial combined gift allowed the college to put together a bond issue, which provided funding for 24. 32 | November/December 2009 http://www.irs.gov/irb/2009-16_irb http://www.irs.gov/irb/2009-16_irb http://www.irs.gov/irb/2009-16_irb http://www.irs.gov/pub/irs-drop/n-09-33.pdf http://www.irs.gov/pub/irs-drop/n-09-33.pdf http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - November 2009

University Business - November 2009
Contents
Editor’s Note
College Index
Company Index
Advisory Board
Behind the News
Sense of Place
Viewpoint
Money Matters
Human Resources
35 Smart Building Ideas
Campus Fires: Prevent to Protect
Pushing ADA Beyond the Limits
Internet Technology
End Note

University Business - November 2009