Open Forum on Student Debt Service Fees Initial Proposal
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1 Open Forum on Student Debt Service Fees Initial Proposal Wednesday, November 11, :30-1:30 p.m. Highsmith Grotto 6:00-7:30 p.m. Highsmith
2 Student Debt Service Fee Committee Voting Members: Dr. George Heard Professor, Chemistry Dr. Michael Gouge Faculty, Mass Communications Jeff Brown Chief Information Officer Robert Straub Director, International Student Services Maya Newlin SGA President Tayler Williams Student Emily Lindesmith Student Amina Kone Student Non-Voting Members: Dr. Bill Haggard Vice Chancellor for Student Affairs John Pierce Vice Chancellor of Administration & Finance David Todd Director of Campus Operations Stan Sweeney Director of SAIL Debra Schwartz Director of Campus Recreation Suzanne Bryson Associate Vice Chancellor for Finance Nancy Yeager Associate Vice Chancellor for Student Affairs Administration
3 Agenda Highsmith Feasibility Study Process Recommendations Financial Review Timeline/Next Steps
4
5 Process Student Affairs conducted a student survey on Highsmith University Union (Spring 2015) feedback from students on future needs for the student union in preparation of feasibility study Multipurpose room for dances, undergraduate research, career fairs, conferences Better space for student organizations and especially intercultural center Movie theater/auditorium Gender neutral and family restrooms Additional quiet spaces
6 Process Little Diversified Consulting and Workshop Architects performed Feasibility Study (June-July 2015)- Two Primary Objectives 1. Site selection for a multipurpose room 2. Review and redesign space allocation within Highsmith Survey results provided to consultants for initial student feedback Site and structural analysis Web conferences with different building user groups and operational staff (students, admissions, career services, center for diversity, student affairs groups, bookstore, dining, art gallery..) On-campus workshop with students and staff-feedback on 2 primary locations Core committee review and fine-tuning Presentation to and feedback from Chancellor (September 2015) Faculty feedback on initial recommendations (September 2015)
7 WORKSHOP
8 Recommendations Benefits of Multipurpose Room Location Between Brown Hall and Highsmith Independent, efficient addition that could be built while Highsmith is fully occupied and when opened utilized as a stand-alone venue for concerts, conferences, community events Direct access to Brown Hall for kitchen and catering operations. Proximity to the dining hall also allows for additional seating capacity for larger events and back-up dining capacity. Enhances front door experience of the building and opens up opportunity to connect with the Quad Initial cost estimates for this site were less, primarily due to reduced structural impact of existing building, no additional service elevator needed for catering operations to function, and adding needed plumbing fixtures is less complicated.
9 MULTIPURPOSE ROOM Great Room / Event Space 375 Seats for banquet 500 seats for lecture Daylight and views Pre-function Support
10 Recommendations Focus on Promoting and celebrating the unique cultural aspects of Asheville and UNC Asheville Developing a strong visual and physical connection to the outdoors Exploring connections to the Quad, the living room of the University Creating thick space in the building rather than thin space Encouraging community, collaboration and engagement (and hanging out ) Highlighting students student organizations, art gallery, intercultural center
11 Break down internal barriers Thin Space
12 Create opportunities for community, collaboration, engagement and fun Thick Space
13 Study B 2 2 1
14 STUDENT LIFE PORCH
15 Study B 3
16 Possible Future Projects Study B
17 PROJECT BUDGET SUMMARY (after latest cost estimation) 1. MULTI-PURPOSE ROOM ADDITION $6,807, OFFICE RELOCATION $378, STUDENT LIFE PORCH / OFFICE SHUFFLE $4,003,993 Packages 1-3 $5,958,969 $4,003,993 $378, MEETING $ SUITE + AUDITORIUM $2,181, DINING / LOUNGE $1,289, LOUNGE EXPANSION $1,511, HIGHSMITH FCAP $781,400 $10,341,792 $527,326 $10,869,118
18 Debt Service Fee Debt service fees are common to all campuses in the UNC system. They are used to pay the principal and interest on specific capital projects for the construction, renovation, or purchase of non-academic facilities designed for student use, such as student unions, dining halls, parking, and recreation facilities.
19 UNC Asheville General and Debt Service Fees Current Approved Increase Approved % General Student Fees Student Activity Fee $ $0.00 $ % Athletic Fee $ $22.00 $ % Student Health Fee $ $0.00 $ % Education & Technology $ $0.00 $ % Total General Student Fees $2, $22.00 $2, % Debt Service $ TBD TBD TBD Total Student General and Debt Service Fees $2, TBD TBD TBD
20 UNC System Debt Service Fees Comparison Debt School Service 1 UNC Greensboro UNC Charlotte Appalachian State University North Carolina State University Western Carolina University Winston-Salem State University North Carolina A&T State University UNC Wilmington East Carolina University Fayetteville State University UNC Asheville UNC Pembroke North Carolina Central University University of North Carolina School of the Arts UNC Chapel Hill Elizabeth City State University 0.00 Average Excluding Elizabeth City State Univ Average Including Elizabeth City State Univ
21 Debt Service Scenario Highsmith Union Renovation Finance Retiring Debt Service Fee 30 Yr 10 Yr Annual Inflation from % 3.50% Amortization Years Interest Rate 5.50% 5.50% Project Completion Date Aug-18 July Cost $10,869,118 $856, Cost $11,249, Cost $11,643,271 Financing Costs $121,729 $8,955 Total Highsmith Union Reno $11.76M Finance Retiring Debt $.86M Project Cost with Inflation $11,765,000 $865,535 $12,630,535 Annual Debt Service Requirement Before Coverage $809,495 $114,829 $924,324 Debt Service Fee Coverage at 10% $890,444 $126,312 $1,016,756 Enrollment (Full Time Equivalent FTE) 3,500 3,500 3,500 Debt Service Fee Increase $255 $36 $291 Debt Service Fee Reduction ($134) Net Debt Service Fee Increase $157
22 Debt Service Fee Fee Proposed Fee Increase Proposed Fee $251 $157 $408
23 Next Steps/Timeline Discuss debt service fee project (Highsmith Renovation) with students as part of fee process in November SGA provides feedback and recommendation Student Debt Service Fee Committee makes recommendation to Senior Staff on November 17 Senior Staff makes recommendation to BOT Committees November 18 Combined Student Affairs and Finance & Administration BOT Committees review Senior Staff proposal on November 18 Board of Trustee discussion of projects and recommendation to Board of Governors December meeting Bd. of Governors consideration January and February meetings Legislative approval of self liquidating projects 2016 short session
24 Questions?
OPEN FORUM ON STUDENT TUITION & FEES. 10/16/18 12:00-1:00 PM and 6:30-7:30 PM Highsmith Alumni Hall
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