Computer Science & Engineering Expansion (CSE II)

Transcription

1 STANDING COMMITTEES F 6 Finance and Asset Management Committee INFORMATION This item is for information only. BACKGROUND An update will be provided on the project status and on the fundraising relative to funds needed to start construction as scheduled in January FUTURE ACTIONS January 2017: Stage 2 Approval Project Budget Financing Plan Attachments 1. Project Summary 2. Building Renderings 3. Funding Strategy F 6/211-16

2 Stage 1 Actions: January 2015 Regent Actions Delegate authority to award design contract to LMN Architects Approve alternative public works contracting (GC/CM) Delegate authority to select the GC/CM and award preconstruction contract Stage 1 Actions: February 2016 Approve site (Development Site 16c) Approve preferred develoment alternative and mitigation effort Stage 2 Actions: January 2017 To provide collaborative research and teaching space to meet increasing demand for growth in the Computer Science and Engineering program for the next ten years and enable the program to remain competitive. Proposed Budget Approve budget, financing plan, and naming plan Delegate authority to award construction contract Objective Description Design and construct an approximately 135,000 gross square foot building to provide space for an additional 30 full-time faculty, associated postdocs, graduate students and researchers. The facility will have an undergraduate focus and foster interdisciplinary research and collaboration. The program includes 16 labs, a lecture hall, two classrooms, 3 seminar rooms, an event space, communal and study spaces, office and support spaces, and is planned for LEED Silver. Financials Proposed Funding Consultant Services 9,503,368 9% State Funds 17,500,000 17% Construction Cost 77,430,674 73% UW Building Fund 15,000,000 14% FF&E & Other Costs 12,020,943 11% UW Central Funds 4,000,000 4% Contingency 3,318,737 3% CSE Dept. Funds 3,000,000 3% Escalation 3,226,278 3% College of Engineering 2,000,000 2% Total Project Cost 105,500, % Gift Funding 45,300,000 43% Cost of Financing 105,000 UW Cash Reserves (backstop) 18,700,000 18% Total Costs 105,605,000 Total Funds 105,500, % *Funding plan as of Nov. 1 - see attached financing strategy Benchmarks Costs escalated to 2017 (project costs) Cornell University, William and Melinda Gates Hall (887/GSF) University of Texas Austin, Bill & Melinda Gates Computer Science Complex (1,048/GSF) Carnegie Mellon, Gates Center for Computer Science (608/GSF) University of Washington, Paul G. Allen Center for Computer Science and Engineering (713/GSF) Metrics & Indicators Current Targets Current Targets Net Assignable SF 77,366 77,006 Construction Cost/GSF Gross SF 135, ,820 Project Cost / GSF Efficency (NASF/GSF) 57% 58% Operating Cost / GSF Schedule F 6.1/ ATTACHMENT 1 Page 1 of 1

3 F 6.2/ ATTACHMENT 2 Page 1 of 1

4 Funding Strategy Computer Science is the #1 first-choice major of confirmed incoming UW freshmen, and has a bachelorslevel workforce gap in our state that is greater than all other fields combined. CSE2 will provide space for UW s highly-ranked Department of Computer Science & Engineering to double its degree production. The goal is to break ground on this high priority project early in 2017 and complete construction in Total project budget is 105.5M. Of this, 32.5M was appropriated by the state and 9M comes from UW sources, leaving 64M to be raised privately. Private fundraising was impeded by the fact that the availability of the site was not confirmed until July Since that time, progress has been rapid. Microsoft President Brad Smith leads the 14-person CSE Campaign Committee, working closely with CSE professor Ed Lazowska. Of the 64M to be raised privately, we currently have 45.3M pledged leaving 18.7M to be raised. Although confidence is high that the full 64M will be raised, in order to minimize risk to the UW, we are assessing the financial viability of the project against the funding guideline for capital projects. In this case, we would test the conservative assumption that no more fundraising will be done. This would require a commitment of a combination of central university and CSE cash reserves to fill in the remaining 18.7M. The chart below illustrates the difference between the planned funding for the project, and the more conservative approach according to the funding guideline: Sources of Funds State Equity Contribution State Building Account Appropriation University Equity (1) Gifts (2) CSE/Central Reserves (if necessary) (1) (2) Expected Plan 17,500,000 15,000,000 9,000,000 64,000, ,500,000 Funding Guideline 17,500,000 15,000,000 9,000,000 45,300,000 18,700, ,500,000 Includes 4 million from Provost, 3 million from CSE, 2 million from College of Engineering Reflects gifts committed as of 11/1/2016 F 6.3/ ATTACHMENT 3 Page 1 of 2

5 Many of the donors for this project are particularly credit worthy, making the commitments themselves less risky. In addition, the projected use of funds as shown in the cash flow diagram below means any potential gap funding will not be required for approximately 18 months, allowing additional time to fundraise: F 6.3/ Page 2 of 2