TABLE OF CONTENTS I. Executive Summary Summary...1 II. Context History and Profile... 3 Mission, Vision and Values...4 Strategic Plan and Academic Strategic Plan... 5 III. Ten Year Facility Plan (10YFP) Approach and Overview A. Long Term Physical Development Context... 6 Major Institution Master Plan B. Advisory Groups... 6 C. Broad Engagement... 7 D. Planning Variables... 7 1. Prioritization... 8 2. Funding...10 3. Operating Costs...10 E. Annual 10YFP Updates...10 IV. Advisory Groups A. Campus/Program Space... 11 1. Instructional Space...11 2. Student Support Spaces...12 3. Academic and Administrative Office Space...12 4. Office and Program Space Opportunities...13 5. Space Governance... 14 B. Center for Science and Innovation (CSI)...15 1. Overall Summary...17 2. New Science Building...18 3. Bannan Renovation...19 4. CSI Enabling Projects University Services Building...20 (USVC) Relocation Plan CONTINUED
C. Athletics and University Recreation... 21 1. Strategic Plan...21 2. Completed Projects...21 3. Feasibility Studies... 22 a. Event Center... 22 b. Student Athlete Development Center... 22 D. Housing/Food Services...23 1. Student Housing... 23 a. Student Demand for Housing... 23 b. Student Housing Master Plan... 25 c. Interim Housing Yobi Apartments... 25 d. Student Housing Phase 1 at 1107 East Madison... 26 2. Faculty Housing... 27 3. Food Services... 28 a. Food Services Master Plan Recommendations... 28 b. Future Planning... 28 E. Real Estate...29 1. Acquisitions... 29 2. Dispositions... 29 3. Leasing Strategy... 29 4. Real Estate Asset Planning...31 F. Deferred Maintenance...33 1. Utility Master Plan...34 a. Utility Loop Project (Tier 1)...34 2. Campion Renovation (Tier 2)... 35 G. Finance...36 1. Detailed 10YFP Budget...36 2. Unallocated Capital Reserves...36 3. 80/80 Policy for Initiating New Construction... 37 CONTINUED
V. Exhibits II.C-01 Seattle University Strategic Plan 2013 2018 II.C-02 Academic Strategic Action Plan (1.0), 2009 2014 IV.A-01 2014 Teaching Space Utilization Study IV.A-02 2013 Office Space Study IV.A-03 Office Space Guidelines IV.A-04 Space Governance Committee Charter IV.C-01 Athletic and University Recreation Strategic Development Plan, Final Report September 2014 IV.D-01 Student Housing Strategy Group Charter IV.D-02 Housing Peer Review and Conceptual Programming, Final Report September 2015 IV.D-03 Campion Hall Condition Assessment and Feasibility, Study Final Report June 2016 IV.D-04 Food Service Strategy Group Charter IV.D-05 Strategic Dining Master Plan Report, February 2016 IV.E-O1 Real Estate Asset Planning (REAP) Group Charter IV.F-01 Deferred Maintenance List Tier 1 IV.F-02 Deferred Maintenance List All Tiers IV.G-01 10YFP Financial Model IV.G-02 Policy to Initiate Capital Construction ( 80/80 Rule )
LIST OF TABLES & FIGURES TABLES III.C-01 Broad Engagement...7 III.D-01 Prioritization Tier I Projects FY15-FY26... 8 III.D-02 Prioritization Tier 1 Provisional Projects... 9 III.D-03 Prioritization Tier 2 Projects... 9 III.D-04 Prioritization Tier 3 Projects... 9 III.D-05 Operating Costs (Tier 1 Projects)... 10 IV.A-01 Instructional Space Types...11 IV.A-02 Office Space Opportunities...13 IV.B-01 CSI Funding Plan...17 IV.B-02 CSI Enabling Projects Plan (USVC Relocations)...20 IV.D-01 5-Year Change in Undergraduate Demographics,...23 Fall 2010 - Fall 2015 IV.D-02 Retention and On-Time Completion Rates for Residential...23 Students, Fall 2004 - Fall 2010 IV.D-03 Unmet Housing Needs, Fall 2015... 24 IV.D-04 Food Services Recommendations...28 IV.E-01 Current Lease Operating Costs and Disposition Plans...30 IV.E-02 Real Estate Asset Planning (REAP) Development Site Uses...32 IV.F-01 Deferred Maintenance Summary by User Group... 35 IV.F-02 Deferred Maintenance Costs by Residence Hall... 35 FIGURES I-01 10YFP Projects and Funding Sources FY15-FY26...2 I-02 Tier 1 Capital Spending by Project FY15-FY26...2 II.A-01 Seattle University Campus Facing West/Southwest...3 III.B-01 Advisory Groups... 6 IV.B-01 CSI New Building Concept and Site Context...15 IV.B-02 CSI New Building Concept and Site Orientation...16 IV.B-03 CSI New Building Interior Concept...16 IV.B-04 CSI Bannan Addition Concept and Site Context...19 IV.C-01 Connolly Center Renovation...21 IV.D-01 Yobi Apartments...25 IV.D-02 Housing Phase I Site Map and Building Concept: 1107 Madison...26 IV.E-01 Real Estate Asset Planning (REAP) Potential Development Site Map...32 IV.F-01 Annual Maintenance Investment Targets (Sightlines 2015)... 33 IV.F-02 Deferred Maintenance by User Group... 35 IV.G-01 Capital Allocations and Unallocated Capital Reserves... 36 (UCR) Balance FY17 FY26
I. EXECUTIVE SUMMARY
SEATTLE UNIVERSITY S TEN YEAR FACILITIES PLAN (10YFP) provides a roadmap for guiding campus capital investments for major space and funding resources. A rigorous process has been used to assess space needs in focus areas, prioritize major capital projects according to the University s strategic goals, and balance capital needs with financial feasibility. The plan is intended to be flexible to adapt to changing needs or priorities and will be updated annually. The campus community has been broadly engaged in the development of the comprehensive 10YFP. This report documents progress made in fiscal year 2015 (FY15) and FY16 on major projects and the future plan for FY17 through FY26 as summarized in the following figures. 10YFP REPORT SEPTEMBER 2016 I PAGE 1
FIGURE I-01: 10YFP PROJECTS AND FUNDING SOURCES FY15-FY26 CAPITAL FUNDING PROJECT BY SOURCE FY15-FY26 ($M) $45.0 $75.9 $.03 $100.0 Capital Campaign - CSI Non-CSI Gifts Unallocated Cap Reserves Debt Funding Summary (FY15-FY26) $M Capital Campaign (CSI) 100.0 Capital Campaign (Other) 0.3 Unallocated Capital Reserves 75.9 Debt 45.0 Total Cost (FY15-FY26) 221.2 Prior Years Allocation (including FY16) 13.7 Next Ten Years: FY17 FY26 207.5 Total cost from FY15 FY26 is projected at $221M and funded from a combination of Capital Campaign ($100M+), Unallocated Capital Reserves ($76M), and Debt ($45M). FIGURE I-02: TIER 1 CAPITAL SPENDING BY PROJECT FY15-FY26 $11.5 $13.0 $8.5 $14.0 $8.5 $20.7 $0.5 $5.7 $139.0 CSI Connolly Title IX Other Tier 1 Projects Deferred Maintenance Provisional Tier 1 Deferred Maintenance Other Provisional Tier 1 Projects Tier 1 Annual Projects - TBD Other Closed/Completed CSI Bridge Financing TIER 1 CAPITAL PROJECTS FY15-FY26 ($M) Tier 1 Capital Project Spending ($M) CSI $139.0 Connolly Title IX $8.5 Other Tier 1 Projects* $14.0 Deferred Maintenance $11.5 Provisional Tier 1 Deferred Maintenance $8.5 Other Provisional Tier 1 Projects $13.0 Tier 1 Annual Projects - TBD $20.7 Other Closed/Completed $0.5 CSI Bridge Financing $5.7 Total $221.2 *Other Tier 1 ($M) NCS/ Adult Degree Completion 0.6 6th Floor Engineering Backfill 3.2 1313 Columbia Lower Level - Phase I 1.0 Campus Utility Loop 6.0 1107/1111 Madison Projects 2.3 Public Safety Improvements 0.9 Total $14.0 10YFP REPORT SEPTEMBER 2016 I PAGE 2
II. CONTEXT
HISTORY AND PROFILE Founded in 1891, Seattle University is a multi-disciplinary, independent Jesuit Catholic university. The University owns 39 buildings totaling 2.2 million square feet across 50 acres in the urban center of Seattle, Washington. The University enrolls more than 7,400 undergraduate and graduate students within its nine schools and colleges, and employs more than 1,500 faculty and staff. The university is nationally recognized for its academic excellence, service to the community, and commitment to social justice. FIGURE II.A.-01: SEATTLE UNIVERSITY CAMPUS FACING WEST/SOUTHWEST 10YFP REPORT SEPTEMBER 2016 I PAGE 3
MISSION THE UNIVERSITY IS DEDICATED TO EDUCATING THE WHOLE PERSON, TO PROFESSIONAL FORMATION, AND TO EMPOWERING LEADERS FOR A JUST AND HUMANE WORLD. VALUES CARE, ACADEMIC EXCELLENCE, DIVERSITY, FAITH, JUSTICE AND LEADERSHIP VISION SEATTLE UNIVERSITY WILL BE THE PREMIER INDEPENDENT UNIVERSITY OF THE NORTHWEST IN ACADEMIC QUALITY, JESUIT CATHOLIC INSPIRATION, AND SERVICE TO SOCIETY. 10YFP REPORT SEPTEMBER 2016 I PAGE 4
STRATEGIC PLAN AND ACADEMIC STRATEGIC ACTION PLAN Seattle University s Strategic Plan (Exhibit II.C-01) was adopted in 2013 and sets direction for the University through 2018. This five-year plan balances the pursuit of new directions with solidifying the essence of Seattle University as a Jesuit university. The plan s four primary goals outlined below inform operational planning throughout the University, guide budgeting and resource allocation, and serve as a foundation for the capital campaign: 1. Strengthen capacity to provide a high-quality and transformational education rooted in the Jesuit tradition; 2. Prepare graduates to lead meaningful and successful professional lives; 3. Meet the challenges and opportunities of the changing educational and economic environment; and 4. Realize an infrastructure that supports excellence and innovation in all facets of our education. Priorities supporting this goal include: a. To grow and further distinguish our programs in the fields of STEM and health sciences, we will design and build innovative science facilities. b. To support our educational programs, prepare our graduates to meet the challenges of a technical world and enable the university to operate efficiently, we will significantly invest in our technology infrastructure. c. To create a welcoming and high-functioning environment, we will develop, improve and maintain the physical infrastructure of the university in accordance with our strategic priorities. The Ten Year Facility Plan (10YFP) directly supports Goal 4 in the University s Strategic Plan by investing in the new construction and renovation of innovative science facilities, technology infrastructure, and the physical infrastructure of the University to create a welcoming and high-functioning environment that supports excellence and innovation in education. Before the development of the University s Strategic Plan, the 2009 Academic Strategic Action Plan 1.0 (Exhibit II.C-02) presented initiatives to advance educational goals. Initiative #4: Instructional Spaces and Campus Facilities, identified key action items to directly support learning goals and student enrollment. The 10YFP addresses the following action items highlighted in the Academic Strategic Action Plan 1.0. Build and equip a Center for Science and Innovation Inventory all instructional spaces, assess their utilization, and prioritize and fund renovation, replacement or repurposing Bring the Student Recreation and Eisiminger Fitness Center online Create sufficient residence units Develop a comprehensive and integrated capital project plan which includes new construction, facilities repurposing, deferred maintenance, appropriate funding, and which is updated annually. The Academic Strategic Action Plan 2.0 was updated last year and is being reviewed by Academic Affairs. 10YFP REPORT SEPTEMBER 2016 I PAGE 5
III. TEN YEAR FACILITY PLAN APPROACH AND OVERVIEW III. TEN YEAR FACILITY PLANAPPROACH AND OVERVIEW
The 10YFP process is a continuous and iterative process that evaluates capital needs identified by the University s strategic and academic plans and assesses alternatives to meet those needs in the context of anticipated capital resources. The process provides opportunities for participation by students, faculty, staff, the administration and trustees. The 10YFP process provides decision support information to assist in determining priorities for the allocation of capital resources and creates a roadmap for the implementation of future projects. It assures transparency and accountability for managing capital resources. The goals of the 10YFP are to: Support long term growth and development of the University Develop a better understanding of how well facilities support the needs of the University Prioritize new facilities spending to meet the University s mission and financial resources Invest in and support the long term viability of the University s physical plant The ten year facilities plan approach broadly engaged the campus community through seven advisory groups and periodic updates to the administration, faculty, staff, students, and the Board of Trustees. Projects were categorized based upon an evaluation of funding feasibility, priority and the impact on operating costs. A. Long Term Physical Development Context Major Institution Master Plan Seattle University s physical growth is guided by the Major Institution Master Plan (MIMP) approved by the Seattle City Council in 2013. The purpose of the MIMP is to support the growth of the University while also minimizing the impact of development on the neighborhood. The MIMP guides the long term development of 2,145,000 square feet of additional space for the campus in terms of land use, open space, density of development, primary circulation systems and linkages with the surrounding community. At the same time, the plan is flexible enough to accommodate growth and changing programmatic needs. B. Advisory Groups Advisory groups (Figure III.B-01) were established in seven focus areas to assess needs and develop recommendations for approval by the Cabinet and Trustees. The advisory groups are comprised of representatives from staff, students, faculty, and selected trustees and facilitated by Facilities Administration. The approved recommendations and project proposals were compiled into a draft 10YFP using three key planning variables: funding, prioritization and operating costs. The draft plan was then presented to the campus community for comments (see Table III.C-01: Broad Engagement). FIGURE III.B-01: ADVISORY GROUPS Ten Year Facilities Plan Campus/Program Space Center for Science & Innovation Athletics/University Recreation Housing/Food Services Real Estate Deferred Maintenance Finance 10YFP REPORT SEPTEMBER 2016 I PAGE 6
C. Broad Engagement The draft 10YFP and approach was presented to students, faculty, staff, the administration and trustees for comments and questions. The general direction, approach and projects in the plan were well received and supported. There is wide-spread concern about the availability and pricing of housing. There is also concern about the shortage of faculty offices. Community groups reiterated the importance of designing future buildings or renovations to promote active uses of the street and welcome neighbors and visitors. The following table highlights groups that reviewed and commented on the 10YFP. TABLE III.C-01: BROAD ENGAGEMENT GROUP DATE Board of Trustees and Committees Nov. 2015, Feb. 2016, May 2016 Cabinet November 2015, June 2016 Academic Assembly January 2016 Council of Deans February 2016, August 2016 Budget Advisory Committee February 2016 Alumni Board of Governors March 2016 Faculty/Staff/Student For a April 2016 (three fora) Community Groups (Phase 1 Housing) MIMP Standing Advisory Committee March 2016, June 2016, August 2016 12th Avenue Stewards April 2016 Facilities and Technology Committee August 31, 2016 Finance Committee September 14, 2016 Board of Trustees September 15, 2016 D. Planning Variables Capital needs and project proposals are reviewed with the Cabinet and Trustees for inclusion in the 10YFP. Each project is assessed in the following areas referred to as planning variables. 1. Prioritization The University s strategic plan determines priorities for capital needs and projects. Options are assessed to meet these needs to assure that a project is the best alternative. 2. Funding Total University resources as well as specific project funding sources must be balanced with capital needs. The 10YFP aligns the fund sources for each Tier 1 project. Each project must still be authorized through the university s regular capital approval process. 3. Operating Costs The impact on the operating budget for each project if it is funded and built must be estimated, planned for in future operating budgets, and approved in the annual operating budget process. 10YFP REPORT SEPTEMBER 2016 I PAGE 7
1. PRIORITIZATION Major project requests are sent by the deans and divisional heads for consideration for funding by the Cabinet. If approved, capital projects are prioritized based on the University s strategic goals and availability of funding. Accordingly, projects are categorized into one of three Tiers defined as follows. Tier I: Projects identified as the highest priority for the University. The project is feasible and funding has been identified. Funding must still be allocated for each project through the usual capital budget authorization process. As an example of a Tier 1 project, the 10YFP supports construction of the Center for Science and Innovation (CSI) and the projects necessary to enable construction of the CSI. The University s strategic plan prioritized providing innovative science facilities and the Academic Strategic Action Plan prioritized building the CSI. Tier I Provisional: Projects identified as a high priority for the University. Funding for these projects is contingent upon approval of annual growth of $.5M per year in Unallocated Capital Reserves. Tier II: Projects identified as a high priority for the University but a viable funding source has yet to be determined Tier III: All other projects. Projects by Tier are shown in the following tables. TABLE III.D-01: PRIORITIZATION TIER I PROJECTS FY15-FY26 TOTAL PROJECT PROJECT FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 COST ($M) Center for Science and Innovation New Science Building $ 88.0 Bannan Renovation $ 36.5 Enabling Projects (USVC Relocations) $ 14.5 Bridge Financing for CSI $ 5.7 Connolly Center (Title IX) $ 8.5 NCS/Adult Degree Completion $ 0.6 6th Floor Engineering/Data Center Relocation $ 3.2 1313 Columbia Lower Level - Phase I $ 1.0 Deferred Maintenance $ 11.5 Original target was $20M over 10 years Campus Utility Loop $ 6.0 1107/1111 Madison Projects $ 2.3 Public Safety Projects $ 0.9 Tier 1 Provisional Projects $ 21.5 Tier 1 Annual Projects - TBD $ 20.7 Closed and Completed Projects $ 0.5 TOTAL $ 221.2 The University s fiscal year is July 1 through June 30. For example, fiscal year 2016 (FY16) begins July 1, 2015 and ends June 30, 2016. Cash Flow or 80/80 Schedule Constraint Planning Construction Complete 10YFP REPORT SEPTEMBER 2016 I PAGE 8
TABLE III.D-02: PRIORITIZATION TIER 1 PROVISIONAL PROJECTS (IF FUNDING IS APPROVED) TIER TIER 1 1 PROVISIONAL PROJECTS ROUGH ORDER OF MAGNITUDE ROUGH ORDER (ROM) OF MAGNITUDE (ROM) $M $M Deferred Maintenance $ 8.5 (balance of $20m not funded in Tier 1) Classroom A/V Refresh $ 3.2 Library Renovation $ 3.0 Casey 5th Floor Renovation Faculty Offices $ 0.5 Food Service Projects $ 3.0 Law School Annex Renovation $ 1.5 ADAL Backfill/Repurpose for University Advancement $ 1.8 TOTAL $21.5 TABLE III.D-03: PRIORITIZATION TIER 2 PROJECTS TIER 2 PROJECTS Campus Identity Campus and building signage/branding Disability Services Space Improvements Inclusive Excellence Facilities Recommendations Real Estate Asset Plan (REAP) Broadway Development Student Athlete Development Facility (gift funded) Student Housing Phase 2 New 400 Bed Residence hall Phase 3 Campion Renovation COMMENTS 1. Prioritized but no funding source identified 2. ROM will be developed as funding allows 3. Projects listed in alphabetical order TABLE III.D-04: PRIORITIZATION TIER 3 PROJECTS TIER 3 PROJECTS 1300 Building Repurposing Additional Deferred Maintenance Backlog Administration Building Renovation CSI: Interim Research lab Needs Loyola Hall Renovation NCS/Adult Degree Completion (Phase 2) SU Museum of Art COMMENTS 1. Not prioritized or funded 2. Placeholder pending assignment of prioritization and identification of funding 3. Projects listed in alphabetical order 10YFP REPORT SEPTEMBER 2016 I PAGE 9
2. FUNDING Total funding included in the 10YFP is $ 221.2 million dollars including all SU fund sources and prior expenditures for projects included in the plan. Total funding for the next ten years (FY17 FY26) is $207.5M. $13.7M has already been allocated for major capital projects included in this plan. Major fund sources for capital projects are defined below. Capital Campaign CSI The Center for Science and Innovation (CSI) was prioritized as the highest priority for campaign gifts. The Capital Campaign has set a fundraising goal of $100 million for this project. Non CSI Gifts Gifts raised outside of the campaign goal for CSI; these are restricted gifts designated to a specific project by the donor. Unallocated Capital Reserves (UCR) A reserve account funded by annual transfers from the operating budget to support long term capital needs. In addition, a portion of the annual operating budget surplus, if any, is used to fund UCR. Debt $45 million of bonds are planned to be issued for capital projects with the majority of debt dedicated to the CSI project, enabling projects and bridge funding until the receipt of gift pledged funds. Private debt and equity A partnership in which the University leases the land to a private developer who is responsible for the financing, design, build, operations and maintenance of a building to meet SU s space needs. The developer costs are not included in the 10YFP; costs that are the responsibility of SU (i.e. tenant improvement costs) are included. Seattle University s policy for authorizing the start of capital construction is referred to as the 80/80 Rule: 80 percent of campaign funds must be pledged and 80 percent of the project s funding from all sources shall be available for expenditure before construction will be authorized to proceed. (Exhibit IV.G-02 Policy to Initiate Capital Construction). 3. OPERATING COSTS The impact on the operating budget of implementing the projects identified in the 10YFP must be considered. Costs were estimated in Table III.D-05 for Tier 1 projects for building-related operations and maintenance and debt service payments. Program costs such as staff and faculty salaries and non-salary operating expenses (office supplies, training, etc.) are not included. Funding for all operating costs are approved as part of the annual operating budget request process. TABLE III.D-05: OPERATING COSTS (TIER 1 PROJECTS) PROJECT ANNUAL OPERATING YEAR BUDGET / ROUGH ORDER PAYMENTS OF MAGNITUDE (ROM) $M BEGIN CSI Debt Service Principal and Interest on $45M @ 4.5% Interest $3.5 FY19 New Building Maintenance & Operations 1.0 1.5 FY21 (90,000 GSF @ $15/sf, Campus average is around $8/sf) 1107 Madison Estimated Ground Lease Income (Year 1) (0.2) FY19 RA Room Leases (5 @ 1400/mo) RA salaries not included 0.1 FY19 Enrollment Services Lease 15k to 18k sf @ $33/sf fully serviced 0.5 0.6 FY19 (Straight line over 10 Years. Final term to be negotiated.) Total Estimated Operating Budget Impact $5.0 6.0 E. Annual 10YFP Updates The 10YFP will be updated annually to report on the progress made and modified for any changes in strategic direction, project priorities or the availability of funding. 10YFP REPORT SEPTEMBER 2016 I PAGE 1 0