WHEFA 2015 Annual Report | Pg

20 15 Annual Report

Washington Higher Education Facilities Authority 2015 Annual Report TABLE OF CONTENTS

Eligible Colleges and Universities...... Page 1

Executive Summary...... Page 3

Authority Members, Staff, and Consultants...... Page 4

Message from the Secretary & Executive Director...... Page 5

Summary of Activities...... Page 6

University Information...... Page 9

Bonds Outstanding...... Page 10

Credits...... Page 11 Eligible Colleges & Universities

Northwest Indian College Trinity Lutheran College

Bastyr University WASHINGTON Seattle University Bellingham STATE Seattle Pacific University

Cornish College Everett Whitworth University of the Arts

University of Puget Sound Seattle Spokane Gonzaga University

Tacoma Lacey Pacific Lutheran Olympia University Yakima

Walla Walla

Whitman College

Walla Walla University Heritage University

Pacific Northwest Saint Martin’s University University of Health Sciences

0 25 50 100 Miles

WHEFA 2015 Annual Report | Pg. 1 EXECUTIVE SUMMARY

The Washington Higher Education Facilities Authority (the “Authority”) was created in 1983.

The Authority’s purpose is to support the qualified independent colleges and universities, and the students of Washington State by lowering the cost of financing for the expansion and modernization of campus facilities through the issuance of tax-exempt revenue bonds.

To date, the Authority has helped provide over $1.9 billion in tax-exempt financing to the qualified colleges and universities in the state of Washington for many critical projects ranging from student residence halls to science laboratories. All of this is done without the use of tax payer dollars and without pledging the faith and credit of the State of Washington.

The Authority board has seven voting members. The ex-officio members of the Authority include the Governor (Chair of the Authority), the Lieutenant Governor, and the Chair of the Student Achievement Council. The Governor appoints four public members, one of whom must be the president of an institution of higher education. WHEFA AUTHORITY MEMBERS

Jay Inslee Tom Johnson Claire Grace David Schumacher Governor of Washington Secretary Treasurer Governor’s Designee Public Member Public Member Director, Office of Financial Management

Brad Owen Dr. Gene Sharratt Dr. Roy Heynderickx Jerome Cohen Lt. Governor of Executive Director, Public Member Public Member Washington Washington Student President, Achievement Council Saint Martin’s University

WHEFA STAFF & CONSULTANTS Pacifica Law Group, Bond Counsel - Faith Pettis Kim Herman, Executive Director - Deanna Gregory Paul Edwards, Deputy Director Bob Cook, Senior Finance Director Foster Pepper, PLLC, Bond Counsel Debra Stephenson, Senior Controller - Marc Greenough Carol Johnson, Manager Maureen Smith, Web Manager General Counsel - John Ryan, Margret Graham, Communications Manager Assistant Attorney General Cody Field, Program Assistant Springsted, Inc. - Financial Advisor - Barry Fick

WHEFA 2015 Annual Report | Pg. 4 JAY INSLEE, Chair KIM HERMAN Governor Executive Director

We are pleased to provide to you the fiscal year 2014-2015 Annual Report of the Washington Higher Edu- cation Facilities Authority (WHEFA).

WHEFA has provided our member colleges and universities access to private and public capital markets at lower costs than are available to them in the conventional marketplace for 31 years now. Since its creation in 1983, WHEFA has issued more than $1.9 billion in tax-exempt revenue bonds in 85 separate financings. With the recent addition of Trinity Lutheran College, we now have 15 member schools.

Total savings to our member colleges and universities over the last six years was nearly $68 million on a net present value basis. This savings has benefited thousands of students and families by improving the quali- ty of their education as a result of providing modern, state of the art campus facilities. In addition, a recent WHEFA contracted economic impact study covering the years 1994 to 2014 concluded that we facilitated financings that supported an average of 544 total jobs annually during that time period. These facts clearly illustrate the importance and benefit of tax-exempt financing for the State of Washington.

We are very fortunate to have the steadfast support of Governor Inslee and Lieutenant Governor Owen. Our mission would not be successful without their support.

We are proud of what the independent colleges and universities in the state of Washington have accom- plished, and the role we have played in supporting them. Lastly, we are looking forward to what the future will bring and the role we will play in advancing higher education in the State of Washington.

On behalf of the board of directors of the Authority, our staff and business partners, we wish to express our pride and sincere appreciation for the dedication to educational excellence demonstrated by the independent colleges and universities that we serve.

Sincerely, Sincerely,

Tom Johnson, Kim Herman, Secretary Executive Director

1000 Second Avenue, Suite 2700 • Seattle, WA 98104 -1046 (206) 464-7139 • FAX (206) 587-5113 • 1-800-767-4663 FISCAL YEAR ‘15 Summary of Activities

Stuen Hall, Pacific Lutheran University

WHEFA member schools have increased from 14 to 15 with the addition of Trinity Lutheran College, a private, co-educational liberal arts college located in Everett. We are pleased to welcome Trinity Lutheran College to the WHEFA team.

Whitman College has named a new president to succeed President George Bridges. Dr. Kathleen Murray will become Whitman’s 14th President on July 1, 2015. Dr. Murray is currently Provost and Dean of the Faculty at Macalester College in St. Paul, Minnesota. George Bridges will conclude his service on June 30 after leading the College for 10 years. He has been chosen as the next president of the Evergreen College in Olympia.

Dr. Charles “Mac” Powell will become Bastyr’s new president effective July 1, 2015. Dr. Powell was president of John F. Kennedy University in Pleasant Hill, CA. He replaces President Daniel K. Church, PhD, who steps down at the end of June after a decade in the position.

We welcome these new leaders and thank those moving on for all of their good work.

Authority member colleges and universities have access to low interest, tax-exempt financing through our bond financing program. Access to lower interest rates generates savings for our borrowers. These savings can then be passed on to their students in the form of reductions in tuition and fees, foregone increases in tuition and fees, and aid in the form of grants and scholarships.

WHEFA 2015 Annual Report | Pg. 6 “We are very proud to be a partner with the university on the renovation and expansion of their student housing and are always very pleased that we can play a part in generating significant savings to the university and its students.” - WHEFA Board Secretary Tom Johnson

The Board and staff of WHEFA believe that it is very important to visit our clients and to familiarize ourselves with the institutions we serve. Our main goal is to meet their financing needs while providing good customer service. Stuen Hall, Pacific Lutheran University This past year staff made visits to Cornish College of the Arts, Heritage University, Saint Martin’s University, In July of 2014 Pacific Lutheran University (PLU) University of Puget Sound, Walla Walla University, and completed a $10 million bond financing that will help Whitman College. the University upgrade three residence halls. The upgrades include structural and efficiency renovations Staff attended two events at Heritage University to cel- and upgrades to Stuen Hall, Ordal Hall and South Hall. ebrate the completion of the Petrie Hall Replacement, The transaction generated $2.1 million in present value Gaye and Jim Pigott Commons and Rick and Bonnie savings to the University. To date, PLU has completed Gagnier Hall. The original Petrie Hall was destroyed seven financings totaling almost $151 million through the by fire in 2012. WHEFA issued $9 million in bonds Authority. in 2013 to complete this work. Paul Edwards, Deputy Director, attended a Breakfast Blessing Ceremony. Board “This bond sale provides critically needed funding to member, Jerry Cohen, attended the Dedication and renovate well-built and well-used residence halls on the Reception for the opening of the new buildings. Pacific Lutheran University campus,” said Sheri Tonn, Ph.D., the university’s Vice President for Finance and As always, it is a pleasure and an honor to partner with Operations. “We particularly appreciate the professional- these institutions and play a part in the creation of suc- ism of the Washington Higher Education Facilities Au- cessful projects on their campuses. We are fortunate to thority in helping us achieve this financing.” work with such talented and passionate people.

Petrie Hall, Heritage University Longworth House Office Building, Washington D.C.

We strive to stay informed and active in the state and federal legislative arenas in order to better serve our MISSION member colleges and universities. The threat of elimi- nation of tax-exempt financing as a low cost financing To provide qualified non-profit, independent resource for non-profit organizations continues. It is colleges and universities in Washington with imperative that we make sure that our federal legislators access to low-cost capital for the expansion and understand the value of tax-exempt financing to the non- modernization of campus facilities. profit colleges and universities in the state of Washington and the students that they serve.

This past year staff coordinated federal legislative visits as part of the spring National Association of Health and PUBLIC BENEFIT Educational Facilities Finance Authorities (NAHEFFA) Conference in Alexandria, Virginia. Board Member, Jerry The ability to obtain lower interest rates through Cohen, joined staff and representatives of the Healthcare the sale of tax-exempt bonds has saved our Facilities Authority on visits with 9 of our 12 legislators. borrowers millions of dollars. This savings is We had productive meetings with legislators and legisla- ultimately passed on to the students of the state tive staffers. Our focus was to educate our legislators on in the form of lower tuition. how tax-exempt bonds have impacted their districts and stress the need to protect this important resource. High- lights were personal meetings with Senator Maria Cant- well, Representative Dan Newhouse and Representative Cathy McMorris Rodgers

On the state legislative scene, Authority staff continues to have ongoing dialogue with key state legislators and legislative committees in order to keep them apprised of how the Authority supports the good work of its member schools.

Early in 2014 WHEFA contracted with IHS Consulting, a global economic analysis and forecasting company, to conduct a study of the economic impacts of tax-exempt bond financing provided to WHEFA member schools. WHEFA facilitated $624 million in tax-exempt financing for new projects, renovations and equipment upgrades from 1994 to 2014. According to the study, these projects had wide ranging economic impacts on Washington, creating 10,880 jobs, $610 million in labor income, and $876 million in gross domestic product over that twenty year time period. This report was, and continues to be, an excellent tool to communicate the value of tax-exempt financing to both federal and state legislators.

WHEFA 2015 Annual Report | Pg. 8 Styx, Whitman College

University Information

Bastyr University Cornish College of the Arts Gonzaga University www.bastyr.edu www.cornish.edu www.gonzaga.edu 14500 Juanita Drive NE, 1000 Lenora Street 502 E. Boone Avenue Kenmore, WA 98028 Seattle, WA 98121 Spokane, WA 99258

8 Financings 2 Financings 18 Financings $53,477,955 $41,108,000 $479,700,000

Heritage University Northwest Indian College Pacific Lutheran University www.heritage.edu www.nwic.edu www.plu.edu 3240 Fort Road 2522 Kwina Road 12180 Park Street S. Toppenish, WA 98948 Bellingham, WA 98226 Tacoma, WA 98447

2 Financings No Financings to date 7 Financings $14,000,000 $150,915,000

Pacific Northwest University Saint Martin’s University Seattle Pacific University of Health Sciences www.stmartin.edu www.spu.edu www.pnwu.org 5300 Pacific Avenue SE 3307 Third Avenue W. 200 University Parkway Lacey, WA 98503 Seattle, WA 98119 Yakima, WA 98901 5 Financings 4 Financings 1 Financing $86,677,000 $345,725,000 $24,500,000

Seattle University Trinity Lutheran College University of Puget Sound www.seattleu.edu www.tlc.edu www.pugetsound.edu 901 12th Avenue 2802 Wetmore Avenue 1500 N. Warner Street Seattle, WA 98122 Everett, WA 98201 Tacoma, WA 98416

15 Financings No Financings to date 9 Financings $303,506,402 $187,978,824

Walla Walla University Whitman College Whitworth University www.wallawalla.edu www.whitman.edu www.whitworth.edu 204 S. College Avenue 345 Boyer Avenue 300 W. Hawthorne Road College Place, WA 99324 Walla Walla, WA 99362 Spokane, WA 99251

2 Financings 3 Financings 9 Financings $6,387,777 $84,875,000 $131,325,000

WHEFA 2015 Annual Report | Pg. 9 Schedule of Bonds Outstanding Year Ended June 30, 2015

School Issue Date Original Amount Outstanding as of Maturity Date 6/30/2015

University of Puget Sound 2001 10,620,000 10,350,000 10/1/2031

Whitman College 2004 28,770,000 28,770,000 10/1/2029

Walla Walla University 2005 3,963,000 1,899,023 3/1/2035

Seattle University 2005 23,505,000 18,000,000 11/1/2031

Pacific Lutheran University 2006 62,160,000 53,165,000 11/1/2036

Seattle University 2007 38,075,000 35,975,000 11/1/2037

Seattle University 2008 26,595,000 19,315,000 5/1/2028

Whitworth University 2009 63,720,000 58,915,000 10/1/2040

Whitman College 2008 30,395,000 27,345,000 1/1/2038

Gonzaga University 2009 39,845,000 34,495,000 4/1/2029

Seattle University 2009 41,775,000 41,775,000 9/1/2039

Gonzaga University 2009 53,460,000 50,705,000 4/1/2029

Gonzaga University 2010 42,420,000 27,170,000 4/1/2029

Cornish College of the Arts 2010 20,323,000 20,323,000 12/1/2035

Seattle University 2011 15,230,000 13,170,000 5/1/2032

Whitworth University 2012 19,500,000 18,990,000 10/1/2046

Bastyr University 2012 24,230,000 22,270,346 7/1/2037

University of Puget Sound 2012 34,805,000 34,805,000 10/1/2042

Gonzaga University 2012 10,625,000 10,245,000 4/1/2043

University of Puget Sound 2012 29,195,000 28,105,000 10/1/2036

Pacifc Northwest University 2013 24,500,000 24,003,932 3/1/2043 of Health Sciences

Heritage University 2013 9,000,000 8,792,029 1/1/2035

Seattle Pacific University 2013 85,515,000 79,465,000 10/1/2038

Gonzaga University 2013 53,000,000 53,000,000 4/1/2043

Saint Martins University 2014 33,535,000 28,785,000 2/1/2037

Pacific Lutheran University 2014 10,000,000 10,000,000 11/1/2044

Totals 834,761,000 759,833,331

WHEFA 2015 Annual Report | Pg. 10 CREDITS

Graphic Design: Cody Field Articles: Carol Johnson and Paul Edwards Annual Report Coordinator: Cody Field Photos: • Cover images - Top Left: Interior of John J. Hemmingson Center - Cody Field - Top Right: Exterior of John J. Hemmingson Center - Provided by Gonzaga University Marketing and Communications - Bottom: Interior of John J. Hemmingson Center - Provided by Gonzaga University Marketing and Communications • Page 6 - Stuen Hall, Provided by Pacific Lutheran University • Page 7 - Stuen Hall, Provided by Pacific Luthern University • Page 7 - Petrie Hall, Heritage University - Cody Field • Page 8 - Longworth Office Building, Washington D.C. - Architect of the Capitol • Page 9 - Styx (Sculpture), Whitman College - Cody Field

University logos and permission for use provided by: Bastyr University: Derek Wing, Associate Director of Media and PR Cornish College of the Arts: Rosemary Jones, Director of Communications Gonzaga University: Dale Goodwin, Director of Public Relations Heritage University: Bonnie Hughs, Communications Director Northwest Indian College: Lisa Santana, Director of Development Pacific Lutheran University: Simon Sung, Executive Creative Director Pacific Northwest University of Health Sciences: Darren Stankey, Marketing Coordinator Saint Martin’s University: Marki Carson, Creative Director Seattle Pacific University: Tracy Norlen, Manager of Public Information Seattle University: Stacy Howard, Media Relations Specialist Trinity Lutheran College: Annie Reinisch, Graphic Designer and Web Manager University of Puget Sound: Gayle McIntosh, Executive Director of Communications Walla Walla University: Holley Bryant, Director for Marketing and University Relations Whitman College: Michelle Ma, Chief Communications Officer Whitworth University: Elizabeth G. Strauch, Assistant Director of Marketing

WHEFA Logo Design, 1996, Rachel L. Arbogast, Pacific Lutheran University

WHEFA 2015 Annual Report | Pg. 11

The offices of the Authority are located at: 1000 Second Avenue, Suite 2700 Seattle, WA 98104-1046 Phone: (206) 464-7139 In Washington State: (800) 767-4663 Fax: (206) 587-5113