Ten-Year Capital Forecast - 2019

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Ten-Year Capital Forecast - 2019 TEN-YEAR CAPITAL FORECAST - 2019 TAB I TAB I Outline • Assumptions • Constraints • Deferred maintenance impacts • Summary of major projects • Corvallis/Newport • University Housing & Dining • Athletics • Cascades • Recommendation OREGON STATE UNIVERSITY 1 TAB I Forecast Approach • Planning tool • Updated annually • Based on the criteria and priorities developed in conjunction with the Infrastructure Work Group • Capital needs addressed through multiple approaches • Renovation • Acquisition • New Construction • Demolition OREGON STATE UNIVERSITY 2 TAB I Assumptions • Additive investment of $5M annually of E&G funding up to $45M by FY2026 to address capital renewal needs. • State investment in capital renewal of $18M for 2017-19 biennium and $22M in subsequent biennia. • Renovations • Seismic resilience, and fire and life safety • Reduce deferred maintenance • Research infrastructure • Cost estimates based on historical and current construction data and escalated 5% annually. OREGON STATE UNIVERSITY 3 TAB I Forecast Constraints • $270M total in OSU revenue bond capacity • $55-65M per biennium for state bond funding (historical allocations) for OSU- Corvallis • OSU–Cascades and OSU–Corvallis capital project state bond funding requests are separate • Impacts of the Capital Forecast on debt policy ratios discussed in the OSU Revenue Bonds action item (Tab N) OREGON STATE UNIVERSITY 4 Impact of Forecast on Deferred Maintenance TAB I Capital forecast leads to approximately $315M difference from business as usual plan OREGON STATE UNIVERSITY 5 TAB I OSU Corvallis/Newport – E&G New Construction • Oregon Quality Food Source of funds ($ millions) and Beverage Center $100.0 • Two STEM buildings (site to be determined) $75.0 $50.00 • Exploring collaborative $75.00 innovation complex $50.0 • PacWave - wave energy test facility (DOE funded) $25.0 $50.00 $40.00 • MSI - $10.7M added to $9.00 $25.00 $9.00 the project budget from $0.0 OSU revenue bonds Oregon Quality Food STEM 1 STEM 2 PacWave and Beverage Center and $1M from gifts State-paid Bonds Cash, external partnerships, gifts, mix TAB I OSU Corvallis – E&G 2017-19 Renovations Source of funds ($ millions) $25.0 - $20.0 6.10 Cordley Hall $15.0 1.00- $10.0 Gilkey Hall 15.00 $5.0 11.00 10.00 2.00 4.25 - 3.00 1.65 Merrifield Hall $0.0 - 0.30 - Cordley Hall Gilkey Hall Merrifield Hall Fairbanks Hall Research Way Laboratory State-paid Bonds State-paid CIR Fairbanks Hall OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbdgifts, mix TAB I OSU Corvallis – E&G 2019-21 Renovations Source of funds ($ millions) $75.0 10.0 Cordley Hall $50.0 25.0 28.0 $25.0 35.0 Cascade Hall 28.0 3.0 $0.0 2.5 Arts and Arts and Education Cordley Hall Cascade Hall Education Complex Complex (in State-paid Bonds State-paid CIR programming) OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbdgifts, mix OSU Corvallis –E&G 2021-23 Renovations TAB I Source of funds ($ millions) $100.0 $75.0 Cordley Hall 15.0 $50.0 25.0 8.0 $25.0 Community Hall 30.0 10.0 $0.0 Cordley Hall Community Hall State-paid Bonds State-paid CIR OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbdgifts, mix TAB I OSU Corvallis – E&G 2023-25 Renovations Source of funds ($ millions) $30.0 $25.0 Batcheller Hall $20.0 $15.0 30.0 Covell Hall $10.0 $5.0 11.0 Kerr Administration $0.0 Batcheller and Covell Halls Kerr Administration E&G CIR TAB I OSU Corvallis – E&G 2025-27 Renovations Source of funds ($ millions) $50.0 Gilbert Hall $40.0 22.2 22.2 $30.0 $20.0 38.4 Langton Hall $10.0 22.2 22.2 $0.0 Gilbert Hall Langton Hall Withycombe Hall Withycombe Hall State-paid Bonds E&G CIR TAB I OSU Corvallis – E&G Demolitions Snell Hall Facilities Services ROTC buildings building OSU Corvallis - E&G Infrastructure TAB I Source of funds ($ million) $30.0 $20.0 Jefferson St. Utility Tunnel Extension 23.5 and Steam Distribution System $10.0 22.0 Washington Way 7.8 Improvements 3.0 $0.0 Jefferson St. Utility Washington Way Campus Operations Tunnel/Steam lines Improvements Center Campus State-paid CIR OSU-paid bonds Operations Center OREGON STATE UNIVERSITY 13 TAB I OSU Corvallis/Newport - University Housing and Dining Student Affairs Source of funds ($ millions) $200.0 Upper Division and $150.0 Graduate Student Housing $100.0 151.1 $50.0 106.6 50.0 20.0 27.2 $0.0 Upper Division & GEM Housing Residence Hall Residence Newport Housing GEM Graduate Student Replacement #1 Hall/Dining Housing Complex Replacement #2 OSU-paid bonds Cash, external partnerships, tbdgifts, mix Newport Housing 14 TAB I OSU - Athletics Sources of funds ($ millions) $200.0 West side Reser Stadium $150.0 $100.0 175.0 Field Sports Center $50.0 10.0 20.4 16.8 10.0 12.9 Gill Coliseum $0.0 Reser Field Sports Leadership Gymnastics Gill Coliseum Gill Coliseum Stadium West Center Center Building Basement Concourse Side Leadership Center Gymnastics Cash, external partnerships, tbdgifts, mix Center (site to be determined) 15 TAB I OSU – Corvallis/Newport: Major Capital Summary Total forecasted project costs and sources of funds ($ millions) State-paid bonds, $250.4 M, 18.0% Cash, external partnerships, State-paid CIR, gifts,tbd mix $19.9 M, 1.4% $682.1 M, 48.9% OSU-paid bonds, $221.0 M, 15.9% Pledged gift funds, Total forecasted funding $36.7 M, 2.6% ~$1,394 M E&G CIR, $183.8 M, 13.2% OSU-Cascades TAB I Land Development Solar Collector Farm Central Utility Plant Health and Recreation Center Student Success Center Ph 1 Academic Bldg 3 Academic Bldg 2 Student Housing Site reclamation OREGON STATE UNIVERSITY 17 OSU-Cascades TAB I Sources of funds ($ millions) $60.0 2017-19 2019-21 2021-23 10.0 2023-25 2025-27 $50.0 10.0 $40.0 $30.0 48.5 $20.0 39.0 34.5 5.0 32.4 23.8 $10.0 17.5 9.0 12.0 13.3 11.9 $0.0 State-paid Bonds State-paid CIR OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbd OSU-Cascades TAB I Sources of funds ($ millions) $60.0 2017-19 2019-21 2021-23 10.0 2023-25 2025-27 $50.0 10.0 $40.0 $30.0 48.5 $20.0 39.0 34.5 5.0 32.4 23.8 $10.0 17.5 9.0 12.0 13.3 11.9 $0.0 State-paid Bonds State-paid CIR OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbd OSU-Cascades TAB I Sources of funds ($ millions) $60.0 2017-19 2019-21 2021-23 10.0 2023-25 2025-27 $50.0 10.0 $40.0 $30.0 48.5 $20.0 39.0 34.5 5.0 32.4 23.8 $10.0 17.5 9.0 12.0 13.3 11.9 $0.0 State-paid Bonds State-paid CIR OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbd OSU-Cascades TAB I Sources of funds ($ millions) $60.0 2017-19 2019-21 2021-23 10.0 2023-25 2025-27 $50.0 10.0 $40.0 $30.0 48.5 $20.0 39.0 34.5 5.0 32.4 23.8 $10.0 17.5 9.0 12.0 13.3 11.9 $0.0 State-paid Bonds State-paid CIR OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbd OSU-Cascades TAB I Sources of funds ($ millions) $60.0 2017-19 2019-21 2021-23 10.0 2023-25 2025-27 $50.0 10.0 $40.0 $30.0 48.5 $20.0 39.0 34.5 5.0 32.4 23.8 $10.0 17.5 9.0 12.0 13.3 11.9 $0.0 State-paid Bonds State-paid CIR OSU-paid bonds Pledged gift funds E&G CIR Cash, external partnerships, tbd OSU-Cascades TAB I Total forecasted costs and sources of funds ($ millions) Cash, external partnerships, gifts,tbd ,mix $67.6 M, 25% State-paid bonds, $149.8 M, 56% Pledged gift funds, $10.0 M, 4% Total forecasted funding OSU-paid bonds, $39.5 M, 15% ~$267 M Grand total of forecasted project costs TAB I and sources of funds State-paid Bonds, $400.2 M Cash, external partnerships, gifts, mix, $739.7 M State-paid CIR, $19.9 M OSU-paid bonds, Total forecasted funding $260.5 M ~$1,661 M E&G CIR, Pledged gift funds, $183.8 M $56.7 M TAB I Recommendation • Staff propose that the Finance & Administration Committee recommend to the Board acceptance of the 2019 Ten-Year Capital Forecast. OREGON STATE UNIVERSITY 25.
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