decision it is hereby requested that the ubc board of...

Revised: March 2015

REPORT TO THE BOARD OF GOVERNORS Agenda Item #1.13

SUBJECT TALL WOOD STUDENT RESIDENCE (BROCK COMMONS PHASE 1)

MEETING DATE JUNE 9, 2015

APPROVED FOR SUBMISSION

Forwarded to the Board of Governors on the Recommendation of the President

Arvind Gupta, President and Vice-Chancellor

DECISION REQUESTED

IT IS HEREBY REQUESTED that the UBC Board of Governors grant BOARD 2

approval for the Tall Wood Student Residence project, with authorization

to issue the development permit and a funding release of $1,500,000 to

complete working drawings and tender documents.

Capital Budget $47,750,000 Operating Budget see report Revised Schedule Program Authorization to issue development permit Proceed to working drawings and tender Funding Release $1,500,000

Information Expenses to date $550,000 Funding released to date $750,000

Report Date May 12, 2015

Presented By Louise Cowin, Vice-President Students Lisa Castle, Vice-President Human Resources (Acting VP Resources & Operations) John Hepburn, Vice-President Research & International Andrew Parr, Managing Director, Student Housing & Hospitality Services John Metras, Managing Director, Infrastructure Development Brent Sauder, Director, Strategic Partnerships Office Peter Smailes, Treasurer Michael White, Associate Vice-President, Campus + Community Planning Al Poettcker, President & CEO, UBC Properties Trust

EXECUTIVE SUMMARY The Tall Wood Student Residence (Brock Commons Phase 1) project is intended to address two objectives:

1) To deliver approximately 400 student residence beds as part of the Student Housing & HospitalityServices (SHHS) strategy to address the growing wait list for on-campus housing, which reached apeak of 5,200 students in August 2014.

2) To design, build, evaluate and monitor an 18-storey building utilizing advanced wood-basedbuilding systems, physically demonstrating the applicability of wood in the tall-building market.

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Gupta w/o text

Tall Wood Student Residence (Brock Commons Phase 1) – Board 2

There is world-wide interest in bringing engineered wood/hybrid mass timber building systems and the inherent positive attributes of wood (renewability, flexibility, carbon sequestration), to the high-rise building market. Lessons learned from mass timber construction, in the form of solid wood columns and beams utilized for over 100 years, plus recent advances in engineered wood products and connectors, now make it feasible to utilize hybrid mass timber systems for structural elements of buildings beyond the current 4-6 storey code height limitation set for wood-frame construction.

The UBC Tall Wood Student Residence will have a height of 53 metres (the maximum permitted on the academic campus) and a gross floor area of approximately 162,750 ft2 (15,120 m2). It will accommodate student housing for upper year and graduate students with a planned capacity of 404 beds (up from 383 beds estimated at Board 1) in single-bed studio and 4-bed quad units, each with integrated kitchen and bathroom facilities. Additionally, a collegium is programmed for the ground floor.

The building site is adjacent to the North Parkade (see Attachment 1) within the Brock Commons student housing “hub” site designated in the UBC Vancouver Campus Plan. The project represents the first phase of Brock Commons and will provide student housing only, with a future phase providing other community amenities and academic spaces as well as additional student housing.

Despite the recent growth in student housing stock on the Vancouver campus, demand continues to exceed supply by a significant amount. UBC is addressing this with a proposed Student Housing Growth Strategy that would add up to 2,250 beds to the inventory between 2017 and 2019, in addition to the currently approved Ponderosa Phase 2 and Orchard Commons projects. The Tall Wood Student Residence is an important component of this strategy.

The capital cost for the project is now estimated at $47.75m ($43.3m standard construction, plus $4.45m wood premium). The $43.3m base building cost will be funded by SHHS through an internal loan repaid from housing rental revenue. The $4.45m estimated premium for advanced wood design and construction is to be funded from external sources including $3.45m secured to date from the Canada Wood Council (CWC) and Forest Innovation Investment (FII). An additional $1.0m is committed and scheduled to be announced in June 2015. Further fundraising activities will be pursued throughout the project. Any incremental funds realized will be used to enhance the design, or contribute towards post construction evaluation and monitoring of the facility.

The project will provide an opportunity to demonstrate use of a sustainable, locally relevant construction material in a high-rise building application, presenting a unique and compelling Campus as a Living Laboratory (CLL) opportunity for the Faculty of Applied Science, Faculty of Forestry and local forestry and wood products industries. It will also provide a necessary visible reference and knowledge generation site for influencing the 2020 Canadian National Building Code.

The project is being managed by UBC Properties Trust. The design consultant is Acton Ostry in partnership with Architekten Hermann Kaufmann. Board 1 approval was received in September 2014. Schematic design has been completed and work is underway with the Provincial Building & Safety Standards Branch on a Site Specific Regulation which will allow mass timber construction in this case beyond current building code limits. Board 2 approval is sought at this time to complete the design.

Development review procedures for the project have been completed including reviews by the Advisory Urban Design Panel (Apr 9, 2015) and Development Review Committee (Apr 23, 2015) and a Public Open House (Apr 29, 2015). Information sessions were also held with students (April 1, 2015) and with Chancellor Place residents (Apr 23, 2015). Campus and Community Planning confirm that the development review process for the project has been completed. The project is ready for issuance of the Development Permit following Board 2 approval. Project completion is targeted for August 2017.


INSTITUTIONAL STRATEGIC PRIORITIES SUPPORTED

Learning Research Innovation Engagement (Internal / External)

☐ International

or ☐ Operational

DESCRIPTION & RATIONALE

Background & Concept The Tall Wood Student Residence (Brock Commons Phase 1) project provides a unique opportunity to both address a core University need for expanded on-campus student housing and provide a compelling Campus as a Living Lab opportunity for UBC researchers, students and local industry.

The use of engineered wood materials as a primary structural component in buildings of all types, and high-rise buildings in particular, is currently a strong focus of design and research communities, forest industries and governments seeking to promote sustainability, innovation and economic development. Wood is a renewable resource, offers flexibility in use and is a more sustainable building material than concrete or steel in that it sequesters carbon, while the production of concrete and steel releases significant amounts of carbon.

The emergence of engineered wood products and advances in connectors has made it feasible to utilize wood-based products and systems as structural elements for wood buildings higher than the traditional 4-6 storey heights allowed by building code and the wood-frame building system. Innovative designs using engineered wood products such as a cross-laminated timber (CLT), structural composite lumber (SCL) and glued laminated timber (glulam) have been developed around the world with notable projects ranging from 6-14 storeys in Austria, Australia, Norway, England and British Columbia.

The Forte tower in Melbourne is currently the world’s tallest wood residential building at 10-storeys (32m). A 51 meter, 14 floor apartment building is currently under construction in Bergen, Norway. In North America, the Wood Innovation & Design Centre in Prince George is the tallest wood building at 29.25m. Proposed designs have been put forward for wood towers ranging from 20 to 40 storeys. In March 2014, the US Department of Agriculture announced a funding program for a tall wood building competition to accelerate technology transfer and implementation of expanded uses of wood products for building construction in the United States.

UBC’s current portfolio of wood structure buildings includes the Centre for Interactive Research on Sustainability (CIRS), the Bioenergy Research & Demonstration Facility (North America’s tallest industrial building using CLT), the Earth Sciences Building and others.

The Tall Wood Student Residence project will design, build, evaluate and monitor an 18-storey building utilizing mass-timber hybrid building systems, physically demonstrating the applicability of wood in the tall-building market and providing

Planned student residence bed count has increased from 383 to 404. Projected

gross building area has increased from 157,000 ft2 to 162,750 ft

2. Total capital

cost has increased from $44m to $47.75m. Internal financing requirement has

increased from $40m to $43.3m.

If this item was previously

presented to the Board,

please provide a brief

description of any major

changes since that time.


a range of research opportunities for UBC faculty and students in the Faculty of Applied Sciences and Faculty of Forestry.

With a height of 53m (the maximum permitted on the academic campus) and a gross floor space of approximately 162,750 ft2 (15,120 m2), the building will provide 404 student residence beds for upper year and graduate students, in single-bed studio and 4-bed quad units, each with integrated kitchen and bathroom facilities. Amenity spaces, such as social gathering and study spaces for the use of students, will be located on the ground floor along with administration, laundry facilities, storage spaces and service rooms. Additionally, a collegium for commuter students is programmed for the ground floor.

The building will comprise of 17 storeys of mass-timber hybrid construction above a one-storey base of concrete construction. There will be two 18-storey concrete cores containing exit stairs and elevators.

Access to student housing is a key strategic initiative for UBC that creates an improved student experience and long lasting connections to UBC, adds vibrancy to the campus and supports the international student recruitment plan. The Tall Wood Student Residence project has been identified as a key component of the UBC Student Housing Growth Strategy to add up to 2,250 additional beds by 2019 and thereby help address the growing wait list for on-campus housing which reached a peak of 5,200 students in August 2014 (an increase of 1,500 from the same point in 2013).

Location

The building site is on the existing open area located to the north of the North Parkade and fronting onto Walter Gage Road (see Attachment 1). This is within the Brock Commons student housing “hub” site designated in the UBC Vancouver Campus Plan. This first phase of Brock Commons will provide student housing only with a future phase providing other campus amenities and academic spaces as well as additional student housing. The project team has done significant due diligence in testing alternative sites for this project and the proposed location for the Tall Wood Student Residence is well suited in terms of functional requirements and urban fit.

Functional Program

Function No. Units Unit Area Total Area (sf)

Housing Units Total Beds = 404

Studios (1 bed) 272 240 65,280

Quads (4 bed) 33 (132 beds) 1,030 33,990

Shared Space

House & Floor Lounges 4,900

Laundry 402

Resident Bike Storage In gross-up

Non-SHHS Space

Collegium 2,500

Total Net Sq Feet (NSF) 107,072

Building gross-up (1.52 x) 55,678

Total Building Gross Sq Feet 162,750

Total GSF per Bed 403


BENEFITS Learning, Research,

Financial, Sustainability & Reputational

Benefits The Tall Wood Student Residence project will provide a range of benefits for UBC and the wider community. These include:

Addition of 404 student residence beds to help address the growing studenthousing wait list, which reached a peak of 5,200 in August 2014.

Creates an effective collegium site to support commuter students.

Demonstration of a sustainable, locally relevant construction material in aninnovative high-rise building application, providing a compelling argumentfor the use of wood-based building systems in the tall building market.

Creation of a Campus as a Living Laboratory (CLL) opportunity for AppliedScience, Forest Science and local forestry and wood products industries,offering research and learning opportunities for UBC students, researchersand faculty in the design, construction, evaluation and monitoring ofadvanced mass timber structural systems.

Provision of a necessary visible reference and knowledge generation site forinfluencing the 2020 Canadian National Building Code.

Development of UBC, BC and Canada as a global tall-wood hub that willsupport expansion in the areas of education/training, certification, globalconsulting and software development.

Will bring interested visitors to campus (as has the CIRS project), buildingUBC’s reputation for innovation and sustainable building design and exposingthe institution and its academic offerings and research findings to a broaderbase.

Will foster strengthened communication and relationships for further multi-disciplinary initiative between UBC, CWC, FII and local forestry and woodproducts industries who will be project collaborators here and hopefullyagain in the future.

Provide the knowledge and know how required to replicate this type ofbuilding in a cost effective and timely fashion to address the current studenthousing bed deficit.

Sustainability

The building will be designed to achieve LEED Gold certification as a minimum. The use of wood as the primary building material will substantially reduce the carbon footprint of the building over a conventional building. Wood is a more sustainable building material than concrete or steel in that it sequesters carbon while the production of concrete and steel releases significant amounts of carbon. Wood is also renewable, versatile, non-toxic and provides aesthetic benefits.

RISKS Financial, Operational

& Reputational

Risks

Risks to be addressed include:

Financial and technical risks associated with Tall Wood construction,including ability to obtain building permit approval and cost of constructioninsurance. The BC Building Code currently allows for wood structures up to 6storeys in height. Development of an 18-storey tall wood building willrequire a Site Specific Regulation from the Provincial Building & SafetyStandards Branch (BBSB). The design team has developed a technically andeconomically feasible design solution for the project and work is underwaywith the BSSB on the Site Specific Regulation (SSR). Discussions have also


been initiated with the insurance industry to demonstrate that mass timber construction poses much less risk than wood frame construction.

Schedule risks due to use of advanced wood-based building systems whichmay entail longer design, permit review and construction processes. Theproject team has developed an initial plan for efficient construction of themass-timber structure during the spring and summer (dry months) of 2016.This assumes favourable review of the design by the BSSB and completion ofthe Site Specific Regulation by the BSSB/Provincial Government bySeptember 2015 in order to commence construction of the concretestairwell and elevator cores by October 2015. As noted, work is underwaywith the BSSB to develop the SSR.

Funding risks associated with the proposed external funding sources to payfor the estimated $4.45m tall wood premium. CWC and FII have committed$3.45m to date and, as noted above, an additional $1.0 million contributionis expected to be announced in June 2015. Therefore, overall funding riskremains small.

Liquidity constraints which may delay our ability to provide the internalfinancing to SHHS required for the project. The Executive has confirmed thatthis project has been prioritized to receive the necessary liquidity for internalfinancing.

Financial / cash flow risks associated with achieving 12-month residenceoccupancy. This risk is mitigated through Summer Use of Campus initiativesand increasing demand for 12-month housing.

Liveability risks associated with a new construction method could result insound transfer and other comfort issues for residents. This has beenmitigated through a thoughtful design process which has been sensitive tooccupant requirements and satisfaction. Research has shown that woodbuildings can actually provide an improved occupant experience.


COSTS Capital &

Lifecycle Operating

Capital Budget The capital cost for the project is now estimated at $47.75 million including a premium of $4.45 million for utilizing a mass-timber hybrid building system. This estimate was prepared by UBC Properties Trust (UBCPT) based on detailed analysis undertaken with input from the design team and construction manager as part of the schematic design process.

Project Capital Cost Breakdown Cost $

Board 1 Cost $

Board 2 $/GSF $/Bed

Construction Costs

Construction $29,516,000 $31,300,000 $192 $77,475

Construction Contingency $1,177,500 $1,300,000

Cash Allowances

Public Realm $290,450 $300,000

Site Servicing $730,050 $850,000

Escalation1 $0

FF+E $1,334,500 $1,500,000

UBC IT and Secure Access $785,000 $1,000,000

Audio Visual $149,150 $150,000

Soft Costs

Consultant Budget $1,884,000 $2,000,000

Project Management $942,000 $1,000,000

Moving, Commissioning, Inspections

$236,975 $250,000

IIC, Permits, PO Charges, Insurance and Legal

$942,000 $1,300,000

Building Subtotal $37,987,625 $40,950,000 $252 $101,361

GST $619,000 $667,000

Building Total $38,606,625 $41,617,000 $256 $103,012

Retained Risk $294,375 $325,000

Construction Period Financing $1,099,000 $1,108,000

Student Housing Sub-total $40,000,000 $43,050,000 $265 $106,559

Collegium Tenant Improvement $250,000

Base Project Sub-Total $40,000,000 $43,300,000 $266 $107,178

Tall Wood Premium (Externally Funded)

$4,000,000 $4,450,000

Tall Wood Project Total $44,000,000 $47,750,000 $293 $118,193

Gross Building Area (gsf) 156,840 162,750

Number of Residence Beds 383 404

Cost per bed for the project, not including the collegium and the separately funded wood premium, is $106,559 which is in line with the cost per bed for the Ponderosa Commons Phase 2 project ($105,342) factoring in construction cost escalation between the tender dates for the two projects (2013 versus 2015). Note that risks associated with mass timber construction are covered within the tall wood premium component of the budget and not within the base construction contingency, which is based on standard concrete construction.


Preliminary Operating Budget Operating and maintenance costs for the building will be covered by SHHS through student housing rental revenue. The SHHS preliminary operating budget for Tall Wood Residence, including debt servicing, is provided in Attachment 3 and shows positive cash flow starting in Year 2 of operation (2018/19).

FINANCIAL Funding Sources,

Impact on Liquidity

Funding + Financing The $43.3 million base building cost (total cost less wood premium) will be funded by Student Housing & Hospitality Services through an internal loan at 5.75% annual interest paid back over 30 years from housing rental revenue. The $4.45 million wood premium is to be funded from external sources. $2.8 million of this amount has been secured from the Canada Wood Council (CWC) and $650,000 from Forest Innovation Investment (FII). An additional $1 million has been committed and is expected to be announced in June 2015. CWC and the Council of Forest Industries (COFI) will assist UBC is closing any funding gap associated with the wood premium remaining, after more detailed engineering and design of the structure (opportunities include reduced fees and donation of building materials). Given that fundraising activities are targeted at the innovation aspects of the project, additional funds generated through fundraising over and above current budget requirements will be used to enhance the design, and post construction evaluation and monitoring of the facility.

For clarity, no portion of the wood premium will be funded by Student Housing and Hospitality Services.

Source Board 1 Board 2 Status

Canadian Wood Council

(CWC) contribution for Tall

Wood premium

$2,800,000 $2,800,000

Letter of Intent

received. Execution of

funding agreement

expected before Board 3.

Forest Innovation

Investment (FII) contribution

for Tall Wood Premium

$650,000 $650,000 Received.

Student Housing &

Hospitality Services

(financing required)1

$40,000,000 $43,300,000 Committed.

Further Gov’t-Targeted

Fundraising for Tall Wood

premium

$550,000 $1,000,000 Announcement expected

in June 2015.

Overall Total $44,000,000 $47,750,000

1 - Internal Loan at 5.75% annual interest paid back over 30 years from housing rental revenue.

SCHEDULE Implementation

Timeline

Schedule This schedule assumes favourable review of the building design by the Provincial Building Safety & Standards Branch and completion of the Site Specific Regulation by the BSSB/Provincial Government by September 2015 in order to commence construction of the concrete stairwell and elevator cores by October 2015.


Milestone Board 1 Board 2

Executive 1 Apr 2014 Apr 2014

Exec 2 +3 Jul 2014 Jul 2014

Property & Planning Advisory Committee +

Senate Academic Building Needs Committee Aug 2014 Aug 2014

Architect Selection Jul-Aug 2014 Jul-Sep 2014

Board 1 Sep 2014 Sep 2014

Board 2 Apr 2015 Jun 2015


Construction Start Oct 2015 Oct 2015

Construction Completion Aug 2017 Aug 2017

Occupancy Sep 2017 Sep 2017


CONSULTATION Relevant Units, Internal

& External Constituencies

The Tall Wood Student Residence project has been identified as a priority in the UBC Student Housing Growth Strategy and the UBC Capital Plan.

Board 1 approval was received in September 2014. The schematic design has been completed and work is underway with the Provincial Building & Safety Standards Branch on a Site Specific Regulation which will allow mass timber construction higher than current building code limits for this project.

The project is being managed by UBC Properties Trust. The design consultant is Acton Ostry in partnership with Architekten Hermann Kaufmann. The development review procedures for DP 15011 have been completed including reviews by the Advisory Urban Design Panel (Apr 9, 2015) and Development Review Committee (Apr 23, 2015) and a public open house (Apr 29, 2015). Information sessions were also held with students (April 1, 2015) and with Chancellor Place residents (Apr 23, 2015). The online feedback period (Apr 7 to May 8) resulted in the receipt of 15 feedback forms. All comments are posted on the C+CP webpages in keeping with the community engagement commitments of the department.

The feedback from the student community can be summarized as positive with some minor concerns about the timing of the services associated with the other phases of Brock Commons. Neighbouring resident concerns included building height, traffic and circulation, and a potential for increased noise from additional student neighbours. The feedback posted online includes verbatim comment with C+CP commentary.

Campus and Community Planning confirm that the development review process for the project has been completed. The project is ready for issuance of the Development Permit following Board 2 approval.

UBCPT COMMENTS Complete for all reports that include a property

component

Date of Review: Signed off by:

N/A


Previous Report Date September 30, 2014

Decision Board 1 approval for the Tall Wood Student Residence project with a

funding release of $750,000 to commence schematic design.

Preliminary Capital Budget: $44,000,000

Preliminary Operating Budget: See report

Schedule

Project in Principle

Location

Consultant Selection

Program

Proceed to Schematic Design

Funding Release: $750,000

Information:

Expenses to Date: $0

Funding Released to Date: $0

Action / Follow Up Initiate schematic design.

Attachments

1) Brock Commons and Tall Wood Residence Site (Campus Context)2) Brock Commons Site Plan with Tall Wood Residence location3) Tall Wood Residence Schematic Design Renderings4) Preliminary Operating Budget Summary5) Capital Project Accountability Scope & Planning6) Capital Project Accountability Budget & Financing


Attachment 1: Brock Commons and Tall Wood Residence Site (Campus Context)


Attachment 2: Brock Commons Site Plan with Tall Wood Residence location


Attachment 3: Tall Wood Residence Schematic Design Renderings


Attachment 4: Preliminary Operation Budget Summary

Cashflow positive in 2018/19 (Year 2)

$000’s 2017/18 2018/19 2019/20

Rental Revenue 1 4,868 5,014 5,164

Less Rental Vacancy 2 (97) (100) (103)

Lease/Other Revenue 3 0 0 0

4,771 4,914 5,061

Less Student Housing Operating Costs 4 (1,704) (1,755) (1,808)

Less Public/Other Operating Costs 5 (35) (36) (36)

(1,739) (1,791) (1,844)

Net Operating Income 3,032 3,123 3,217

Less Debt Service 6 (3,032) (3,032) (3,032)

Add Interest Earnings Discount 6 0 0 0

Cash Flow (0) 91 185

Operating Cash Flow NPV: 16,088

IRR: 8.56%

1 - Comparing current rates and current unit sizes, with a Rental Inflation factor applied.

2 - Contemplates vacancy rates of 1% in Winter Academic term and 4% in Summer Academic term.

3 - Lease revenue of $25 per Square Foot per annum. None is contemplated.

4 - Current operating costs are 35% based on Marine Drive Residence operating figures.

5 - Public and other area operating costs are $14 per Square foot per annum, derived from Building Operations.

6 - Assumes financing at a rate of 5.75% amortized over 30 years borrowing through Student Housing Financing Endowment (SHFE) or general working capital as required.


Attachment 5: Capital Project Accountability Scope & Planning

PROJECT NAME

Project Name: Level

Department/Unit: 3

Sponsor: 1

Space Type Net SM Net SF

9,222 99,270

493 5,302

232 2,500

Total 9,947 107,072

Target Actual

Sep 2014 Sep 2014

Apr 2015 Jun 2015

Sep 2015

Oct 2015

Aug 2017

Sep 2017

Sep 2019

Date

Apr 9, 2015

Apr 23, 2015

Apr 29, 2015

Aug 2015

Oct 2015

CAMPUS & COMMUNITY PLANNING COMMENTS

30-Sep-14

PROJECT DESCRIPTION FUNCTIONAL PROGRAM

Development Type: New Construction Gross SF

CURRENT APPROVAL STATUS

Tall Wood Student Residence

(Brock Commons Phase 1)Approval Date

Student Housing & Hospitality Services Executive: 15-Jul-04

Louise Cowin, VPS; John Hepburn, VPRI Board:

Capital Cost: $47,750,000

162,750 Location/Site: Vancouver Campus / Walter Gage Road

Facility Type: Student Housing 150,890

Gross Building Area: 162,750 gsf (15,120 gsm) Shared space 8,059

Housing units

3,800 Collegium

PROJECT RATIONALE & BENEFITS

Need/Benefit Area Description

Primary Users / Tenants: Student residents (404 beds)

Community Amenity See Benefits section in main report

Other Benefits: See Benefits section in main report

SCHEDULE SUSTAINABILITY GOALS

Learning & Research Environment See Benefits section in main report

Student Amenity See Benefits section in main report

Board 2 Energy Efficiency Level: TBD % better than MNECB

Board 3 Energy Use Intensity: TBD (kWh/ft2)

Indicator Target Actual

Board 1 Certification: LEED Gold certification

Occupancy Water Use Efficiency TBD % better than standard

Board 4 Innovative Features:

Construction Start GHG Reduction: TBD % better than standard

Substantial Completion Const Waste Recycling TBC % recycling rate

Architect Acton Ostry with Hermann Kaufmann Infrastructure Development Rep John Metras

Comments

DEVELOPMENT PROCESS

Project Manager UBC Properties Trust (David English) Construction Manager Urban One

Development Permit

Building Permit

AUDP Review Design supported.

Dev. Review Committee Design supported.

Public Open House


Attachment 6: Capital Project Accountability Budget & Financing

PROJECT NAME

Project Name: Tall Wood Student Residence

Department/Unit:

Sponsor:

$000s $/GSF 2017/18 2019/20

31,300$ 192$

1,300$ 4,868$ 5,164$

300$

850$

1,500$ (97)$ $ (103)

1,000$ 4,771$ 5,061$

150$

2,000$

1,000$ (1,704)$ (1,808)$

250$

1,300$ (35)$ (36)$

40,950$ Total Direct Expenses (1,739)$ (1,844)$

667$

325$ Net Operating Income 3,032$ 3,217$

1,108$

43,050$ 265$ Debt Service (3,032)$ (3,032)$

250$

43,300$ 266$ -$ 185$

4,450$

47,750$ 293$

Liability with: Committed Secured* Loan Amt Amort. Int. Ann. Payment

SHHS 43,300$ 43,300$ $43,300 30 5.75% 3,032$

VPRI 4,450$ 3,450$

47,750$ 46,750$ $ 43,300 3,032$

CHECK DATE

12-May-15

ATTACHMENTS

Andrew Parr 12-May-15

Student Housing & Hospitality Services,

Managing Director


Campus as a Living Lab research

benefit

VPRI Strategic Partnership Office

Director

Brent Sauder 12-May-15

12-May-15

Treasury

Treasurer

Peter Smailes 12-May-15

Funding Notes: Additional $1m in donor funding expected to

be announced in June 2015.

Debt Capacity Impact: See Financing section in main report

SHHE SHHS

Fundraising

Funding Source Debt Serviced By:

FINANCING AGREEMENTS ($000s)

(36)$ (1,792)$

3,123$

Public Space Op Costs

(3,032)$

Total Cash Flow

Capital Budget Notes: Assumes 404 beds

162,750 gsf

Operating Budget Notes: 8.56% IRR

Cashflow positive in Year 2

(100)$

(1,755)$

Rental Vacancy

Food Deliv Cost @ 82%

Wood premium (externally funded)

Total Project Budget

Meal Plan Income

Total Revenue

Expenses

Res Op Costs @ 35%

Conferences Income

Retained Risk

Construction Period Financing Cost

Student Housing & Hospitality Services

Louise Cowin, VPS; John Hepburn, VPRI

4,914$

CAPITAL BUDGET ($000s) SHHS OPERATING PROFORMA

Capital Development Cost 2018/19

Construction

Construction Contingency

Public Realm Allowance

Site Servicing Allowance

5,014$ Revenue

Rental Income

91$

VPRI Strategic Partnership Office

Director


Total

* Funding paid or firmly committed to be paid before end of construction

REQUIREMENT NAME SIGNATURE

Housing need and benefit

Project site

Development review process

Sustainability measures

Campus & Community Planning

Associate Vice President

Michael White 12-May-15

Project scope and budget

Project manager assignment

Infrastructure Development

Managing Director

John Metras

PROJECT REQUIREMENTS CHECKLIST & SIGN-OFF

Life-cycle operating costs

FF&E

UBC IT and Secure Access

Audio Visual

Design Consultant Budget

Project Management

Moving / Commissioning / Inspections

IIC, Permits, BO Charges, Insurance & Legal

Subtotal

GST

Funding & financing agreements

Debt capacity

Collegium Tenant Improvement

Base Project Subtotal

Fundraising plan

Student Housing Subtotal

Student Housing & Hospitality Services,

Managing Director

Total

FUNDING AGREEMENTS ($000s)


Page 11

Attachment 1: Brock Commons and Tall Wood Residence Site (Campus Context)


Page 12

Attachment 2: Brock Commons Site Plan with Tall Wood Residence location


Page 13

Attachment 3: Tall Wood Residence Schematic Design Renderings


Page 14

Attachment 4: Preliminary Operation Budget Summary

Cashflow positive in 2018/19 (Year 2)

$000’s 2017/18 2018/19 2019/20

Rental Revenue 1 4,868 5,014 5,164

Less Rental Vacancy 2 (97) (100) (103)

Lease/Other Revenue 3 0 0 0

4,771 4,914 5,061

Less Student Housing Operating Costs 4 (1,704) (1,755) (1,808)

Less Public/Other Operating Costs 5 (35) (36) (36)

(1,739) (1,791) (1,844)

Net Operating Income 3,032 3,123 3,217

Less Debt Service 6 (3,032) (3,032) (3,032)

Add Interest Earnings Discount 6 0 0 0

Cash Flow (0) 91 185

Operating Cash Flow NPV: 16,088

IRR: 8.56%

1 - Comparing current rates and current unit sizes, with a Rental Inflation factor applied.

2 - Contemplates vacancy rates of 1% in Winter Academic term and 4% in Summer Academic term.

3 - Lease revenue of $25 per Square Foot per annum. None is contemplated.

4 - Current operating costs are 35% based on Marine Drive Residence operating figures.

5 - Public and other area operating costs are $14 per Square foot per annum, derived from Building Operations.

6 - Assumes financing at a rate of 5.75% amortized over 30 years borrowing through Student Housing Financing Endowment (SHFE) or general working capital as required.


Page 15

Attachment 5: Capital Project Accountability Scope & Planning

PROJECT NAME

Project Name: Level

Department/Unit: 3Sponsor: 1

Space Type Net SM Net SF

9,222 99,270 493 5,302 232 2,500

Total 9,947 107,072

Target Actual

Sep 2014 Sep 2014Apr 2015 Jun 2015Sep 2015Oct 2015Aug 2017Sep 2017Sep 2019

Date

Apr 9, 2015Apr 23, 2015Apr 29, 2015

Aug 2015Oct 2015

CAMPUS & COMMUNITY PLANNING COMMENTS

30-Sep-14PROJECT DESCRIPTION FUNCTIONAL PROGRAM

Development Type: New Construction Gross SF

CURRENT APPROVAL STATUS

Tall Wood Student Residence(Brock Commons Phase 1)

Approval Date

Student Housing & Hospitality Services Executive: 15-Jul-04Louise Cowin, VPS; John Hepburn, VPRI Board:

Capital Cost: $47,750,000 162,750 Location/Site: Vancouver Campus / Walter Gage Road

Facility Type: Student Housing 150,890 Gross Building Area: 162,750 gsf (15,120 gsm) Shared space 8,059

Housing units

3,800 Collegium

PROJECT RATIONALE & BENEFITS

Need/Benefit Area Description

Primary Users / Tenants: Student residents (404 beds)

Community Amenity See Benefits section in main reportOther Benefits: See Benefits section in main reportSCHEDULE SUSTAINABILITY GOALS

Learning & Research Environment See Benefits section in main reportStudent Amenity See Benefits section in main report

Board 2 Energy Efficiency Level: TBD % better than MNECBBoard 3 Energy Use Intensity: TBD (kWh/ft2)

Indicator Target Actual

Board 1 Certification: LEED Gold certification

Occupancy Water Use Efficiency TBD % better than standardBoard 4 Innovative Features:

Construction Start GHG Reduction: TBD % better than standardSubstantial Completion Const Waste Recycling TBC % recycling rate

Architect Acton Ostry with Hermann Kaufmann Infrastructure Development Rep John Metras

Comments

DEVELOPMENT PROCESS

Project Manager UBC Properties Trust (David English) Construction Manager Urban One

Development PermitBuilding Permit

AUDP Review Design supported. Dev. Review Committee Design supported. Public Open House


Page 16

Attachment 6: Capital Project Accountability Budget & Financing

PROJECT NAME

Project Name: Tall Wood Student Residence

Department/Unit:Sponsor:

$000s $/GSF 2017/18 2019/20

31,300$ 192$ 1,300$ 4,868$ 5,164$

300$ 850$

1,500$ (97)$ $ (103)1,000$ 4,771$ 5,061$

150$ 2,000$ 1,000$ (1,704)$ (1,808)$

250$ 1,300$ (35)$ (36)$

40,950$ Total Direct Expenses (1,739)$ (1,844)$ 667$ 325$ Net Operating Income 3,032$ 3,217$

1,108$ 43,050$ 265$ Debt Service (3,032)$ (3,032)$

250$ 43,300$ 266$ -$ 185$ 4,450$

47,750$ 293$

Liability with: Committed Secured* Loan Amt Amort. Int. Ann. Payment

SHHS 43,300$ 43,300$ $43,300 30 5.75% 3,032$ VPRI 4,450$ 3,450$

47,750$ 46,750$ $ 43,300 3,032$

CHECK DATE

12-May-15

ATTACHMENTS


Student Housing & Hospitality Services, Managing Director


Campus as a Living Lab research benefit

VPRI Strategic Partnership OfficeDirector


12-May-15

TreasuryTreasurer

Peter Smailes 12-May-15

Funding Notes: Additional $1m in donor funding expected to be announced in June 2015.

Debt Capacity Impact: See Financing section in main report

SHHE SHHSFundraising

Funding Source Debt Serviced By:

FINANCING AGREEMENTS ($000s)

(36)$ (1,792)$

3,123$

Public Space Op Costs

(3,032)$

Total Cash Flow

Capital Budget Notes: Assumes 404 beds162,750 gsf

Operating Budget Notes: 8.56% IRRCashflow positive in Year 2

(100)$

(1,755)$

Rental Vacancy

Food Deliv Cost @ 82%

Wood premium (externally funded)Total Project Budget

Meal Plan Income

Total Revenue

Expenses Res Op Costs @ 35%

Conferences Income

Retained RiskConstruction Period Financing Cost

Student Housing & Hospitality ServicesLouise Cowin, VPS; John Hepburn, VPRI

4,914$

CAPITAL BUDGET ($000s) SHHS OPERATING PROFORMA

Capital Development Cost 2018/19

ConstructionConstruction ContingencyPublic Realm AllowanceSite Servicing Allowance

5,014$ Revenue Rental Income

91$

VPRI Strategic Partnership OfficeDirector


Total

* Funding paid or firmly committed to be paid before end of construction

REQUIREMENT NAME SIGNATURE

Housing need and benefit

Project siteDevelopment review processSustainability measures

Campus & Community PlanningAssociate Vice President

Michael White 12-May-15

Project scope and budgetProject manager assignment

Infrastructure DevelopmentManaging Director

John Metras

PROJECT REQUIREMENTS CHECKLIST & SIGN-OFF

Life-cycle operating costs

FF&EUBC IT and Secure AccessAudio VisualDesign Consultant BudgetProject ManagementMoving / Commissioning / InspectionsIIC, Permits, BO Charges, Insurance & LegalSubtotal

GST

Funding & financing agreementsDebt capacity

Collegium Tenant ImprovementBase Project Subtotal

Fundraising plan

Student Housing Subtotal

Student Housing & Hospitality Services, Managing Director

Total

FUNDING AGREEMENTS ($000s)

decision it is hereby requested that the ubc board of...

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