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Board of Regents Meeting September 25-26, 2003 Agenda Item # 6 Arizona State University of 36 EXECUTIVE SUMMARY ACTION ITEM: Arizona State University 2004 Capital Development Plan ISSUE: ASU requests Board approval of its 2004 Capital Development Plan (CDP), and authorization to proceed with advance planning, facilities programming, and preliminary design for the following 8 projects: 1) ASUM-Interdisciplinary Life Sciences and Technology Building (RI); 2) ASUM-Geosciences and Materials Building (N3)(RI); 3) ASUE-Research Building (RI); 4) ASUD-Arizona Biomedical Collaborative (ABC); 5) ASUM-New Business School Complex ; 6) ASUM-Instructional/Research Laboratory Renovations Phase I; 7) ASUE/ASUW-Extended Campus Capital & Infrastructure Upgrades; 8) ASUM-Combined Heat and Power Project. In addition, ASU seeks approval of the revised Project Justification for the following two projects: 1) ASUM-Arizona Biodesign Institute Phase II; 2) McAllister Academic Village. BACKGROUND: This is Arizona State University’s CDP update/ revision consistent with ABOR Policy Chapter VII. The CDP identifies those projects the University intends to initiate this fiscal year, as well as projects that have been previously approved by the Board. Attached for review, discussion, and approval, is the CDP for Arizona State University (Attachment 1). IMPLICATIONS FOR THE UNIVERSITY: Proposed New Projects: Authorization of the Arizona State University CDP would allow ASU to initiate the programming and preliminary design for the following projects (Attachment 2):

• ASUM-Interdisciplinary Life Sciences and Technology Building – Research Infrastructure (RI) • ASUM-Geosciences and Materials Building (N3)(RI) • ASUE-Research Building (RI) • ASUD-Arizona Biomedical Collaborative (ABC) • ASUM-New Business School Complex • ASUM-Instructional/Research Laboratory Renovations Phase I • ASUE/ASUW-Extended Campus Capital & Infrastructure Upgrades • ASUM-Combined Heat and Power Project

Revised Project Justification:

• ASUM-Arizona Biodesign Institute Phase II • ASUM-McAllister Academic Village

FISCAL IMPACT AND MANAGEMENT PLAN: The funding summary for ASU is included with the CDP to show total project costs by funding sources, along with the corresponding annual debt service and annual operation and maintenance costs (O & M). Combined, the tables present the University’s financial plan to service future debt as these projects move forward through the approval process. The plan shows that a total of $295,133,900 in additional debt will be assumed over the next 2 years. This additional debt along with contemplated $22,500,000 of upfront

Board of Regents Meeting September 25-26, 2003 Agenda Item # 6 Arizona State University of 36 EXECUTIVE SUMMARY gift funds results in total project costs of $317,633,900. It is anticipated that $44,000,000 million in outstanding debts will be retired over the same time period, which results in a net increase in debts outstanding of $251,133,900. It is estimated, based on this Capital Development Plan, that at the end of two years ASU’s debt service on all outstanding debt would be 5.7% of the University’s total projected expenditures (State law basis, max 8%) and 7.1% of the University’s projected unrestricted expenditures (ABOR policy basis, max 10%). The following table identifies the incremental debt service for each of the projects listed included in the 2004 CDP:

Project Name Amount Financed

State ABOR

ASUM-Interdisciplinary Life Sciences and Technology Building 74,000,000 0.48% 0.60%ASUM-Geosciecnes & Materials Building (N3) 18,000,000 0.12% 0.15%ASUE-Research Building 12,000,000 0.08% 0.10%ASUD-Arizona Biomedical Collaborative (ABC) 10,000,000 0.07% 0.08%ASUM-Arizona Biodesign Institute Phase II 73,000,000 0.48% 0.59%ASUM-New Business School Complex (1) 57,500,000 0.35% 0.44%ASUM-Instructional Research Laboratory Renovations Phase I 10,000,000 0.06% 0.08%ASUE/ASUW-Extended Campus Capital and Infrastructure Upgrades 7,000,000 0.04% 0.05%ASUM-IT/Telecom Infrastructure Upgrade Phase I 22,000,000 0.24% 0.30%ASUM-Infrastructure Improvements Phase II 10,000,000 0.06% 0.07%ASUE-Exercise & Wellness Phase II (Renovate Building 505) 1,633,900 0.01% 0.01%Total $295,133,900 1.97% 2.47% RECOMMENDATION: RESOLVED: That Arizona State University be, and hereby is, granted approval for the 2004 Capital Development Plan, authorization to proceed with the : 1) ASUM-Interdisciplinary Life Sciences and Technology Building (RI); 2) ASUM-Geosciences and Materials Building (N3); 3) ASUE-Research Building; 4) AUMD-Arizona Biomedical Collaborative (ABC); 5) ASUM-New Business School Complex ; 6) ASUM-Instructional/Research Laboratory Renovations Phase I; 7) ASUE/ASUW-Extended Campus Capital & Infrastructure Upgrades; 8) ASUM-Combined Heat and Power Project and approval of the revised Project Justification for 1) ASUM-Arizona Biodesign Institute Phase II; 2)McAllister Academic Village.

Board of Regents Meeting September 25-26, 2003 Agenda Item # 6 Arizona State University of 36 EXECUTIVE SUMMARY


ATTACHMENT 1

ARIZONA BOARD OF REGENTS

ARIZONA STATE UNIVERSITY 2004 CAPITAL DEVELOPMENT PLAN


ARIZONA STATE UNIVERSITY

2004 CAPITAL DEVELOPMENT PLAN

Project Project CostFunding Method

(Annual Debt Service Funding Source)

GSF Annual O & M

Board Approval Status

ASUM-Interdisciplinary Life Sciences and Technology Building

74,000,000 COPs (6) 5,788,700 (a) 180,000 1,800,000 rev. CIP 11/02

ASUM-Geosciences & Materials Building (N3) 18,000,000 COPs (6) 1,408,000 (a) 60,000 600,000 rev. CIP 11/02

ASUE-Research Building* 12,000,000 COPs (5)(6) 938,700 (a) 37,000 370,000 rev. CDP 1/03

ASUD-Arizona Biomedical Collaborative (ABC) 10,000,000 COPs (6) 782,300 (a) 35,000 375,000 rev. CIP 11/02

Previously ApprovedASUM-AZ Biodesign Institute Phase II 73,000,000 COPs (6) 5,710,700 (a) 172,000 1,700,000 rev. CDP 1/03

Research Infrastructure Subtotal * $187,000,000 $14,628,400 $4,845,000

ASUM-New Business School Complex ** $80,000,000 Bonds(2)(8)/Gifts(9) $4,177,400 (b) 330,000 $1,474,300 rev. CIP 11/02ASUM-Instructional/Research Laboratory Renovations Phase I 10,000,000 Bonds (2)(4)(5) 726,500 (b) 33,000 0 rev. CIP 11/02

ASUE/ASUW-Extended Campus Capital & Infrastructure Upgrades 7,000,000 Bonds (2)(e) 508,600 (b) N/A 0 rev. CIP 11/02

Previously ApprovedASUM-IT/Telecom Infrastructure Upgrades-Phase I 22,000,000 Bonds (2)(5) 2,849,100 (d) N/A 0 ARU/IT 8/03

ASUM-Infrastructure Improvements Phase II 10,000,000 Bonds (2) 673,400 (c) N/A 0 PI 4/03ASUE-Exercise & Wellness Phase II (Building 505) 1,633,900 COPs (1) 127,900 (a) 16,800 85,000 PI 4/02

Academic Subtotal $130,633,900 $9,062,900 $1,559,300

Auxiliary SubtotalCumulative Totals $317,633,900 $23,691,300 $6,404,300

ASUM-Combined Heat & Power Project N/A N/A N/A N/A CDP 9/03Previously ApprovedASUM-McAllister Academic Village N/A N/A N/A N/A rev. CDP 1/03ASUE-PGM -Driving & Practice Range N/A N/A N/A N/A CDP 6/01

Fund Source Description Annual Debt Service Total Cost(1) 301 Funding (301) $127,900 $1,633,900(2) Tuition (TUI) 5,512,600 68,000,000(3) Auxiliary Generated Funds(AUX) 0 0(4) Indirect Cost Recovery (ICR) 181,625 2,500,000(5) Other Local Funds (OLF) 1,762,575 15,500,000 (a) = 25 yrs, 6% (6) General Fund Appropriation (GFA) 14,472,000 185,000,000 (b) = 30 yrs, 6% (7) Federal Grant (FGT) 0 0 (c) = 30 yrs, 5%(8) Debt Financed by Gifts (DFG) 1,634,600 22,500,000 (d) = 10 yrs, 5%(9) Upfront Cash Gifts 0 22,500,000 (e) East and West tuition(10) Other (OTH) Total $23,691,300 $317,633,900

N/A

N/AN/A

Annual Debt Service

** Construction will not begin until all gift funds have been pledged and 50% of the gift pledges have been received in cash.

*$2,000,000 from Other Local Funds

RESEARCH INFRASTRUCTURE

CAPITAL DEVELOPMENT PLAN FUNDING SUMMARY

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by G

ifts (

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ther

(OT

H).

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY

ATTACHMENT 2

ARIZONA BOARD OF REGENTS ARIZONA STATE UNIVERSITY

2004 CAPITAL DEVELOPMENT PLAN

For

ASUM- Interdisciplinary Life Sciences and Technology Building (RI)

ASUM-Geosciences and Materials Building (N3)

ASUE-Research Building

ASUD-Arizona Biomedical Collaborative (ABC)

ASUM-Arizona Biodesign Institute Phase II

ASUM-New Business School Complex

ASUM-Instructional/Research Laboratory Renovations Phase I

ASUE/ASUW-Extended Campus Capital & Infrastructure Upgrades

ASUM-McAllister Academic Village

ASUM-Combined Heat and Power Project


Arizona Board of Regents

Arizona State University Main Capital Development Plan Project Justification Report

Interdisciplinary Life Sciences and Technology Building Project Need: This request is aligned with ASU’s strategic investment in faculty, students, and facilities in the life sciences, biotechnology and in bioengineering. The request is likewise aligned with the growing research opportunities in the biosciences and biotechnology field. This interdisciplinary facility will provide the core state-of-the-art infrastructure in three of the institutions high priority areas: (1) Life Sciences, (2) Bioengineering, and (3) Urban Environment. The first two areas are slated for substantial expansion and investment in the immediate five-year time horizon. The third area represents one of ASU’s substantial interdisciplinary research strengths. In August 2003 that research will be accelerated by the addition of a National Academy of Engineering faculty member in the area of sustainable environments. Co-location of these three thematic areas is anticipated to create substantial new synergies and catalyze new intellectual disciplinary fusion, thereby fostering new advances in both science and technology. This project is essential to meet the current and anticipated need for quality interdisciplinary research space and the core joint-user facilities in these areas. Much of the currently occupied space is incapable of meeting the technical and safety and health requirements of modern molecular, bioinformatic and biomedical research. The new space will enable us to:

• continue to recruit the best students, faculty and professional staff • compete in the global marketplace of ideas for federal and other research funding • implement advances in education and training for our graduate and undergraduate students • engage the outside community

Programming and Design Costs, Exceptions (if Required), to achieve Project Implementation: Professional fees for this phase are estimated at $5,000,000. The approximate breakdown of the fees and associated costs are as follows: Pre-program planning including archaeological survey, surveys, testing and utilities relocation; Programming, planning and design; Pre-construction phase services, mobilization, site preparation, other University Costs.

Due to the fast track delivery method to be utilized for this project, Arizona State University requests an exception to Arizona Board of Regent’s policy to allow the expenditure of $5,000,000 to achieve Project Implementation. Project Scope and Cost: The new building will provide space for the planned development and expansion of the School of Life Sciences and for Bioengineering and related life sciences. The 180,000 square feet of new space will be research and graduate education laboratories, special purpose laboratories, offices and conference rooms. The space will be developed to encourage inter- and multi-disciplinary learning and research. The building is to be situated on Lot 26. The total project cost is estimated at $74,000,000

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Project Compliance with Space Standards: The space program complies with the Arizona Board of Regents’ Space Guidelines. Project Compliance with Mission, Strategic Plan, Master Plan, and Community Input Process: The building project is in compliance with the University’s Master Plan and stated Mission, and the College of Liberal Arts and Sciences Mission and Strategic Plan, and with the Community Input process. Fiscal Impact and Financing Plan: The project funding will be Certificates of Participation. The funding source for debt service will be H.B. 2529 Research Infrastructure Appropriation. The Operations and Maintenance costs for this facility will be $1,800,000. Arizona State University will not request a General Fund Appropriation for operations and maintenance support through the Legislative budget request process. Instead, O&M costs will be covered through a portion of the indirect costs recovered from competitive research grants. Backfill Plan: Much of the new space will be dedicated to new capacity in new faculty, students and support professionals. A portion of the space will allow us to move functions that are currently in off-campus leased space (e.g., Bioengineering in the SunCor Building) onto the main campus. The existing Urban Environmental faculty to be moved into this facility is currently housed in the Tech Annex (to be demolished) and the Engineering Center (slated for demolition in 2-4 years). Space that is being provided for existing faculty in the School of Life Sciences (SoLS) and Bioengineering will enable these priority academic units to expand more broadly. Alternatives: There are no known alternatives to the project. Continuation in existing spaces will reduce educational opportunities for undergraduates, and graduate and postdoctoral associates. It will also impede workforce development and substantially restrict research and development opportunities.



Arizona State University Main Capital Development Plan Project Justification Report

Geosciences and Materials Building Previously the “Interdisciplinary High Bay Building - N3”

Project Need: In May 2000, the University hired the team of DMJM, Architects/Paulien Associates, Planning Consultants to develop a long-range facilities master plan for the physical facilities to serve the ASU College of Engineering and Applied Sciences. In addition, they developed a conceptual program to begin preparation for the proposed Interdisciplinary Research Buildings to support Engineering and Sciences at ASU. In applying the Arizona Board of Regents and other accepted space guidelines to the then current Fall 1998 faculty and enrollment, the findings indicated a deficit of approximately 208,000 square feet in departmentally assigned space. Based on University provided faculty and student growth projections up to 2010, this deficit is expected to grow to well over 600,000 square feet. The space deficit is further compounded by the fact that some of the older buildings (specifically Engineering Center B-F wings) do not meet current life safety code standards. This request is designed to partially meet the identified space deficit, while replacing the substandard space and creating new space for several priority areas. ASU has assembled a world-class faculty in Geosciences and Materials Science and Engineering research that spans two colleges and is a strategic strength. This facility is required to:

• Provide a state-of-the-art joint-use geomaterials and other solid state materials characterization facility including Nuclear Magnetic Resonance (NMR) and X-Ray Diffraction (XRD). These facilities will support a broad range of projects in both naturally-occurring geological materials and engineered materials.

• Provide space that supports over $4M in research growth in civil, geotechnical and environmental engineering since 1999. Some of the most dramatic growth has been in pavement materials research that includes substantial federal and state transportation research programs, and this new building will incorporate center-like space for this highly successful project.

• House hazardous waste facilities that must be removed for Arizona Biodesign Institute Phase I and II. Programming and Design Costs, Exceptions (if Required), to achieve Project Implementation: Professional fees for this phase are estimated at $2,300,000. The approximate breakdown of the fees and associated costs are as follows: Pre-program planning including archaeological survey, surveys, testing and utilities relocation; Programming, planning and design; Pre-construction phase services, mobilization, site preparation, other University Costs.

Due to the fast track delivery method to be utilized for this project, Arizona State University requests an exception to Arizona Board of Regent’s policy to allow the expenditure of $2,300,000 to achieve Project Implementation.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Project Scope and Cost: The program had been initially defined as the Interdisciplinary High Bay Research Building of approximately 60,000 square feet. The two primary intents of this new building are to (1) create new infrastructure for a state-of-the-art materials characterization facility and to relocate laboratory and shop areas currently located in substandard space in Wings B through F in the Engineering Center. Existing facilities are in generally poor condition (reference DMJM/Paulien conditions analysis report dated May 2000). The research space needs dictate an industrial type space with extensive utility provisions required. The physical nature of the equipment (a significant amount of which is custom-built) requires high vertical space clearances, convenient access to sample loading and unloading areas, and hoist/crane facilities to transport equipment in and out of the building. Likewise the NMR facility requires a high bay. Additional program development will include offices for faculty and researchers, and core support such as student meeting spaces. The building is to be situated north of the Technology Center Building and South of the Facility Management Building complex and will require the demolition of three buildings (Aeronautics Building, Technology Center Annex A and B). The total project cost is estimated to be $18,000,000. Project Compliance with Space Standards:

In 1997 the DeMichele -ABOR Work Group reported a 573,000 square feet shortfall in research space for Arizona State University Main campus. Using the Arizona Board of Regents’ space guidelines for laboratories and offices, Paulien and Associates/DMJM concluded in an external study that the overall space shortage including teaching and open laboratories is 415,000 SF. Moreover, this overall shortfall is projected to reach 605,000 square feet by year 2004. The proposed project for High Bay Research makes a start toward addressing this deficit. This project, at 60,000 square feet, represents approximately ten percent (10%) of the shortfall.

The space program complies with the Arizona Board of Regents’ Space Guidelines. Building efficiency ratios (NASF/SF) for this facility is projected at 65%. Project Compliance with Mission, Strategic Plan, Master Plan, and Community Input Process: The Interdisciplinary High Bay Research Facility complies with the mission of the University in supporting and extending capabilities in basic sciences and engineering; these areas represent key dimensions in the University’s mission for Research and Education. Moreover, these areas of learning are vitally important to the continued development of the new economy in Arizona. The proposed facilities will also strengthen both the quality and quantity of undergraduate and graduate education.

Existing facilities are inadequate to address current research requirements, and are rapidly placing more and more constraints on the development of these strategically important areas. This project will promote the development of interdisciplinary research in engineering and the sciences in the most cost-effective manner.

Fiscal Impact and Financing Plan: The project funding will be Certificates of Participation. The funding source for debt service will be H.B. 2529 Research Infrastructure Appropriation.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY The Operations and Maintenance costs for this facility will be $600,000. Arizona State University will not request a General Fund Appropriation for operations and maintenance support through the Legislative budget request process. Instead, O&M costs will be covered through a portion of the indirect costs recovered from competitive research grants. Backfill Plan: With the need to demolish Engineering Center A-F wings, there is no backfill space associated with this project. The project is initiative driven and will be used by science and engineering units as well as outside collaborative entities. Alternatives:

• Due to the type of space required for this facility, the program could not be accommodated in any existing space on this campus.

• Due to the specific and scientific nature of the program, there are no leased spaces to accommodate such program.

• No clustering of this program in the existing available space is possible.


Arizona Board of Regents Arizona State University East

Capital Development Plan Project Justification Report ASU East Research Building

Project Need: Arizona State University East is developing several areas of research excellence that will contribute to the research goals of ASU’s drive to become the “New American University”. Spires of excellence will bring national recognition to the university through significant programs of research and graduate education. A high level of research productivity will, in turn, increase economic development activity in the metropolitan area. Research efforts at ASU East focus on the application of knowledge in order to understand and address real societal problems and needs, thereby generating more direct impact in the community. Focused areas of excellence that require additional research facilities include health and wellness programs, applied cognitive sciences, and applied biological sciences. These three areas have the potential to generate significant returns on investment, but require facility “infusions” to fully enable the faculty and future program development. This project also creates an opportunity for ASU East to partner with the Production of Vaccines from Applied Crop Science (ProVacs) program out of the Center for Infectious Diseases and Vaccines, part of the Arizona Biodesign Institute, in its production-oriented, biotechnology research. Programming and Design Costs, Exceptions (if Required), to Achieve Project Implementation: Professional fees for this phase are estimated at $1,100,000. The approximate breakdown of the fees and associated costs are as follows: Pre-program planning including archaeological survey, surveys, testing and utilities relocation; Programming, planning and design; Pre-construction phase services, mobilization, site preparation, other University Costs.

Due to the fast track delivery method to be utilized for this project, Arizona State University requests an exception to Arizona Board of Regent’s policy to allow the expenditure of $1,100,000 to achieve Project Implementation. Project Scope and Cost: This project will consist of the construction of a new building that is approximately 37,000 square feet and will accommodate the research needs for the Applied Cognitive Science Institute, the Healthy Lifestyles Institute, the Applied Biological Sciences and certain biotechnology components of the Arizona Biodesign Institute. A summary of the research areas to be included in the ASU East Research Building follows: The Applied Cognitive Science Institute (ACSI) will bring together faculty who conduct research in such areas as human factors, ergonomics, models of actors and agents, team cognition and coordination, human-computer interaction, and knowledge engineering. This research has direct relevance to issues and problems in aviation, homeland defense, and usability of systems including computer systems, training, and decision making. The highly applied nature of this type of research encourages strong collaboration between university researchers, industry and government laboratories, and industrial technology transfer partners. The Healthy Lifestyles Institute will address the scientific study and promotion of healthy lifestyles, and extend the scientific knowledge base that focuses on healthy lifestyles and disease prevention, study the application of practices designed to effectively enhance healthy lifestyles, and promote healthy lifestyles among the citizens of

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Arizona across the lifespan. This research is motivated by the fact that although heart disease, cancer, and stroke are listed as the top three causes of death, the “actual” root causes of death have been traced to three unhealthy lifestyle behaviors – smoking, physical inactivity, and poor diet. There is growing recognition both nationally and within Arizona of the need to focus greater efforts on funding research and programs that promote disease prevention and healthy lifestyles. In addition, researchers who will affiliate with the Healthy Lifestyles Institute engage in research and community outreach that address special issues, such as the health of American Indian populations, the diet and physical activity of school-aged children, and cancer prevention more generally. The Applied Biological Sciences Complex will support research in the newly created Department of Applied Biological Sciences (ABS) that was implemented on July 1, 2003. This department brings together faculty from ASU East and ASU Main who share interests in the application of the biological sciences to environmental issues and concerns. The research interests of the current faculty span a variety of specialized fields, including ecological restoration, wildlife habitat management, urban horticulture, and environmental policy. Much of this work is directed at understanding and solving issues related to the sustainability of the natural environment, both in urban and rural areas, for the greater good of the community. Plans to expand into areas of biotechnology, with an emphasis on plant biotechnology, will further strengthen research capabilities at ASU East. Areas that could benefit from collaboration with on-site researchers affiliated with the Arizona Biodesign Institute include ecosystem impacts of genetically modified organisms and the potential for improving plants for use in ecological restoration and urban horticulture. For instance, development of landscape plants that are more efficient users of water has great potential economic and environmental benefit. Additional areas of research opportunity are discussed below. The newly created Department of Applied Biological Sciences (ABS) provides an academic base for research and educational programs in biotechnology that have a direct linkage to exploratory research activities of the Arizona Biodesign Institute on the ASU Main campus. In addition, plant biotechnology research also has direct ties to horticulture crop improvement and to food-related programs in nutrition that are located at ASU East. The opportunity to build a plant biotechnology program of excellence is primarily a result of the Arizona Biodesign Institute’s (AzBio) recruitment of a key group of individuals with interest areas that relate to PMP (Plant-Made Pharmaceutical) biomanufacturing. In contrast to most other universities with strong plant biology programs, ASU does not have a College of Agriculture. In the case of PMP research, that is a positive since we are not “distracted or directed” to focus on traditional crop agriculture for food and fiber production. AzBio has already carved out an internationally recognized niche in PMP production for plant-based vaccines (the “ProVacs” program in AzBio) and have recruited new faculty with broad expertise in this area for Main Campus. In parallel, AzBio invested in a PMP genetic containment greenhouse facility at ASU East and has begun plans for expansion of its capacity. The total project cost is projected at $12,000,000. Project Compliance with Space Standards: This project will be planned, programmed and designed in compliance with existing university space utilization standards.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Project compliance with Mission, Strategic Plan, Master Plan and Community Input Process: ASU East has maximized the reuse of existing facilities at the former Williams Air Force Base as envisioned in the original Williams Campus Master Plan. This new research building will be located in an area of the campus adjacent to the Air Force Research Laboratory and the genetic containment greenhouse facility mentioned earlier, thereby creating a synergistic, research-intensive area on campus. Furthermore, this project is consistent with the evolution of ASU East into the polytechnic campus of the university and the strategic plans of academic units already engaged at ASU East. Fiscal Impact and Financial Plan: The project funding will be Certificates of Participation. The funding source for debt service on $10,000,000 of the Certificates of Participation will be H.B. 2529 Research Infrastructure Appropriation. The debt service on the remaining $2,000,000 will be Other Local Funds. The Operations and Maintenance costs for this facility will be $370,000. Arizona State University will NOT request General Fund support for the operations and maintenance funding through the Legislative budget request process. Instead O&M costs will be provided through a portion of the Facilities and Administration costs recovered from competitive grants. Backfill Plan: None, the identified research activities are all new activities and do not exist at this time. Therefore there is no space being vacated. Alternatives: None.



Arizona State University Downtown Capital Development Plan Project Justification Report

Arizona Biomedical Collaborative (ABC) Arizona Biomedical Collaborative (Downtown Phoenix)

Clinical Research and Applied Health Care Facility Project Need: The Clinical Research and Applied Health Care Facility in the Arizona Biomedical Collaborative (ABC) located in downtown Phoenix will provide the state-of-the-art infrastructure and the environment necessary to conduct sophisticated patient-oriented research and advanced applied health care and public policy training. This facility will be integrated with the Tri-University ABC campus to enhance cross-institution collaboration and maximize synergy. ASU’s research focus will focus on the application of knowledge to understanding and addressing real societal problems and needs, thereby generating more direct impact in the community. Programming and Design Costs, Exceptions (if Required), to Achieve Project Implementation: Professional fees for these phases are estimated at $600,000. Project Scope and Cost: This project will consist of the construction of a portion of a new building that is approximately 35,000 square feet and will accommodate both educational and research programs in the biomedical sciences. Graduate education and research programs in nursing will be located in the building. The metro-Phoenix MPH program and Masters of Health Science Administration will be head quartered there as well. The research programs that are being developed in partnership with the Phoenix clinical community, for example, TGEN and the Carl T. Hayden Veteran’s Affairs Medical Center, as well research programs on various aspects of public health and health policy will also find a home in the ABC facility. ASU contribution to the project is projected at $10,000,000. Project Compliance with Space Standards: The new construction will be planned, programmed and designed in compliance with existing university space utilization standards. Project compliance with Mission, Strategic Plan, Master Plan and Community Input Process: This facility is aligned with ASU’s and ABC’s strategic goals to increase the level, intensity and quality of clinical research conducted in the Phoenix metropolitan area. Moreover, the project reflects the needs identified in the recently released report by Batelle which described a roadmap for the state’s focus on biomedicine and biotechnology. A master building plan for the Arizona Biomedical Collaborative campus in Phoenix is being developed in collaboration with the city of Phoenix, representatives of all three Universities, and the Arizona Board of Regents. The Universities have retained the services of an architect specializing in historic preservation to evaluate the adaptive reuse potential of the three historic Phoenix Union High School Buildings on the site. Ayres Saint Gross, an architecture/planning firm, is assisting the three Universities in the preparation of a coordinated facilities program, and a site development master plan for the southern one-third of the site.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Fiscal Impact and Financial Plan: The project funding will be Certificates of Participation. The funding source for debt service will be H.B. 2529 Research Infrastructure Appropriation. The Operations and Maintenance costs for this facility will be $375,000. Arizona State University will NOT request General Fund support for the operations and maintenance funding through the Legislative budget request process. Instead O&M costs will be provided through a portion of the Facilities and Administration costs recovered from competitive grants. Backfill Plan: The new facility largely will release space that is currently being leased off campus, and hence for these activities there is no backfill plan. Alternatives: None. It is crucial that these activities are located in the Phoenix downtown area, so that they can be strategically physically positioned close to major medical providers in the metro area and for convenient access to the large clinical population in the area.



Arizona State University Main Capital Development Plan Project Justification Report (Revised)

Arizona Biodesign Institute Phase II

Project Need:

The project responds to and is motivated by the strong partnership between the University and industry in Arizona. With a strong base of industry in computing, microelectronics and medical devices, the emerging biotechnology industry, and the special concerns related to the desert environment, the areas of research and education addressed in this project are of special strategic importance: bioengineering, biotechnology, integrative biomedicine, nanotechnology with an emphasis on nano-bio interfaces, and information technology with an emphasis on genomics, computational bioscience, and bioinformatics. These areas of learning are vitally important to the continued development of the new economy in Arizona. The proposed facilities will dramatically strengthen both the quality and quantity of undergraduate and graduate education. Existing facilities are inadequate to address current research requirements, and are rapidly placing more and more constraints on the development of these strategically important areas. Indeed, without this substantial new space the Arizona Biodesign Institute will be infrastructure-starved in its most critical development phase. The Rehabilitation Engineering research team is currently leasing expensive and less than technologically-optimal space off campus. The move of existing faculty from the School of Life Sciences and Bioengineering will create valuable backfill opportunities for these two highest university priority academic programs from both a research and education perspective. ASU has committed to a substantial enhancement of the newly created School of Life Sciences, including the addition of approximately twenty-five new faculty with perhaps one-half of these being members of AZ Biodesign. Likewise, as an integral part of the critically important Ira A. Fulton School of Engineering, Bioengineering is targeted for continuing expansion. The School of Life Sciences and the physical sciences in the College of Liberal Arts & Sciences and the Ira A. Fulton School of Engineering play central roles in the development of the University’s international reputation and Arizona’s ability to continue to move forward into the New Economy. This project is an initiative to promote the development of interdisciplinary research in the most cost-effective manner. Programming and Design Costs, Exceptions (if Required), to achieve Project Implementation:

The professional fees for this phase of the project are anticipated to cost $1,200,000. The approximate breakdown of the fees and associated costs are as follows: Pre-program planning including archaeological survey, surveys, testing and utilities relocation; Programming, planning and design; Pre-construction phase services, mobilization, site preparation, other University Costs. Due to the size, complexity and fast track delivery method to be utilized for this project, Arizona State University requests an exception to Arizona Board of Regents’ policy to allow the expenditure of the $1,200,000 to achieve project implementation.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Project Scope and Cost: This 172,000 square foot facility is proposed as the second building in a multi-phase project for interdisciplinary research buildings. It will provide laboratory and office space for state-of-the-art research in areas such as neural rehabilitation, genomics, molecular biophysics, neutraceuticals and edible vaccines, and nano-scale bio-optics and bioscience. The research will be interdisciplinary in nature, with a focus on the life sciences, bioengineering and biotechnology. The design of the building will include an open, flexible interior that encourages research collaboration and lets the building adapt to fit specific project needs. Phase 2 will also include an animal care facility and faculty/research and administrative offices. The primary tenants will be researchers from the Arizona Biodesign Institute. The tenancy will be project driven, with no specific department or faculty members claiming ownership. Tenants will be identified as those with cutting-edge research having wide ranging potential. The Arizona Biodesign Institute buildings mark the beginning of ASU’s plans for a bioengineering research corridor that will serve as a gateway into the University on the east side of Campus. The collection of top, cutting-edge researchers will serve as a magnet for other researchers and research investment. Private industry will also be drawn to the corridor and its research and technology transfer opportunities. In ASU’s Updated 2003 Capital Development Plan, approved in January 2003, the project cost was $60,000,000. The total revised project cost of the facility is estimated at $73,000,000. The budget and scope increase is the result of infrastructure requirements, the animal care facility and related equipment, demolition costs, and the balance of parking replacement reserve costs. In addition, the increased budget reflects the Guaranteed Maximum Price negotiated for the Arizona Biodesign Institute Phase I. The building is to be situated within the northwest quadrant of Lot 44, but site improvements and landscaping will be required in other areas as well. The demolition of an existing warehouse structure (#618) will be required, as will dismantling of the Unsteady Wind Tunnel (#746). Project Compliance with Space Standards: In 1997 the DeMichele -ABOR Work Group reported a 573,000 GSF shortfall in research space for Arizona State University Main campus. Using the Arizona Board of Regents’ space guidelines for laboratories and offices, Paulien and Associates/DMJM concluded in an external study that the overall space shortage including teaching and open laboratories is 415,000 GSF. Moreover, this overall shortfall is projected to reach 605,000 GSF by year 2004. The proposed project makes a modest start toward addressing that deficit. This project, at 170,000 GSF, along with Phase One of the project, represents a combined total of fifty six percent (56%) of the shortfall. The space program complies with the Arizona Board of Regents’ Space Guidelines. Building efficiency ratios (NASF/GSF) for this facility is projected at 65%.

Project Compliance with Mission, Strategic Plan, Master Plan, and Community Input Process:

The Arizona Biodesign Institute Phase II complies with the mission of the University in extending beyond its existing basic biological sciences, and engineering and applied sciences that presently is a part of the University’s mission for Research and Education. The natural sciences in the College of Liberal Arts & Sciences and the College of Engineering & Applied Sciences play central roles in the development of the University’s international

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY reputation and Arizona’s ability to continue to move forward into the New Economy. This project is an initiative to promote the development of interdisciplinary research in the most cost-effective manner. The project also responds to and is motivated by the strong partnership between the University and industry in Arizona. With a strong base of industry in computing, the emerging biotechnology industry, and the special concerns related to the desert environment, the areas of research and education addressed in this project are of special strategic importance: bioengineering, biotechnology, integrative biomedicine, information technology, and environmental science. These areas of learning are vitally important to the continued development of the new economy in Arizona. The proposed facility will also strengthen both the quality and quantity of undergraduate and graduate education. Existing facilities are inadequate to address current instructional and research requirements, and are rapidly placing more and more constraints on the development of these strategically important areas. Fiscal Impact and Financial Plan: The project funding will be Certificates of Participation. The funding source for debt service on the Certificates of Participation will be H.B. 2529 Research Infrastructure Appropriation. The Operations and Maintenance costs for this facility will be $1,700,000. Arizona State University will NOT request General Fund support for the operations and maintenance funding through the Legislative budget request process. Instead O&M costs will be provided through a portion of the Facilities and Administration costs recovered from competitive grants. Backfill Plan: There is no apparent backfill space associated with this project. The project is initiative driven and will be used by science and engineering units as outside collaborative entities. Alternatives:

• Due to the type of space required for this facility, the program could not be accommodated in any existing space on this campus.

• Due to the specific and scientific nature of the program, there are no leased spaces to accommodate such program.

• No clustering of this program in the existing available space is possible.


Arizona Board of Regents Arizona State University

Capital Development Plan Project Justification Report New Business School Complex

Project Need: The W. P. Carey School of Business completed the AACSB self study report for re-accreditation in August 1997. The report was overwhelmingly positive concerning the school’s faculty, students and programs. However, the visiting team stated in its report that in order to advance to being a top echelon management school, improvement to facilities would be required. In response to this report, the school hired the architectural firm of Ellerbe Beckett in February 1998 to conduct a space study regarding the use of the current buildings. Ellerbe Beckett, in conjunction with the school, created a detailed space program, by unit, that compared current space in the Business Administration (BA) and Business Administration C (BAC) buildings using ABOR standards. The recommendation was to build a new facility in order to accommodate the space needs and technology requirements necessary for a first-class business school. The space in the two existing business school buildings totaled 215,500 square feet. Ellerbe Beckett recommended that the new facility needed to be 350,000-400,000 square feet to accommodate the school’s current and future program needs. The school realized that a new building was not in the immediate future and proceeded to engage in a three-year major renovation project intended to make the most of the present facilities and provide a bridge for growth and development until a new building could become a reality. Completed in January 2002, the renovation accomplished several of the school’s short-term goals:

- Increased the number of interview rooms from 2 to 10. - Provided new front entrances for the W. P. Carey School of Business. - Created two new computer classrooms for the undergraduate students. - Upgraded the computer lab and student service area in the Ford Graduate Suite. - Increased lab space for the MBA programs to accommodate 50 new PC stations. - Installed wireless nodes throughout the BA and BAC buildings.

This renovation addressed immediate space issues and added approximately 6,000 new square feet. But the school still needs new facilities; it is currently 110,050 square feet short based upon its programmatic needs. The school has maintained the detailed space program outlining current space needs by program. Based upon this program the school maintains its current estimated need is 330,000 square feet. The programming spreadsheet was developed by obtaining existing and/or projecting future square footage needed in the following categories:

- Existing School of Business - Square footage allocated to each department or area - University Space - Existing University space within the BA and BAC building and future needs - Existing square footage versus ABOR Standards and Planned Program Growth – Adjustment of existing

square footage to ASU standards for offices, conference rooms, office services and classrooms; and addition of faculty, staff and programs for the anticipated growth of the school

- World Class Business School – Addition of program elements to achieve world class business school facilities including atrium, food service, break out spaces, corporate-like conference rooms, executive education and career services.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY The breakout of the additional 110,050 square feet necessary to create a world-class facility is as follows:

38,570 35% University Space 48,060 44% ABOR Standards and projected growth 23,420 21 % World Class Business School Amenities 110,050 100% Total additional square footage

Listed below is a summary of additional issues associated with the existing facilities:

• Advances in classroom technology require expanded datacom/network infrastructure in order to meet current and future instructional technology needs. Data/Network infrastructure is burdened by the increasing number of faculty, staff and students in the W. P. Carey School, continuing improvements in classroom technology, and the school’s continuing emphasis on information technology as an instructional imperative in business education. The projected FTE growth for faculty and staff in the next five years is 96.

• Current facilities limited by structural design problems, including floor-to-ceiling heights insufficient for use as technologically sophisticated classrooms. There is also inadequate audio/visual capability, acoustics, lighting and mechanical systems in older classrooms. The floor to ceiling height in the BA building is 10 feet. The ideal floor to ceiling height is 18 –20 feet for optimal technology usage.

• MBA classrooms are too small. The average MBA classroom is just over 1,000 square feet or 20 square feet per student. The school cannot expand on campus MBA programs because of the limited classroom size. Demand for the Evening and Executive Programs will continue to grow because local population is increasing three percent per year and the fastest growing demographic group is 20-40 year olds. The MBA Full-time Program now requires the use of laptop computers, but the current classrooms do not adequately accommodate students with laptops (e.g., the tabletops are too narrow at 18 inches). Currently, MBA classrooms at top-ranked schools average 23-25 square feet/student. The lack of space also results in insufficient space between the tiered rows for students to swivel their chairs to interact in a team environment.

• The school currently has eight team rooms that are designated for the MBA students. The total square footage currently allocated for team rooms is 1,089. This falls far short of other top tier MBA programs and leaves our undergraduate students with no team rooms. For example, North Carolina has 18, Indiana has 29 and Wharton has 57, which can be used by undergrads as well as graduate students. The planned building has expanded the number of fully mediated team rooms to 45. This will greatly enhance the quality of both graduate and undergraduate studies. This will also reduce the need for undergraduate computer lab space since students will have the team room available to them at all times.

• Space constraints led the school to move the L. William Seidman Research Institute off-campus. The school currently has over 8,000 square feet of leased space at Centerpoint, in downtown Tempe, of which Seidman occupies 3,800 square feet. This creates a separation between applied research and other activities of the school since the faculty are housed on campus and our research centers are housed in downtown Tempe. It also restricts the amount of research that the Seidman centers can accept since there is a cap on space and no additional space to utilize additional research projects. The current space plan includes a Research Center core area with approximately 5,600 square feet. This area will be located adjacent to the academic units to enhance collaboration within the school, university and business community.

• The school does not have an Executive Education facility. Executive Education is a key component for

the school attaining top 25 status. It is a key factor not only for reputation, but also as a revenue source for the schools. Currently the school has one executive style classroom that is shared by the executive


education team and the MBA Executive Program. This 1067 square foot classroom is a tiered, fully mediated room with a capacity of 60. The area also has a small video conferencing room that is adjoined with a team room/mail room for the MBA Executive students. The program calls for an Executive Education suite that is shared with the MBA Executive program. It includes a total of 14,200 square feet, which is an addition of 10,500 square feet. It will include two flat classrooms, ideal for executive education, one tiered classroom with a capacity of 70, a separate dining facility, 8 break-out rooms complete with video conferencing, and a student study area. These facilities are a minimum requirement when evaluating other top tier schools.

• Inadequate student support service space to supply quality service to our students in both the undergraduate and MBA programs. Even with the current renovation we were left with insufficient office space for our student service team. This fall we will be taking one interview room out of service to accommodate an additional staff for the MBA admissions team. The undergraduate office is taking out their storage closet to accommodate a new student support staff.

• Lack of adequate space for undergraduate and graduate recruiting space, including interview rooms. Currently the school now has 9 interview rooms exclusively for the graduate students. This spring ABOR approved an undergraduate program fee for our professional undergraduate students. Part of this fee will include development of an undergraduate career center. Ideally, both the graduate and undergraduate career centers would be co-located. However, given the current floor plans, the graduate career center is within the MBA area and difficult even for graduate students to find. It also has only 9, 80 square feet interview rooms. Ideally the school would have approximately 15-20 110 square feet interview rooms, a recruiter lounge, and a reception area for both programs. The new building plan includes an additional 5,250 square feet to accommodate a W. P. Carey recruitment center.

• The facility will also bridge the business community within the school. We will have facilities to house joint experiences with the school and the business community of the greater Phoenix metropolitan area.

A state-of-the-art business school facility is necessary for the W. P. Carey School to bring world-class business education to Arizona. This situation directly impacts the school’s ability to attract, retain, and educate top students, recruit and retain top faculty, and engage in community-based projects. The new facility will significantly reduce existing space shortages, which constrain teaching, scholarship and service in the school, and increase the overall quality of instruction through the use of advanced technology. It will allow the school to be housed within one complex – greatly improving student service and bringing a single, unified culture to the school. This in turn will enhance the reputation and quality of undergraduate and graduate education and assist in the school’s drive to achieve world-class status. Programming and Design Costs, Exceptions (if Required), to Achieve Project Implementation: Professional fees for these phases are estimated at $2,000,000. Due to the fast track delivery method to be utilized for this project, Arizona State University requests an exception to Arizona Board of Regent’s policy to allow the expenditure of $2,000,000 to achieve Project Implementation. Project Scope and Cost: The program has been initially defined as the New Business Complex with approximately 330,000 square feet. Ideally, the new building would:

• Be a three-story above ground structure, with another story below ground, • House the entire school, thereby fostering integration of the separate departments and programs,


• Have a large footprint that will allow for more than one academic unit to be housed on the same floor, • Have internal stairways that allow faculty, staff and students to easily go from one academic unit to

another; • House all student services for the graduate and undergraduate students on the first floor; and • House state-of-the-art classrooms, lecture halls and an auditorium on the first two levels. • House the doctoral students within their academic unit.

The initial program for the new business school building calls for a consolidation of all business school classrooms and offices into a single structure, with a high-tech interior that includes undergraduate, MBA and executive state-of-the-art classrooms, computer labs, conference rooms, interview rooms, team rooms and a cafeteria. It also includes space to house all research centers and labs that will support collaborative research in innovative ways. The building design should foster a strong culture of community engagement with quality space for informal interactions between students, faculty and the business community; and public events that will vitalize and embed the school within Arizona and the larger global business community. Special study areas for undergraduate, graduate, and executive students will build identity and cohesion for the school. The total project cost is estimated to be $80,000,000. Project Compliance with Space Standards: The space program complies with the Arizona Board of Regents’ Space Guidelines. Project compliance with Mission, Strategic Plan, Master Plan and Community Input Process: The New Business Complex complies with the mission of the University in extending beyond the university boundaries and becoming embedded within Arizona and the larger global business community. The W. P. Carey School of Business is a vital component in the continued development of the new economy in Arizona. The proposed facilities will strengthen the quality of both undergraduate and graduate education. Over the last decade, the W. P. Carey School of Business has made impressive progress in the national business school rankings and is poised to take its place among the top 25 business schools in the nation. But in 1998, the AACSB International accrediting team stated that without better facilities, reaching that goal would be much more difficult, maybe even impossible. Fiscal Impact and Financial Plan: ASU agrees to commit university funds to match the first $35,000,000 to be raised by the school and the ASU Foundation from other sources, for a building campaign for the W. P. Carey School of Business. The school will raise the additional funds for the building. The project funding will be System Revenue Bonds and Gifts. Funding source for debt service will be Tuition and Department Financed Gifts. The Operations and Maintenance costs for the expansion portion of this project will be $1,474,300. Arizona State University will request a General Fund Appropriation for operations and maintenance support through the Legislative budget request process.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Backfill Plan: A candidate for the available backfill space is the College of Public Programs. Alternatives: Due to the type of space required for this facility, the program could not be accommodated in any existing space on campus without major renovation and expansion. The preliminary estimates for an expansion to the current facilities are more expensive and disruptive than the proposed new facility. The school is land locked in its current facilities. One option that was reviewed was a major expansion to the BAC building. This would include expansion onto the tennis courts and north to the PE West facilities. This option was found to be more expensive, disruptive to the academic community and will not remediate the deficiencies with the BAC building. The major advantage to approving this proposal is that the new facilities would assist in the drive to world-class status by the business school, allowing the school more easily to attract and retain world-class faculty and top-tier students.


Arizona Board of Regents Arizona State University Main

Capital Development Plan Project Justification Report Instructional/Research Laboratory Renovation Phase I

Project Need: Existing research laboratories, classroom laboratories, building and mechanical systems are inadequate and no longer meet current code, instructional, and research requirements. The poor condition of the spaces and age of the building systems constrains the development of these strategically important areas. Programming and Design Costs, Exceptions (if Required), to achieve Project Implementation: Professional fees for these phases are estimated at $250,000. Project Scope and Cost: This project will include the renovation of approximately 33,000 SF of various physical and life sciences labs in the following buildings:

• Life Sciences Center A-Wing • Life Sciences Center C-Wing • Engineering Research Center • Bateman Physical Sciences Center Complex • Psychology Building • Murdock Lecture Hall • Physical Education Building East • Anthropology Building • Schwada Classroom Office Building • Matthews Center

The laboratories and building systems infrastructure will be upgraded, maximizing adaptable and flexible technologies. The project will provide state of the art research facilities. The total project cost is estimated at $10,000,000. Project Compliance with Space Standards: Classrooms and instructional labs will comply with current ABOR student station size standards. The research laboratories currently comply with overall 7-11 guidelines. These spaces will be upgraded with new building systems and technology. These improvements will not impact space standards. Project Compliance with Mission, Strategic Plan, Master Plan, and Community Input Process: The Instructional/Research Laboratory Renovation Phase I project will directly benefit the academic and research

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY mission of the University. Fiscal Impact and Financing Plan: The project funding will be System Revenue Bonds. Funding source for debt service will be Tuition, Indirect Cost Recovery and Other Local Funds. Since this project consists of renovation of existing spaces there is no increase to the Operation and Maintenance costs. Backfill Plan: Many of the research labs were originally part of the backfill for use at Bateman Physical Sciences Center H-wing. Upgrade of these areas was previously deferred. Alternatives: Construct new facilities.



Arizona State University Main Capital Development Plan Project Justification Report Extended Campus Capital & Infrastructure Upgrades

Project Need: Significant infrastructure improvements are needed to upgrade the ASU East campus to a safe, attractive, inviting university environment. Much of the infrastructure has not been adequately maintained since Williams Air Force Base was placed on the base closure list in 1991. In addition new campus infrastructure, including utility extensions and upgrades, are needed to support the enrollment growth projected for ASU East in the immediate future.

With these funds an important part of ASU West Infrastructure Phase IV will be implemented as planned. This project will include utility extensions and upgrades as well as the construction of the main permanent entry off 51st Ave., known as Joan De Arc Ave, extending from 49th to 51st Ave. This project will also include the southern most campus mall extension running west from the campus core to 49th Ave. Both parts will provide needed traffic relief generated from the Student Housing complex and general campus population growth. Programming and Design Costs, Exceptions (if Required), to achieve Project Implementation: There are no known professional fees required for this phase. Project Scope and Cost: This upgrade to the University infrastructure will include the following projects:

• ASUE-Roads: Pulverization and Replacement, Curbs, Gutters & Sidewalks • ASUE-Underground Utilities • ASUE-Lighting and Emergency Phones • ASUE-Pedestrian Malls and Pathways • ASUE-Recreation Field Development & Lighting • ASUE-Abatement & Demo Buildings: TLF, 290, 300, 310, 320 • ASUW-Road construction • ASUW-Underground Utilities

The total project cost is estimated at $7,000,000. Project Compliance with Space Standards: N/A Project Compliance with Mission, Strategic Plan, Master Plan, and Community Input Process: The Extended Campus Capital & Infrastructure Upgrades project supports the academic and research mission of the University by providing infrastructure improvements to support campus growth.

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Fiscal Impact and Financing Plan: The project will be paid for utilizing System Revenue Bonds. Funding source for debt service will be Tuition. Since this is an infrastructure project there will no additional Operations and Maintenance costs. Backfill Plan: N/A Alternatives: Inability to develop the Academic Research programs for ASUE and ASUW.


Arizona Board of Regents Arizona State University Main

Capital Development Plan Project Justification Report (Revised) McAllister Academic Village

Project Need: Arizona State University has seen a dramatic increase in the freshman class in recent years, from 6000 freshmen in 2000 to over 7000 in Fall ’03. Not only will the freshman class increase but the number of out-of-state students will increase by 15-25% as well. For the last seven years, the housing system has reached maximum capacity (430 students on waiting list for ’02), unable to house more than 64% of the freshman class, resulting in freshmen being turned away from on-campus housing, a major component toward enhancing student success through ASU’s Freshman Year Experience Program. The University recognizes the need for more residence halls on campus to accommodate all freshmen and every student who wants to live in a residence hall. . The University believes the optimal freshmen housing community will be approximately 10,000 students. The McAllister Academic Village is the first phase of the South Campus Academic Village. The McAllister Academic Village will create a residential and academic village for up to 2,000 freshmen residential units. The Village will focus on goals of creating an academic and residential community. The village will be a self-contained environment, integrating academic classrooms, computer labs, tutorial spaces, faculty offices, parking facilities, and residential spaces. Intrinsic opportunities to provide retail/foodservice elements that support a living-learning lifestyle will be in the mix of uses for this project. The goal is to weave academic programs into a living and learning complex. This moves the University toward the progressive vision for the New American University. Over this next fiscal year, Arizona State University is going through the process of developing a new comprehensive development plan. This master planning process will be focusing upon the vision of “One University in many Places” and develop the physical planning vision for the four campuses at one time. The process has begun and the first priority focus is the development of a precinct plan for the South Campus Academic Village. The South Campus Academic Village will be a comprehensive living and learning community. It is envisioned that this village will be a community providing freshmen and upper-class housing, Greek housing, academic facilities, retail support activities, parking, and recreation space. This community demands a fiercely independent paradigm meant to strengthen the relationship between living and learning. Also included within the Village is a proposed 1,700-bed facility for the Barrett Honors College. The Barrett Honors College is both a residential liberal arts college and an intellectual center for honor students at the University. This facility will include residential spaces, a large lecture auditorium, dining facilities, faculty and staff offices, computing commons, and classrooms. Programming and Design Costs, Exceptions (if Required), to Achieve Project Implementation: The third-party not-for-profit Auxiliary Financing Corporation is expected to cover all costs. Project Scope and Cost: In the Revised 2003 CDP, Arizona State University received approval for a housing project that was to be the second phase of a four-phased South Campus Redevelopment Project. It included two buildings with a combined

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY total of 325,000 SF located east of McAllister Avenue, north and south of Apache Boulevard. The two buildings were to provide a total of 1,300 beds. ASU Main now proposes to develop an academic village complex of approximately 850,000 SF which will create a residential and academic village for up to 2,000 freshmen. The site is located east of McAllister Avenue, south of Lemon Street, and north of Apache Boulevard. Project Compliance with Space Standards: N/A Project Compliance with Mission, Strategic Plan, Master Plan and Community Input Process: The Arizona State University Main Campus strategic plan calls for increased student success/retention. Meeting the strategic goals regarding new freshmen, and providing an appropriate setting for their overall living/learning environment is a high priority. Fiscal Impact and Financial Plan: The construction project will be funded through a ground lease agreement similar to projects previously undertaken at ASU Main, ASU East, ASU West, University of Arizona and Northern Arizona University. Under such an arrangement, the University will enter into a master ground lease agreement with a not-for-profit entity to be created for this purpose under terms and conditions, which are standard and necessary for tax-exempt financing of such projects. Such an agreement will enable the Not-For-Profit entity to finance the project through tax-exempt System Revenue Bonds. The University will retain ownership of the project site. The University will negotiate the ground lease with the Not-For-Profit entity. Among the other benefits that would accrue to the University under this type of arrangement include the following:

• No capital investment or bonded financial obligation to the University • ASU’s bonding capacity is preserved for core academic facilities. • At any time during the financing period, the possible privatization of the Residential Life facility through

third-party management. • Upon termination of the ground lease, ownership of the facilities reverts to the University free of any

encumbrances.

The University will bring to ABOR, at a subsequent meeting, a request to approve the terms of the ground lease agreement and other applicable documents. Backfill Plan: N/A Alternatives: There are no viable alternatives to meet the student housing needs for the University.


Arizona Board of Regents Arizona State University

Capital Development Plan Project Justification Report Combined Heat & Power Project

Project Need: Continued growth on the University campus and the upcoming completion of Phase I of the Arizona Biodesign Institute will create increased heavy utility demands. These increased demands will result in the infrastructure utility capacity produced by ASU’s Central Plant to be at its limit of production and delivery capacity. These utilities include chilled water, steam and emergency electrical power. An alternative source for utility delivery is essential to provide for Phase II of the Arizona Biodesign Institute and for the new Residence Life project known as McAllister Academic Village, an approximate 2,000-bed dormitory with associated facilities. Programming and Design Costs, Exceptions (if Required), to Achieve Project Implementation: Professional fees for this phase are estimated at $500,000. Project Scope and Cost: A new combined heat and power (CHP) Central Plant located in the northeast quadrant of the ASU campus will provide the necessary utilities to operate Phase II of the Arizona Biodesign Institute and the new McAllister Village Residence Life facility, which consists of a 2,000-bed dormitory and associated facilities. The equipment required for the new CHP Central Plant consists of:

• Combustion turbine generators • Heat Recovery Steam Generators • Dearator for Steam Production • Gas Compressor Skid with Accessories • Boiler Feedwater Pumps • Turbine Driven Chillers with Surface Condenser • 3-Cell Cooling Towers • Chilled Water Pumps • Condenser Water Pumps • Generator Electrical Switching Equipment

A new industrial building located north of Parking Structure #2 will house this equipment. New piping delivery systems will be constructed from the CHP Central Plant south to Lot 44, site of the Arizona Biodesign Institute Phase II, and to Lot 40, site of the new McAllister Academic Village. Project Compliance with Space Standards: N/A

Board of Regents Meeting September 25-26, 2003 Agenda Item # Arizona State University of 36 EXECUTIVE SUMMARY Project compliance with Mission, Strategic Plan, Master Plan and Community Input Process: A new combined heat and power (CHP) Central Plant located in the northeast quadrant of the ASU campus will provide the necessary utilities to operate Phase II of the Arizona Biodesign Institute and the new McAllister Academic Village, which consists of an approximately 2,000-bed dormitory and associated facilities. This project supports the Mission, Strategic Plan, Master Plan and Community Input process because it directly benefits the academic and research objectives of the University. Fiscal Impact and Financial Plan: Financing will be provided through an Energy Services Contractor. Arizona State University will bring to the Board, at a subsequent meeting, a request to approve the agreement and other applicable documents. Backfill Plan: N/A Alternatives: An alternative to the Combined Heat and Power (CHP Central Plant) is an all-electric drive chiller plant and natural gas fired steam generator. This option is not as efficient as the CHP Plant in the use of the supply utilities, electrical and natural gas. The CHP Central Plant provides a net present value of $12,000,000 when compared to the electric chiller plant/gas steam generator plant option. The CHP Central Plant provides electrical and steam generation by use of one fuel - natural gas, instead of requiring electrical and natural gas.

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