1. American Bar Association Section of Legal Education and Admission to The Bar Law School Facilities Committee Bricks Byres & Continuous Renovation March 23-25, 2006

2. Financing Building Projects at a Private Law School Denis S. Ransmeier Vice President for Business & Finance/Treasurer Lewis & Clark College denisr@lclark.edu

3. Sullivan Hall Project Data 140,200 gross square feet Completed – July 1998 – $36 million 4,000 sq. ft. added in 2002 - $2.5 million Blended Funding Sources $31.2 million competitively bid Bond Issue $2 million fundraised $5 million plant reserves Lead Architect – Olson, Sundberg, Kundig, Allen

4. Significant decisions, milestones, and tasks 1 Delay $34.4 million Student Center and mini- campaign already in detailed design stage 2 Develop and process new Seattle University Major Institutional Master Plan for City Council approval ($500,000 and 2 years at best) 3Fast-track $ 23.7 million off-balance-sheet development of new housing complex with extra parking to handle 1,000 new commuters 4Remodel & expand the campus bookstore 5For Law School and housing projects appoint planning committee, select architects, select GC for housing (Law School construction contract was competitively bid.) 6Introduce Law School and Seattle University fundraising staff, win back UPS alumni, plan and start campaign 7Minimize impact and duration of provisional accreditation

5. Points to Remember Most projects use blended financing (i.e. reserves, gifts, and debt). Pledges for major gifts can take many years to be paid, so borrow enough to cover cash flow needs and invest post-construction pledge payments in quasi endowment. All schools need to ration debt capacity to cope with the facilities “arms” race, deferred maintenance, facilities’ renewal, and modernization. Debt must be repaid, competes with other operational needs, and drives tuition spiral. Develop multi year operating budgets that layer in the operating expenses of new space (i.e. debt service, custodial, utilities, insurance, technology, facilities renewal costs, etc…) Go easy on the central administration (CFO) – somebody has to say “No.”