DESCRIPTION OF PERMANENT IMPROVEMENT PROJECT FOR CONSIDERATIONMay 6, 2021 CLEMSON UNIVERSITY PROJECT NAME: NCEES Building Acquisition REQUESTED ACTION: Establish Project Phase I REQUESTE
Trang 1DESCRIPTION OF PERMANENT IMPROVEMENT PROJECT FOR CONSIDERATION
May 6, 2021
CLEMSON UNIVERSITY
PROJECT NAME: NCEES Building Acquisition
REQUESTED ACTION: Establish Project (Phase I)
REQUESTED ACTION AMOUNT: $20,000
Internal Projected Cost: $3,750,000
INITIAL CHEAPPROVAL DATE: N/A
DESCRIPTION:
Clemson University is seeking a recommendation from the Commission on Higher Education to pursue the acquisition of the National Council of Examiners for Engineering and Surveying (NCEES) building, which is currently situated on university property The NCEES building is 40 years old and has had renovations completed in 1990, 2004, and 2013 In addition to the facility, the university will acquire its personal property The university does not anticipate needing to perform renovations on the building
Clemson University’s foundation acquired the building in 2020 when NCEES moved its headquarters to Greenville Originally, the university leased the underlying land, or 3.91 acres, to NCEES under the terms of
a 99-year ground lease, which its foundation assumed with acquisition of the facility If Clemson University receives state approval to acquire the facility, the ground lease will automatically terminate, and the university will have fee simple interest in the land and facility
By acquiring the facility through the foundation, the university avoids being bound by a number of
appraisal requirements stipulated in the ground lease, which according to university staff, would have resulted in the university paying $1,133,000 more than for what the foundation was able to negotiate and acquire the building The university plans to use the existing building to house its facilities division, which opens approximately 6.7 acres of the core campus to be used for student purposes. The total occupancy
of the building is anticipated to be approximately 112 staff and 12 student workers
Clemson staff stated that the NCEES Building acquisition was not included in the 2020 CPIP as the cost
of the acquisition had not been determined at the time the CPIP was required to be submitted
SOURCE OF FUNDS:
The following outlines the funding source for Phase I of the project:
• $20,000 from the Maintenance and Stewardship funds at Clemson University
Clemson University’s Maintenance and Stewardship fund are tuition, matriculation and other debt
retirement and plant transfer revenues that are not formally obligated to fund debt service According to the university, no student tuition or fee increase will occur due to the acquisition of this facility The institution’s current fee structure for the Maintenance and Stewardship fund has a per semester fee for full-time in-state students of $1,005 This amount has gradually increased from $738 since the 2014-15 per academic year
As of February 25, 2021, the Maintenance and Stewardship Funds balance is $45,043,518
The estimated acquisition cost is $3,750,000, and the university plans to use the Maintenance and
Stewardship fund
Committee on Finance and Facilities
Agenda Item 4.A.i.
1
Trang 2E&G MAINTENANCE NEEDS:
The university stated it will pay for building maintenance from its education and general funds
ANNUAL OPERATING COSTS/SAVINGS:
The university anticipates annual operating costs of $234,560 related to maintenance and utilities
Committee on Finance and Facilities
Agenda Item 4.A.i.
2
Trang 3FORM A-1, PAGE 1 OF 2
FOR DEPARTMENT USE ONLY
CHE
SFAA
JBRC Staff
A-1 Form Mailed
SPIRS Date
PERMANENT IMPROVEMENT PROJECT REQUEST
1 AGENCY
Phone
2 PROJECT
Project #
Facility #
3 CPIP PROJECT APPROVAL FOR CURRENT FISCAL YEAR
4 PROJECT ACTION PROPOSED (Indicate all requested actions by checking the appropriate boxes.)
5 PROJECT DESCRIPTION AND JUSTIFICATION
(Explain and justify the project or revision, including what it is, why it is needed, and any alternatives considered
Attach supporting doucmentation/maps to fully convey the need for the request.)
6 OPERATING COSTS IMPLICATIONS
Attach Form A-49 if any additional operating costs or savings will result from this request This includes costs to be
absorbed with current funding
7 ESTIMATED PROJECT SCHEDULE AND EXPENDITURES
Estimated Expenditures: Thru Current FY: After Current FY:
Close Project Change Project Name Cancel Project
Project Type Facility Type
$
Decrease Budget Change Source of Funds
$
Revise Scope
Establish Project
Establish Project - CPIP
Increase Budget
County Code
New/Revised Budget
Name Code
Contact Person
Name Facility Name
for FY
864-656-1238
Clemson University
Clemson University
Select Facility Type
✘
This request is to establish a project for Phase I investigative studies to acquire the former headquarters building of the National Council
of Examiners for Engineering and Surveying (NCEES) on Seneca Creek Road in Clemson NCEES moved its headquarters and operations to Greenville in mid-2020 With the facility becoming vacant, it created an opportunity to re-integrate the building and property back into the University campus, as the property is owned by Clemson University The building was acquired by CULSF Two, LLC, a subsidiary of the Clemson University Land Stewardship Foundation as a strategic opportunity given its location, with one of the potential uses being for the University to acquire it, which takes time through the State's approval process
Acquisition of the property would allow the University to move non-core programmatic functions out of the campus, opening up space for student driven education, programs and functions One of the potential users will be the Facilities Division, which is currently located in the core campus and other locations around campus This relocation will allow this non-student facing function to be relocated to the periphery of campus, the vacated space to be filled with student facing units, and 6.7 acres of core campus to be returned to student purposes, allowing for its revitalization
Trang 4FORM A-1, PAGE 2 OF 2
3 Professional Services Fees
4 Equipment and/or Materials > Information Technology
7 Renovations - Building Interior > Floor Space: Gross Square Feet
Monitoring
Total Costs
9 PROPOSED SOURCE OF FUNDING
(9) Other (Specify)
TOTAL BUDGET
10.SUBMITTED BY:
11.APPROVED BY:
Revised 3/30/16
$
$
$
$
$
Identify all types of significant environmental hazards (including asbestos, PCB's, etc.,) present in the project and the financial impact they will have on the project 20,000.00
$20,000.00
0.00
7221 98800100 4193
$20,000.00 Executive Vice President for Finance and Operations March 4, 2021
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20,000.00 20,000.00
$0.00 $20,000.00
Trang 5ADDITIONAL ANNUAL OPERATING COSTS / SAVINGS RESULTING FROM PERMANENT IMPROVEMENT PROJECT
3 ADDITIONAL ANNUAL OPERATING COSTS / SAVINGS (Check whether reporting costs or savings.)
4
TOTAL ADDITIONAL OPERATING COSTS / SAVINGS
Projected Financing Sources
5 If “Other” sources are reported in Column 4 above, itemize and specify what the other sources are (revenues, fees, etc.)
6 Will the additional costs be absorbed into your existing budget? YES NO
If no, how will additional funds be provided?
7 Itemize below the cost factors that contribute to the total costs or savings reported above in Column 5 for the first
fiscal year
1
2
3
4
5
6
7
8
TOTAL
8 If personal services costs or savings are reported in 7 above, please indicate the number of additional positions
required or positions saved
9 Submitted By: _
Signature of Authorized Official and Title Date
Clemson University
NCEES Building Acquisition
✘
and
248,845.00
University E&G Funds
✘
$234,560.00
Executive Vice President for Finance and
Operations
March 4, 2021
Trang 6PERMANENT IMPROVEMENT PROJECTS
REQUIRED INFORMATION FOR
PRELIMINARY LAND ACQUISITION/ INVESTIGATIVE STUDIES PROJECTS
1 Provide the total projected cost of the project, including acquisition cost
$3,750,000 for National Council of Examiners for Engineering and Surveying (NCEES) Building Acquisition
2 Identify the source(s) of funds to be used for investigative studies for the acquisition
Maintenance and Stewardship Funds
3 Describe and define each fund source to be used for the investigative land studies Cite any statutory authority, including the code section other provision of law for use of the funds for permanent
improvement projects If the source includes any fee, provide the name of the fee, the fee amount, the frequency of collection and when the fee was first implemented
Maintenance and Stewardship Funds are tuition, matriculation and other debt retirement and plant transfers revenues that are not formally obligated to fund debt service in the current period and that are responsibly transferred to and managed by the State Treasurer until the time of their State Treasurer approved qualified use
4 Provide the current uncommitted balance of funds for each source described above
Maintenance and Stewardship Funds as of 2/25/21 - $45,043,518
5 Identify the source(s) of funds to be used for the acquisition
Maintenance and Stewardship Funds
6 Describe and define each fund source to be used for the acquisition Cite any statutory authority, including the code section other provision of law for use of funds, for permanent improvement projects If the source includes any fee, provide the name of the fee, the fee amount, the frequency of collection and when the fee was first implemented
Maintenance and Stewardship Funds are tuition, matriculation and other debt retirement and plant transfers revenues that are not formally obligated to fund debt service in the current period and that are responsibly transferred to and managed by the State Treasurer until the time of their State Treasurer approved qualified use
7 Provide the current uncommitted balance of funds for each source described above
Maintenance and Stewardship Funds as of 2/25/21 - $45,043,518
Trang 7PERMANENT IMPROVEMENT PROJECTS
REQUIRED INFORMATION FOR
PRELIMINARY LAND ACQUISITION/ INVESTIGATIVE STUDIES PROJECTS
8 Indicate whether or not the use of any funds for the acquisition require an increase in any student fee
or tuition Describe any increase in student fees effected in prior years that has contributed to the availability of these funds
No student tuition or fee increase will be required for acquisition of this facility Existing tuition and fees, which did not increase for FY 20-21, are sufficient to cover any costs associated with this project
9 If a student fee is used to fund an acquisition, provide the current amount of the fee collected annually
or by semester Specify which
State Institution Bond debt service is funded by tuition per state statute Spring 2021 tuition is $860 per in-state student per semester Of this fee, approximately $378 per student per semester was used to pay debt service in FY 21
10 Provide the total acreage and/or square footage of the land and/or building to be acquired
The building to be acquired is 36,086 square feet The property on which the NCEES Building is sited is owned by Clemson University and is part of a 76-acre University-owned parcel The ground lease of approximately 3.91 acres for the building, originally with NCEES, was acquired by CULSF Two, LLC, and will be terminated upon acquisition of the building by Clemson University
11 If a building is involved in the acquisition, identify whether it will have to be renovated and if so, provide the projected cost Explain
No renovations to the building to be acquired are currently anticipated
12 Identify program(s) that will use the land and/or building to be acquired
The building to be acquired will be used by the Clemson University Facilities Department
13 Provide the current age of the building to be acquired, if applicable
The building was built in 1981 with renovations and additions completed in 1990, 2004 and 2013
14 Provide demand and usage data to support the need for the acquisition
NCEES moved its headquarters and operations to Greenville in mid-2020 With the facility becoming vacant, it created an opportunity to re-integrate the building/property back into the Clemson University campus as part of the University's framework plan Acquisition of the facility will allow the University to move non-core programmatic functions out of campus, opening up space for student-driven education, programs and functions With one of the potential users of the building being Facilities which is currently located in the core of campus and other locations, this relocation will allow this non-student facing
Trang 8PERMANENT IMPROVEMENT PROJECTS
REQUIRED INFORMATION FOR
PRELIMINARY LAND ACQUISITION/ INVESTIGATIVE STUDIES PROJECTS
function to be located on the periphery of campus, the vacated space to be filled with student-facing units, and 6.7 acres of core campus to be returned to student purposes allowing for its revitalization
15 Provide an estimate of the numbers of students, faculty, staff and clients that are expected to utilize the space associated with the acquisition
Total occupancy of the building is anticipated to be approximately 124, including approximately 112 staff and 12 student workers
16 Indicate whether or not the acquisition project has been included in a previous year’s CPIP If so, provide the last year the project was included and year for which it was proposed
The NCEES Building acquisition was not included in the 2020 CPIP as the cost of the acquisition had not been determined at the time the CPIP was required to be submitted
17 Provide the economic impact of the project or project request, including job creation and retention If there is no economic impact, provide an explanation
The economic impact of this project will be minimal However, it will involve the need to retain an appraiser to conduct an appraisal on the building and consultants to conduct an environmental study and a building condition assessment
TO BE PROVIDED FOR HIGHER EDUCATION PROPOSALS
1 Indicate whether or not the use of any funds for construction will require an increase in any student fee or tuition Describe any increase in student fees effected in prior years that has
contributed to the availability of these funds
No student tuition or fee increase will be required for the acquisition of this facility Existing tuition and fees, which did not increase for FY 20-21, are sufficient to cover any costs associated with this project Please see the answer to question 3 for a history of the fees associated with this funding source Previous fee increases have provided funding for the University's comprehensive portfolio of E&G facility needs, including not only the University's CPIP, but also continued commitment to preventive maintenance and asset stewardship, renewal and reinvestment These investments have enabled Clemson to cost
effectively steward and maximize the useful life of its existing assets
2 If the use of any funds for construction includes any student fee, provide the name of the fee, the fee amount, the frequency of collection and when the fee was first implemented
This project will be funded with Maintenance and Stewardship Funds Maintenance and Stewardship Funds consist of tuition, matriculation and debt retirement fees that are not formally obligated to fund
Trang 9PERMANENT IMPROVEMENT PROJECTS
REQUIRED INFORMATION FOR
PRELIMINARY LAND ACQUISITION/ INVESTIGATIVE STUDIES PROJECTS
debt service in the current period and that are responsibly transferred to and managed by the State
Treasurer until the time of their State Treasurer approved use The fees are collected each semester and have been in place for more than 20 years The current per-semester fees for full-time in-state students are as follows:
Tuition: $860
Matriculation: $5
Other Debt Retirement and Plant Fund Transfers: $140
Total: $1,005
3 Provide a five-year history of each component within the institution’s tuition and fee structure designated or utilized for permanent improvements Identify the tuition or fee component per student, per semester; the total revenue collected during the academic year; and the fund balance
at fiscal year end, all delineated by academic year Include a projection for the ensuing academic year, and any future academic years in which the fee is projected to increase Use the following format in responding to this question and provide as many tables as are necessary to promote a clear understanding of the relationship of tuition and fee revenue designated by the institution for permanent improvements, maintenance and other facility-related expense, including debt service
Academic Year
Amount per student per semester
Total Revenue Collected During Academic Year
Amount Expended for Permanent Improvements Fund Balance at Year End
*Projection
Trang 10PERMANENT IMPROVEMENT PROJECTS
REQUIRED INFORMATION FOR
PRELIMINARY LAND ACQUISITION/ INVESTIGATIVE STUDIES PROJECTS
4 Identify any other funds not specifically designated that may be utilized or redirected for
permanent improvements, maintenance and other facility-related expense, including debt service Provide a five-year history of total collections, by fund; amounts applied to or for permanent improvements, maintenance and other facility-related expense, including debt service; and the fund balance at fiscal year end, delineated by academic year Include a projection for the ensuing academic year, and any future academic years in which the revenue is projected to increase Describe any portion of the source that originates from any tuition or fee component Include all permanent improvements without regard to Joint Bond Review Committee or State Fiscal
Accountability approval requirements Use the following format in responding to this question and provide as many tables as are necessary to provide a complete and comprehensive response for each fund
Fund Source or Name: Auxiliary Improvement Funds; Fund Source: Auxiliary Net Revenues
Description: Fund established to maintain and reinvest in Auxiliary facilities
Description:
Academic Year
Total Revenue Collected During Academic Year
Portion Collected From Tuition or Fee Revenues
Amount Expended for Permanent Improvements Fund Balance at Year End
*Projection
**Represents estimated collections from student fees based on fund source Not all auxiliary revenues generated by students are mandatory For example, parking fees, bookstore purchases, vending
purchases, upperclassmen housing, and upperclassmen dining meal plans are voluntary purchases
Auxiliary Improvement Funds are funds established to maintain and reinvest in the University's Auxiliary facilities These funds are deposited from the net revenues of the University's auxiliary enterprises (Housing, Dining, Bookstore, Vending, etc.) after payment of debt service associated with Auxiliary Revenue Bond debt service The table above illustrates the historical and estimated auxiliary revenues as well as permanent improvement project expenditures (including debt service)
Fund Source or Name: Athletic Net Revenues
Description: Athletic Net Revenues used to maintain and reinvest in Athletic Facilities