University Committees: Campus Development Committee Committee

Meeting - September 23, 2024

Agenda

Date: September 23, 2024
Members: Warwick Arden, Charles Maimone, Alyson Wilson
Subcommittee Representatives: Alicia Knight, Allen Boyette, Barbara Moses, Bill Davis, Cameron Smith, Dana Harris, Doug Morton, Lisa Johnson, Patrick Deaton, Sumayya Jones-Humienny
Guests: Donna McGalliard; Pete Fraccaroli; Rich Berlin; Brad Noyes and Kevin Mara (Brailsford & Dunlavey)

Approval of the Minutes: W. Arden (1 min.)

Consent Agenda Approval: Two items below: W. Arden (5 mins)

Campus Planning Subcommittee Items

  1. Information Items: D. McGalliard and R. Berlin (60 mins.)
    1. Cates West Development Update (Info. Item 24.01)
  2. Delegated Authority Determinations: One Item below:  For Reference Only
  3. Action Items: L. Johnson (10 mins)
    1. FY 2025-27 Six Year Capital Plan Submission (Info Item 24.03)

Project Execution Subcommittee Items: C. Smith (5 mins)

  1. Execution Updates: Project in Execution Requiring Additional Funding:
    1. University Towers

Other Business

Next Meeting:
Monday, October 28, 2024, 1:30 PM – 3:o0 PM

CONSENT AGENDA
ALL ITEMS ARE RECOMMENDED FOR APPROVAL

  1. PCOM Jenkins Graduate Program, 105 Brooks Avenue Lease Extension, Space Request #24-17
    1. Description: This lease extension would mitigate severe space constraints for the Jenkins Graduate Program, which has been in this location since 2018 and has grown since that time. Currently, employees are doubled and tripled in offices in Nelson Hall, thus leading to a space deficit if we were to relocate Jenkins Graduate Program staff back to Nelson in the event of a non-renewal.
    2. Strategic Lease Requirements: This space is conveniently located across Hillsborough Street from Nelson Hall, which would allow the Jenkins team to maintain a contiguous location experience with the rest of the college while addressing the overcrowding challenge presented in Nelson Hall.
    3. Location: 105 Brooks Avenue, Raleigh, NC (Milton Small Building)
    4. Square Feet: 4,700 RSF for office and conference space.
    5. Lease Terms: Lease terms are currently being negotiated; however, the expected rental rate would be +/- $24.21/SF (4700*24.21= $113,787/yr) and would escalate by 3% each year. In addition to rent, Jenkins MBA is responsible for the payment of utilities and janitorial services within the space.
    6. Funding Source: Account 301535
    7. Duration: Five-year term with a three-year optional extension.
    8. Timing: Starting November 2025.
    9. Other: Adequate parking exists on site or nearby on campus. All existing SLAs with university offices, such as OIT, Housekeeping, etc., would remain in effect.
  2. COE Computer Science Visual Narrative and Digital Learning, Venture IV Suite 400 Lease Renewal, Space Request #24-18
    1. Description: The current lease expires November 30, 2025 for the Visual Narrative Faculty Cluster and the Digital Games Research group, who have added numerous collaborative research focuses that include (but are not limited to): Al Assisted Learning Lab, CEREAL Lab (Computing Education Research Engaging All Learners), and the Innovative Educational Computing Laboratory. Because of our rapid growth we need to create additional office space to accommodate new faculty with additional student requirements. We would ask the property management company for a construction allowance to modify the existing square footage to allow for incoming faculty office needs. There is also a need for additional office space for post-docs and staff, workstation areas for additional research students, and additional meeting rooms.
    2. Strategic Lease Requirements: Proximity to EB I, EB II and EB III for faculty that teach in those buildings.
    3. Location: The current location in Venture IV Suite 400 remains a suitable location.
    4. Square Feet: ~ 7,400 ASF
    5. Lease Terms: Request approval to begin negotiations for the lease renewal terms and the much-needed upfits. The anticipated lease/upfit cost is approximately $120,000 per year.
    6. Funding Source: Account 201501
    7. Duration: TBD
    8. Timing: Negotiations and upfit design / implementation will take time, so negotiations need to begin as soon as possible.
    9. Other: There are ample parking and transportation options available at the current location, and we would require no additional provisions. The Venture buildings provide an allocation of parking spots in their deck.

DELEGATED AUTHORITY APPROVALS

  1. COE Relocation of Office of Faculty and Development and Success from EBII to RBI; Backfill of EBII by ECE, Space Request #24-15:
    1. The Campus Planning Subcommittee approved the requested allocation of new lease space in RBI and backfill of existing appropriated space in EBII for the College of Engineering’s Growth on the condition that a space analysis be performed to optimize the college’s use of space.

Minutes

Monday, September 23, 2024
Holladay Hall, Conference Room 18
1:30 PM-3:00 PM

Attendance and Distribution

Members present: Warwick Arden, Charles Maimone, Alyson Wilson
Subcommittee Representatives present: Alicia Knight, Allen Boyette, Barbara Moses, Bill Davis, Cameron Smith, Dana Harris, Doug Morton, Lisa Johnson, Patrick Deaton, Sumayya Jones-Humienny
Guests: Donna McGalliard; Pete Fraccaroli; Rich Berlin; Brad Noyes and Kevin Mara with Brailsford & Dunlavey

Approval of the Minutes

The minutes of the August 26, 2024, meeting were approved and have been posted.

Approval of the Consent Agenda Approval:

  1. The following items were approved
    1. PCOM Jenkins Graduate Program, 105 Brooks Avenue Lease Extension, Space Request #24-17
    2. COE Computer Science Visual Narrative and Digital Learning, Venture IV Suite 400 Lease Renewal, Space Request #24-18

Campus Planning Subcommittee Info Items

  1. Planning Updates:
    1. Cates West Development Update (Info. Item 24.01) – see the associated “2024-09-23-CamDevCmte-Minutes-and-Presentation.pdf” for the “2024-09-23 CamDevCmte Pres – Cates West Dev” [pdf slide presentation] presented by D. McGalliard for additional information:
      1. D. McGalliard presented the update for the new housing, dining, and student services facility that directly addresses the university’s enrollment growth needs by replacing those that are outdated, undersized, and inaccessible. This transformational project with increased capacities must complete in multiple phases. Brailsford and Dunlavey (B&D) was hired to perform financial modeling scenarios for this project, located on the sites of Bragaw, Sullivan and Lee Residence Halls, the West Dunn Building, and Fountain Dining Hall.
      2. The three largest Living and Learning Villages, Women in Science and Engineering (WISE), Engineering, and Eco, will expand by 13% by 2030 to provide 12,100 beds total across campus with opportunities to deeply connect students to their majors by forming smaller communities. The focus will be on student development, with programming for academic initiatives in gathering spaces, within buildings that are flexible and adaptable to meet future needs.
      3. The B&D study determined the need for about 4,071 beds. This increases the number of beds by 1,800 (a 17% increase). It includes replacing 2,031 beds for Lee, Sullivan, and Bragaw Halls (first-years), an additional 740 beds for first-years, and 1,100 for non-first-years to be assigned elsewhere. This results in a non-first-year waitlist reduction (currently at 2,000) of about 200 beds.
      4. R. Berlin presented the update for the dining hall, which will focus on expanding the “all you care to eat” (AYCTE) model and placing retail dining options in the right locations to relieve peak dining pressures at the other facilities. The AYCTE programming will focus on improving the food quality to align with our peer institutions and sharing flexible dining/lounge/activity spaces with the goal of creating a central hub of the Cates West first-year experience.
      5. Although University Towers recently opened and added 400 dining seats, the dining hall is located on the 9th floor, which inherently has security and programming challenges. This is not a suitable long-term solution, but rather an interim measure. Fountain Dining Hall and University Towers both need to address deferred maintenance in the meantime.
      6. The Cates West dining hall will address overcrowding, inefficient, and unsafe conditions for dining employees in other locations, and also become the large, centrally-located emergency continuity facility to feed students who remain on campus during an event.
      7. The long-term plan is to relocate Rave Catering and Commissary Baking from Talley to Cates West and provide a minimum total of 1,500 dining seats (850 at Talley, 0 at University Towers, and 650+ at Cates West), an increase of at least 250 dining seats.
      8. P. Fraccaroli presented the student centers update, with its approach to leverage synergies, noting that first-year students, who are required to live on campus, are the largest users of Talley Study Union, where meeting and lounge space can no longer meet demand. Cates West will provide meeting and event space via Dining multipurpose space to relieve pressures on Talley and Witherspoon, the latter whose meeting space will be repurposed for much-needed program and gathering/lounge space. Witherspoon will also have access to café and market service by its proximity to Cates West.
      9. The financial model indicates that bed counts cannot be reduced at any given time. The phased approach must consider each phase as a complete project, in which expenses, revenues, and projections are weighed against debt capacities. The intent is to keep housing an affordable product compared to peers with rate increases of 4.25% now and 4.75% in the future to save money for a down payment as capital for future reinvestment.
      10. D. McGalliard noted that if any delay occurs with the demolition of Lee or Sullivan, then these buildings will require reinvestment to repair or replace items beyond their useful life.
      11. P. Fraccaroli stated the goals for students’ services are to capture and align synergies among service units, have a centralized location for services, provide a permanent location for those in temporary locations, and perform an analysis of required needs based on student enrollment growth.
      12. K. Mara and B. Noyes noted that enrollment growth is the driver with the goal of not incurring debt with each building’s demolition. They said they have yet to finalized the phasing and number of beds, but they know the site has the capacity to accomplish the goal. Their dashboard will have live tools to iterate scenarios within a broader context (see below), but demand will fill to capacity and the waitlist will most likely still exist. Compared to the Consumer Price Index at 3%, UNC-CH’s and other institutional peers’ rate increases, NC State’s rate increase between 4.25% – 4.75% for escalation is still very affordable.
      13. Dining’s rate increase at 13% only catches NC State up to UNC-CH. The right SF/bed at a conservative amount to accommodate the Living and Learning Villages model costs $533/GSF, which does not include the broader context of dining or infrastructure costs at approximately $65M. L. Johnson remarked there is no guarantee the state legislature will fund that request from the Biennial Six-Year Capital Request submission.
      14. Discussion ensued regarding other costs and factors. Dining space (assuming a cash down payment) is estimated at $961/GSF. Student Centers space (assuming some efficiencies of shared space with Dining) is estimated at $537/GSF. Student Services space is estimated at $537/GSF. B&D has also included conservative estimates for operational costs in the financial model.
      15. No other buildings will need to be demolished; however, additional new housing will be needed on Centennial Campus. P. Fraccaroli stated Bragaw, Lee, and Sullivan have been planned for demolition since 2008 and have deliberately not had reinvestment.
      16. The most efficient way to implement Phase I is very quickly with enough beds to address the enrollment gap. D. McGalliard added they will run scenarios this week. P. Fraccaroli elaborated the 1,100 non-first-years are modeled as single rooms whereas 2,771 first-years are modeled as double rooms, based on Housing’s 2019 survey data. D. McGalliard noted the model includes the graduate and post doc students, faculty, staff, and guest housing in the inventory and demand analysis.
      17. The Committee would like to better understand the sequencing and the impact of absorbing all the costs into the project. They would also like to see model comparisons with infrastructure costs included.
  2. Delegated Authority: For reference, the following delegated authority determinations were approved by the Campus Planning Subcommittee at their September 9, 2024 meeting:
    1. COE Relocation of Office of Faculty and Development and Success from EBII to RBI; Backfill of EBII by ECE, Space Request #24-1
  3. Action Items:
    1. FY 2025-27 Biennial Six-Year Capital Plan Submission (Info Item 24.03) – see the associated see the associated “2024-09-23-CamDevCmte-Minutes-and-Presentation.pdf” for the “2024-09-23 CamDevCmte Pres 6 Yr Capital Request and the final version of the approved Capital Request submission“2024-09-23 CDC-Att01 7-NC State_FY25-31 Six-YearPlanSubmisn2024-10-04” [pdf slide presentation] presented by L. Johnson for additional information:
    2. L. Johnson presented the five categories and building reserves requirements. She and D. Morton met with the UNC System Office (UNC-SO) to obtain clarifications on the new instructions. D. Morton noted the Major Repair & Renovation (R&R) category is no longer intended for whole-building renovations although this was allowed in previous cycles. For repairs/renovations, such as building envelope repairs, UNC-SO now requires listing each building rather than aggregating them under each category.
    3. D. Morton stated the UNC System institutions are allocated a total of $250M (it may reduce to $200M), which is then subdivided by a formula recently modified and no longer based on enrollment numbers. NC State’s portion is expected to be only $7.6M this cycle.
    4. L. Johnson reviewed each section, noting that the projects listed in the white portion were previously submitted and awarded funding, whereas the proposed projects listed in the blue portion are requesting funding this cycle. She shared the following highlights:
      1. Section I. State Capital and Infrastructure (SCIF) Projects – $15M Limit: This includes project-related swing space.
      2. Section II. SCIF Minor (Maintenance) R&R Projects – $4M Limit: The $7.6M mentioned above falls under this section and is what NC State is guaranteed to get. Until 15 years ago, NC State typically regularly received $10M per cycle for urgent needs, such as waterproofing and roof repairs.
      3. Section III. Named and New Appropriated Capital Improvement Projects – No Limit: NC State will receive planning money for the Engineering Classroom Building in FY 2026-27 from the previous cycle request. The Poole College of Management (PCOM) New Building did not score urgently like Engineering did for the strategic enrollment growth mandate, but since it was awarded planning funding in FY2023-24, it needs to continue on with design in FY2025-26. L. Johnson explained that during the 2000 Higher Education Bond, there were 33 projects that included their respective infrastructure to support the buildings. NC State is adding the needed infrastructure in this section. [Subsequent to the meeting the budget for the PCOM New Building was revised to $200M.]
      4. Section IV. Non-Appropriated Major R&R and New Capital Improvement Projects – No Limit: The CVM Equine Hospital was previously authorized but placed in the wrong (proposed) portion. The only project that is self-liquidating is Cates West Student Housing and Dining.
      5. Section V. Non-Appropriated Minor R&R Projects – $4M Limit: Housing, Transportation, Athletics, Campus Enterprises and Real Estate and Development each submitted projects.
      6. FY2025-26 Building Reserves: Appropriated projects requesting building maintenance and operations funds must achieve beneficial occupancy (BO) by June 30, 2027. 21 projects were listed with their anticipated BO dates.
      7. The memo to the UNC-SO emphasizes the urgency of the request for $180M to abate and restore Poe Hall immediately. This request falls outside the standard Six-Year Capital submission and asks for the $3.5M (SCIF & R&R funds) previously allocated for the building’s fire protection system to be reallocated to initiate the Poe Hall abatement, demolition, and design project.
      8. See the associated “2024-09-23-CamDevCmte-Minutes-and-Presentation.pdf” for the” 2024-09-23 CDC-Att01 7-NC State_FY25-31 Six-YearPlanSubmisn2024-10-04″ [pdf] for the approved final submission.

Project Execution Subcommittee Info Items

  1. Project/s in Execution Requiring Additional Funding:
    1.  University Towers
      1. C. Smith stated additional funds are needed for the renovation of the building, grounds, and parking deck. The authority request was made, and the Chancellor has approved it.

Other Business

  1. N/A

Next Meeting: Monday, October 28, 2024, from 1:30 pm to 3:00 pm

Meeting Adjourned: 3:09 PM