ci 2025 update presentation...2014/08/22 · solomon cordwell buenz (scb) • award winning...

CI 2025 Update Presentation

August 22, 2014

CI 2025 Update Presentation Agenda

1. Project Team

2. CI 2025 Project Goals

3. Process & Schedule

4. Wellness/Recreation/Events Center Market Analysis Study

5. Wellness/Recreation Center Concept Plan

6. Questions

Project Team

• Provides comprehensive range of real estate & financial advisory services

• Operates in 70 countries from more than 1,000 locations worldwide.

5 offices in Southern California

• 48,000 employees worldwide and over 14,000 in the United States.

• Dedicated Public Institutions Practice exclusively serving the needs of Government and Higher Education

• Extensive experience in creative financing mechanisms, public-private partnerships, infrastructure, market feasibility

4

Project Team Jones Lang LaSalle

• Provides economic, planning, design, estimating & construction services

• Specialized market research

• Extensive experience in higher education, including multiple CSU projects

5

Project Team

Solomon Cordwell Buenz (SCB) • Award winning architecture, interior design, and planning firm

• Deep experience with higher education and the CSU system

• Providing program analysis, site planning, conceptual design and other architectural services

JLL’s CI Project 2025 Partners

6

Project Team

CI 2025 Project Goals

Develop viable economic plans to support enrollment growth between now and 2025 with levels of acceptable risk • Academic, student life & residential

• Plans for the next decade

Identify and leverage all potential revenue sources • State Funding

• Site Authority (Univ. Glen, housing, retail, entertainment, tax increment, etc.)

• Student housing parking, retail, external rentals, etc.

• Wellness/Recreation Center & Events Center

• Public/public and public/private partnerships

• Student fees

• Grants, philanthropy, advertising, sponsorship, endowments

Facilitate integration of campus with surrounding community • Continuing ed, events, athletics, lecture series, etc.

Enhance campus identity • Branding, local public awareness, regional econ. dev’t, out-of-state students

8

CI 2025 Project Goals

Process & Schedule

10

Process Identify the optimal way to implement the CI 2025 programmatic

needs

Evaluate alternative methods and opportunities to achieve delivery of the programmatic requirements of CI 2025 • Assess existing financial situation

• Evaluate all potential revenue sources and approaches to reducing costs

• Evaluate alternative financing and development structures, including public/private and public/public partnerships

• Develop multiple strategies to support the Program priorities

Develop an implementation plan for the selected development strategy

Week of 26-May 2-Jun 9-Jun 16-Jun 23-Jun 30-Jun 7-Jul 14-Jul 21-Jul 28-Jul 4-Aug 11-Aug 18-Aug 25-Aug 1-Sep 8-Sep 15-Sep 22-Sep 29-Sep 6-Oct 13-Oct 20-Oct 27-Oct 3-Nov

Academic Track

Financial Track

Wellness & Recreation Center / Events Center Track

Community& Governmental Partnership Track

Phase II - Scenario Development and Selection

October

Phase I Due Diligence, Diagnostics and Issue Definition

June July August September November

11

Project Schedule

Wellness/Recreation/Events Center Market Analysis Study

13

Stakeholder Meetings and Interviews

Research into the local facilities/events market included meetings/interviews with the following people and groups:

• CI Academic Focus Group

• CI Student Affairs

• CI Advancement, Alumni Relations

• CI Events/Facilities Committee

• CI Communications/Marketing

• City of Camarillo

• Sports camp and league organizers

• Concert promoters

• Management of comparable facilities

• Hoteliers

Others that have been contacted:

• Nederlander

• Live Nation

• Ventura County Fairgrounds

• Nike sports camps

• Visit Camarillo

• Ventura CVB/City of Ventura

• Oxnard CVB

• Thousand Oaks-Greater Conejo Valley Chamber of Commerce

14

Preliminary Conclusions and Recommendations

Market-Based Conclusions • Ventura County has nearly 850,000 residents and has grown rapidly

• The County population is relatively older but has high income levels

• CSUCI: significant growth planned, including intercollegiate athletics, student housing, and other on-campus services

• Clear lack of facilities on campus and in the community (Ventura County and beyond) for events such as:

• Sports

• Recreation

• Entertainment

• Events that could use a new on-campus facility: • CI: athletics and recreation, fundraisers, alumni, speakers, commencement, entertainment,

education

• Community: concerts and other entertainment, sports camps and leagues, meetings/conferences, flat-floor events, social events

• Meetings and conferences

• Social events

15

Potential Peer Conference Facilities • Most are older; few built since 2000

• ~75% have capacity under 4,000; the largest have 5,000

• Many are smaller, multipurpose “gyms” that fill various roles on campus – i.e. athletics, recreation, administration, education

• Newer facilities in the three conferences: • Various sizes between 650 and 5,000 seats

• Often include other uses/facilities

• Non-university usage: partially dependent on policy, but heavy university use often leads to difficulty in accommodating all community demand

• Facilities’ financial operations are typically not separately identifiable


16

National Comparable Facilities • Generally the largest of NCAA D2 and NAIA arenas (in terms of seating capacity)

• Universities generally have 4,000 to 10,000 students

• Typically have many other facilities on-site (including offices, rec space, and others)

• Almost all are heavily used by both the university and community (community usage is limited by priority of university use), by a wide range of athletics and other types of events

• For facilities for which financial data is available, operations are near break-even (not including revenues that are captured by the athletics department, such as ticket sales)


17

Anticipated Usage • Anticipation of strong demand by CI and non-CI events

• Usage scale and profile: similar to that of multiple comparable/case-study facilities

• CI Athletics: basketball/volleyball games and practices

• Other CI uses: academic and administrative events; commencement; rec/intramurals; student groups; sports camps; meetings and conferences

• Non-CI uses: social events; meetings and conferences; flat-floor events; sports camps, clinics, leagues, and other competitions; graduations; entertainment (concerts, speakers, fairs)


18

Potential Facility Performance • Financial results will be strongly influenced by university policies/accounting,

including:

• Policy for charging for internal usage

• Booking policy and facility availability for external usage

• Capture of revenues/responsibility for labor and expenses by a facility entity or department

• Similar facilities have shown the ability to be profitable from operations

• Anticipated external demand, and the assumed interest in accommodating it, can in particular lead to profitability


19

Potential Facility Performance Revenues Notes

Facility Rentals From events that pay to use the facility (CI and non-CI)

Ticket Sales From events that are promoted by the facility/university

Reimbursables Facility expenses that are charged to renters, often at a markup

Advertising and Sponsorships Can include naming rights, signage, and others

Net F&B Revenues Net of cost of goods sold or revenue-sharing agreement with partner/vendor

Net Merchandise Revenues Net of cost of goods sold or revenue-sharing agreement with partner/vendor

Parking Should the facility capture parking charges

Ticket or Facility Fees/Convenience Charges For various charges added to ticket prices and/or shared with ticket sellers

Premium Seating If present in the facility, and if retained by the faciity

Other Miscellaneous/minor items not included above

Expenses

Labor Staff salaries and benefits (F-T and P-T event staff)

Utilities Including fuel, electricity, water

Insurance For insurance coverages not already provided by university and/or allocated to facility

General and Administrative Could include professional fees, technology, supplies, travel, etc.

Advertising and Marketing For marketing of the facility to the industry, area, and events

Maintenance and Repairs For ongoing repairs that are not considered capital improvements

Management Fee Should an outside operator be contracted

Capital Reserve Account Could be funded for future capital improvements

Other Operating Expenses Could include garbage/janitorial, landscaping, equipment rental, etc.

Other Miscellaneous/minor items not included above

Net Operating Income Revenues less expenses

Debt Service Expense Annual repayment of borrowing for capital costs

NOI After Debt Service NOI less debt service expense


Wellness/Recreation Center Concept Plan

Project Program Phase IA –Wellness/Recreation Center • Lobby • Multipurpose Wellness/Recreation Space (Events Court) • Locker/Shower/Restrooms • Classrooms • Offices • Food Prep • Storage

Phase IB –Wellness/Recreation Center • Fitness Area • Cardio Area • Sports Medicine • Locker/Shower/Restrooms

Project Site – Existing

Project Site – Phase IA

Ground Floor

Legend 1. Entry 2. Wellness Space 3. Locker/Shower 4. Classrooms/

Offices 5. Fitness Area 6. Cardio Area

B. El Dorado Hall

B

2

3

1

Project Site – Phase IA

Upper Floor



B. El Dorado Hall

4

Project Site – Phase IB

Ground Floor



B. El Dorado Hall

B

2

3

1

5

Project Site – Phase IB

Upper Floor



B. El Dorado Hall

B

2

4

1

6

Project Costs

• Each phase assumed to start one year after the previous phase

Project Rendering

Wellness/Recreation Center Entry

Project Rendering

Event’s Center Entry

Project Rendering

Wellness/Recreation/Event’s Center Aerial

Questions

ci 2025 update presentation...2014/08/22 · solomon cordwell buenz (scb) • award winning...

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