UIC Capital Strategy Update

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1 July 23, 2008 DRAFT UIC Capital Strategy Update Office of the Vice Chancellor for Administrative Services University of Illinois at Chicago

2 UIC Capital Strategy Table of Contents Executive Summary Key Maps UIC Capital Strategy Report A. Introduction 5 B. Utilization of Multiple Funding Sources Regular State Capital Appropriations 2. Special State Capital Appropriations 3. Donor Funding 4. Operating Funds 5. Borrowing 6. Grant Funds 7. Academic Facility Maintenance Fund Assessment C. Prioritized Renewal of Critical Building Systems 9 1. Life Safety 2. Building Envelope 3. Vertical Transportation 4. Building System Renewal D. COPS Initiative Project Descriptions 11 E. Downsizing Opportunities Targeted Facilities 2. Properties Targeted for Disposition 3. Properties Targeted for Redevelopment F. Planned Projects that will Reduce Deferred Maintenance Sandi Port Errant Language and Culture Learning Center at Grant Hall 2. Lincoln Hall Renovation 3. Douglas Hall MBA Program Renovation 4. Pharmacy Building Renovation and Addition 5. AFMFA G. Tabulation of Proposed Projects and Impact on Deferred Maintenance Backlog H. Strategy Summary: 5-Year Multiple Fund Source Strategy Matrix...20 ATTACHMENTS A. Proposed Certificate of Participation (COP) Program Summary 23 B. Building Envelope Projects Completed in FY UIC Capital Strategy Capital Plan DRAFT v32.doc Page 1

3 Executive Summary UIC Capital Strategy In 2005, in the face of continuing scarcity of state capital appropriations, the University of Illinois at Chicago published a Capital Strategy Plan that noted the UIC campus has an aging physical plant with a significant deferred maintenance backlog. It noted this backlog is growing due to natural depreciation and the lack of adequate funding for preventive maintenance and infrastructure renewal. The plan set out a capital funding prospectus and proposed a strategy for achieving a significant reduction in the campus deferred maintenance backlog while also meeting critical facility needs. The major projects that were emphasized in the prospectus included new construction, major renovation, and infrastructure renewal. The prospectus emphasized the use of multiple funding sources and targeting of renovation projects that include substantial deferred maintenance components. It projected that implementation would result in a significant reduction in the campus deferred maintenance backlog as it existed in The capital strategy plan was based on new, non-state funding sources, including a onetime infusion of $50M from the issuance of Certificates of Participation for infrastructure renewal. The plan also projected reductions in deferred maintenance backlogs based on demolition and/or disposition of facilities which are functionally obsolete. This update summarizes the progress that has been made in implementing the projects outlined in the 2005 plan, as well as new opportunities associated with funds that are being generated by the new Academic Facility Maintenance Fund Assessment. The major accomplishments that are highlighted in this document include: Finalization and implementation of the Phase I Certificates of Participation Infrastructure Program Sale of the Sangamon Street Building Implementation of the Sandi Port Errant Language and Culture Learning Center at Grant Hall Project Planning for the next phases of the East Campus Classroom Modernization program This update also includes a five-year implementation plan matrix that identifies over fifty specific projects that are proposed for implementation over the FY time period, projected funding sources, and target implementation dates. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 2

4 B. Funding Sources State Capital Appropriations Donor Funding Borrowing Grants ACTB 632 C. Critical Building Systems Life Safety Building Envelope Vertical Transportation Building System Renewal E. Downsizing Opportunities Property Disposition Property Redevelopment UIC Capital Strategy Capital Plan DRAFT v32.doc Page 3

5 B. Funding Sources State Capital Appropriations Donor Funding Borrowing Grants C. Critical Building Systems Life Safety Building Envelope Vertical Transportation Building System Renewal E. Downsizing Opportunities Property Disposition Property Redevelopment UIC Capital Strategy Capital Plan DRAFT v32.doc Page 4

6 UIC Capital Strategy A. Introduction The University of Illinois at Chicago has an aging physical plant with a deferred maintenance backlog in excess of $500M. This backlog is growing due to natural depreciation and the lack of adequate funding for preventive maintenance and infrastructure renewal. UIC is committed to addressing its facility objectives in spite of the current downturn of state funding for construction, renovation, and operations and maintenance of existing facilities. The objective of our capital strategy is to reduce UIC's deferred maintenance backlog significantly during the next few years and meet critical facility needs. The key elements of UIC's strategy are utilization of multiple funding sources, prioritized renewal of critical building systems, and downsizing of its physical plant. B. Utilization of Multiple Funding Sources Due to the scarcity of traditional capital funding sources, UIC will utilize a combination of campus resources, borrowing, gift funds, grants, and state appropriations to fund its capital programs. By using multiple funding sources and targeting renovation projects that include substantial deferred maintenance components, we anticipate that we will eliminate over $200M of deferred maintenance. Anticipated funding is projected to be as follows: $50M from issuance of certificates of participation $34M over 5 years from the newly-implemented Academic Facility Maintenance Fund Assessment (AFMFA); (the program will continue over an additional 5-year period) $4.8M per year in operating funds earmarked for infrastructure renewal $220M in gift funds for renovation projects Additional state-appropriated funds for new construction and renovation The major facility projects and funding sources that are emphasized in our capital strategy are as follows: New Construction (State Funds, Illinois Bill of Health): Advanced Chemical Technology Building Clinical Tower Pharmacy Remodeling and Pharmaceutical Pavilion Addition Health Sciences Teaching/Learning Center Major Renovation (Campus Operating Funds, Donor Funds, State Funds, and Grant Funds): Sandi Port Errant Language and Culture Learning Center at Grant Hall (completed Fall 2007) Lincoln and Douglas Hall Renovation Science and Engineering Teaching Laboratories Medical Sciences Building Modernization Stevenson Hall Classroom Renovation UIC Capital Strategy Capital Plan DRAFT v32.doc Page 5

7 Infrastructure / Deferred Maintenance Projects (COP, AFMFA, State, and Campus Funds): Building Envelope Integrity Life Safety Vertical Transportation Critical Building Systems Renewal The following discussion further identifies these sources of funds and describes current applications to campus needs. 1. Regular State Capital Appropriations Funds for planning of the Advanced Chemical Technology Building were appropriated and released in 2003, and the project is ready for bidding. The Capital Development Board (CDB) has put this project on hold due to cash flow issues. This is expected to have a negative impact on the recruitment and retention of faculty in Chemistry, Physics, and the Biological Sciences. Therefore, it is recommended that the University Administration should consider making a concerted effort to secure the approved $64M plus, at a minimum, an additional $20M to cover cost escalation so the construction of this building can go forward. 2. Special State Capital Appropriations UIC s special Illinois Bill of Health Initiative and the Governor s Economic Development Program may provide necessary funds for three additional facilities. Funds may also become available for the construction of the $71M College of Pharmacy Pharmaceutical Pavilion Addition as defined in the Illinois Bill of Health and the Governor's Economic Development program. This project remains a priority for the campus because it would support the expansion of critical programs in the College and address the need for renewal of infrastructure systems in the existing building. The estimated reduction in UIC's infrastructure backlog associated with this project would be $17.4M. 1 If this strategy is unsuccessful, the college hopes to implement a phased renovation program to remedy serious HVAC and fume hood deficiencies. Illinois Bill of Health funds may support a major construction and renovation program for the University of Illinois Medical Center. This program addresses key areas requiring immediate renovation and reconfiguration, including inpatient beds, ambulatory and inpatient surgical services, interventional and ambulatory imaging, pathology lab service ophthalmology, and otolaryngology. The program includes $450M for reconfiguration of the UIC Hospital and 1 In order to realize this reduction, the scope of the project associated with the construction of a building addition would have to be reduced by 33%, or the requested project budget would have to be augmented by a similar amount. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 6

8 Outpatient Clinics, construction of a new Clinical Tower, and infrastructure, equipment and information technology. In addition, we have proposed that the Illinois Bill of Health also support a $375M Health Sciences Teaching/Learning Center that would be shared by all UIC Health Science Colleges and serve as the lynchpin for a gradual west campus building renewal and demolition program. 3. Donor Funding The securing of donor funding to match other fund sources is becoming increasingly important for the modernization of UIC facilities. An example is the recently completed modernization of Grant Hall. The donor's gift for the Sandi Port Errant Language and Culture Learning Center at Grant Hall was supplemented by campus funds, AFMFA funds, and a geothermal energy demonstration grant. The resulting project created a new, expanded building with state-of-theart infrastructure and a teaching/learning environment to support language and cultural learning activities. UIC's infrastructure backlog was reduced by $1.9M as a result of this project. UIC plans to pursue a similar strategy for the renovation of the two buildings that are adjacent to Grant Hall. Douglas Hall will be modernized and used to house the Masters of Business Administration program. Lincoln Hall will be used to provide state-of-the-art general use classrooms for undergraduate education. Both of these buildings will utilize the same geothermal field that will be installed to serve Grant Hall. Completion of work on these facilities will reduce UIC's infrastructure backlog by over $23M. Additional donor opportunities are being identified by the campus development office and will be included in the university's capital campaign. One opportunity currently being explored is directed at the vertical expansion of the Lions of Illinois building. This project would be funded from a combination of NIH grant funds, donor funds, and campus sources. 4. Operating Funds UIC will continue to apply centrally allocated funding (typically $4.8M/yr) to remediate infrastructure deficiencies as defined in the campus's infrastructure priority list. Recent projects that were completed using these fund sources are as follows: FY2005 Projects: Applied Health Sciences Fire Alarm System Facade Inspections Biological Resources Laboratory Curtain Wall Replacement University Hall ADA Accessibility UIC Capital Strategy Capital Plan DRAFT v32.doc Page 7

9 College of Dentistry Life Safety Code Corrections Science and Engineering South Elevator Modernization - Phase I Lecture Center Flood Repairs and Transformer Replacement Clinical Sciences North Building Elevator Repairs College of Pharmacy Escalator Repairs - Phase I Clinical Sciences Building Emergency Generator, Switchgear, and Compressor Replacement Chiller Inspections Molecular Biology Building Coil Replacement Steam Trap Replacement FY2006 Projects: College of Pharmacy Escalator Repairs - Phase II Science and Engineering South Elevator Modernization - Phase II Biological Resources Laboratory Elevator Renovation Marshfield Avenue Building Elevator Renovation FY2007 Projects: Grant Hall Infrastructure Molecular Biology Research Building Clean Steam Generator Replacement Biological Resources Laboratory and Education, Performing Arts, and Social Work Entrance Repairs Science and Engineering Labs and Clinical Sciences North HVAC Repairs Administrative Office Building Cooling Tower Renovation Medical Sciences Building Masonry Repairs Emergency Repairs and Flood Damage Remediation 5. Borrowing UIC has committed 100% of its share of the Infrastructure Certificates of Participation to renewal and replacement of critical building systems. The reduction in UIC's infrastructure renewal backlog discussed in this report is based on receipt of a $50M allocation of the COPS funding. It should be noted that this is a one-time infusion of non-recurring funds and that our annual RAMP submittal to the Illinois Board of Higher Education (IBHE) shows that our infrastructure backlog increases at a rate of approximately $40M/yr due to deterioration and inflation. Therefore, it is essential that we continue to pursue other strategic options to prevent escalation of our infrastructure backlog. Additional borrowing is being contemplated to refurbish the Physical Education Building and the Student Services Building. These projects would be financed by Campus Auxiliary Services to minimize any calls on campus resources. The PEB project could include a significant private-sector contribution based on a potential commercial partnership. This project would eliminate a significant portion of deferred maintenance and infrastructure needs on this building. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 8

10 6. Grant Funds UIC has been and will continue to access grant funds to supplement other funding sources for campus improvements. These sources include NIH construction grant programs, equipment grant programs, and energy conservation grants. We have been very successful in securing NIH construction grants for construction and renovation of research facilities. For example, NIH funds were used to construct the new Center for Structural Biology facility. We are currently developing proposals for additional work to meet critical needs in the College of Pharmacy and the College of Nursing. On average, we expect to receive 1-2 NIH grants per year. These grants range from $3M-$5M and require a 50% local match. NIH is co-funding a current project in the School of Public Health and Psychiatric Institute Building. This $6.6M project will renovate approximately 20,000 SF of lab space for the Department of Psychiatry. We are also taking advantage of Illinois Clean Energy grant programs for ongoing work and special projects. For example, in both FY2005 and FY2006, we received $250,000 grants for lighting retrofit projects to reduce energy consumption in campus buildings. In FY2006, we received an additional $153,000 grant which is being applied to the Sandi Port Errant Language and Culture Learning Center at Grant Hall project for the installation of geothermal energy systems. 7. Academic Facility Maintenance Fund Assessment This fund source was created by the Board of Trustees of the University of Illinois in The fund will be generated by a $500/semester student assessment that is being phased in over a 4- year period. Projects will be restricted to infrastructure-related work in student-oriented buildings. The initial project list includes: Lecture Center A-1 Grant Hall Lecture Center D Lincoln Hall Richard J. Daley Library Douglas Hall College of Nursing HVAC Modernization EPASW HVAC Modernization C. Prioritized Renewal of Critical Building Systems The core of our capital strategy will be renewal of critical building systems. Attachment A summarizes the scope of this program. Campus funds in the amount of $400,000 will be allocated on an annual basis to support the management of the $50M in COPS funding that is UIC Capital Strategy Capital Plan DRAFT v32.doc Page 9

11 anticipated. Our plan is to utilize in-house expertise as much as possible to minimize design and management costs. The work to be accomplished is summarized in the following paragraphs that describe life safety, building envelope integrity, vertical transportation, and building system renewal initiatives. 1. Life Safety The on-going UIC campus building condition assessment has identified the need to remediate life safety and risk management concerns. Examples of the work that is required include replacement of the University of Illinois Hospital fire alarm system, upgrades to bring the College of Dentistry into compliance with JACHO requirements, installation of sprinklers in the College of Applied Health Sciences Building, and critical fire alarm upgrades at the College of Medicine West, College of Medicine West Tower, Clinical Sciences North and the Biological Resources Lab. We intend to use approximately 26.4% ($13.2M) of the projected UIC share of the COP proceeds ($50M) to address priority needs in this area. 2. Building Envelope Approximately 35.3% ($17.7M) of the projected COPS funds will be used to renew masonry, windows, and roofing on key UIC buildings, including, Science and Engineering South, Art and Architecture, College of Medicine, Human Resources, Behavioral Sciences, and Education, Performing Arts, and Social Work Buildings. UIC has in-house staff with expertise in this type of work. We will be able to prepare plans and specifications for bidding of this work without the need to commit any funds for professional service consultants. Over the past period (prior to the COPS program), UIC has spent over $28M on roof, masonry, and window replacement projects. These funds were used to address the most critical problems in approximately thirty-five (35) campus buildings, thereby significantly reducing building envelope deferred maintenance and infrastructure renewal needs. Funding for this work was allocated from operating accounts as discussed in section B.4 above. A complete list of projects is included as Attachment B. 3. Vertical Transportation UIC has initiated work on over $3M in elevator and escalator projects using FY05 and FY06 operating funds. These projects addressed needs in our Biological Resources Lab, Science and Engineering, and Pharmacy Buildings. UIC's approach to these projects involves limited use of outside consultants and in-house preparation of bid documents in order to maximize the amount of money available for actual construction work. Sixteen percent (16%) of the projected COPS funding ($8M) will be directed to the most critical needs in this area, including work in approximately twelve buildings whose elevator/escalator systems have reached the end of their useful life and for which repair/replacement parts are no longer available. A multi-year commitment of campus funds will be made for on-going maintenance contracts for these systems to maximize their useful life and minimize down-time. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 10

12 4. Building System Renewal In addition to the above projects, we intend to renew/replace key mechanical, electrical, and plumbing systems and components in several campus buildings. For example, in conjunction with the previously referenced installation of sprinklers in the Applied Health Sciences Building, we will also replace the domestic water supply system which is outdated and poses frequent problems due to leaking pipes and water quality complaints. We will also install a state-ofthe-art HVAC system in the Clinical Sciences Building due to the obsolescence and poor performance of the existing system. Additional scopes of work will be developed in consultation with the University Utilities Office to take advantage of energy-saving opportunities, including installation of direct digital control systems. Approximately 4.3% ($2.1M) of the COPS issue will be used for this purpose. D. COPS Initiative Project Descriptions The core component of our current strategy is the use of Certificates of Participation funding to remediate critical life safety code deficiencies, building envelope integrity problems, vertical transportation system obsolescence, and building system failures. The elements of and rationale for this program are as follows: Approved Life Safety Projects - $6,856,350 College of Dentistry - Code Correction (940 Bldg) - $1,250,000 This work is necessary to upgrade the College of Dentistry facility to meet IDPH/JACHO standards. Life Safety Issues - Phase I (various buildings) - $3,106,350 This project will address deficiencies identified in the original UIC building condition audit and additional priorities that may be noted in the update being prepared by Gage- Babcock. University of Illinois Hospital Fire Alarm System - $2,500,000 The University Hospital's existing fire alarm system is obsolete and needs to be replaced. Projects submitted for approval - $6,370,800 College of Medicine West Fire Alarm Upgrades - $468,000 College of Medicine West Tower Fire Alarm Upgrades - $955,000 Clinical Sciences North Fire Alarm Upgrades - $999,800 Biological Resources Lab Fire Alarm Upgrades - $653,000 Applied Health Sciences Building Fire Alarm System Upgrade and Fire Sprinkler System Installation - $3,295,000 UIC Capital Strategy Capital Plan DRAFT v32.doc Page 11

13 Approved Building Envelope Integrity Project -$ 7,376,000 Science and Engineering South - Roof and Skylights (619 Bldg) - $1,325,000 The leaking roof and skylights are damaging interior space and interrupting research and academic activities. The roof and skylights are original components of the building and are well past the expected life cycle. Art and Architecture Roof Replacement (628 Bldg) - $1,000,000 The existing roof is more than thirty years old, has outlived its useful life, and developed leaks that are resulting in damage to interior finishes, disruption to academic functions, and safety hazards. The scope of this work will include complete removal of existing roofing and insulation and the installation of a built-up coal tar roofing system with tapered insulation. Education, Performing Arts, and Social Work Plaza Waterproofing (Planning) - $126,000 The plaza waterproofing system has failed and leaks have developed in the lower level rooms. The masonry planters and stairs have also failed due to water intrusion and need to be rebuilt. College of Medicine Masonry/Windows Phase II East and West Towers - $1,975,000 The project includes masonry repairs, lintel replacement, and stone replacement to prevent water infiltration into the building, stop further deterioration, and reduce the hazard of falling debris. The project also includes replacement of existing single pane steel windows with a more energy efficient thermal pane units. Human Resources Building Roof and Masonry (907 Bldg) - $1,450,000 The roof is beyond its expected life cycle; continual failures occur resulting in damaged interiors. This building requires extensive masonry repair including general tuckpointing, parapet reconstruction, and lintel repair and replacement. Behavior Sciences Building Roof Deck and Paver Replacement (618 Bldg) - $1,500,000 Projects submitted for approval - $10,287,600 Education, Performing Arts, and Social Work Plaza Waterproofing (Construction) - $1,000,000 The plaza waterproofing system has failed and leaks have developed in the lower level rooms. The masonry planters and stairs have also failed due to water intrusion and need to be rebuilt. Façade Inspection Program Phase I - $1,861,500 College of Medicine West Tower Masonry & Windows Phases 1 and 2 - (Bldg 909) $3,005,100 This building requires tuckpointing to stop water infiltration and damage to interior facilities. There is a potential safety hazard from falling bricks if deterioration is allowed to continue. This project is the continuation of a multi-phased and multi-building facade rehabilitation project. The preliminary investigation phase was funded through Capital Development Boards (CDB) Fiscal Year 02 Repair and Renovation funds. The scope of this work will include repair of distressed masonry and tuck pointing of the College of Medicine West Building. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 12

14 Campus-Wide HVAC System Energy Efficiency Improvements - $1,500,000 West Campus Tunnel Renovation (N-S Section) - $1,063,000 West Campus Tunnel Renovation (E-W Section) - $560,000 Physical Plant Building - Roof (611 Bldg) - $1,050,000 The existing built-up roofing membrane is well past its useful life. It currently is over 36 years old, has had an extensive history of leaks, and needs to be replaced. Paulina Street Building - Roof Replacement (963 Bldg) - $248,000 The roof of this building is forty plus years old, has outlived its useful life, and has begun to leak. These leaks are frequent and are causing damage to the concrete roof deck. The scope of work will include complete tear out of existing roofing and installation of a built-up coal tar roof with tapered insulation. Approved Vertical Transportation System Projects -$6,617,650 Physical Education Building - Elevator (633 Bldg) Physical Education Building has only one elevator for the entire facility. It is thirty-five years old and has frequent failures. It is critical to keep the elevator functional to meet ADA code requirements and move the equipment from the basement to the upper floors for athletic/intramural events. Laflin Street Warehouse - Elevator (972 Bldg) The Warehouse at 1515 S. Laflin is currently operating without an elevator. The existing elevator was "condemned" by inspectors as unsafe and obsolete. Failure to replace will negatively impact the efficiency of the facility, particularly in the operation of the library storage area on the second floor. College of Medicine West Tower Freight Elevators (909 Bldg) The College of Medicine West Tower building has two traction freight elevators. One serves the basement through the 7th floor and the other from the 7th through the 11th floors. These elevators are approximately seventy years old and are non-code compliant. Hence, they are in need of major upgrades and renovations including reconfiguration of platforms and hatch frames. The scope of work will include asbestos abatement and the installation of new hatch frames and doors, machine, controllers, signal fixtures, cabs and cab assemblies, door operators, counter weights, wiring and machine-room upgrades. Science and Engineering Laboratories Elevators (607/608 Buildings) These elevators are in very poor condition and require a complete overhaul to provide safe, reliable service. These systems are original and require total upgrade/renovation to provide reasonable service. Parts are obsolete and not readily available. Education, Performing Arts & Social Work - Elevators (623 Bldg) These elevators are in very poor condition and require a complete overhaul to provide safe, reliable service. These cars are original equipment and repairs are delayed by parts that are obsolete and not readily available. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 13

15 Medical Sciences Building - Elevators (935 Bldg) These elevators are in very poor condition and require a complete overhaul to provide safe, reliable service. These elevators are extremely important since the new College of Medicine Research Building opened and requires better reliability. Richard J. Daley Library - Elevators (609 Bldg) These elevators are in very poor condition and require a complete overhaul to provide safe, reliable service. These cars are original equipment and repairs are delayed by parts that are obsolete and not readily available. Eye and Ear Infirmary Elevators (902 Bldg) The elevators in this building are over forty-five years old and are in very poor condition. Repair parts are difficult to obtain. Due to the ongoing patient care activities performed in this building, it is essential that new equipment be installed to ensure reliable vertical transportation. Marshfield Avenue Building (922 Bldg) Parts for the controllers and machines for the elevators in this building are no longer available. It is essential that new equipment be installed to avoid down-time related interruptions of the business affairs, hospital, and chancellor's office operations located in this building. Projects submitted for approval - $6,441,600 College of Pharmacy Escalators Phase 2 (924 Bldg) - $2,348,000 College of Dentistry Elevators (940 Bldg) - $2,400,000 Behavioral Sciences Building (618 Bldg) - $1,693,600 Approved Building System Renewal Projects - $2,150,000 Applied Health Sciences Building Domestic Water System (916 Bldg) - $2,150,000 The domestic water system in this building has deteriorated to a point where new leaks occur on a regular basis resulting in service disruptions and associated water damage. The extent of the problem is such that replacement of the system is the recommended solution. E. Downsizing Opportunities 1. Targeted Facilities In the longer term, it is our expectation that a number of facilities will be removed from the UIC building inventory due to either their age and condition or unique opportunities associated with their location. The first of these facilities, the Sangamon Street Building (Bldg. 939), has already been sold. The Sangamon Street Building, which was an old hospital building located north of the Eisenhower Expressway, was determined to be a liability approximately 5 years ago, and consequently it was not included in the VFA building condition audit. However, a conservative estimate of its infrastructure deficiencies would be over $15M. This property was acquired by the City of Chicago for use as a neighborhood park for the West Loop Gate community. The UIC Capital Strategy Capital Plan DRAFT v32.doc Page 14

16 proceeds of the sale were, by special legislation, returned to the university and used to pay for acquisition and improvement of the 1515 W. 15th Street warehouse building. Additional sales or demolitions may be considered for the following facilities: Chemical Engineering Building (Bldg 643) Marshfield Avenue Building (Bldg 922) School of Public Health East Building (Bldg 915) Easter Seal Building (Bldg 973) Art and Design Hall (Bldg 641) College of Urban Planning and Public Affairs Hall (Bldg 642) Roosevelt Road Building (Bldg 621) Eye and Ear Infirmary (Bldg 902) Sangamon Street Building (Bldg 939) The total anticipated reduction in square footage would be 363,923 NASF (655,260 GSF). Disposition of these targeted facilities will require the identification of alternative space for current occupants and funds necessary for relocation and any necessary renovation. The next step in development of a disposition plan will be to systematically identify options for relocation, associated costs and benefits, and appropriate funding sources. This analysis will also include discussions with occupants regarding important adjacencies and establishment of appropriate timelines. Since we do not expect to maintain occupancy of any of these buildings indefinitely, we intend to make only minimal investments in them for maintenance and renewal purposes. Disposition of the targeted facilities will not only yield savings on maintenance and energy expenses but also eliminate risks and remediation costs associated with code compliance and life, health, and safety concerns. In some cases, the sites of these buildings will be reserved for future university development. In other cases, we will pursue disposition and/or leasing strategies to capitalize on the market value of the underlying property. In the near term, downsizing efforts will be focused on the Easter Seal and the School of Public Health East buildings. 2. Properties Targeted for Disposition The Easter Seal Building, Chemical Engineering Building, Art and Design Hall, CUPPA Hall, and Sangamon Street Building all present unique real estate development opportunities due to their respective locations. We intend to explore ways of extracting value from these properties, either through long-term leases to the private sector or through property swaps or sale. 2 Plans are now underway to vacate the Easter Seal Building. This building is at the western edge of the UIC campus, and is separated from the campus by a major thoroughfare, Ogden Avenue. Our strategy regarding this parcel will require renovation of the Hermitage Avenue Building to house Patient Access and Patient Accounting staff. 2 The later course of action would require special legislation to provide an exemption from the requirements of the State Property Control Act. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 15

17 The Chemical Engineering Building, which is located approximately 1/2 mile from the UIC campus, is located in an area that is experiencing significant redevelopment activity. It would be a prime target for development by the private sector. It is expensive for the university to maintain because of its condition and remote location. We plan to relocate the academic unit that now occupies this building back to UIC's east campus into space that will be vacated when researchers from Physics, Biological Sciences, and Chemistry are moved into the Advanced Chemical Technology Building. Relocation of the Chemical Engineering program will significantly reduce operating costs due to elimination of transportation and maintenance requirements. In addition, disposal of this building will reduce our infrastructure renewal backlog by $3.2M and reduce utility expenditures by $236,000 per year. Both CUPPA Hall and Art and Design Hall are located north of the Eisenhower Expressway in an area that has experienced burgeoning loft-conversion activity. Although UIC has made significant attempts to upgrade these buildings, they still do not function appropriately. We have determined that we should explore opportunities for leveraging their value as residential/commercial properties in exchange for construction of replacement facilities on the main UIC campus. Disposition of these buildings would reduce our infrastructure backlog by $7.1M and annual energy costs by $220, Properties Targeted for Redevelopment The Marshfield Avenue Building (MAB) is located on a prime site adjacent to our Molecular Biology Research Building. It is an inefficient building in terms of site utilization, internal configuration, and energy requirements. We are currently exploring options for relocation of its occupants into space that was vacated by the College of Medicine when it took occupancy of the new College of Medicine Research Building. This would allow us to demolish the Marshfield Avenue Building to provide a prime site for future research activity. Demolition of this building will result in a $7.3M reduction in our deferred maintenance backlog, eliminate many dangerous fire code violations, and achieve a $275,000 reduction in annual energy costs. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 16

18 The School of Public Health East (SPHE) building is a very inefficient and underutilized building that is currently unoccupied and is being used as a file storage facility. It does not have air conditioning and is located on the western edge of our medical center campus. It has a prime frontage along Damen Avenue and is adjacent to vacant property owned by the university. In previous years, we have discussed various options for redevelopment of this site, both for UIC purposes and in conjunction with other state agencies (IMD, CMS, and IDPH). The site of this building has significant value for institutional use, either by UIC or IMD occupants. Therefore, in the long term, we need to plan for demolition of this building. Demolition of the SPHE facility would result in a $2.3M reduction in our infrastructure backlog and an annual savings of $12,000 in energy use. The site of this building may have significant value for future land swaps within the Illinois Medical Center District. The Eye and Ear Infirmary Building, which was built in 1962, is functionally obsolete and can not be remodeled in a cost-effective manner due to the design of its building systems and the pervasive presence of asbestos. Its current occupants include an outpatient dialysis clinic, hospital data functions, and clinical functions and academic offices of the departments of Ophthalmology and Otolaryngology. These units will eventually be relocated into the proposed new Clinical Tower project, the expanded Lions of Illinois Building and COMRB backfill space. Demolition of this building will reduce UIC's maintenance backlog by over $12M and reduce annual energy costs by $621,000/year. It will also clear a site for any future clinical expansion requirements. The final site being considered for redevelopment is occupied by the Roosevelt Road Building (RRB). RRB is an old banking facility. It is underutilized and its appearance is not consistent with the University's goal of creating a gateway at this Roosevelt/Halsted intersection. This site offers a prime opportunity for a major gateway building. This could be a future university building or a joint-venture facility. In order to fully realize the value of this site, plans must be made for the relocation of two existing occupants (AITS and ROTC). The building's other occupants, the TRIO program and the east campus day care center, will be moved to the Student Services Building in about two years. Demolition of the Roosevelt Road Building would reduce our deferred maintenance backlog by $7.1M and reduce energy costs by $868,000 per year. UIC Capital Strategy Capital Plan DRAFT v32.doc Page 17

19 F. Planned Projects that will Reduce Deferred Maintenance In addition to the proposed COPS program, the following projects will also contribute to reduction of UIC's deferred maintenance backlog: 1. Sandi Port Errant Language and Culture Learning Center at Grant Hall (Complete) Scope: Demolish exterior window walls. Install energy-efficient curtain wall system, geothermal heating and cooling system, new restroom facilities. Replace flooring, furniture, language lab and classroom equipment. Project cost: $5.4M Source of Funds Gift, Grant and Campus Funds Reduction in deferred maintenance $1.9M 2. Lincoln Hall Renovation (In Planning) Scope: Demolish exterior window walls. Install energy-efficient curtain wall system, geothermal heating and cooling system and new restroom facilities. Replace flooring, furniture, and classroom equipment. Project cost $14M Source of Funds Campus, Grant and Gift Funds Reduction in deferred maintenance $11M 3. Douglas Hall MBA Program Renovation Scope: Demolish exterior window walls. Install energy-efficient curtain wall system, geothermal heating and cooling system, new restroom facilities. Replace flooring, furniture, and classroom equipment. Construct offices for administration of MBA program. Project cost TBD Source of Funds Gift, Grant and Campus Funds Reduction in deferred maintenance $12M 4. Pharmacy Building Renovation and Addition Scope: Remediate all existing building system deficiencies in conjunction with construction of building addition. Project cost $77M Source of Funds Capital Appropriation Reduction in deferred maintenance $17.4M 5. AFMFA Scope: Upgrade/modernize infrastructure in various student-oriented buildings. Project cost $34M Source of Funds AFMFA Reduction in deferred maintenance $34M UIC Capital Strategy Capital Plan DRAFT v32.doc Page 18

20 G. Tabulation of Proposed Projects and Impact on Deferred Maintenance (FY2008 FY2012) Program Project/Category Impact on Deferred Maintenance ($M) Special Initiatives AFMFA 36.2 Infrastructure COPS 50.0 PEB Renovation 46.0 CEB Demolition 3.2 ESB Demolition 2.7 CUPPA/ADH Conversion 7.1 MAB Demolition 7.3 SPHE Demolition 2.3 RRB Demolition 7.1 Sandi Port Errant Language and Culture Learning Center at Grant Hall (completed) 1.9 Douglas Hall MBA Program Renovation 12.0 Lincoln Hall Renovation 11.0 Pharmacy Renovation 17.4 Sangamon Street Building Disposal (completed) 15.0 EEI Demolition 12.0 Sub-Total $231.2 Annual Allocation UA ($4.8M/year for 5 years) 24.0 Sub-Total $24.0 GRAND TOTAL $255.2 UIC Capital Strategy Capital Plan DRAFT v32.doc Page 19

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