Early 2012 Planning Documents for UCLA Hotel/Conference Center

Via Email

March 20, 2012

Laura Lake Co‐President SAVE WESTWOOD VILLAGE EMAIL: savewestwoodvillage@hotmail.com

RE: RESPONSE for PRR 2012‐243 UCLA Luskin Center

Dear Dr. Lake:

This is a response to your request for public records under the California Public Records Act (CPRA) dated February 21, 2012. Please find enclosed the following responsive documents:

1) Project Planning Guide for Luskin Conference and Guest Center, March 2011 2) Business Case Analysis Luskin Conference and Guest Center, January 2012 3) AMENDMENT OF THE BUDGET AND APPROVAL OF EXTERNAL FINANCING AND STANDBY FINANCING, LUSKIN CONFERENCE AND GUEST CENTER, LOS ANGELES CAMPUS

The CPRA authorizes UCLA to charge for reproduction costs and/or programming services.1 As a courtesy, these fees have been waived. Any subsequent requests may be subject to copying and/or programming fees.

RMIP strives to honor the spirit and legislative intent of the California Public Records Act. We believe the attached responsive records successfully fulfill the purpose of this law and your request.

This completes the response to your request. Please feel free to contact me if you have any questions or comments.

Sincerely,

Aimee M. Felker Director Records Management & Information Practices (310) 794‐8741 | (310) 794‐8961 (fax) | uclapublicrecords@finance.ucla.edu | www.finance.ucla.edu

AMF:amf

Enclosure(s): PRR 2012‐243 Responsive Documents + Request

1

California Government Code §6253(b) Page 1 of 1

UNIVERSITY OF CALIFORNIA Campus Capital Programs 1060 Veteran Avenue Box 951365 Los Angeles, CA 90095-1365

• TRANSMITTAL Date:

March 16, 2012

To:

Kathy FitzGerald, Director of Project Development Capital Programs

From:

Bill Coleman, Assistant Director Capital Planning Phone: (31 0) 794-7285 Fax: (310)206-1510

Project Name:

Luskin Conference and Guest Center

Project Number:

946375

Attached please fmd the following: Number: 1

Date: 3/2012

Remarks:

Description: Project Planning Guide (PPG)

Attached is the approved PPG for your use.

Transmitted via: cc:

V:\Campus Projects\

UCLA Peter Angelis Jack Powazek Mark Voltz Jeff Averill Sue Santon David Secor Teresa Barajas Kip Baker Lisa Compton File

UCOP Dana Santa Cruz Linneth Cox

University of California Los Angeles

Project Planning Guide for

LUSKIN CONFERENCE AND GUEST CENTER

Project Number 946375 March 2011

CAPITAL PBOGRANS

CAMPUS APPROVAL University of California, Los Angeles LUSKIN CONFERENCE AND GUEST CENTER Project Number 946375 March 2011

Reviewed by:

Date

Date Administrative Vice Chancellor

Susan G. Santo , Associate Vtce Chancellor Capital Planning and Finance

Date

Approved by:

Steven A. Olsen Vice Chancellor and Chief Financial Officer

Date

Gene D. Block, Chancellor

Date

I

I

Page i LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\ConfCenter V l-6a.doc

UCLA Capital Programs

University of California, Los Angeles LUSKINCONFERENCE AND GUEST CENTER Project Number 946375 March 20fl

Table of Contents

Page CAPITAL IMPROVEMENT BUDGET ............. ...... ... .... ... ................. ... ..... .... ... .... ...... .......... iii EXECUTIVE SUMMARY ..... :................... ... ....... ... ..... ...................... ... .... ..... ............ ...... ......... I PROBLEM STATEMENT ...................... ... .... ..... .................................. ............ ......... ... ..... ..... .. !

PROJECT DESCRIPTION .. ....... .......... .................. ... ... .... .... ... ... ............. ... ......... ...................... 6 SUSTAINABILITY ....... ....... ...... ...... .... .......... ........................................................................... 9 APPENDIX

Project Schedule .. ...... ... ........ . .... .. .... .. .... . . ..... .. .... .. ... . .... ........................... 10 Plans .. .... ... .... ... ..... ....... ....... ............ ........ .................. .......... ... .............................. ......... ........ ll Environmental Impact Classification ....... ..... ........... ........ ..... .. .... ..... ........... ..... ........ ..... ...... .20

Page ii LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\ConfCenter V l-6a.doc

UCLA Capital Programs

CAPITAL IMPROVEMENT BUDGET

UNIVERSITY OF CALIFORNIA

BUDGET DATA

Los Angeles

2

Campus

3 4

6132

CCCI :

Luskin Conference and Guest Center

946375

Project Title:

4919

Campus Reference

A FUNDING SCHEDULE

Per 20

Totals (1000's)

20

Asset No.

C.I.P., dated

Prefunded

2011-2012

EPI : Cost Indexes

5 6 7

, Univ. Priority No. 2013-2014

2012-2013

2014-2015

2015-2016

8 9

p

5,067 G

w

5,317 G 19,616 G

142,041

c c c c

10,000

E

p

5,067

w c

5,317

E

112,000 LB 3,200 X

10

7,225 N

11

10,000 G

12

1 - - - - - - - - - - - - 1·················································· ................................................... ................................................... ·········································· ··············································· ··········································· 162,425

$

Tot Proj

162,425

B FUNDING REFERENCES [3]

4) Total All Sources

[4)

18 19 20 21 22 23

Account No. Source

C Costs

Conference

$

1. Construction .... ......

Parking

2,843,000

$

158,000

96,291 ,000

7,807,000

2. Exterior Utilities

1,152,000

64,000

4. Site Development

3,199,000

177,000

5. Fees ...

6,114,000

6. A&EIPPC ...

Gateway Plaza

$

Catering

$

158,000

Total 3,159,000

$

o/o

24

2.1%

25

72.1%

26

5,482,000

109,922,000

64,000

1,280,000

0.8%

27

1,995,000

177,000

5,548,000

3.6%

28

556,000

309,000

392,000

7,371 ,000

4.8%

29

1,683,000

139,000

79,000

79,000

1,980,000

1.3%

30

2,733,000

205,000

63,000

158,000

3,159,000

2. 1%

32

342,000

7. Surveys, Tests, Plans,

31

Specifications ...

8. Special Items

741 ,000

9,532,000

SUBTOTAL 9. Contingency

16 17

[2)

[1)

Site Clearance .....................

15

$

$

7,970,000

7.8%

TOTAL P-W-C ...

123,547,000

$

9,847,000

173,000

$

636,000

131 ,517,000

$

10,483,000

2,961 ,000

155,000

$

239,000

$

3,200,000

6,665,000

$

10,601 ,000

7.0%

33

143,020,000

93.8%

34

9,405,000

6.2%

35

100.0%

36

560,000

$

7,225 ,000

152,425,000

$

10,000,000

37

162,425,000

Available Funding .... ...

38 39

Anticipated Surplus ..

(Deficit) ...

40 41

3. Group 2&3 Equipment...

10,000,000

TOTAL PROJECT ... .

$

141 ,517,000

$

10,483,000

$

3,200,000

$

7,225,000

$

D FINANCING

112,000,000 40,000,000 3,200,000

External Financing Gift Funds Campus Funds (Gateway)

7,225,000

Housing Reserves (Catering) TOTAL

$

162,425,000

E STATUS OF PROJECT

42 43 44 45 46 47 48 49 50 51 52 53 54 55

Project Planning Guide

~--------------~'~~~~~~~~~--------------~~~--~~----------------~----------~-----------56 Name,;..K.fi.t~Y..F..it~§.e.rfi.l.d..~<J5f~"../JlL.I./..£..~.

l,s;qnatur~.:.......................................?f..k,5;;;J.&i.;:f:~~:!.::c:~...............T ..................... ................t=B:=.ud""=::g'et.;.;N.::.:o._ _-+---::-:-~-:---

;i;~:~~:~:~s::c;~i~Prl·*·'!>t-,. 11,...................... ·!·~~;2~~--i~~~J;~;;;:~~·~~:;~~!!1 ..f!fi.~!~9..!!~.<J..F..i.~.!!~.?:J;{<'f//·z:::::···························· ~:~:~ate Program:

l iFiscaJ:

111a12012

;:~:~tur~.:.............................................................................................................................................. ::~:::

-------+,---------HApproved··i~~ ·AiiP~·P·Pc;-: ·o~i-;;:···· ···································································································

1-:C:-ost,...:

Form Update: 10/11 /02

Q:\CFI\CPS\FORMS\120118_Luskin CIB (3) .xlsPage 1

57

~: ~

Revised

62 Page 1 of 2

63

CAPITAL IMPROVEMENT BUDGET

UNIVERSITY OF CALIFORNIA

ANALYTICAL DATA

Los Angeles

2

Campus

3 CCC I:

Luskin Conference and Guest Center F

ANALYTICAL

4919

946375 Campus Reference

Project Title:

6 132

EPI

Asset No.

Cost Indexes

DATA

4

5 6 7

ASF per PPG .......... . ........

173,750 ASF

ASF

ASF

7,500

ASF

181 ,250 ASF

8 9

ASF Current .............. .............•..

173,750 ASF

ASF

ASF

7,500

ASF

181 ,250 ASF

10

OGSF ...

242,000 OGSF

42,000 OGSF

OGSF

10,000

OGSF

72% to 1.00

0 to 1.00

to 1.00

75% to 1.00

/ ASF

/ ASF

731 I ASF

$

606

/ ASF

13

/ OGSF

548 / 0GSF

$

374

/ OGSF

14

/ ASF

963 / ASF

$

84 1

/ ASF

15

/ OGSF

723 / 0GSF

$

51 8

/ OGSF

16

0 / ASF

$

55

/ ASF

17

1) Conference

Ratio (ASF Current I OGSF) ..

[3] Gateway Plaza

[2] Parking

Construction Cost per ASF ...

554 / ASF

Construction Cost per OGSF ...

398 / 0GSF

Total P-W-C Cost per ASF ..

757 I ASF

Total P-W-C Cost per OGSF ...

543 / 0GSF

Gr. 2 & 3 Equip. Cost per ASF ...

58 / ASF

186 /0GSF / ASF 250 / OGSF

I ASF

[4] CaterinQ

/ ASF

(5)

Total All Sources

294 ,000 OGSF 62% to 1.00'

11 12

18 19 20

G

CONSTRUCTION

21

COST ANALYSIS Cost

Unit Cost

$ I ASF

a. b. c. d. f.

g.

h. i.

.Concrete & Structure .. . .Closing - in .. . .................... .Finishing... .Group 1 Equipment...

SUBTOTAL- Gen. Constr.

HVAC ............

Plumbing ....

Electrical ................. ...............

Elevators ...

Other ...

TOTAL BUILDING COST ONLY ...

Additional Bldg. Costs ...

TOTAL BUILD ING + ADDITIONAL COSTS ...

Other Construction ...

Other Constru ction ...

TOTAL CONSTRUCTION COST ...

H

%

I

$

23

- - - - - -------------------

$ / OGSF

$

22

Remarks

24 25 26 27 28 29 30 31 32

$

• Identify: $

$

33 34

IS

35 36 37 38 39 40 41

• Identify: $

$ • Identify : • Identify:

$

• Same as Sch edule C, Item 1 (line 24), Page 1

-------------------

42

INUit:::; :

43

Pre-Design Study

$350,000

Schedule

150,000 Graphics

110,000

Environmental Impact Report

$398,000

Traffic

125,000 Foodservice

138,000

Presentations Peer Reviews Value Engineering Specialty Consultants•

$55,000 $280,000 $ 125,000 $ 1,988,000

Environmental Health & Safety

$25,000

Haz Mat Survey and Monitoring Agency Fees

$200,000 $165,000

Messenger Interest Expense Total

44 45 46 48 49 51 52 53 54

* Specialty Consultants

Specia l Items

$15,000 $7,000,000 $1 0,601,000

Prepared by: Form Update: 10111102

Q :\ CFI\ CPS\ FORMS\ 120118_Luskin CIB (3).xlsPage 2

Parking Acoustics AV/Security FFE Procurement Code

75,000 LEED 53,000 Ughting 98,000 Telecomm 200,000 Waterproofing 50,000 Interiors Total

82,000 108,000 89,000 11 5,000 595,000 $1,988,000 Budget No.

56 57

58 Issue Date .........................

1/ 17/2012 Revised ......................... 59 Revised ......................... 60 61 Revised 62 Page 2 of 2

63

LUSKIN CONFERENCE AND GUEST CENTER

University of California, Los Angeles EXECUTIVE SUMMARY

The University of California, Los Angeles proposes to construct the Luskin Conference and Guest Center adjacent to the main entrance to campus at the terminus of Westwood Plaza.

The 294,000 gsf project would consist of four components: 1) a 242,000 gsf conference facility with 25,000 asf of meeting space and 250 guest rooms; 2) a 42,000 gsf parking garage for resident guests; 3) a 10,000 gsf campus catering kitchen to replace an older facility in the northwest campus; and 4) improvements to the adjacent traffic turnabout and pedestrian plaza in Gateway Plaza at the main entrance to campus. The project would demolish Parking Structure 6 to create the site for the Center. Parking spaces lost by the demolition would be absorbed into the existing campus inventory.

The proposed facility would allow faculty, researchers and students to exchange ideas and elevate debate on society's greatest challenges with international scholars, civic leaders and the general public, consistent with the goals ofUCLA's Academic Strategic Plan. The center would enhance the image of the campus as one of the world's great research universities, and allow UCLA to compete with other top tier institutions for major academic conferences. It would also fill a demand by faculty for additional and modem conference space on campus.

The proposed center will offer competitive rates and guests would need to demonstrate an affiliation with the University in order to book a reservation.

Construction would commence in September 2013, with completion in June 2016. The total project cost of$162,425,000 at CCCI 6132 would be funded by external financing ($112,000,000) and gift funds ($40,000,000) for the conference, guest and parking facilities; housing reserves for the catering kitchen ($7 ,225,000); and campus funds for improvements to Gateway Plaza ($3,220,000). The external financing would be repaid by net revenues of the Conference and Guest Center.

Page 1 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\Conf Center V l-6a.doc

UCLA Capital Programs

PROBLEM STATEMENT In December 2010, the campus received a major gift from alumni Meyer and Renee Luskin to help construct and endow a conference center on the UCLA campus, to be named the Meyer and Renee Luskin Conference and Guest Center. The donors are interested in establishing a facility that will allow faculty, researchers and students to exchange ideas and elevate debate on society's greatest challenges with scholars from around the world, as well as civic leaders and the general public. The proposed facility would support UCLA's academic mission to foster the scholarly exchange of ideas, enhance the image of the campus as one of the world's great research universities, and allow UCLA to compete with other top tier institutions for major academic conferences. It would also fill a demand by faculty for additional and more modem conference space on campus.

UCLA's Academic Strategic Plan seeks to establish the campus as a global leader in education and research during the coming decade. The Plan articulates four principles in support of the academic enterprise- academic excellence, civic engagement, diversity of academic inquiry and financial security - that are commensurate with the needs of a leading public research university in the 21 st century. By providing the campus with a venue for hosting conferences and sponsoring events at the local, national and international levels, the proposed center would enrich the intellectual life of the campus consistent with the principles of the Plan. A guest center would also help the campus build a stronger base with its alumni, non-resident students and their parents, and medical center/hospital guests who want to stay on campus when they visit.

The proposed Conference and Guest Center would accommodate approximately 25,000 asf of meeting space and 250 guest rooms in a single campus location. The inclusion of guest rooms would provide conferees with a more productive meeting environment by minimizing travel time between the campus and off-campus hotels, allow more time for informal contact between conference participants throughout the duration of their stay, and provide conferees with more exposure to academic resources and cultural and recreational activities on the UCLA campus. All guests would need to demonstrate an affiliation with the University in order to book a reservation.

The campus currently operates two on-campus guest houses, a residential conference center in Lake Arrowhead, and a robust summer conference program in the campus residence halls.

The two on-campus facilities - the UCLA Patient Guest House and the UCLA Guest House - are operating near capacity in their combined 161 rooms. Meeting space on campus in Covel Commons and the Faculty Center is also in limited supply.

Site Alternatives A variety of alternatives have been considered for hosting guests on campus. A study of the potential for expanding the UCLA Guest House found that the existing site is insufficient to

Page 2 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\Conf Center V l-6a.doc

UCLA Capital Programs

accommodate the number of guest rooms, meeting space and parking necessary for a conference and guest center. Two potential sites in the north campus near the Anderson Graduate School of Management were considered too remote from the center of campus and one of these sites would have required the relocation of the Chancellor's Residence to an offcampus location. Similarly, a site in Lot 36 adjacent to Wilshire Boulevard lacked adjacency to campus facilities and amenities.

In early 2011, the campus proposed a Residential Conference Center and Faculty Club project on the site of the current Faculty Center in the core campus. The site was chosen due to its central location and proximity to a wide range of academic programs. In April 2011 , this proposal was put on hold following concerns expressed by the faculty, many of whom have a strong personal connection to the existing facility.

Three additional locations were subsequently studied: 1) a site on a portion of the existing CHS South Parking Structure at the southern edge of the campus along Le Conte A venue; 2) a site currently occupied by Parking Structure 6 (PS6) at the terminus of Westwood Plaza; and 3) a site currently occupied by the West Alumni Center also at the terminus ofWestwood Plaza. The Le Conte site was considered too distant from the core campus and would restrict potential future expansion of academic and research programs in the health sciences zone.

The West Alumni Center site was considered too crowded with respect to its proximity to Pauley Pavilion, and too costly to acquire due to the necessity of replacing the alumni center and re-routing of major campus utility infrastructure.

Parking Structure 6 Site The Parking Structure 6 site was found to be the most viable location for the proposed conference and guest center. Site and massing studies demonstrated that the location can accommodate a facility with approximately 25,000 asf of conference space, 250 guest rooms, and 125 dedicated parking spaces for resident guests. Located at the terminus ofWestwood Plaza, the site provides easy access to popular campus venues such as Ackerman Student Union and Pauley Pavilion, as well as to Westwood shops and restaurants. It is also easy to locate for first-time visitors, near the main entrance to UCLA. The site is surrounded by the West Alumni Center and Pauley Pavilion to the north, the campus Gateway Plaza with traffic turnabout and Engineering VI to the east, Strathmore Drive to the South, and Spaulding Athletic Field to the west. The proposed site is enthusiastically endorsed by the donor.

The campus has determined that the adjacent parking inventory can absorb the loss of754 spaces currently in Parking Structure 6 and also accommodate parking for non-resident guests in nearby parking structures. There is available capacity in the parking system due to an extensive commuter vanpool program - and a significant increase in the resident student population - that together have decreased the number of average daily trips on campus by more than 11 percent during the past four years alone. Currently, UCLA is experiencing its lowest traffic levels since record-keeping began over twenty years ago.

Page 3 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\ConfCenter V 1-6a.doc

UCLA Capital Programs

Gateway Plaza, located at the terminus of Westwood Plaza, is the most intensively used entryway to UCLA. It consists of landscaped areas, a traffic turnabout, and drop-off and pickup areas that facilitate the arrival of pedestrians, cars, and buses to the part of campus that is the center of student life. In addition to Pauley Pavilion and the West Alumni Center, the plaza is proximate to Ackerman Student Union, the Student Activities Center, and the Wooden Sports and Recreation Center. Redevelopment of the PS6 site provides an opportunity to make improvements to the plaza since a portion of this area would need to be re-graded to construct the proposed facility. Improvements to the plaza would help to resolve long-term functional issues related to the flow of public transit and drop-off/pick-up activities in the area, and to enhance the plaza as a welcoming point to UCLA. Donor Support for Conference and Guest Center Meyer and Renee Luskin have pledged a total gift to the campus of $100 million, including $40 million applied to the capital cost of the conference center and $10 million of endowment to support academic departments in hosting conferences. An additional $50 million will support programs, faculty, and students at the School of Public Affairs. Based on this gift, the School of Public Affairs has been renamed the Meyer and Renee Luskin School of Public Affairs, and the proposed conference center has been named the Meyer and Renee Luskin Conference and Guest Center.

The total gift of $100 million is intended to work together as a comprehensive initiative to enhance the overall academic quality and reputation of the UCLA campus. The gift is considered transformational in that it gives the School of Public Affairs the resources to engage with civic, governmental and business leaders at the same time that it provides a state-of-the-art meeting facility in the midst of the academic community to make those connections possible.

Meyer and Renee Luskin are alumni and longtime supporters with a passion for UCLA as a public resource and agent for social mobility. They have also helped to establish the Luskin Center for Innovation, and provided endowments for undergraduate student scholarships and graduate student fellowships, a children's clinic at Santa Monica-UCLA Medical Center and Orthopaedic Hospital, the alumni association and numerous advisory boards. In addition, Meyer Luskin is a member of the UCLA Foundation's board of directors.

Replacement Catering Kitchen UCLA Catering, an independent auxiliary enterprise under Housing and Hospitality Services, currently occupies 5,300 square feet on the second floor of Bradley International Center in the northwest campus. The catering team prepares, assembles and delivers food, and produces banquets for departments who are hosting meetings, receptions, and formal events in their offices and other venues on campus. In 2011, the catering team produced more than 12,000 catered events.

Page 4 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\Conf Center V l-6a.doc

UCLA Capital Programs

The facility houses three operating components: 1) a production kitchen that prepares both hot and cold food items; 2) a delivery department that makes beverages, assembles and delivers the prepared foods, and sets up for small events; and 3) a banquet production team that delivers and sets up the all of the items necessary for large events.

The existing Bradley Center facility is inadequate in size to support the current volume of business and to allow for some growth. Additional space is needed for the efficient production and storage of food items, assembling and staging of orders, and direct access to loading facilities so that equipment and food items arrive where they are needed at the appropriate times. Planning studies have demonstrated a facility of7,500 asf- providing an additional 2,200 asf- would be needed to alleviate space deficiencies in an existing facility that cannot be readily expanded.

A location within the proposed Conference and Guest Center would place the production resources of UCLA Catering closer to its customer base on campus. This centralized location would reduce transportation and set-up costs, and ensure the timely arrival of temperaturesensitive food to its intended location. The existing production kitchen in Bradley could then be used to supplement the existing bakery and commissary facilities in the adjacent De Neve Undergraduate Housing complex. This reassignment of use would provide Student Dining Services with the additional space it needs to better serve the growing student population in the Northwest campus.

Page 5 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\Conf Center V l-6a.doc

UCLA Capital Programs

PROJECT DESCRIPTION

The proposed project would construct the 294,000 gsf Luskin Conference and Guest Center on a site located adjacent to the main entrance to campus at the terminus of Westwood Plaza.

The project would consist of four components: 1) a conference facility with meeting space and guest rooms; 2) parking for resident guests; 3) a replacement campus catering kitchen; and 4) improvements to the adjacent traffic turnabout and pedestrian areas in Gateway Plaza at the main entrance to campus. The project would demolish Parking Structure 6 to create the site for the Center.

The new 181,250 asf (294,000 gsf) facility would consist of 173,500 asf (242,000) of conference and guest facilities, a 42,000 gsfparking garage, and a 7,500 asf(lO,OOO gsf) operationally independent catering kitchen. The space program is described in greater detail below. Table 1 shows proposed space allocations in the facility.

Conference, Guest Facilities, and Parking The Conference and Guest Center would occupy seven floors above one level of subterranean parking. Reception, dining, lounge and meeting facilities would be accommodated on the first two floors, with guest rooms on five floors above. The parking level would accommodate 125 spaces for resident guests, back-of-the house support, and loading dock. Pedestrian and vehicular access would be from Westwood Plaza. Service access would be from Strathmore Drive.

The facility would accommodate 250 guest rooms in a mix of king, double queen, and suites.

Guest rooms would be provided with high-speed wireless internet access, cable television and telephone service with voice mail.

Meeting and conference space would include a multi-purpose conference hall capable of accommodating banquets of 500 persons; meeting and breakout rooms in various sizes for conferences, small meetings, executive sessions, and interviews; a tiered classroom with fixed seating for 90; and related meeting support, pre-function, and storage space. Meeting space would be designed to include audio visual, internet, telephone, video conferencing and simultaneous translation capability; individual lighting and climate controls; highperformance acoustical ratings; unobstructed interior views; and convenient access to food and beverage service.

Guest services space would include a 160-seat casual dining room with exterior seating for an additional 60 persons; an exhibition cooking area and servery; a lounge and bar area for refreshments and light fare; and a kitchen designed to serve three meals a day in the dining room as well as to support banquets, meetings and room service. There would also be a lobby/reception area and associated office space; a business center with computers, printers,

Page 6 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\Conf Center V l-6a.doc

UCLA Capital Programs

data projector, copy/fax machine and other equipment for use of conferees and guests; and a fitness center with cardio, stretching and weight training equipment.

Service and support space would include administrative offices; offices and shops for maintenance personnel; storage for kitchen, food, and beverage items; dining, lockers and restroom facilities for employees; security, receiving and holding areas; and space for housekeeping, laundry and general storage.

Site Improvements would include a landscaped forecourt and vehicle drop-off area at the main entrance to the Conference and Guest Center off of the traffic turnabout on Westwood Plaza, outdoor terraces for dining and pre-function activities, and landscaped walkways and planter areas with new irrigation systems, site lighting and signage.

Replacement Catering Kitchen A production kitchen would accommodate hot and cold food prep areas; dedicated coolers for dairy, produce and general food prep; a walk-in freezer; an area for gathering prepared food items, assembly of paper goods, and making beverages; dish washing and laundry facilities; storage for china, glassware, linens and equipment; and administrative offices and a staff break room. The catering facility would be provided with direct access to a loading dock and catering delivery vehicles.

Gateway Plaza Improvements Improvements to the traffic turnabout and pedestrian areas in Gateway Plaza would include re-grading and drainage; and installation oflandscaping, paving, planters, irrigation, site lighting, and site furniture.

Scope of Work The scope of work would include site clearance, excavation and shoring; provision of utilities including steam and chilled water, domestic and fire water, gas, sewer, and electrical from campus services; installation of fire alarm and fire protection systems; provision of emergency power; installation of signage; and finishes .

The project would include the installation of fixed kitchen equipment, millwork, security systems, audio visual equipment and specialty lighting; communications connectivity and cable television conduit and cabling; and parking control equipment. The project would also procure and install movable furniture and equipment throughout the public areas, dining area, kitchen, conference facilities and guest rooms.

Schedule and Budget Construction would commence in September 2013, with completion in June 2016. The total project cost of$162,465,000 at CCCI 6132 would be funded by external financing ($112,000,000) and gift funds ($40,000,000) for the conference, guest and parking facilities;

Page 7 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\ConfCenter V l-6a.doc

UCLA Capital Programs

housing reserves for the catering kitchen ($7,225,000); and campus funds for improvements to Gateway Plaza ($3,200,000). The extell}al financing would be repaid by net revenues of the Conference and Guest Center.

Table 1 Proposed Space Allocations Luskin Conference and Guest Center Program Area

ASF

GSF

Conference and Guest Center

Guestrooms Meeting Rooms and Support Dining and Guest Services Service and Support Subtotal

93,750 36,200 25,375 18,425 173,750

242,000

Parking Garage Total

0 173,750

42,000 284,000

Grand total

7,500 181,250

10,000 294,000

Catering Kitchen

Page 8 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\ConfCenter V l-6a.doc

UCLA Capital Programs

SUSTAINABILITY This project will comply with the University of California Policy on Sustainable Practices.

As required by this policy, the project will adopt the principals of energy efficiency and sustainability to the fullest extent possible, consistent with budgetary constraints and regulatory and programmatic requirements, and achieve a minimum USGBC LEEDTM Gold certification for New Construction.

Page 9 LUSKIN CONFERENCE AND GUEST CENTER

Rev: Q:\CFI\PPGS\Luskin Conference and Guest Center\PPG\Conf Center V l-6a.doc

UCLA Capital Programs

PROJECT SCHEDULE UNIVERSITY OF CALIFORNIA, LOS ANGELES PROJECT:

Luskin Conference and Guest Center

ACCOUNT NO:

946375

Date: January 5, 2012

FISCAL YEAR No.

ACTIVITY

Months Preliminary Plans

July

2011-2012

July

2012-2013

July

2013-2014

July

2014-2015

July

2015-2016

July

of J AS 0 N D J F M AM JIJ AS 0 N 0 J F M AM JIJ AS 0 N D J F M AM JIJ AS 0 N D J F M AM JIJ AS 0 N D J F M AM J

10

Working Drawings

7

Bid/Award Contract

4

Construction

34

Furnishings

3

Cumulative Calendar

56

Months

0 :\CFI\CPS\FORMS\ 1201 05_Luskin Sched.xls

I I I I I PAULEY PAVILION

WEST ALUMNI CENTER

I

-----=-_-___

_J

ACKERMAN UNION

I I I I I .J ~---

1

I ENGINEERING VI ~----

'

PS-6 SPAULDING FIELD

ENGINEERING IV STRATHMORE

UCLA Luskin Conference and Guest Center 0 20 1 1~路WorWII

EXISTING SITE PLAN 12.15.11

I I

I I I PAULEY PAVILION

I

I I I I ---.,..,..-::_=-:____ .JI

ACKERMAN UNION

·j jl

__J

LUSKIN

CONFERENCE AND GUEST SPAULDING FIELD

CENTER

ENGINEERING IV STRATHMORE

PS-8

WESTWOOD

UCLA Luskin Conference and Guest Center 02011~•WDmll

PROPOSED SITE PLAN 12.15.11

c 1----

c

~

r -

.(}il"

f-f----

f---f----

f--f---f----

f--f--f----

f---

f--

MEP

f----

f--f---f----

f---

o~o ~"

.(}il"

f----

I~

,. DOD / ~ ) - /

r"f l : I ~'=~

~--=-

_.

_-/' ___..-

TI

LOADING DOCK

MEP

b ~, I' I

I lrJ~i

r ~·

1

To , l h lr

I'"' "''f>' """i

:

====== ~

1

1

({(((( UCLA Luskin Conference and Guest Center 0201 1 ~•Wor.-l

I_

.

LEVEL P1 12.15.11

..........-----------............ /'

/'

/'

/'/'

/'

'-

'-

'-

if===========~~==========~

( I I I I I I I I

0 KITCHEN

0 DINING

I I

I

_I_

I

I I I I

MTG MTG

MTG

MTG

I L

------,

UCLA Luskin Conference and Guest Center 0 201 1 HombwgM + Womll

L

LEVEL 01 12.15.11

MTG

MTG

MTG

UCLA Luskin Conference and Guest Center

MTG

LEVEL 02 12.15.11

L

.

I[I

L[[J_~ _[tJ_L[tJ_L[b-

ri orco -q

l r- -

~

I I

I-

~

I

l

1111111111111111

+- -

L_

.

~n=~n, Ur-J

----~~

I

l2

--f ~~--------~

~ - Jl------+,t] ~

OUTDOOR EVENT DECK

lllllllllll

~~ 11-------jn 6~ I Jl I I .___,

ri hi------ll wl

UCLA Luskin Conference and Guest Center 0 201 1 HombergM .. WonWI

~

llf-----1~

~

II

lllfllJl-

c- [1----+-h +---j

I

f---

B 8~~~~~~

I~

l

LEVEL 03 12.15.11

UCLA Luskin Conference and Guest Center C2011~+Womlll

L

.

LEVEL 04 12.15.11

UCLA Luskin Conference and Guest Center 0201 1~ 路 wom.t

L

..

LEVEL 05 12.15.11

EB UCLA Luskin Conference and Guest Center 02011~â&#x20AC;˘Womtl

L

.

LEVELS 06 + 07 12.15.11

Campus or Field Station _ _ ___:L:..:o:..:s.. .:.A. .:.;n-'-'g. _e:..:l:. :e.::..s_ _ _ _ _ _ _ _ __ Project Title

Project Account

946375 ----------------------

Luskin Conference and Guest Center

-----------~~~-------------------------

Fo r purposes of compliance with the California Environmental Quality Act of 1970 (CEQA), and Amended University of Cal ifornia Procedu res fo r Implementation of CEQA, this project has been reviewed and initially classified as indicated below . Please check (X) as appropriate . Include project description and appropriate local map.

0

!.EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT OF 1970 When it can be seen with certa inty that there is no possibility the action will result in physical change to the environment or the action is specifically exempted by statute, the project is classified as exempt from CEQA.

D !!.CATEGORICALLY EXEMPT This project falls under the indicated Class of Exemption and there is no significant effect on the enviro nment:

D

Ill.

INITIAL STUDY This project is not Exempt from CEQA or Categorically Exempt; an Initial Study is to be prepared to determine if the project may have a significant effect on the environment that has not been substantially and adequately analyzed in a certified program EIR . Checkl ist Narrative

0

0

1:8]

IV.ENVIRONMENTAL IMPACT REPORT (EIR) It is known that the project will have a significant effect on the environment and has not been adequately and substantially analyzed in a certified program EIR .

PROJECT DESCRIPTION The University of S::alifornia, Los Angeles proposes to construct 294,000 gsf Luskin Conference and Guest Center on the core campu s, comprising 242,000 gsf of program space, a 10,000 gsf catering kitchen, and 42,000 gsf of parking. It would be built on the site of the existing Parking Structure 6, located adjacent to the traffic turnabout at the terminus of Westwood Plaza . The Luskin Conference and Guest Center would include state-of-the-art meeting facilities designed to host collaborative conferences with international participants and 250 guest rooms. Meeting facilities would include a large multi-purpose conference hall for 500 persons, meeting and breakout rooms; a tiered classroom with fixed seating for 90; and related meeting support, pre-function, and storage space.

Guest services space would include a 160-seat casual dining room with exterior seating for an additional 60 persons; a kitchen ; an exhib ition cooking area and servery; and a lounge and bar area . The catering kitchen would accommodate hot and cold food prep ; dishwashing and laundry facilities; storage areas; and administrative offices and a staff break room. Improvements to the traffic turnabout and pedestrian areas in Gateway Plaza would include re-grading and drainage; installation of landscaping, paving, planters, irrigation, site lighting, and site furniture .

The scope of work would include site clearance, excavation and shoring; provision of utilities including steam and chilled water, domestic and fire water, gas, sewer, and electrical from campus services; installation of fire alarm and fire protection systems; provision of emergency power; installation of signage; and finishes . The project would include the installation of fixed kitchen equipment, millwork, security systems, audio visual equipment and specialty lighting; communications connectivity and cable television conduit and cabling; and parking control equipment. The project would also procure and install movable furniture and equipment throughout the public areas, dining area, kitchen, conference facilities and guest rooms. Pursuant to the California Environmental Quality Act (CEQA), a Draft Environmental Impact Report is being prepared for the Project.

V. Does this project conform to the approved LRDP? YES 1:8:1 NO D 01/17/12

VI. _ _. . :.T. :. :ra::.:C: . zY.. .:D: . u: .:d: .:m.:. :. : :.a.:. :.n___ Date

Prepared by

~~.i..cz._____, D"~ (路 {j. 路{1.-

VII. OFFICE OF THE PRESIDENT Concur with Classification

Signed

FORM DATE 4 / 91

0

Do not concur with Classification

D Date

(Form EIC-1)

BUSINESS CASE ANALYSIS LUSKIN CONFERENCE AND GUEST CENTER Account 946375 January 2012

Approved for campus:

A.

Steven A. Olsen Vice Chancellor and Chief Financial Officer University of California, Los Angeles

University of California, Los Angeles 2011-2012 Major Capital Improvement Program

Date

Business Case Analysis Luskin Conference and Guest Center

TABLE OF CONTENTS ' EXECUTIVE SUMMARY INTRODUCTION PROJECT DRIVERS SUMMARY OF PROJECT GOALS/DRIVERS

()

PROJECT OBJECTIVES/EVALUATION CRITERIA 6 9

DEVELOPMENT PROCESS EVALUATION OF ALTERNATIVES RECOMMENDATION

10

ATTACHMENTS

11

1, Alternatives Matrix 2. Business Case Analysis — Financial Summary 3. Fiscal Analysis of Recommended Alternative 4. Site Map

2

Business Case Analysis Luskin Conference and Guest Center

EXECUTIVE SUMMARY

State-of-the-art academic conference facilities are needed at UCLA to foster the exchange of ideas, enhance the image of the campus as one of the world's great research universities, and allow UCLA to compete with other top tier institutions for major academic conferences.

Existing campus meeting facilities are in limited supply, and there is demand from faculty for modern conference and guest facilities that can support major academic conferences.

A $50 million gift from Meyer and Renee Luskin to help construct and endow an academic conference center on the campus â&#x20AC;&#x201D; as part of a their total $100 million gift to enhance the overall academic quality and reputation of the UCLA campus â&#x20AC;&#x201D; will allow faculty, researchers, and students to exchange ideas and elevate debate on society's greatest challenges with international scholars, civic leaders and the general public.

Criteria were developed to evaluate the potential for conference and guest facilities on four campus sites. The evaluation criteria included centrality of location, impacts to adjacent uses, site acquisition costs, room affordability, and support from faculty and response from the community. The most viable site was found to be the site of Parking Structure 6 (PS 6) adjacent to the main entrance to the campus. Situated at the terminus of Westwood Plaza, it is easy to locate for first time visitors, and is close to popular campus venues such as Ackerman Union and Pauley Pavilion, and Westwood shops and restaurants. The selected site has strong support from faculty and community, and provides an opportunity to improve the adjacent Gateway Plaza as a welcoming point to UCLA. Studies have confirmed that redevelopment of the PS 6 site would provide the campus community with reasonably priced conference facilities and guest rooms in a central campus location. An efficient building footprint with parking can be developed at this location. While use of the site requires the demolition of PS 6, lost parking capacity can be accommodated in adjacent parking structures. A financial analysis has concluded that the proposed Luskin Conference and Guest Center at this location â&#x20AC;&#x201D; to be operated as a self-funded auxiliary in partnership with other existing campus lodging auxiliaries - would be financially self-sustaining and effectively serve as a venue for expanded local and global collaboration.

3

Business Case Analysis Luskin Conference and Guest Center

INTRODUCTION UCLA is recognized as a world class research and teaching university with an enrollment of over 40,000 students. Served by a talented and committed group of over 30,000 faculty and staff, the campus serves Los Angeles, the region, and the nation through a variety of institutional, academic and research enterprises. A record high of 91,512 students have applied for fall 2012 admission â&#x20AC;&#x201D; more applications received than any other UC campus and the highest number of applicants to any four year university in the nation. Freshman applications from out or state and international students rose by 57.8 percent, from 12,920 in 2011 to 20395 this year.

-

-

-

The UCLA campus is also home to the Ronald Reagan UCLA Medical Center, which is ranked among the most comprehensive and advanced healthcare systems in the world. With a staff exceeding 2,000 physicians, patients utilize UCLA's clinics more than one million times annually and the hospitals more than 80,000 times a year.

In addition, UCLA is a key academic, social, and cultural contributor to the Los Angeles area and an economic catalyst for the State of California, generating in fiscal year 2009-10, $5.6 billion in annual economic activity for California and contributing $3.78 billion toward the state economy through direct spending from the general campus alone.'

UC Office of the President "UC, UCLA generate billions in annual economic activity for California"; September 2011; http://www.newsroorn.ucla.edu/portal/ucla/uc-ucla-generate-billions-in-annual-2 I 5394.aspx 4

Business Case Analysis Luskin Conference and Guest Center

PROJECT DRIVERS

State-of-the-art conference facilities are needed at UCLA to foster the exchange of ideas, enhance the image of the campus as one of the world's great research universities, and allow UCLA to complete with other top tier institutions for major academic conferences. Existing campus meeting facilities are in limited supply, and there is demand from faculty for modern facilities that can support major academic conferences.

In December 2010, the campus received a major gift from alumni Meyer and Renee Luskin to help construct and endow an academic conference center on the UCLA campus, to be named the Meyer and Renee Luskin Conference and Guest Center. The donors are interested in establishing a facility that will allow faculty, researchers and students to exchange ideas and elevate debate on society's greatest challenges from international scholars, civic leaders and the general public. The Luskins have pledged a total gift of $100 million, including $40 million applied to the capital cost of the conference center and $10 million of endowment to support academic departments in hosting conferences. An additional $50 million will support programs, faculty and students in the School of Public Affairs. The total gift of $100 million is intended to work together as a comprehensive initiative to enhance the overall academic quality and reputation of the UCLA campus.

A Conference and Guest Center would help establish the campus as a global leader in education and research as envisioned in UCLA's Academic Strategic Plan. The Plan identifies four principles in support of the academic enterprise — academic excellence, civic engagement, diversity of academic inquiry and financial security — that are commensurate with the needs of a leading public research university in the 21st century. By providing the campus with a venue for hosting conferences and sponsoring events at the local, national and international levels, a Conference and Guest Center would enrich the intellectual life of the campus consistent with the principles of the Plan.

A Conference and Guest Center would also help the campus build a stronger base with its alumni, students and their parents, and medical center/hospital guests who want to stay on campus when they visit. The inclusion of guest rooms would provide conferees with a more productive meeting environment by minimizing travel time between the campus and off-campus hotels, allow more time for informal contact between conference participants throughout the duration of their stay, and provide conferees with more exposure to academic resources and cultural and recreational activities on the UCLA campus. All guests would need to demonstrate an affiliation with the University in order to book a reservation.

The campus currently operates two on-campus guest houses, a residential conference center in Lake Arrowhead, and a robust summer conference program in the campus residence halls. The two on-campus facilities — the UCLA Patient Family Guest House (Tiverton House) and the UCLA Guest House — are operating near capacity in their combined 161 rooms. Meeting space in Covel Commons and the Faculty Center is also in limited supply. A Conference and Guest Center is needed to increase the supply of modern meeting facilities and on-campus guest rooms.

5

Business Case Analysis

Luskin Conference and Guest Center

SUMMARY OF PROJECT GOALS/DRIVERS

The project goals/drivers can be summarized as follows: •

Realize t he donor's vision to foster the exchange of ideas and enhance the overall academic quality and reputation of the UCLA campus.

•

Provide the campus with state-of-the-art meeting and guest facilities for hosting conferences and events at the local, national and international level.

•

Allow UCLA to compete with other top tier institutions for major academic conferences.

I' ROJ ECT 0l3.J E( "I' l YES/EVALUATION CRITERIA Based on these goals, this analysis evaluates alternative solutions in terms of the following objectives/criteria. The alternatives are shown on a comparison matrix included in the Appendix.

Function: Does this alternative provide an operationally efficient plan for its intended use?

Adjacency: Does this alternative provide conference and related guest facilities in a central campus location?

Building Site and Massing: Does this alternative provide an efficient footprint that enhances campus lire and minimizes impacts to the surrounding community?

Site Acquisition: How does this alternative compare with others in terms of costs to acquire the site, and/or the opportunity cost of future site development?

Room Affordability: I low does this alternative compare with others in terms of providing reasonably priced rooms and conference facilities to campus clients?

Community Response: Does this alternative have support from the adjacent community?

Faculty Support: Does this alternative have support from the faculty?

MEASURES OF SUCCESS •

Increased number of academic conferences at UCLA.

•

Increased number of academic scholars, accommodated on campus.

•

Ability to achieve and maintain financial self-sufficiency while offering competitive room rates for an academic market.

6

prospective students and parents that can be

Business Case Analysis Luskin Conference and Guest Center

DEVELOPMENT PROCESS

In 2008, the campus convened an administrative group to work with the Deans of Law, Medicine, Engineering and Management, and relevant campus staff, to assess the feasibility of a conference center on campus. Research conducted by internal staff included a review of International Association of Conference Centers (IACC) market data 2 ; review of relevant occupancy data in the local hotel market; review of demand for on-campus facilities for group con ferencing and day meetings; review of the occupancy levels of existing Patient Family Guest House (Tiverton House) and the UCLA Guest House; and a review of thirteen universityaffiliated conference centers and an on-site visit to five oâ&#x20AC;˘ those facilities. In addition, campus staff reviewed alternative sites and prepared preliminary pro forma data. Primary demand was anticipated to be from the Anderson School of Management, the School of Law, the Henry Samueli School of Engineering and Applied Science, and the David Geffen School of Medicine.

A variety of alternatives were explored to provide the facilities needed to host national and international conferences, consistent with the campus aspiration to become a global leader in education and research. Continuing to host conferences in Covel Commons and student residence hall facilities during the summer months would not allow for the development for a year round program. Surveys determined that the area lacks nearby hotels that can provide the necessary meeting space. The campus also studied the potential for expanding the existing UCLA Guest House and determined that the site was insufficient to accommodate the number of guest rooms, meeting space and parking that are necessary for a Conference and Guest Center.

Potential campus locations for construction of a new conference facility were also studied. A site in Lot 36 adjacent to Wilshire Boulevard would not provide conferees coming to UCLA with a campus experience. Sites that were investigated in detail included two in the north campus near the Anderson School of Management. While the two sites were determined to be physically viable, one of these sites would have required the relocation of the Chancellor's residence to an off-campus location. The campus decided not to pursue either of these sites since they were found to be too costly to acquire and too distant from campus facilities and amenities.

While these studies were underway, the campus retained an experienced hotel and conference center consultant in 2009, Pannell Kerr Forster (PKF), to review and augment UCLA's occupancy and operating projections. The findings in their report were informed by an assessment of the local and regional conference and lodging markets, and assessed demand for academic meetings and events with representatives of the College and professional schools by

The International Association of Conference Centers (IACC) is a not-for-profit, facilities-based organization whose mission is to assist members in providing the most productive meeting facilities around the world. These facilities represent the highest-quality venues available to meeting professionals. Exacting standards and stringent guidelines ensure the highest quality conference facilities and services. Meeting planners rely on and trust the IACC universal and world-renown criteria.

2

7

Business Case Analysis Luskin Conference and Guest Center

utilizing surveys and focus groups. PKF was also asked to update their findings in 2011. Based on additional focus groups with UCLA faculty regarding academic conference needs, UCLA concluded that it could support a full-service conference center with approximately 250 rooms and 25,000 square feet of meeting space for academic travelers, visiting faculty, and other university affiliated business.

8

Business Case Analysis Luskin Conference and Guest Center

EVALUATION OF ALTERNATIVES

Four campus locations were evaluated with respect to the previously discussed project objectives. The locations include 1) the site of the current faculty center; 2) a site on the portion of the existing CHS South Parking Structure along Le Conte Avenue; 3) a site currently occupied by the West Alumni Center at the terminus of Westwood Plaza; and 4) a site currently occupied

by Parking Structure 6 (PS 6) also at the terminus of Westwood Plaza. A no-build alternative would not provide an academic venue for the exchange of ideas in a central campus location, would continue to make academic conferences dependent upon local market availability and prevailing rates, and would cause the campus to forgo the $50 million Luskin gift. Attachment 1 provides a comparison matrix of objectives achieved for each of the alternatives that were evaluated, and Attachment 4 shows their locations on a campus map.

Faculty Center Site In early 2011, the campus proposed a Residential Conference Center and Faculty Club project on the site of the current Faculty Center in the core campus. The site was chosen due to its central location and proximity to a wide range of academic programs. It also would have allowed the campus to incorporate a renewed Faculty Club into a state-of-the-art conference facility, and realize synergies between the meeting room and food service facilities of the two programs. In April 2011, this proposal was put on hold following concerns expressed by the faculty, many of whom have a strong personal connection to the existing facility.

Le Conte Site The Le Conte site is located adjacent to Westwood Village and the medical enterprise in the Center for the Health Sciences along the southern edge of the campus. Planning studies showed that the site could accommodate the mass of the proposed project on a commercial street with good vehicular access. However, redevelopment of the site was found to block access to the north half of the CHS South Parking Structure, would require replacement of existing parking inventory in that area of the campus, and would likely encounter opposition from adjacent neighbors and hotel operators. The option was considered too remote from the core campus and would restrict potential future expansion of academic and research programs in the Health Sciences zone.

West Alumni Site The West Alumni site is located at the terminus of Westwood Plaza, a major entrance to campus, with direct access to public transportation and major campus venues such as Pauley Pavilion and Ackerman Union. While the site would be easy to find and access, planning studies determined that a redeveloped site would be too crowded with respect to its proximity to Pauley Pavilion, and too costly to acquire due to the necessity of replacing the alumni center and re-routing of major campus utility infrastructure.

9

Business Case Analysis Luskin Conference and Guest Center

RECOMM EN DATION

The PS 6 site was found to be the most viable location for the proposed facility. Located at the terminus of Westwood Plaza, the site provides easy access to popular campus venues such as Ackerman Student Union and Pauley Pavilion, as well as to Westwood shops and restaurants. It is also easy to locate for first-time visitors, near the main entrance to UCLA. The site is surrounded by the West Alumni Center and Pauley Pavilion to the north, the campus Gateway Plaza with traffic turnabout and Engineering VI to the east, Strathmore Drive to the south, and Spaulding Athletic Field to the west. Attachment 4 shows the recommended location on campus.

The campus has determined that the adjacent parking inventory can absorb the loss of 754 spaces currently in Parking Structure 6 and also accommodate parking for non-resident conference guests in nearby parking structures with nearly 7,500 spaces. There is available capacity in the parking system due to an extensive commuter vanpool program - and a significant increase in the resident student population - that have decreased the number of average daily trips on campus by more than 11 percent during the past four years alone. Currently, UCLA is experiencing its lowest traffic level since record-keeping began over twenty years ago.

Gateway Plaza, located at the terminus of Westwood Plaza, consists of landscaped areas, a traffic turnabout, and drop-off and pick-up areas that facilitate the arrival of pedestrians, cars, and buses at the most intensively used entryway to UCLA. Redevelopment of the PS 6 site would provide an opportunity to make improvements to the plaza, since a portion of this area would need to be re-graded to construct the proposed facility. Improvements to the plaza would help to resolve long-term functional issues related to the flow of public transit and drop-off/pick-up activities in the area, and to enhance the plaza as a welcoming point to UCLA. Since the P6 site no longer incorporates the Faculty Center, the size of the current proposed project has been reduced. The footprint of the P6 site is also more compact than the Faculty Center site, provid i lig a configuration that is more conducive to creating the adjacencies and the flow necessary for an efficient meeting facility. Additionally, the size of guest rooms has been slightly reduced and the number of rooms provided has decreased from 282 to 250. These decisions result in a building of less mass and square footage than the facility originally proposed on the Faculty Center site.

A financial analysis has shown the PS6 site to be the most cost-effective of the four alternatives studied. Total up-front one-time expenses to redevelop each site range from $155.2 million for the PS 6 site to $187 million for the Alumni Center site. More detailed analysis has shown that the cost to develop the Faculty Center site â&#x20AC;&#x201D;with the reductions in program discussed above would be higher than initial estimates. Attachment 2 provides a Financial Summary of redevelopment costs and operating expenses for each of the alternative sites. Attachment 3 provides additional operating assumptions for the recommended alternative.

10

Business Case Analysis Luskin Conkrence and Guest Center

ATTACHM EN'I'S

BCA Attachment 1 Version 1.7 Luskin Conference and Guest Center Alternatives Matrix Alternative 1 PS-6 Site

Alternative 2 Faculty Center

Pauey l ilion .

Alternative 3 Le Conte

-

...

.

— ._

Alternative 4 Alumni Center

,

_

r

it

CHS South Parking Murphy HaII

Eluation va Criteria

Con erence Center iiilg d ar AVe .i

w.

b

,:i -:

tett

4

1

,

1

I

---

I (*(

I

It

.

Conferenc,e Center

• ,- .

Le Conte Avenue

r

1

Ilir-11-11' –

Program goals & objectives – Venue to exchange ideas and provide modern conference space on campus.

Yes

Yes

Yes

Yes

Functional Operations

Efficient building plan for guest rooms. Existing site grades allows for good service access.

Irregular site is not efficient for guest rooms. Requires underground service access.

Efficient building plan for guest rooms. Limited site area for outdoor spaces. Slope of site may solve service access issues.

Efficient building plan for guest rooms. Active outdoor spaces engage with campus. Requires underground service access.

Adjacency

Centrally located on the campus. Provides an arrival point to terminate Westwood Plaza. Pauley and Ackerman provide additional meeting room capacity nearby. Potential noise from bus turnaround.

Adjacent to Murphy Hall. Close to Law School and Sciences. Close to existing Guest House for overflow.

More distant than Alternative 1 for Medical Enterprise and Anderson Management School. .

Adjacent to Medical Enterprise and Westwood Village, Distant from core campus. Far from Anderson Management School and Law School.

Centrally located on the campus. Provides an arrival point to terminate Westwood Plaza. Close to Engineering, CHS, hospital and Anderson Management School. Proposed use encroaches on student areas such as Bruin Plaza and Ackerman. Uses may not be compatible at times.

Building Site and Massing

Efficient building footprint. Footprint allows lower, non-highrise building. Height is compatible with Engineering complex across Westwood Plaza.

Building footprint occupies a large portion of the site and limits campus landscape buffer. Appearance of a long wall against Hilgard. Larger footprint allows for a lower, non-high-rise building. Slightly taller than Murphy Hall.

Would block access to the north half of CHS parking site.

Limits potential future expansion of the Medical Enterprise.

Taller 11-story high-rise building adds cost premiums. Long wall mass along Le Conte.

Building footprint would be very close to Pauley Pavilion.

Taller 11-story high-rise building adds cost premium. Not compatible with lower scale surrounding buildings. Will cast shadows on open space near Bruin Plaza.

Site Acquisition

Requires demolition of Parking Structure 6. Adjacent Parking structures 8, 6, 4 and 7 are able to accommodate lost capacity. Also requires Gateway Plaza improvements.

Requires replacement of the Faculty Center, replacement of parking inventory, and extensive site access requirements for service vehicles.

Requires partial demolition of CHS South Parking Structure and replacement of existing parking inventory.

Requires demolition and replacement of alumni center, and re-routing of major campus utility infrastructure. Also requires Gateway Plaza improvements.

Ability to provide reasonably priced rooms and conference facilities to campus clients.

Yes

Yes, but less attractive than Alternative 1 given site acquisition costs.

Yes, but less attractive than Alternative 1 given site acquisition costs.

Yes, but less attractive than Alternative 1 given site acquisition costs.

Response from community

Strong support from neighbors compared to Faculty Center site. Continued opposition from hotel operators.

Strong opposition from neighbors. Concerns about building mass, traffic and noise, and loss of Faculty Center as a community amenity. Risk associated with threatened litigation. Opposition from hotel operators.

Likely to encounter opposition from adjacent neighbors and hotel operators. Some Westwood businesses may support location due to adjacency to Village.

Not presented to a broad constituency. Likely to encounter opposition from hotel operators.

Faculty Stakeholders

Strong support for revised concept.

Strong opposition from emeriti faculty and other advocates of the current Faculty Center

Not presented to a broad constituency. Likely to encounter both advocates and detractors.

Not presented to a broad constituency. Likely to encounter both advocates and detractors.

Attachment 2

Business Case Analysis - Financial Summary Faculty Center

P56 Alternative 1 5 (0oo)

Alternative 2 $ (000)

Alumni Center

Le Conte Alternative 3 5 (coo)

Alternative 4 $ toxl

Up-Front One-Time Expenses (2) 125,000

133,300

132,700

132,900

Equipment

10,000

10,000

10,000

10,000

Parking

10,000

16,600

10,900

5,600

3,200

0

5,000

0

0

o

17,300

Conference and Guest Center

Faculty Center Replacement

0

0 8,700

Alumni Center / Ticket Office Replacement

0

0

Gateway Improvements

Utility Relocation Financing Total

0

945

1,500

6,000

7,000

9,600

8,500

10,200

155,200

179,145

163,600

187,000

0

o

o

0

Up-Front One-Time Funding Sources State funds Gifts Gifts-in-hand Pledges to-date (standby financing)

.

Gifts to be raised (interim financing) Campus funds Long-term External Financing Total

5,000

5,000

5,000

5,000

35,000

35,000

35,000

35,000

0

0

0

0

3,200

0

0

3,200

112,000

139,145

123,600

143,800

155,200

179,145

163,600

187,000

Insert any notes on any restrictions the funds may hove Financing Assumptions Anticpated Repayment Source: General, Auxiliary or Medical Center Revenues Anticpated Fund Source: Cite specific fund source If known Financial Feasability Rate: %

Auxiliary

Auxiliary

Auxiliary

Auxiliary

Proj Net Rev

Proj Net Rev

Proj Net Rev

Proj Net Rev 6%

6%

6%

6%

First Year of Principal (FY 2026-27)

11

11

11

11

Final Maturity (FY2055-56)

40

40

4.0

ao

Proforma analysis conducted using debt affordability model?

p" YES

r

NO

Real Property Annual Operating and Support Expenses Operating Expense Estimated Annual Debt Service

27,905

27,905

27,905

27,905

8,137

10,109

8,979

10,447

36,042

38,014

36,884

38,352

36,042

38,014

36,884

38,352

Other costs Total Annual Funding Sources for Operations & Support Conference & Guest Center Revenue

Notes: a. Excludes catering kitchen scope in Alternative 1. This $7.2M project component will be separately funded.

Business Case Analysis LuskM Conference and Guest Center

ATTACHMENT 3 - Fiscal

Analysis of Recommended Alternative

The proposed Luskin Conference and Guest Center will operate as a sel 1- funded auxiliary, in partnership with the other existing campus lodging auxiliaries (the UCLA Lake Arrowhead Conference Center and the UCLA Guest House).

Room Rates Projected room rates are based on a January 2011 weighted average daily rate of $185. A business mix of two-thirds academic group business and one-third UCLA-affiliated individual traveler is assumed. Additionally, the donor has provided an endowment of $10 million for the Chancellor to subsidize rates for academic groups or campus departments that need additional assistance.

Occupancy Assumption Occupancy for the proposed conference center is projected at 60% in year one, 65% in year two, and 70% in year three. Occupancy is assumed to stabilize at 70%, assuming that the facility caters specifically to university-related demand. This occupancy rate assumption is a conservative approach when compared to the existing occupancies of hotels in the West Los Angeles market.

Operating Assumptions A summary of project operating assumptions for the Luskin Conference and Guest Center is presented in the following table. Data is also provided for a comparable group of selected university-affiliated conference centers and a group of ten comparable southern California hotels.

14

Business Case Analysis I,uskin Conference and Guest Center

Comparison of Projected Operating Expenses (excluding Catering Kitchen operations) Benchmark Groups

Expense as a % of Revenue

Luskin Conference and Guest Center

University-Affiliated Conference Centers

Southern California Hotels

Room

24.9%

21.9%

25.9%

Food and Beverage

76.2%

69.5%

82.2%

Conference

44.0%

44.5%

N/A

Undistributed Expenses

20.9%

20.8%

26.4%

(administrative and general, marketing, operations and maintenance, utility costs) Other Assumptions:

18.8% Premium added to salaries and benefits to cover UC retirement contributions.

3.5% Annual escalation.

1.25% Management fee for a third-party operator added to food and beverage expense for the Luskin Center.

Debt Coverage

As indicated earlier, the Luskin Conference and Guest Center will operate as a self-funded auxiliary, and does not include an operationally-independent Catering Kitchen. The following table demonstrates the financial strength of the Hospitality Services unit. The debt coverage calculation is based on the current planning rate of 6% for new debt issued, a 70% steady-state occupancy rate, and 3.5% of annual escalation.

15

Business Case Analysis Luskin Conference and Guest Center

Projected

Debt Coverage Test

FY 2018-19 Year 3 1st Year at 70% Occupancy

FY 2026-27 Year 11 1st Year of Principal/Interest

($000)

($000)

Hospitality Services Revenue (I)

$44,176

$56,795

Less: Operating Expense

33.082

42,81-1

11,094

13,981

7,734

8,838

Net Revenue after Debt Service

3,360

5,143

Debt Service Ratio

1.43X

1.58X

Net Operating Revenue Less: Annual Debt Service

(I)

Includes Luskin Residential Conference Center, UCLA Guest House and Lake Arrowhead Conference Center. .

16

Business Case Analysis Luskin Conference and Guest Center

ATTACHMENT 4 - Site Map

West Center

Faculty Ce ter

17

GB1 Office of the President TO THE MEMBERS OF THE COMMITTEE ON GROUNDS AND BUILDINGS: ACTION ITEM For Meeting of March 28, 2012 AMENDMENT OF THE BUDGET AND APPROVAL OF EXTERNAL FINANCING AND STANDBY FINANCING, LUSKIN CONFERENCE AND GUEST CENTER, LOS ANGELES CAMPUS EXECUTIVE SUMMARY The project would construct the 294,000 gross square foot (GSF) Luskin Conference and Guest Center on the site of Parking Structure 6 (PS 6) adjacent to the main entrance to campus at the terminus of Westwood Plaza. The project would provide a venue for faculty, researchers and students to exchange ideas and fill a demand by faculty for additional and more modern conference space on campus.

The project would consist of four components: 1) a 242,000 GSF conference facility with 25,000 assignable square feet (ASF) of meeting space and 250 guest rooms; 2) a 42,000 GSF parking garage with 125 spaces for resident guests; and 3) a 10,000 GSF operationally independent campus catering kitchen to replace an older facility in the northwest campus; and 4) improvements to the adjacent traffic turnabout and pedestrian areas in Gateway Plaza at the main entrance to campus. PS 6, a 754 space facility, would be demolished to create the site for the center.

The Regents are being asked to: 1) approve the project budget of $162,425,000, to be funded from external financing ($112,000,000), gift funds ($40,000,000), housing reserves ($7,225,000), and campus funds ($3,200,000); 2) approve external financing ($112,000,000); and 3) approve standby financing ($35,000,000).

UCLA alumni Meyer and Renee Luskin have pledged $40 million for the capital cost of the conference center and $10 million towards an endowment to support academic departments in hosting conferences on campus. The external financing for the Conference and Guest Center (including parking) would be repaid from net revenues of the Conference and Guest Center. The operationally independent catering kitchen would be funded by housing reserves. Improvements to Gateway Plaza would be funded by campus funds.

COMMITTEE ON GROUNDS AND BUILDINGS March 28, 2012

-2-

GB1

RECOMMENDATION The President recommends that the Committee on Grounds and Buildings recommend to the Regents that: 1.

The 2011-12 Budget for Capital Improvements and the Capital Improvement Program be amended to include the following project: Los Angeles: Luskin Conference and Guest Center â&#x20AC;&#x201C; preliminary plans, working drawings, construction, and equipment â&#x20AC;&#x201C; $162,425,000, to be funded from external financing ($112,000,000), gift funds ($40,000,000), housing reserves ($7,225,000), and campus funds ($3,200,000).

2.

The scope of the Luskin Conference and Guest Center shall provide approximately 294,000 gross square feet, which is planned to include: a conference facility with meeting space and guest rooms, a parking garage for resident guests, a catering kitchen, and improvements to the adjacent traffic turnabout and pedestrian areas in Gateway Plaza at the main entrance to campus.

3.

The President be authorized to obtain external financing not to exceed $112,000,000 to finance the Luskin Conference and Guest Center project. The President requires that:

4.

5.

A.

Interest only, based on the amount drawn down, shall be paid on the outstanding balance during the construction period.

B.

As long as the debt is outstanding, general revenues from the Los Angeles campus shall be maintained in amounts sufficient to pay the debt service and to meet the related requirements of the authorized financing.

C.

The general credit of the Regents shall not be pledged.

The President be authorized to obtain standby financing not to exceed $35,000,000 for the project, subject to the following conditions: A.

Interest only, based on the amount drawn down, shall be paid on the outstanding balance during the construction period.

B.

As long as the debt is outstanding, general revenues from the Los Angeles campus shall be maintained in amounts sufficient to pay the debt service and to meet the related requirements of the authorized financing.

C.

The general credit of the Regents shall not be pledged.

The President be authorized to execute all documents necessary in connection with the above.

COMMITTEE ON GROUNDS AND BUILDINGS March 28, 2012

-3-

GB1

BACKGROUND State-of-the-art conference facilities are needed at UCLA to foster the exchange of ideas, enhance the image of the campus as one of the world’s great research universities, and allow UCLA to compete with other top tier institutions for major academic conferences. Existing campus meeting facilities are in limited supply, and there is demand from faculty for modern facilities that can support major conferences.

In December 2010, the campus received a major gift from UCLA alumni Meyer and Renee Luskin to help construct and endow a conference center on the UCLA campus, to be named the Meyer and Renee Luskin Conference and Guest Center. The donors are interested in establishing a facility that will allow faculty, researchers and students to exchange ideas and elevate debate on society’s greatest challenges from international scholars, civic leaders and the general public.

Project Drivers A Conference and Guest Center would help establish the campus as a global leader in education and research as envisioned in UCLA’s Academic Strategic Plan. The Plan identifies four principles in support of the academic enterprise – academic excellence, civic engagement, diversity of academic inquiry and financial security – that are commensurate with the needs of a leading public research university in the 21st century. By providing the campus with a venue for hosting conferences and sponsoring events at the local, national and international levels, a Conference and Guest Center would enrich the intellectual life of the campus consistent with the principles of the Plan. A guest center would also help the campus build a stronger base with its alumni, students and their parents, and medical center/hospital guests who want to stay on campus when they visit.

The proposed Conference and Guest Center would accommodate approximately 25,000 ASF of meeting space and 250 guest rooms in a single campus location. The inclusion of guest rooms would provide conferees with a more productive meeting environment by minimizing travel time between the campus and off-campus hotels, allow more time for informal contact amongst conference participants throughout the duration of their stay, and provide conferees with more exposure to academic resources and cultural and recreational activities on the UCLA campus. All guests would need to demonstrate an affiliation with the University in order to book a reservation.

The campus currently operates two on-campus guest houses, a residential conference center in Lake Arrowhead, and a robust summer conference program in the campus residence halls. The two on-campus facilities – the UCLA Patient Guest House and the UCLA Guest House – are operating near capacity in their combined 161 rooms. Meeting space in Covel Commons and the Faculty Center is also in limited supply.

COMMITTEE ON GROUNDS AND BUILDINGS March 28, 2012

-4-

GB1

PROJECT DESCRIPTION The proposed project would construct a 181,250 ASF (294,000 GSF) Conference and Guest Center that includes 173,750 ASF(242,000 GSF) of conference and guest facilities, a 42,000 GSF parking garage, and a 7,500 ASF (10,000 GSF) operationally independent catering kitchen. The project would also include improvements to the adjacent traffic and pedestrian areas in Gateway Plaza at the main entrance to campus. Parking Structure 6 would be demolished to create the site for the new facility.

The scope of work would include site clearance; provision of utilities; installation of fixed kitchen equipment, millwork, security systems, audio visual equipment and specialty lighting; and communications connectivity and cable television conduit and cabling. The project would also procure and install movable furniture and equipment throughout the public areas, dining area, kitchen, conference facilities and guest rooms. The project components are described below.

Conference, Guest Facilities and Parking: The Conference and Guest Center would occupy seven floors above one level of subterranean parking. Reception, dining, lounge and meeting facilities would be accommodated on the first two floors, with guest rooms on five floors above. The parking level would accommodate 125 spaces for resident guests, back-of-the-house support, and a loading dock. Pedestrian and vehicular access would be from Westwood Plaza. Service access would be from Strathmore Drive.

The facility would accommodate 250 guest rooms in a mix of king, double queen and suites.

Meeting facilities (25,000 ASF) would include a large multi-purpose conference hall for 500 persons, smaller meeting and breakout rooms, and a tiered classroom for 90. Guest amenities would include a 160-seat casual dining room with exterior seating for 60, a business center, and a fitness center. The facility would also include space for administrative offices, food preparation and storage, housekeeping, maintenance, administration, and related support. The facility would include a landscaped forecourt at the main entrance to the building, outdoor terraces for dining and pre-function activities, and landscaped walkways and planter areas.

The campus has determined that the parking inventory can absorb the loss of 754 spaces currently in PS 6 and also accommodate parking for non-resident guests in nearby parking structures (see Attachment 6, Figure 1). There is available capacity in the parking system due to the extensive Transportation Demand Management Program and a significant increase in the resident student population - that have decreased the number of average daily trips on campus by more than 11 percent during the past four years and reduced parking demand. Currently, UCLA is experiencing its lowest traffic level since record-keeping began over twenty years ago.

Catering Kitchen: An operationally independent catering kitchen would replace an older 5,300 ASF facility in the Bradley International Center located in the northwest campus. The proposed location would place the production capability of UCLA Catering closer to its customer base on the campus, reduce transportation and set-up costs, and ensure the timely arrival of temperature-sensitive food. The replacement production kitchen would accommodate

COMMITTEE ON GROUNDS AND BUILDINGS March 28, 2012

-5-

GB1

hot and cold prep areas, staging space for assembly of items for delivery, and administration and production support.

Gateway Plaza: Improvements to the traffic turnabout and pedestrian areas, at the most intensively used entry way to UCLA, would involve re-grading and drainage; and installation of landscaping, paving, planters, irrigation, lighting and site furniture.

Redevelopment of the PS 6 site would provide an opportunity to make improvements to the plaza since a portion of this area would need to be re-graded to construct the proposed facility.

Improvements to the plaza would help to resolve long-term functional issues related to the flow of public transit and drop-off/pick-up activities in the area, and to enhance the plaza as a welcoming point to UCLA. Following design approval by the Regentsâ&#x20AC;&#x2122; Committee on Grounds and Buildings, construction would commence in September 2013, with completion anticipated in June 2016.

ATTACHMENTS Attachment 1: Project Budget Attachment 2: Fiscal Analysis and Funding Plan Attachment 3: Financial Summary Attachment 4: Policy Compliance Attachment 5: Project Site Attachment 6: Delivery Model

ATTACHMENT 1 PROJECT BUDGET CCCI 6132 Category

Conference

Parking

Gateway Plaza

Site Clearance Building Exterior Utilities Site Development A/E Fees Campus Admin Surveys, Tests Special Items (a) Finance Cost Contingency Total Group 2 & 3 Equip Total Project

2,843,000 96,291,000 1,152,000 3,199,000 6,114,000 1,683,000 2,733,000 3,052,000 6,480,000 7,970,000 131,517,000 10,000,000 $141,517,000

158,000 7,807,000 64,000 177,000 556,000 139,000 205,000 221,000 520,000 636,000 10,483,000

1,995,000 309,000 79,000 63,000 173,000

158,000 5,482,000 64,000 177,000 392,000 79,000 158,000 155,000

239,000 3,200,000

560,000 7,225,000

10,483,000

3,200,000

7,225,000

Conference 242,000 173,750 NA 72% $398 $543

Parking 42,000 NA 125 NA $186 $250

342,000

Catering

Total 3,159,000 109,922,000 1,280,000 5,548,000 7,371,000 1,980,000 3,159,000 3,601,000 7,000,000 9,405,000 152,425,000 10,000,000 162,425,000

Project Statistics GSF ASF Parking Spaces Ratio: ASF/GSF Building Cost/GSF Project Cost/GSF(b) (a) (b)

Gateway NA NA NA NA NA NA

Catering 10,000 7,500 NA 75% $548 $723

Total 294,000 181,250 NA 62% $374 $518

Special items include pre-design study, environmental impact report, presentations, peer reviews, value engineering, specialty consultants, environmental health and safety, hazardous materials survey and monitoring, and agency fees.

Exclusive of Group 2 and 3 Equipment.

Comparable Projects There are no specifically comparable projects involving the construction of university-related conference center with guest rooms; however, the projects listed below have some similarities. The three university projects are out of state and are not subject to the same seismic and accessibility standards.

Building Project Name GSF Const Start Completion Cost/GSF Cost/GSF University of Texas at Austin 333,000 March 2006 August 2008 $335 $450 Thompson Conference Center x Excludes parking Emory University 88,000 March 2008 December $401 $457 Emory Conference Center 2009 x Excludes parking University of Notre Dame 124,000 June 2012 August 2013 $320 $374 The Morris Inn x 24% is renovated space x Low-rise building

% 2.1% 72.1% 0.8% 3.6% 4.8% 1.3% 2.1% 2.0% 5.0% 6.2% 100%

ATTACHMENT 2 FISCAL ANALYSIS AND FUNDING PLAN Fiscal Analysis The proposed Luskin Conference and Guest Center would operate as a self-funded auxiliary in partnership with two other existing lodging auxiliaries: the UCLA Lake Arrowhead Conference Center and the UCLA Guest House. A business mix of two-thirds academic group business and one-third UCLA-affiliated individual traveler is assumed. Projected room rates are based on a January 2011 weighted average daily rate of $185 escalated at 3.5 percent per annum.

Additionally, the donor has provided an endowment of $10 million for the Chancellor to subsidize rates for academic groups or campus departments that need additional assistance.

Occupancy for the proposed conference center is projected at 60 percent in year one, 65 percent in year two, and is stabilized at 70 percent thereafter, assuming that the facility caters specifically to university-related demand. This occupancy rate assumption is conservative when compared to the existing occupancies of hotels in the West Los Angeles market.

As demonstrated in the following table, the auxiliaries are projected to generate net operating revenue sufficient to cover debt service beginning in Year 1. No other campus fund sources will be utilized. The debt service coverage calculation assumes a ten year period of interest only payments followed by a 30-year amortization term. In 2026-27, the first year of principal amortization, the auxiliaries are projected to generate $14.0 million of net operating revenues and debt coverage of 1.64X. Projected Debt Service Coverage Year 1 Year 2 Occupancy Rate

Year 3

Year 11

2016-17

2017-18

2018-19

2026-27

60%

65%

70%

70% first year of Principal/Interest

Revenue Luskin Center Existing Operations1 TOTAL

24,448 13,446 37,894

26,873 14,116 40,989

29,342 14,834 44,176

38,604 18,190 56,794

Expense Luskin Center Existing Operations TOTAL Net Operating Revenues

19,060 10,712 29,772 8,122

20,105 11,278 31,383 9,606

21,191 11,890 33,081 11,095

27,905 14,908 42,813 13,981

Debt Service Luskin Center 2 Existing Operations TOTAL Net Income After Debt Debt Service Coverage

6,384 1,032 7,416 706 1.10X

6,384 1,030 7,414 2,192 1.30X

6,384 1,014 7,398 3,697 1.50X

7,842 701 8,543 5,438 1.64X

1 2

UCLA Guest House and Lake Arrowhead Conference Center Based on $80 million tax-exempt, 6 percent planning rate, amortized years 11-35 at $32 million taxable, 4.95 percent rate, amortized years 36-40.

Funding Schedule Phase Preliminary Plans Working Drawings Construction Construction Construction Construction Equipment Totals Funding Sources Project Cost: $162,425,000

Proposed 2011-12 5,067,000 5,317,000 19,616,000 112,000,000 3,200,000 7,225,000 10,000,000 $162,425,000

Funding Source Gift Funds Gift Funds Gift Funds External Financing Campus Funds Housing Reserves Gift Funds

External financing: Anticipated repayment sources Conference Center Net Revs Equity: Gifts Housing Reserves Campus Funds

Total 5,067,000 5,317,000 19,616,000 112,000,000 3,200,000 7,225,000 10,000,000 $162,425,000

$112,000,000

$112,000,000 50,425,000 $40,000,000 $ 7,225,000 $ 3,200,000 $112,000,000

Funding Distribution External financing and gift funds would support the construction of the Conference and Guest Center, and parking. Housing reserves would fund the replacement catering kitchen. Campus funds would fund the improvements to Gateway Plaza.

External Financing See Attachment 3 (Financial Feasibility) Standby Financing of Gifts In addition to the external financing described above, this item also requests up to $35,000,000 in standby financing related to the gift contribution, in order to meet Regental policy to have funds on hand at the time of contract award. To the extent gifts are received prior to completion of the project, the amount of stand-by financing will be reduced and outstanding balances will be repaid.

The status of the funds is identified below: Gifts In Hand $ 5,000,000 Gifts Pledged 35,000,000 (standby financing) Gifts to be Raised 0 Total Gifts $ 40,000,000

ATTACHMENT 3

Project Name Project ID Total Estimated Project Cost

FINANCIAL FEASIBILITY Los Angeles Luskin Conference and Guest Center 946375 $162,425,000 Proposed Sources of Funding

External Financing Gift Funds Housing Reserves Campus Funds Total

Amount Financed Anticipated Repayment Source Anticipated Fund Source Financial Feasibility Rates

First Full Year of Principal Final Maturity Term

Estimated Annual Debt Service:

$112,000,000 $40,000,000 $7,225,000 $3,200,000 $162,425,000 Financing Assumptions $112,000,000 General Revenues of the Los Angeles Campus Auxiliary Funds: Net Revenues of Conference & Guest Center $80,000,000 6% tax-exempt - 10 years interest only, 25 years amortization. $32,000,000 4.95% taxable Century Bond â&#x20AC;&#x201C; 35 years interest only, 5 years amortization.

Year 11 (debt model assumes FY 2027) Year 40 (debt model assumes FY 2056) 40 years final maturity - 25 years (tax-exempt) principal amortization from years 11 â&#x20AC;&#x201C; 35 and 5 years (taxable Century Bond) principal amortization from years 36-40. $6,384,000 in year 1 (interest only) $7,842,000 in year 11* (first year of principal on $80,000,000 tax-exempt financing) $7,381,000 in year 36* (first year of principal on $32,000,000 taxable Century Bond financing)

*Financial model assumes two sources of financing: $80,000,000 of tax-exempt financing at a 6 percent planning rate with interest only payments in years 1-10 followed by 25 years amortized debt in years 11-35. $32,000,000 of taxable Century Bond financing at 4.95 percent with interest only payments for 35 years followed by 5 years of amortized debt in years 36-40.

Measure

Debt Service to Operations Debt Service Coverage Expendable Resources to Debt Debt Service Coverage

Debt Service Coverage

Campus Financing Benchmarks 10 Year Projections First Year Approval Max/Min Values Principal Threshold (FY 2027) 4.0% 2.6% 6.0% (max: FY2017) 2.93x 4.64x 1.75x (min: FY 2017) n/a n/a 1.0x Auxiliary Financing Benchmarks 2.57x 3.23x 1.25x (min: FY 2017) Lodging Auxiliaries 1.10x 1.64x 1.10x (min: FY 2017)

Financing approval requires the campus to meet the debt service to operations benchmark and one of the two other benchmarks for approval.

Fund sources for external financing shall adhere to University policy on repayment for capital projects.

ATTACHMENT 4 POLICY COMPLIANCE Capital Financial Plan. The 2011-21 Capital Financial Plan for the Los Angeles campus includes the Residential Conference Center and Residential Conference Center Parking projects at a total project budget of $160,000,000.

Environmental Analysis. Pursuant to the California Environmental Quality Act (CEQA) and the University Procedures for implementation of CEQA, the potential project-specific environmental effects of the proposed project would be analyzed in an Environmental Impact Report tiered from the 2002 Long Range Development Plan EIR, as amended in March 2009.

Sustainable Practices. This project will comply with the University of California Policy on Sustainable Practices. As required by this policy, the project will adopt the principles of energy efficiency and sustainability to the fullest extent possible, consistent with budgetary constraints and regulatory and programmatic requirements, and achieve a minimum USGBC LEEDTM Gold â&#x20AC;&#x201C; New Construction certified rating. Specific information regarding energy efficiency and sustainability will be provided when the project is presented for design approval.

ATTACHMENT 5 PROJECT SITE Site Alternatives A variety of alternatives have been considered for hosting guests on campus. Studies have shown that the site of the existing UCLA Guest House is inadequate to accommodate the needed meeting space, guest rooms and parking. Locations in the north and south campus were found to have high site acquisition costs and were too distant from campus facilities and amenities.

In early 2011, the campus proposed a Residential Conference Center and Faculty Club project on the site of the current Faculty Center in the core campus. The site was chosen due to its central location and proximity to a wide range of academic programs. In April 2011, this proposal was put on hold following concerns expressed by the faculty, many of whom have a strong personal connection to the existing facility.

Three additional locations were subsequently studied: 1) a site on a portion of the existing CHS South Parking Structure along Le Conte Avenue; 2) a site currently occupied by PS 6 at the terminus of Westwood Plaza; and 3) a site currently occupied by the West Alumni Center also at the terminus of Westwood Plaza. The Le Conte site was considered too remote from the core campus and would restrict potential future expansion of academic and research programs in the health sciences zone. The West Alumni site was considered too crowded with respect to its proximity to Pauley Pavilion, and too costly due to the necessity of replacing the alumni center and re-routing of major campus utility infrastructure.

Proposed Site The PS 6 site was found to be the most viable location for the proposed facility. Located at the terminus of Westwood Plaza, the site provides easy access to popular campus venues such as Ackerman Student Union and Pauley Pavilion, as well as to Westwood shops and restaurants. It is also easy to locate for first-time visitors, near the main entrance to UCLA. The site is surrounded by the West Alumni Center and Pauley Pavilion to the north, the campus Gateway Plaza with traffic turnabout and Engineering VI to the east, Strathmore Drive to the south, and Spaulding Athletic Field to the west. Figures 1, 2, and 3 show the location of the site.

Gateway Plaza, located at the terminus of Westwood Plaza, consists of landscaped areas, a traffic turnabout, and drop-off and pick-up areas that facilitate the arrival of pedestrians, cars, and buses at the most intensively used entryway to UCLA.

Figure 1. Project Location on UCLA Campus

Figure 2. Existing Site

Figure 3. Proposed Site

ATTACHMENT 6 DELIVERY MODEL The campus evaluates alternative delivery models for new capital projects, including their potential as developer-delivered Public Private Partnerships (PPPs). PPPs have the potential to offer savings in both time and money over conventional delivery, but the unique characteristics of each project and prevailing market conditions must be evaluated.

The campus has determined that the proposed Conference and Guest Center is not a suitable candidate for a PPP due to: 1) low financing available to the University; and 2) the need to coordinate campus construction with the operations of major campus facilities, the traffic turnabout, and pedestrian uses in the heavily trafficked main entrance to campus.

2012-243 - 001 - Request

From: Save Westwood Village Save Westwood Village [mailto:savewestwoodvillage@hotmail.com] Sent: Tuesday, February 21, 2012 11:26 AM To: Anne Shaw; regentsoffice@ucop.edu Cc: laura.lake@gmail.com Subject: Request for all documents submitted to UCOP and the Regents for the UCLA Hotel (tentatively schedule March 27, 2012 for Budget Approval) Dear Ms. Shaw: •

Save Westwood Village requests electronic notice and electronic copies of all documents submitted for Budget Approval by the Regents at their March 2012 meeting for the UCLA Hotel (UCLA Luskin Residential Conference Center) including but not limited to:

1. analysis per UCOP BUS-55 "Determination of Financial Feasibility of Projects Requiring Loan Financing" 2. analysis required under UCOP BUS-72 for Auxiliary Business Enterprises 3. business plan for hotel, and 4. all other submissions including tax liabilities under Unrelated Business Income Tax for "University-Related Use" (that is, what percentage of guest nights will be due to guests who are not directly related to the teaching and research mission of the University of California?)

5. UC Nonfinancial Questionnaires for this project and the three other hotels operated by UCLA: Tiverton House, Faculty Guest House, and Lake Arrowhead Conference Center.

•

Please explain why the "Agenda Item Process for Regents Meetings Deadlines and Schedules for 2012" omits reference to required public posting of notice and Footnote 4 is missing. What is the present required notice? Has it changed since last year? This year there is no reference to posting public notice.

•

There is some confusion regarding which Regents Committee will review the UCLA Hotel regarding budget approval: Buildings and Grounds or Finance? Please let me know which committee will take action on the proposal in March, as well as the date of the committee hearing on this item.

Thank you in advance for your assistance.

Laura Lake, Ph.D. Co-President SAVE WESTWOOD VILLAGE

A Business-Community Alliance Dedicated to Quality Revitalization