ARIZONA BOARD OF REGENTS - Arizona State University

ABOR MISSIONThe Arizona Board of Regents is committed to ensuring access for qualified residents of Arizona toundergraduate and graduate institutions; promoting the discovery, application, and dissemination of newknowledge; extending the benefits of university activities to Arizona’s citizens outside the university; andmaximizing the benefits derived from the state’s investment in education.ARIZONA BOARD OF REGENTSCAPITAL AND PROJECT FINANCE COMMITTEE MEETINGVideo ConferencefromABOR Central OfficeThe University of Arizona, Admin Bldg - Regents RoomNorthern Arizona University, BAC 206Thursday, September 1, 2011, 1:30 p.m. – 3:30 p.m.AGENDA1:30 p.m. CALL TO ORDER, GREETINGS, AND ANNOUNCEMENTS FROM THECOMMITTEE CHAIR1:35 p.m. APPROVAL OF MINUTES OF JULY 14, 2011, CAPITAL AND PROJECTFINANCE COMMITTEE MEETING AND EXECUTIVE SESSION1:40 p.m. CAPITAL IMPROVEMENT PLANS1. FY 2013-2015 Capital Improvement Plans (ASU, NAU, UA)Arizona State University, Northern Arizona University, and the University ofArizona request approval of their FY 2013-2015 Capital Improvement Plans(CIP). Upon approval of the CIP, Board policy allows universities to expendthe lesser of $250,000 or 2% of project costs in preparation for the next stageof project approval. In total, the first-year plans include nine projects with anestimated cost of $251.5 million, and building renewal formula requirementstotaling $97.6 million. Each university also plans to pursue various third-partypartnerships.A. Arizona State UniversityThe first year of the three-year plan includes five projects totaling $67.5million, and continued development of Colleges@ASU partnerships. TheFY 2013 building renewal formula requirement is $38.9 million.B. Northern Arizona UniversityThe first year of the three-year plan includes one third-party project with theNAU Foundation for an administrative office building. The FY 2013 buildingrenewal formula requirement is $9.6 million.Page 1 of 4

Capital & Project Finance Committee Meeting Agenda September 1, 2011C. University of ArizonaThe first year of the three-year plan includes four projects totaling $184million. The FY 2013 building renewal formula requirement is $49.1 million.2:15 p.m. CAPITAL PROJECTS2. Ardrey Improvements Combined Project Implementation Approval andProject Approval (NAU)Northern Arizona University requests combined Project ImplementationApproval and Project Approval for the $7.5 million Ardrey Improvementsproject, which includes improvements related to fire and life safety issues,auditorium accessibility and building egress, stairs, elevators, roofing andauditorium seating. The project will be funded using general university funds.There is no debt financing associated with this project.3. New Business School Facility Project Approval (ASU)Arizona State University requests Project Approval for the New BusinessSchool Facility. The 129,000 square foot, $57.05 million project would befinanced with $3 million in funds and $54.05 million in system revenue bonds tobe repaid over a 30-year period from tuition, other local funds from businessgraduate student program fees, and $14 million in gifts.2:30 p.m. FINANCING TRANSACTIONS4. Authorization for Issuance of System Revenue Bonds and RefundingBonds for: a) West Campus and Polytechnic Campus Dining Facilities; b)West Campus and Polytechnic Campus Student Services Facilities; c)New Business School Facility; d) Infrastructure Renewal; e) Third-PartyStudent Housing Acquisition; and f) 2002 System Revenue BondRefunding (ASU)Arizona State University requests authorization to issue system revenue bondsto finance $125.3 million of capital projects, $10 million to refund and acquireexisting third-party student housing, $30.5 million to refund a prior bondissuance, and associated issuance and transaction costs.5. Authorization for Issuance of SPEED Revenue Bonds for MultipleInfrastructure, Academic and Research Lab Renovation Projects (ASU)Arizona State University requests authorization to issue SPEED revenue bondsto finance $32 million of multiple infrastructure, academic and research labrenovation projects, and associated issuance and transaction costs.Page 2 of 4

Capital & Project Finance Committee Meeting Agenda September 1, 20116. Acknowledgement and Approval of Issuance by Arizona State UniversityEnergy Management Services, LLC, of Refunding Revenue Bonds (ASU)Arizona State University requests acknowledgement and approval by ArizonaState University Energy Management Services, LLC, to issue revenue bonds torefund up to $18 million of its energy conservation revenue bonds andassociated issuance and transaction costs.7. Authorization for Issuance of System Revenue Bonds to Finance the SanFrancisco Parking Structure Project (NAU)Northern Arizona University requests authorization to issue system revenuebonds to finance the $25.5 million San Francisco Parking Structure project, andassociated issuance and transaction costs. The bonds would be repaid over a30-year period with auxiliary funds.3:00 p.m. LEASE AND PROPERTY TRANSACTIONS8. Authorization for Ground Lease and Lease-Purchase Agreements withNorthern Arizona Real Estate Holdings, LLC, for Office Building (NAU)Northern Arizona University requests authorization to enter into 20-year groundlease and 20-year lease-purchase agreements with Northern Arizona RealEstate Holdings (NAREH), LLC, a wholly owned subsidiary of the NorthernArizona University Foundation. NAREH would finance the construction of a30,000 to 45,000 square foot building on the university property and NAUwould lease-purchase the facility to relocate and house 11,045 square feet ofoff-campus operations of the admissions and marketing offices and otherneeds as necessary.9. Acquisition of Beaver Street Residential Property (NAU)Northern Arizona University will provide the Committee an update on its plan toacquire a residential property within the campus boundaries for an appraisedvalue below the threshold requiring formal approval.10. Authorization to Enter into an Intergovernmental (Lease) Agreement withLake Havasu Unified School District #1 for Colleges@ASU Facilities(ASU)Arizona State University requests authorization to enter into a lease agreementwith Lake Havasu Unified School District #1 for facilities to supportColleges@ASU. Rent obligations for the initial lease term of five years will bewaived. Rent charges for sequential five-year renewals will be based on ASUenrollment and the school district’s need for additional facilities.3:15 p.m. EXECUTIVE SESSIONPage 3 of 4

Capital & Project Finance Committee Meeting Agenda September 1, 20113:25 p.m. LEASE AND PROPERTY TRANSACTIONS (continued)11. Authorization to Lease Property on the Southeast Corner of 8 th Street and101 Freeway Frontage Road to the Chicago Cubs Baseball Club, LLC, asPart of Facility Use Agreement Relating to the New City of Mesa/ChicagoCubs Baseball Stadium (ASU)Arizona State University requests authorization to enter into a 30-year facilityuse agreement for the new City of Mesa/Chicago Cubs Baseball Stadium. Aspart of the agreement, ASU would provide a 30-year ground lease at $1 peryear for use of property located on the southeast corner of 8 th Street and 101Freeway Frontage Road for event and operations parking. Rent for the facilityuse would commence after ASU reaches a revenue threshold of $1.1 millionannually, with a 2.5% annual escalator.3:30 p.m. ADJOURNPLEASE NOTE: This Agenda may be amended at any time prior to 24 hours before the Committee meeting.Estimated starting times for the Agenda items are indicated; however, discussion may commence, oraction may be taken, before or after the suggested times. Any item on the Agenda may be considered atany time out of order at the discretion of the Committee Chair. During the meeting, the Committee mayconvene in Executive Session to receive legal advice regarding any item on the Agenda.Page 4 of 4