Financial Master Plan
To gain a sense of perspective let me review the capital renovation plan for this campus.
The current budget projections for the next five years include debt and direct expenditures to sustain approximately $430 million of capital expenditures to deal with the most critical repair and renovation, to construct the Integrated Sciences Building that replaces obsolete student instructional laboratories, to construct the Visual Arts building that will replace buildings slated for closure or renovation and replace space destroyed by a recent fire, and to renovate space to support the Nursing program. The current budget also includes debt service on the essential but delayed steam plant project, mentioned earlier.
This substantial institutional commitment of campus operating funds to support capital repair, renovation, and replacement reaches a steady state of $52 million per year by FY 2008 only addresses about half of the current critical capital needs of the campus.
One way to appreciate the extent of the buildings and facilities crisis on the Amherst campus is to review the physical plant age structure. We can classify the campus buildings into four chronological categories: Historic and Obsolete, Obsolete, Building Boom, and Recent but Deteriorated.
Historic and Obsolete buildings are those built between 1860 and 1930. About 7% of the campus building stock is in this category. We must demolish some of these structures (at a cost of $1.7 M), replace some others ($44.0 M), and renovate some to make them useable ($86.3 M). This total of $132 M for Historic and Obsolete buildings does not resolve all the issues related to these buildings, but does return this category to functional, safe use or remove those that do not justify repairs.
Obsolete buildings were built in the 1940s and 1950s and represent 18% of the campus building stock. Of these, we need to demolish some at a cost of $3.4 M, replace some at $30.0 M, and renovate others at $23.3 M. These 1940-1950s buildings require $56.7 M to remove, make useable, or replace.
The 1960s and 1970s saw a major construction boom on the Amherst campus, and 68% of the campus’ structures are from this period. Many are now reaching the age that requires renovation and the replacement of mechanical systems. It will take $91.8 M to renovate those in critical need and $9.5 M to fix the mechanical systems that have outlived their useful lifespan and have failed or will fail during the period of this budget. The boom era buildings will take $101.3 M to put back into useful service by the end of the period of this budget plan.
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