FAU Millions Short for Stadium

[FIUFanatic]

A story by the Palm Beach Postmentions that FAU needs at least $10 million on hand (other numbers I've read range all the way up to around $12-$12.5 million) before floating bonds to build their purported $62 million, 30,000 seat stadium by 2010. If not, they could have to move the opening to 2011.

It is obvious, after reading their financing plan in this and other articles, that they are using basically FIU's financing structure, with the obvious difference of the amount to be financed by issuing bonds. FIU issued $35 million, while FAU would issue at least around $50 million. The repayment comes (on both sides) with revenue streams from ticket sales, Club Seats, suites, naming rights, etc. FAU General Counsel, Mr. Kian hinted, however, they may have someone interested in naming rights, which would make things happen immediately, I would think..

Palm Beach Story

FAU millions short for stadium
Click-2-Listen
By KIMBERLY MILLER

Palm Beach Post Staff Writer

Wednesday, May 28, 2008

BOCA RATON — Florida Atlantic University is several million dollars short in donations for its proposed football stadium, and will need a windfall before negotiating a finance deal this fall.

FAU General Counsel David Kian, who is overseeing the development of the $62 million stadium, told trustees at a meeting today that the school needs $10 million "cash in hand" before looking to issue bonds for the project.



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So far, the largest donation has been $1.25 million, and no one has ponied up the $20 million for naming rights to the 30,000-seat stadium.

When trustees approved the stadium proposal in the fall, they said it needed to pay for itself with donations and proceeds from ticket sales, merchandise and naming rights.

"The fund-raising efforts continue to be a significant challenge," Kian said. "The economy is very difficult right now and folks are being very careful."

Material prepared for today's meeting also says that "three six-digit" commitments have been made for the stadium, but Kian said he couldn't give exact amounts until the contracts for that money are finalized.

To meet the deadline of opening the stadium by fall 2010, a financing deal must be completed within the next few months.

"If we do not have the money in the bank by this fall, we will have to look at moving to 2011," said Kian, who added that the $10 million is a moving target but that the school does need "8-digits" in donations.

To increase interest in buying naming rights, school officials said they are considering creative deals. Those could include allowing an entity, such as a bank, to buy naming rights, and then also provide all of the ATMs on campus.

Kian hinted that he may have a taker on a deal such as that, and hoped to make a naming announcement this summer.

In addition to six FAU football games each year, the stadium would host eight high school football games and one special event. Total attendance for all of the events is expected to be about 148,000 in the opening year, increasing to 165,600 by 2020.

The stadium is part of a bigger FAU plan called Innovation Village that includes an apartment-style residence hall and retail space.

FAU Trustee Chairman Nancy Blosser said she's hopeful a fall deadline for donations can be met.

"I don't have a crystal ball," she said. "Hopefully we'll be able to get the word out in the community about what we need."

[kevinkagy]

Makes me happy we got our stadium expansions before the recession. It's so much harder now to get money from companies when everyone's on a tight budget. Then again, it helps having a stadium on-campus from day one. Do you guys honestly think they'll have their stadium built and ready by 2010? I honestly doubt it. Thoughts?

[The OC Panther]

I doubt it too and no one is giving them $20 million for naming right to their stadium. Kian's smoking crack if he thinks any banks going to make that up charging $1 per nonmember ATM withdrawal to make up all that scratch (ie $$$).

The NFL's Jacksonville Jaguars get $620,000 a year just for perspective.

If its only $30,000 how is it almost double ours in cost?

[The OC Panther]

30000 peeps capacity that is.

[FIUPantherFan]

Just like EVERY OTHER state university, fau is in for some cuts and a lot of noise can be made about starting a football stadium in this environment. I think for us, getting to phase II in the next couple of years might get stalled, but at least we got phase I off the ground. GO F I U!

South Florida Sun-Sentinel.com
FAU trimming programs, 134 jobs to cut $9.6 million
By Scott Travis

South Florida Sun-Sentinel

11:28 PM EDT, May 28, 2008

Boca Raton

Florida Atlantic University will cut 134 jobs, shut academic and research centers and close a few degree programs on some campuses as part of a plan to deal with $9.6 million in budget cuts.

But so far the university is avoiding wide-scale layoffs or program cuts that would affect large numbers of students. About 100 of the jobs are now vacant, and most people in the remaining 34 jobs will be employed at least through December and may get other jobs as they become open, said Ken Jessell, FAU's vice president for finance.

"Everything is suffering a little bit, but collectively we have minimized the negative factors," Jessell said.

FAU administrators presented the plan to the board of trustees at a meeting Wednesday. The trustees are to vote on it June 25. FAU's operating budget is projected to be about $249 million for 2008-09.

There are no plans to eliminate degree programs, although some will leave satellite campuses. Computer science no longer will be offered in Davie, and students no longer will be able to earn a business degree in Jupiter.

That will force students to travel to Boca Raton or Port St. Lucie to take those classes. Officials had no figures on how many students were affected, although they said the number is small.

Students also may find classes aren't offered at convenient times. Some classes now offered on both Monday and Wednesday and on Tuesday and Thursday will be limited to one of those two-day combinations.

"It feels good that students are taking less of the burden than the administration," said Student Government President Abe Cohen, of Boca Raton.

Public universities statewide are making cuts to deal with declining state revenues, fueled by a poor economy. FAU seems to be faring better than some.

Florida International University in Miami announced last week that it would shut down 17 degree programs, lay off 176 employees and make other cuts to deal with anticipated shortfalls over the next three years that could reach $35.7 million.

The University of Florida, facing $47 million in cuts, announced earlier this month that it plans to eliminate 430 jobs, lay off 20 faculty and 118 staff and freeze 292 vacant positions. The university also will reduce undergraduate enrollment by 4,000 during the next four years, beginning with a decrease of 1,000 transfer students in the fall.

FAU, which serves about 26,000 students, has no immediate plans to reduce its enrollment, officials said.

Other universities made multiple-year cuts, but FAU's plan focuses only on the 2008-09 year. That means more drastic cuts could come later if the budget situation doesn't improve, officials said. The academic-affairs division is setting aside $2.4 million in reserves in case the Legislature makes more cuts.

One major cut will be to the Small Business Development Center on Dec. 31. Its 17 employees work on contracts that likely will not be renewed, but they will be eligible for other vacant positions at the university, Jessell said. The center, which helps small-business owners and entrepreneurs, costs the university about $425,000 a year, Provost John Pritchett said.

He said the university wanted to put more of its resources into programs that produce degrees.

Several other research centers also have been recommended for closing, including the Center for Electronic Communications and the Center for Urban Research and Empowerment.

The Center for Holocaust and Human Rights Education likely will stay open. FAU plans to cut its $100,000 contribution to the center, which provides Holocaust curriculum for local schools, a lending library and a speakers' bureau. But officials hope private donations will offset that.