 | Board of Visitors minutes March 29, 1985 |  |
Exhibit B
UNIVERSITY OF VIRGINIA
Preliminary
Feasibility Study
for
Addition to Sponsors Hall
Prepared by The
University of Virginia Budget Office
December 1, 1981
UNIVERSITY OF VIRGINIA
Addition to Sponsors Hall
Project Description
The University is planning construction of an addition to Sponsors Hall. This addition will provide additional on-grounds housing facilities for participants in Darden's Executive Programs. The structure is expected to be completed in 1984-85 at a cost of $2,305,500 including utilities. We have requested approval of the total project by the General Assembly, and we would like the project to be included in a revenue bond issue for permanent financing.
One of the objectives of the Darden School is to conduct intensive short courses, conferences, and executive training programs for individuals in business. It is most desirable to have eating and living facilities integral with the academic classrooms for these programs.
In September .1979, our present facility consisting of Sponsors Hall and Program Center housing (36 units) was opened. When the Darden School planned for Executive Programs housing, it was felt that 36 units would be adequate for the size of class we would attract. The attractiveness of the offerings has been so great that it has been impossible to house all the participants in Sponsors Hall facilities. It is anticipated that the program will not expand to more than 60 participants per program; therefore to avoid the undesirable condition of having a portion of the program participants in other areas, an additional 24 units are needed.
The dining area will also be enlarged in order to accommodate
Sponsors Hall and Executive Programs Housing are totally self-supporting. Payment of the debt on the additional 24 housing units will be from revenues received from overnight room rent. Rental rates for the addition are expected to be $35 per night. The charge per person per night is at the discretion of the Executive Program and can be varied to meet whatever costs are incurred. In calculating the debt payment schedule, an interest rate of 12% was used and payments were extended over 20 years resulting in coverage of approximately 110%.
UNIVERSITY OF VIRGINIA
Addition to Sponsors Hall
Estimated Annual Net Revenue Available for
Debt Service for $2,305,500 Bond Issue
| Estimated Revenues | |
| Rent: 24 units X $35 per night X 240 days occupancy | $201,600 |
| Total Estimated Revenues | $201,600 |
| Estimated Expenditures | |
| Personal Services & Fringe Benefits | $ 23,150 |
| Contractual Services (Utilities, etc.) | 29,800 |
| Maintenance | 48,100 |
| Total Estimated Expenditures | $101,050 |
| Subtotal Net Revenues | 100,550 |
| Subsidy from Darden School Sponsors (Supported by a contract with the independent Darden School Sponsors Foundation) | 239,450 |
| Total Estimated Net Revenues | $340,000 |
UNIVERSITY OF VIRGINIA
DEBT SERVICE SCHEDULE
ADDITION TO SPONSORS HALL
INTEREST RATE 12 %
| YEAR | REMAINING PRINCIPAL | PRINCIPAL PAYMENT | INTEREST PAYMENT | TOTAL DEBT SERV PAYT | REVENUE | COVERAGE |
| 2,305,500.00 | ||||||
| 1984 | 2,275,500.00 | 30,000.00 | 276,660.00 | 306,660.00 | 340,000.00 | 1.11 |
| 1985 | 2,240,500.00 | 35,000.00 | 273,060.00 | 308,060.00 | 340,000.00 | 1.10 |
| 1986 | 2,200,500.00 | 40,000.00 | 268,860.00 | 308,860.00 | 340,000.00 | 1.10 |
| 1987 | 2,155,500.00 | 45,000.00 | 264,060.00 | 309,060.00 | 340,000.00 | 1.10 |
| 1988 | 2,105,500.00 | 50,000.00 | 258,660.00 | 308,660.00 | 340,000.00 | 1.10 |
| 1989 | 2,050,500.00 | 55,000.00 | 252,660.00 | 307,660.00 | 340,000.00 | 1.11 |
| 1990 | 1,985,500.00 | 65,000.00 | 246,060.00 | 311,060.00 | 340,000.00 | 1.09 |
| 1991 | 1,915,500.00 | 70,000.00 | 238,260.00 | 308,260.00 | 340,000.00 | 1.10 |
| 1992 | 1,835,500.00 | 80,000.00 | 229,860.00 | 309,860.00 | 340,000.00 | 1.10 |
| 1993 | 1,745,500.00 | 90,000.00 | 220,260.00 | 310,260.00 | 340,000.00 | 1.10 |
| 1994 | 1,645,500.00 | 100,000.00 | 209,460.00 | 309,460.00 | 340,000.00 | 1.10 |
| 1995 | 1,535,500.00 | 110,000.00 | 197,460.00 | 307,460.00 | 340,000.00 | 1.11 |
| 1996 | 1,410,500.00 | 125,000.00 | 184,260.00 | 309,260.00 | 340,000.00 | 1.10 |
| 1997 | 1,270,500.00 | 140,000.00 | 169,260.00 | 309,260.00 | 340,000.00 | 1.10 |
| 1998 | 1,115,500.00 | 155,000.00 | 152,460.00 | 307,460.00 | 340,000.00 | 1.11 |
| 1999 | 940,500.00 | 175,000.00 | 133,860.00 | 308,860.00 | 340,000.00 | 1.10 |
| 2000 | 745,500.00 | 195,000.00 | 112,860.00 | 307,860.00 | 340,000.00 | 1.10 |
| 2001 | 525,500.00 | 220,000.00 | 89,460.00 | 309,460.00 | 340,000.00 | 1.10 |
| 2002 | 280,500.00 | 245,000.00 | 63,060.00 | 308,060.00 | 340,000.00 | 1.10 |
| 2003 | 0.00 | 280,500.00 | 33,660.00 | 314,160.00 | 340,000.00 | 1.08 |
| TOTAL | 2,305,500.00 | 3,874,200.00 | 6,179,700.00 |
| Board of Visitors minutes March 29, 1985 | |