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How Stanford proposed paying for its New York City campus | Elizabeth Titus

Elizabeth Titus

How Stanford proposed paying for its New York City campus
PostedonMarch11,2012|Leaveacomment|

What I saw in my glimpse of Stanfords New York proposal and why its not at the library yet

"AsiswellknowninSiliconValley,notallgreatideasworkout,butthatdoes notmeanitisamistaketopursuethem,"Stanfordsays.(PhillipC/Flickr)
StanfordsplantobuildaNewYorkCitycampusisnowlongdead,buttheexerciseisstilla conversationstarterinsomecornersofcampus.InatwopartseriesforTheStanfordDailythis quarter,CarolineChenshowedhighleveluniversityofficialswillingtodiscusswhat happenedandsuggestingtheprocesswouldinfluenceStanfordinthefuture. TheseriesmademeallthemoreeagertoseetheproposalStanfordsubmittedtoNewYorkCity.We knew,broadly,whattheuniversityhadenvisionedforitseastcoastexpansion.Buttheproposal itself,theuniversityhadsaid,containedfarmoredetailsaboutacademic,financial,designand

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How Stanford proposed paying for its New York City campus | Elizabeth Titus

legalaspectsoftheprojectandcostabout$3milliontoproduce.StanfordPresidentJohn Hennessywrotepartsofithimself,universityspokeswomanLisaLapintoldme. TheproposalwouldbecomeavailableatGreenLibraryonthenorthernCaliforniacampussubject toconfirmationfromNYCEDCthatwecandoso,Stanfordsaidafterdroppingitsbid,referringto NewYorkCityEconomicDevelopmentCorporation.Thatwastheagencythatspearheadedthe projecttoattractauniversity(oruniversities)tothecitytobuildappliedsciencesfacilities. ThewaitfortheproposaltobecomeavailableatthelibraryhaslastedlongerthanIexpectedit would.Illhavemoreonwhyinaminute. First,though:Inthecourseofmyaskingaroundaboutthis,beginninginJanuary,Stanford officialsletmeseetheproposal.Itfillstwothreeringbindersandcontainsprobablydaysworthof materialforthehigheredaficionadonotallofwhichIhaveread.Ididspendalotoftimeinthe sectiononfinancialsand,throughouttheproposal,readafewthingsIhadnotseenelsewhere.(If youhaveseenanyofthefollowingdetailselsewhere,pleasecontactmesoIcanupdatethispost.) Accordingtotheproposal,datedOct.28,2011,thatStanfordofficialsallowedmetosee: StanfordprojectedfundingthefullbuildoutonRooseveltIsland,withacompletiondateof 2038,withthe$100millioncityaward,$1.23billioningifts,$1.17billioningeneral obligationbondsand$15millioninuniversityequity,allsubjecttochange. StanfordhasnotrequestedspecificgiftcommitmentsfortheNYCcampustodate,butthe universityplanstosecureseverallargegiftcommitmentsquicklyifitisselected. GoldmanSachs,J.P.MorganandMorganStanleyhaveallunderwrittenrecentStanforddebt issuances,andeachstandsreadytoassistStanfordinraisingadditionaldebtfortheNew YorkCitycampus. TheannualpayoutofanendowmentfortheNewYorkCitycampus,startedwith$100million fromreserves,wasproposedtobeabout$5.5millionstartinginFY2013.Themodelassumes anaverageannualinvestmentreturnof10percent. SeveralbigbanksalsoexpressedinterestinworkingwithStanfordinanothercapacity. RepresentativesfromJPMorganChase,BankofAmerica,GoldmanSachsandMorgan Stanleysaidinastatement:Weseetheopportunityformutuallybeneficialresearchand teachingprogramsthatcanservetheinterestsofthebankingsectorandwearepreparedto explorewaysinwhichthebanksmightworktogethertofundsuchprograms.Without endorsingoneuniversityoveranotherwhilethecitysselectionprocessisunfolding,wesee greatmeritintheprogramsthatStanfordoutlinesintheaccompanyingdocumentandwould hopetosupporttheseprograms,oroneslikethem,asanappliedsciencescentertakesshape inNewYorkCity. OtherstatementsshedlightonhowthePaloAltocampushaschangedinrecentyears,andwhich developmentstheuniversityarguedwererelevanttotheNewYorkCityventure.Duringthepast12 years,StanfordUniversityhascompletedontimeandoftenunderbudget105majorconstruction

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How Stanford proposed paying for its New York City campus | Elizabeth Titus

projectsworthnearly$4billion,theproposalsaid,forexample.Itisalsonearcompletionofa fundraisingcampaignthatisexpectedtoraise$6billion. Stanfordannouncedafinal$6.2billionfigureinFebruary. TheproposalclaimedthatthereiswidespreadandenthusiasticsupportattheCaliforniacampus forStanfordNYC.Supportdidexisthere,butnotuniversally.Cityofficialsandatleastacouple studentsandfacultyhadtheirdoubts. Andasforthestudentstudioapartmentsthatwillneverbe:1,210units,350squarefeetonaverage, $1,181permonthonaverage. Backtothewaitforthewholeproposaltobecomeavailable:Whathastakensolongandwhenwill Stanfordputtheproposalinthelibraryforpeopletoseethemselves? Theshortstoryisthatwedontknowyet,butthatpeoplemayhaveluckindividuallyaskingStanford toletthemreadtheproposal. Thelongstory:BackinJanuary,whenIstartedaskingabouttheproposal,theStanfordofficeof generalcounseltoldmethroughLapin: TheNYCEDCRFP[requestforproposals]statesthattheproposalssubmittedare confidentialandcannotbereleasedwithoutthepermissionofNYCEDC.Giventhat StanfordhaswithdrawnandanawardwasmadetoCornell,StanfordaskedNYCEDC toallowustomaketheproposalpubliclyavailable.NYCEDCrepliedandstatedthey willnotallowustomaketheproposalpublicuntilallawardshavebeengivenandthat therearesomeawardsstilltobemadepursuanttotheRFP.Wedonotknowwhat thoseawardsareorwhenthosedecisionswillbemade. Indeed,NewYorksaysthatproductivediscussionsareongoingwithotherrespondentsCarnegie Mellon,ColumbiaandaNewYorkUniversityledconsortiumandthepossibilityofadditional scienceandengineeringpartnershipsintheCityisstillopen. IaskedNYCEDCwhetheritdisputedanythingthecounselsofficesaid,pluswhenitexpectedto makefinalaward(s)tootherschoolsandallowStanfordtoreleaseitsproposal.Consideringthisis anongoingcompetitiveprocesswehaveaskedfordiscretionfromallrespondents,whichisno differentfromanyRFPweissue,saidacityofficial,whodeclinedtobenamed,inanemail. Asofacoupleweeksago,whenIlasttalkedtoLapinaboutthematter,notmuchhadchanged.The cityisstillaskingthatwenotreleaseit,believeitornot,Lapinsaidinanemail.AfterDebra [Zumwalt,universitygeneralcounsel]clearedyoutoviewit,thecitycamebackandsaidwecant releaseit.

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How Stanford proposed paying for its New York City campus | Elizabeth Titus

But,Lapincontinued,wearegoingtoallowpeopletoreaditandIvelettheGeneralCounsel knowyoudid. Meanwhile,StanfordMagazinereportedinitsMarchAprilissuethatStanfordplanstomakeits 900pageproposalpublicwhenNewYorkauthorizesitsreleasesometimethisspring. Wheneverithappens,itmayberewardingtothosewhocareaboutthefutureofStanfordorof universitiesbroadlyandcandotheirownclosereadingsofthething.TheimpactonStanfordof theNewYorkexercisewillbeprettyprofound,SchoolofEngineeringDeanJimPlummerpredicted toTheDaily.Thefundamentalquestionthatdroveallofthisis,whatisaresearchuniversityinthe 21stcenturygoingtolooklike?Theproposaloffersaslice,atleast,ofhowStanfordanswersthat question. ElizabethTitusisareporterandStanfordundergraduate.Contactherhere.

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