Trustees approve $12 mil. for Sheraton deal

The University Board of Trustees' Executive Committee approved $12 million for the purchase of the University City Sheraton Hotel at a meeting Friday. The committee also approved borrowing $15 million from CoreStates Bank to finance the purchase. According to University Treasurer Scott Lederman, Penn plans to spend $1.5 million to renovate the property, primarily the parking lot structure. The Trustees' Budget and Finance Committee also met Friday to discuss the University's financial status. The total debt of the University stands at $935 million for fiscal year 1996. The bulk of that debt, $653 million, is shouldered by the Health System. The University endowment's market value increased by 22 percent. The endowment now totals $2.047 billion. "This is over the market value last year at this time," Vice President for Finance Steve Golding said. But the amount of gifts earmarked for the endowment decreased by 8 percent, equaling only $42 million. The University's capital budget is $308 million, including $115 million in actual spending over the past year. The School of Arts and Sciences continues to operate in the red, ending the year with a $1.9 million deficit. But the school did resolve $2 million of its original $4 million deficit. The Annenberg Center also had an operating deficit of $275,000, due to a sales income shortfall. And the Athletic Department ended the fiscal year with a deficit of $225,000 because of a decrease in gifts, sales and services revenue. According to the financial report, all other schools and centers broke even for the year. But the graduate and professional schools did have a $4.2 million shortfall in its expected tuition revenue in FY 1996. Golding attributed it to the 4.2 percent decline in overall graduate enrollment. As a result of the decreased enrollment, the University saved $1.6 million in graduate financial aid, Golding said.

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