Troubled finances delay U. dorm project

Completion of the massive decade-long, $380 million dorm and dining renovation project has been delayed because of financial shortfalls, and a new dorm planned for Hamilton Village appears to be indefinitely postponed, according to sources familiar with the project. The University's most ambitious renovation project in 30 years was to renovate nearly every dorm on campus while adding 1,000 beds to the college house system. The new dorm was originally scheduled to open next fall to house students while each of the high rises is renovated. But although Penn commissioned several architects to draw up possible plans for the building a year ago, it is now unclear how soon, if ever, construction will begin. A faculty member said that the delays were for financial reasons. "There is a big problem. It's called m-o-n-e-y, and it's complicated by the problems with the Health System," said the professor, who spoke on the condition of anonymity. And another person familiar with the project said that College House Director David Brownlee had said in a meeting that the new dorm was being delayed for financial reasons. While administrators would not confirm that the Health System alone was to blame for the delays -- Provost Robert Barchi said it was like "comparing apples to oranges" -- they are now saying that it has caused them to rethink certain plans. Executive Vice President John Fry said that the situation with the University of Pennsylvania Health System is causing Penn to evaluate all its major capital projects. "I think that the status of the Health System is causing us to look at all of our financial expenditures," he said. UPHS lost approximately $300 million in the 1998 and 1999 fiscal years, before beginning a recovery in the most recent fiscal year. Until now, administrators had been adamant in declaring that the deficits were not affecting the University's academic component. In the fall of 1998, when the dormitory renewal project was first announced, construction of the brand-new dorm was scheduled to begin in late 1999 and reach completion in 2001. The new complex would help accommodate the approximately 800 students who would be displaced when each of the high rises closed down for one year for renovations. Now, officials say one high rise will be shut down each year between 2002 and 2005. They say they will reach a decision this winter on what to do about the displacement. To offset some of these money problems, the University is planning a massive fundraising effort, advised by a committee led by alumnus Alan Hassenfeld, the owner of Hasbro Toys, Brownlee said. According to Brownlee, Penn is "trying to raise tens of millions of dollars." When they announced the project, administrators said they expected to pay for it through a variety of existing income streams, such as the Penn-owned University City Sheraton Hotel. University President Judith Rodin said that the dorm and dining renovations begun before the onset of the deficit weren't affected by the Health System's monetary troubles. However, Rodin did say that the situation of the Health System has become a factor in developing the University's financial five-year plans. She also said that because of the deficit, the University cannot push projects as much they had hoped."We are not pursuing as aggressively some of the plans," she explained. But Brownlee said that it is still a priority to create a huge amount of new bed space. "We certainly do have an interest in 1,000 new beds," he said, though he would not say for sure that the University would go ahead with their initial plan for a new low-rise college house on an empty field at 40th Street and Locust Walk. The project began with the renovation of Hill College House's dining hall in the summer of 1999. The Quadrangle also began the renovation process in 1999, and the major work on the first section was completed last summer. The Quad project -- which will be done mainly in the summers between now and 2002 -- aims to overhaul the mechanical, plumbing and electrical systems of the complex and make the living space more attractive to upperclassmen by adding suites and other amenities. It will also replace the four current houses with three college houses. Creating a large central space in each house for offices, lounges, mail rooms and libraries was a main priority in designing this renovation. The middle house will be renovated next summer, and the summer of 2002 will bring the completion of the project with work on the house in the Upper Quad and major landscaping work.