U. trustees review plans for facilities projects

The Board of Trustees met yesterday for the first time since University President Amy Gutmann took office to review financial planning and upcoming University affairs.

Meeting highlights included the release of the recent endowment figures and other financial indicators, as well as the introduction of plans for a new primarily residential building.

The endowment -- the primary source of revenue for ongoing University projects and financial aid -- rose 16.8 percent in fiscal year 2004, which ended June 30. Numbers, however, were down 1.2 percent in the last two months, consistent with most external benchmarks.

During the meeting, the Facilities and Campus Planning Committee announced plans for a primarily residential building on 34th and Chestnut streets. The eight-story building will replace a surface parking lot and will create "284 market-rate multi-family rental apartments," according to Vice President for Facilities and Real Estate Services Omar Blaik.

Originally, the project was intended to take the form of a high rise. "We think the scale of this development is much more appropriate to the campus," Blaik said.

The project on 34th Street will also have 9,150 square feet of retail space, as well as a parking garage accompanying the apartments.

The 413,000-square-foot area was purchased in 1999. Blaik said that construction is set to begin next summer and will be finalized by spring 2007.

The project will be put up to the Budget and Finance Committee for approval at the December meeting.

Facilities Services originally discussed a second development project in the area that would address student housing needs, but that idea has not yet been finalized.

During yesterday's meeting, the Budget Committee reviewed a number of financial indicators for Penn and the University Health System for the fiscal year that ended in June 2004 and the two subsequent months.

"Both the academic component and the Health System component reported favorable financial performance," Executive Vice President Craig Carnaroli said.

For the past fiscal year, nearly 7 percent of Penn's operating budget was drawn from the endowment. That compared favorably with peer institutions -- Harvard, Princeton and Yale universities, whose rates were all over 30 percent. Duke and Columbia universities were in the same general range as Penn.

The committee approved five resolutions during its meeting. The Penn School of Law will undergo a $5 million renovation of classrooms and "infrastructure-related improvements."

Two million dollars will be used for the creation of the Penn Informations Common -- a new undergraduate resource center to be built on the first floor of Van Pelt Library.

Two of the resolutions will clear additional dormitory space in Harnwell College House by moving Academic Services and the Office of Fraternity and Sorority Affairs, which are currently located in the college house, to other locations. Academic Services will be moved to 40th Street between Locust and Walnut streets. OFSA will relocate to the 3900 block of Walnut Street.

Additionally, Carnaroli reviewed a proposal to add PNC Bank and a third financial provider to the University's graduate loan program.

The program would "reduce the University's contingent liability for the Penn graduate loan program. This proposal will reduce the liability by $77 million," Carnaroli said.

In the Neighborhood Initiatives Committee, Vice President for Public Safety Maureen Rush discussed plans to address the safety and cleanliness concerns that have been brought up regarding the corner of 40th and Market streets.

"What we need to do is to make 40th and Market feel like 40th and Walnut," she said.

The Student Life and External Affairs committees both praised the voter registration campaigns that took place on campus this fall.

In the External Affairs Committee, Vice President for University Communications Lori Doyle discussed the prominent role that Penn has played in the news this past year.

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