Penn State University Five Year Capital Plan

Penn State Campus Age 65% Buildings Under 10 Little work.“Honeymoon” period. Low Risk Buildings 10 to 25 Lower cost space renewal updates and initial signs of program pressures Medium Risk Buildings 25 to 50 Life cycles are coming due in envelope and mechanical systems. Functional obsolescence prevalent. Higher Risk Buildings over 50 Life cycles of major building components are past due. Failures are possible. Core modernization cycles are missed. Highest risk % of Space by Age Category 3

Planning Assumptions / Strategic Drivers Focus on: Renewal / Replacement vs. New 4

Planning Assumptions / Strategic Drivers Balance University Park w/ Commonwealth Campuses (3:1 target) 5

Planning Assumptions / Strategic Drivers Balance Project Types: Whole Building Renewal / Replacement Yields a like-new facility; most expensive renewal System Renewal Infrastructure IT Systems New Construction 6

Planning Assumptions / Strategic Drivers For whole building renewal / replacement and new, focus on: Underinvested core and/or strong programs Campuses with growth potential System renewals, focus on: Worst problems Need to keep all facilities working, security and safety Some demolition 7

Funding Sources Capital Plan Reserves Borrowing Unit Reserves / Other * State Capital Major Maintenance (Non-recurring maintenance and renewal > $5K) * Other could include gifts, student facility fees, unit funds, etc. 8

Five Year Plan Summary 9 Funding Source E&G Self Supported Units Total Capital Plan Reserves $ 940M - $ 940M Borrowing:$ 750M Tuition-Supported $ 225M - Self-Supported Units - $ 525M Unit Reserves/Other * $ 79M $ 587M $ 666M State Capital $ 200M - $ 200M Major Maintenance $ 185M - $ 185M Total$ 1.629B$ 1.112B$ 2.741B * Other could include Gifts, Student Facilities Fees, Unit Funds, etc.

Allocation Distribution by Unit (in millions) 10 Education and General Auxiliary and Business Services Intercollegiate Athletics Hershey Energy Savings Program Note: Does not include $150M Unallocated Debt

E&G: Allocations by Project Type (in millions) 11

Self-Supporting Units: Allocations by Project Type (in millions) 12

Life of a Penn State Project We Are Here 13

Funding Source E&G Self-Supported Total Capital Plan Reserves$ 940M$ -$ 940M Borrowing $ 225M *$ 525M$ 750M Unit Reserves/Other $ 79M$ 587M **$ 666M State Capital $ 200M$ -$ 200M Major Maintenance$ 185M$ -$ 185M Total$1.629B$1.112B$ 2.741B * Borrowing – subject to BOT approval/tuition concerns ** $358M related to Hershey Five Year Plan Funding Sources 14

E&G Projects University Park Projects New Buildings/Additions: Chemical & Bio Engineering$ UP Data Center69.0 Classroom/Class Lab Building51.3 Agricultural Engineering Building44.0 Recital Hall & Renovate Music IM Building – Phase II31.3 Sociology Replacement & Design of Anthropology20.0 Pattee Library Knowledge Commons, Ph Mushroom Research Facility Relocation Building Renewals/Renovations: Steidle Building Renewal52.0 Hosler Building Renewal46.0 Burrowes Building (Option 1)37.8 Whitmore Lab 1st and 2nd fl. Renovations32.9 Henning Building

E&G Projects University Park Projects Building Renewals/Renovations, cont’d.: Mueller Lab Undergrad Bio Lab Renovations$ 18.0 Ag Digester8.0 Rec Bldgs. (Rec Hall, White, McCoy) Access Modifications7.5 McCoy Natatorium (HVAC, switchgear, elevator)7.0 Various Renewals/Renovations < $5.0M Information Technology/Research Equipment: LionPATH66.4 Business Information Systems Replacements60.0 Other (Student Systems Replacements related)31.6 Research Equipment9.8 Enrollment Management and Scheduling System

E&G Projects University Park Projects Infrastructure: Water Treatment Plant & Distribution System *$ 42.5 WWTP Renewal38.0 Chilled Water Expansion, addt’l 3000T21.0 Security Network & System Upgrades6.3 Building Access Modifications6.0 University & Services Road Repairs5.3 Various Infrastructure Projects < $5.0M Real Estate: Raytheon Building Purchase & Fit-out * Includes prior funding 17

E&G Projects University Park Projects System Upgrades: Health & Safety (Lab Re-circulations)$ 27.9 Mechanical – Upgrade Mechanical Systems19.8 Roofing20.0 Mechanical – Piping Replacements18.0 Fire/Life Safety7.7 Various System Upgrade Projects < $5.0M Major Maintenance: Various Major Maintenance Projects

E&G Projects Commonwealth Campus Projects New Buildings/Additions: Student Union & Dining – Brandywine (Dining under $6M) $ 10.0 Student Enrichment Center – Harrisburg27.0 ** Maintenance Building – Lehigh Valley Building Renewals/Renovations: Adler, Renewal & Addition – Altoona *19.2 Luerrson Building Renewal – Berks *13.0 Kostos Building Renewal – Hazleton14.0 Ruhl Center & Multi-Purpose Bldg. Renovation & Addition – York10.5 M. Baker Building Renewal – Beaver8.0 Woodland Building Renewal – Abington * Includes prior funding ** Scope under review 19

E&G Projects Commonwealth Campus Projects Building Renewals/Renovations, cont’d.: Beaver Community Center Renewal and Addition – Berks$ 6.0 Library Renewal and Knowledge Commons – Hazleton5.5 Student Union, Dining Hall Renovation – Schuylkill5.0 Swing Space revolving funds Infrastructure: Security/Access Controls – Multiple Locations9.0 Utilities and Roads – Multiple Locations7.5 Parking – Multiple Locations5.5 Various Infrastructure Projects < $5.0M Real Estate: Building #7 – Erie

E&G Projects Commonwealth Campus Projects System Upgrades: HVAC Systems – Multiple Locations$ 12.2 Roof Replacements – Multiple Locations9.0 Interior Upgrades – Multiple Locations6.2 Various System Upgrade Projects < $5.0M Major Maintenance: Various Major Maintenance Projects All Locations Wireless Infrastructure$ 8.5 Real Estate Purchases8.0 DGS Program Support6.0 Funding Program Contingencies

E&G Funding Program Funding Source TotalAllocatedBalance Capital Plan Reserves$ 940M$ 940M- Borrowing225M225M- Unit Reserves/Other79M79M- State Capital ($40M per year)200M200M- Major Maintenance185M185M- Total $ 1.629B $ 1.629B- 22

Self-Supporting Units: Auxiliary & Business Services University Park Projects H&FS:SSBReservesOther Pollock/East Housing Renovs. (2bldgs/yr)$ 100.0$ Deferred Maintenance ($15-17M/yr) Chilled Water Distribution Findlay Dining Commons Renovs New Housing, 150 Beds Foods Building, Warehouse Addition Res. Hall Wireless Installations-6.5- South Halls Renovations, FF&E-6.0- Res. Hall Technology & Security Upgrades-3.6- Waring Dining Commons A/C-3.5- $ 145.0$

Self-Supporting Units: Auxiliary & Business Services Commonwealth Campus Projects H&FS:SSBReservesOther Housing Apts., 400 Beds – Abington$ Housing Suite, 225 Beds – Brandywine Dining & Student Union – Brandywine (Student Union under $10M) Infrastructure for Housing – Brandywine2.5-- Housing, Trippe 250 Beds – Behrend Bruno’s Renovation – Behrend-2.0- Village Bathroom Renovations – Berks-2.0- Res. Hall Technology & Security Upgrades $ 243.5$

Self-Supporting Units: Auxiliary & Business Services Bryce Jordan Center:SSBReservesOther Various Renovations/Upgrades-$ 5.4- Hospitality – NLI & Penn Stater: Deferred Maintenance & Renovations Parking: Deferred Maintenance & Stadium West Expansion-7.5- Airport: Various Equipment Purchases & Small Construction $ 24.3$

Self-Supporting Units: Hershey SSBReservesOther Capital Re-investments – HMC ($60.0M per year)--$ Capital Re-investments – COM ($7.0M per year) ASB Addition Data Center Leased Sites Fit-out for Clinics ($1.5M per year)-7.5- $ 46.5$ 58.0$

Self-Supporting Units: Intercollegiate Athletics SSBReservesOther Annual Major Maintenance ($2M to $3M per year)-$ Replace Video Boards/Sound System – Beaver Stadium $ 9.5$ 12.0$

Self-Supporting Units Funding Program Funding Source Auxiliary Unit:SSBReservesOther A&BS$ 243M$ 200M$ 16M ­ H&FS243M176M- ­ Bryce Jordan Center-5M- ­ Hospitality-11M- ­ Parking-7M- ­ Airport--16M Intercollegiate Athletics9M12M- Hershey46M58M300M SSB Program Contingency15M-- Total$ 315M$ 270M$ 316M 28

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