CONFIDENTIAL VASCUPP Conference Christopher D. Lloyd September 25, 2013 Is the PPEA Process Right for You?

Why A New Procurement Tool? Creates a consistent, repeatable, predictable process for alternative project delivery Ensures transparency and accountability to the public Increases competition and value delivery Signals legislative support for the process Checks and balances to reduce project delivery problems Spur innovation and creative project approaches

Procurement Process Have you adopted PPEA guidelines? What other state procurement tools are open to me (impacted by Tier status)? What other non-state procurement tools are available (real estate foundations, etc.)? What in-house capabilities do I have for review or do I need outside experts? 3

Property Issues Who will own the project? What approvals are required for a lease? Is the land encumbered through deed or bond covenant? What level of gubernatorial approval is required? How does the project fit into the campus master plan? 4

Finance Issues What is my debt capacity and is it affected by the project? What is the repayment plan and how is the plan treated? How does the project encumber other campus projects or facilities? Are there sufficient financial benefits from using non- traditional funding sources? Is developer looking for a financial commitment, a support agreement, or just the right to be in your “aura?” Will Treasury Board approval be required for the financing structure? 5

Political and Policy Issues Is legislative pre-authorization necessary? What oversight role will the Board of Visitors play? Clearing the Public Private Partnership Advisory Commission What happens if there is a default? How will student fees be impacted? 6

Dealing with the Host Community If the project is off campus, what role will the host community play in zoning and oversight? Will the host community have any financial role in the project? If the project has joint uses, which entity will manage the procurement process? Who is in charge after the project is complete? 7

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