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Stadium Recommendationto the Board of Governors

of the CSU System

December 5, 2014

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Process February - August 2012: Stadium Advisory Committee

Amy Parsons, VP for University Operations

Tim Romani, CEO, ICON

Martin Carcasson, Director, Center for Public Deliberation

October 2012: Initial Recommendation and BOG Action

March - September, 2014: Community Design Development Advisory Committee

Bob McCluskey, Chair

October 2014: Second Recommendation and BOG Action

November 2014 Kevin Unger, Community Leadership Committee

Drs. Katherine Leigh and Susan LaRue, Campus Leadership Committee

Department of Athletics and CSU Facilities

Overview of Public Process

Tom Milligan, VP for External Relations

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Assumptions Football will continue to be played as a collegiate sport and will remain popular with a w

segment of the population.

In Colorado and at Colorado State, as elsewhere, there is abundant interest in attendingsporting events, obviously with a competitive product deriving more interest and attenda

Colorado State University is an exceptional comprehensive, student-centered researchuniversity, yet the brand of the university is not as broadly understood as we might wish

Intercollegiate athletics, despite the obvious flaws and challenges we face in our day, adto the life of the campus, the life of the community and whether we might think appropexcessive or not draw a great deal of attention to a university.

Intercollegiate athletics, despite the large sums of money and costs associated with the

worthy of some rational investment. At Colorado State, our net investment is extraordinaand I believe the return on reasonable additional investments will be very high.

Improvements in intercollegiate athletics do not have to come at the expense of academeither fiscally or in focus. Our budgets, investments and priorities have been and will remunambiguously focused on our academic mission.

There is no substitute for expecting excellence in everything we do as a university.

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Risk Analysis General Fund

No Impact

Option #1 10 years - $30M - $60M bond cost - General Fund

Options #2 and #4

Option #3 50% philanthropy and 50% revenue bonds

Most Recent Analysis

CSL Study is a key element

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CSL Survey methodology

95% confidence interval and 1.2% margin of error

National comparisons Historical CSU data

Weighting of various inputs based on their professional methodology (grounded in experience)

Track record

Low, base, high, and hybrid cases

Attendance Projected at 27,000 per game

9% increase over 10-year mean (survey = 22%)

Average attendance in winning seasons since 1994: 29,900

Product New mix

Doubling of club and loge boxes; 15% increase in suite seats; 27% increase in capacity

Projected at 75% sold

Pricing Within existing range with premium and priority seating donations

ECA methodology review

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Annual Total

General Fund Budget: $

Annual Total Debt GeneraDebt Service Payments:

Annual Total CSU Budget: $952M Annual Total Debt Service

Payments: $34.6M

Annual New Faculty Hires:79

Annual Faculty Start-ups: $16M

Annual Incremental E

Budget Change:$31.

Annual Incremental AcaQuality Investments: $6

All figures are for FY2013-14

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Conclusion

I believe we can attain a CSU-owned and -operated facility with

minimal changes to the full scope of the original design that mee

the fiscal standard weve established: the lowest risk of any neg

impact on the general fund.

In fact, I believe it is likely that there will be no impact on the gen

fund, and I believe that the minimal level of risk that remains is m

than adequately buffered by non-general fund sources.

Such a facility is, in my opinion, in the best long-term interests o

Colorado State University.

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Recommendation

Approve the construction of a new multi-use stadium located on

Colorado State Universitys main campus.

Authorize me to return to the Board with both a final program plan

a plan of finance in accord with State and Board policies.

Authorize me to select a scope of plan and financing option that m

the standard of minimizing the risk of any negative impact to the

general fund.