StFX: The Imperative to Build
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StFX: The Imperative to Build. Ramsay Duff, VP Finance & Operations CAUBO Montreal June 2006. Canadian Universities are risk averse to rapid physical renewal of their infrastructure This approach can create a negative re-enforcement cycle Significantly impairing the ability to compete. - PowerPoint PPT Presentation
Transcript of StFX: The Imperative to Build
StFX: The Imperative to BuildStFX: The Imperative to Build
Ramsay Duff, VP Finance & Operations
CAUBO Montreal June 2006
Ramsay Duff, VP Finance & Operations
CAUBO Montreal June 2006
PremisePremise
Canadian Universities are risk averse to rapid physical renewal of their infrastructure
This approach can create a negative re-enforcement cycle
Significantly impairing the ability to compete.
StFX: The Imperative to BuildStFX: The Imperative to Build
Brief overview of StFX
Competitive Analysis
The Imperative to Build
Lessons Learned
What is StFX? Just Like You! What is StFX? Just Like You!
Glossy Brochures and Web
Scenic Pictures
Happy Students
“Come here and you will be happy and successful”
The ImperativeThe Imperative
Student and Faculty recruitment is national/ international marketplace
To be competitive, StFX must have superior offerings
Research
Residences
Recreation
The Imperative to BuildThe Imperative to Build
At 150 years old we had a lot of investing to do….
Buildings
Technology
Infrastructure
Student Services
$122,000,000 Core Infrastructure
Property Acquisition
Technology
Residences
Keating Centre
Academic Buildings
$30 million
$8 million
$46 million
$6 million$4 million
$20 million
$8 million
How We Did ItHow We Did It
Analysis and PlanOur Niche
Our Future
Our Gaps
Our Investment Plan
Built SupportBoard
Community/ Alumni
Bankers
FinancingFinancing
Maxed out the line of credit, funded from operations
Leveraged revenue streams from ancillary
Fully hedged against interest rate risk
Negative pledge to lenders on assets
Lessons Learned #1Lessons Learned #1
University stakeholders love to plan and plan perfectly… but
Cost curve will remain steep Financing costs remain near all time lowsIf you can’t convince your banker now, you never willIf your Board can’t see it, you’re ability to compete is already compromised
Planning and waiting for perfect conditions is a fool’s game
Lessons Learned #2Lessons Learned #2
Demands on physical campus are escalating and accelerating
Teaching Spaces: backlash on class size and learning environment
Faculty: dedicated spaces for teaching, research and administration
Students: Catering to diverse student needs (campus life)
So, better to start renewal cycle sooner, creating multi-purpose, flexible space where possible.
Lessons Learned #3Lessons Learned #3
Having a plan and process is important, but…
Hard to predict donor behavior
Priorities can change
Opportunities knock…
Have to incorporate flexibility and be opportunistic
Atlantic Context – Challenging Environment- Declining Enrolment
- Declining Government Funding/Tuition Ceiling
Survival:- Superior Offerings - Profile – Positioning- National/International Recruitment
Balanced capital investment has been a significant factor in enabling StFX to solidify its market position.
Concluding ThoughtsConcluding Thoughts
StFX: The Imperative to BuildStFX: The Imperative to Build
Questions?Questions?
