University revenue from government and tuition provide very little funding for non-academic spaces at universities. Most non-academic spaces are funded either by a strong business case (like residences, which receive revenue from students) or one-time donor and/or government support (like the Isabel Bader Centre).
At other universities, student unions have partnered with their institutions to directly fund student life centre upgrades. These projects are funded by student activity fees paid per student.
The University will contribute to the project in four main ways: through a cash contribution, fundraising from alumni, financing and professional support for the project. Overall, the university will contribute $20 million in direct funding and incur $23 million in indirect costs associated with the redevelopment.
$10 million will come directly from the University operating budget. The AMS and SGPS negotiated this amount based on the University’s obligations to the JDUC in terms of deferred maintenance and accessibility over the years. Working with Physical Plant Services (PPS), we developed and agreed on a list of maintenance items from the JDUC that will be completed through a renovation. We then negotiated a dollar amount for these obligations which amounted to $10 million. This is a historic commitment from the University that will be a step forward to remedy the deferred maintenance and accessibility deficit within the JDUC.
$10 million will come directly from the Office of Advancement and will be raised directly from university benefactors. With the approval of this fee, the Office of Advancement will convene a special campaign cabinet led by alumni to raise funds from benefactors interested in campus infrastructure in time for construction to begin. This is a significant resource commitment from the University, as staff from the Office of Advancement will support and facilitated fundraising efforts for the JDUC.
$23 million in costs will be incurred by the University resulting from their commitment to finance the $62.3 million project. In addition, the University will also provide us with implementation expertise and staff resources to this project. While we were able to divide student fees over an estimated 20-year period – hence lowering our annual contribution – the University will assume the costs of a loan to finance the $62.3 million project. This is an unusual project that cannot easily facilitate traditional financing, hence the University will use their internal loans policy to raise funds.
Students will contribute to the project through a student fee and will retain the right to design the project. The student fee will cease at a point when the total contribution amounts have been reached, which we estimate will take 20 years. The following are the yearly contributions from students:
$1.6-2.1 million will be collected annually from AMS members starting in 2019-2020. The fee will be adjusted by the Consumer Price Index (which will usually be around 1-3% per year). In earlier years of the fee, the contribution will be on the lower side, while growing in later years. The fee will stop when the AMS contribution has totalled approximately $37 million, which will take around 20 years. These are conservative estimates for revenue per year. As enrolment trends upwards, we will likely collect more in later years. The fee will end when the AMS contribution reaches approximately $37 million, which may occur sooner than 20 years.
$176,000-215,000 will be collected annually from SGPS members starting in 2019-2020. This fee will be adjusted by the Consumer Price Index (which will usually be around 1-3% per year). In earlier years of the fee, the contribution will be on the lower side, while growing in later years. The fee will stop when the SGPS contribution has totalled around $4.1 million, which will take around 20 years. This contribution will fund a dedicated graduate student wing. It is smaller than the AMS contribution because SGPS members have a smaller footprint on campus, with some of them spending half their time away from campus (like fifth year education students). These are conservative estimates for revenue per year. As enrolment trends upwards, we will likely collect more in later years. The fee will end when the SGPS contribution reaches approximately $4.1 million, which may occur sooner than 20 years.
$45,000-59,000 will be reallocated from the existing Accessibility Queen’s fee. This fee already exists to fund infrastructure improvements that enhance accessibility– there will be no increase in direct costs to students. This contribution will end when the contribution reaches approximately $1.0 million.