Construction is nothing new for UCLA, and the price tag for the latest project was approved in mid-July by the UC Board of Regents.
Home to concerts, athletic events and the legendary John Wooden, UCLA’s Pauley Pavilion will undergo a $185 million renovation in the next few years.
The project, which is expected to be completed in 2012, will draw funding from four different sources.
One hundred million dollars will be provided by gift funds, $60 million will come from external financing and the remaining $25 million will come from student fees.
Of the student fees, $15 million will come from the Student Programs, Activities, & Resources Center student fee referendum, and $10 million will come from the Student Seismic fee, according to the budget submitted to the UC Regents.
The SPARC fee, which was proposed by students and approved in order to be used specifically for student facilities, was previously used to renovate the Student Activities Center and will also be used for constructing a student center in South Campus, said Steve Olsen, vice chancellor of finance, budget and capital programs.
The Student Seismic fee is money set aside for the seismic repair of student facilities, Olsen said.
He added that both types of student fees used for this renovation can not legally be spent toward other areas of the university.
Richard Bergman, former chair of the executive committee who was relieved of his duties in March 2009, said although $10 million of Student Seismic fees are being budgeted for the renovation, seismic upgrades typically cost much less.
Olsen said the specific contribution from each student fee referendum has yet to be determined.
The $100 million of gift contributions, the largest single source of funding for the renovation, will be raised by the Athletics Department through the Campaign of Champions.
Senior Associate Athletic Director Ross Bjork said approximately $58 million has already been raised. The Athletic Department hopes to make progress toward its fundraising goal by spring 2010.
Although a majority of the $58 million is accounted for through verbal and written pledges and has not yet been collected, Bjork said he is confident the funding will eventually be secured and thus far, no donor has backed out of a pledge.
The final $60 million of the total cost is external financing and will be raised through the sale of bonds, Olsen said. This type of financing is typical for construction projects, and the sale of bonds which is done by the UC Office of the President, will be paid off by UCLA.
“The Department of Athletics will be responsible for the principle and interest payments,” Olsen said.
The university will finance costs in the project’s early stages through short-term loans managed by UCOP.
During the 2011-2012 school year, Pauley Pavilion will be closed and the basketball season will take place elsewhere.
The Athletics Department has already been looking into renting locations such as the Staples Center and the LA Forum, Bjork said.
He said the cost of renting those facilities has been factored into the total amount of $185 million.
“(The) $185 million is an all-in cost,” Olsen said.
Other aspects of the total estimate include costs such as equipment for the new arena as well as the cost of hiring architects, he added.
Olsen and others said the current economic recession lends itself well to larger construction projects.