I. UCONN 2000: THE UPDATE
II. ACTIVITIES COMPLETED OR UNDERWAY:

• PLANNING, DESIGN AND MANAGEMENT
• CONSTRUCTION
• CONNECTICUT CONTRACTOR SUMMARY
• FINANCE
• PRIVATE FINANCIAL SUPPORT
• PREVAILING WAGE COMPLIANCE REPORT

III. CURRENT PROJECT STATUS – PHASE I (as of October 2003)
IV. CURRENT PROJECT STATUS – PHASE II (as of October 2003)
V. CURRENT PROJECTS FUND SOURCES: PHASE I (as of October 2003)
VI. CURRENT PROJECTS FUND SOURCES: PHASE II (as of October 2003)
CHARTS:

Total and Endowment Gifts for the University of Connecticut

Asset Growth: The University of Connecticut Foundation, Inc.

UCONN 2000: THE UPDATE

This is the seventeenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required four-year a progress report, which was filed on January 15, 1999.

Spurred by the contribution that UCONN 2000 has made to the transformation of the University, student applications are up sharply in number, strength, and diversity. The average SAT score for this year’s entering freshman class at Storrs was 1167, up 18 points from the previous fall and up 139 points since UCONN 2000 was signed into law in 1995. In Fall 2003, 68 high school valedictorians and salutatorians joined the 394 who have enrolled at UConn between 1995 and 2002. Minority students comprised 17% of the entering class. U.S. News and World Report now ranks UConn in the top 25 public universities in the nation, up six spots from last year. And our athletic program continues to bring pride and excitement to the UConn community in Storrs, at Rentschler Field, and across Connecticut.

21st Century UConn, the successor program to UCONN 2000, will play a major role in continuing this progress. As has been evident throughout UCONN 2000, the University will administer the building program at a high caliber level, and optimize productivity and outcomes through careful assessment of needs, cost-effective planning, and successful implementation of the program.

		ABOVE:An architectural detail of the renovation of the Center for Undergraduate Education, a learning center that will house the Institute for Teaching and Learning, computer labs, academic advising and counseling programs and other faculty and student academic support services.
		BELOW: Construction is in progress on the new School of Pharmacy/Biology building. The building will include 120,000 square feet of space for teaching and research for the Pharmacy program and 80,000 square feet of research space for the Biology program. Also included is a 26,000 square foot animal care facility to support faculty research.
ABOVE: The new Information Technologies Engineering Building houses an extensive learning center, specialty training facilities and some of the most innovative research labs in the country for advancing cutting-edge engineering technology. The 5-level facility is home to UConn’s electrical and computer engineering and computer science and engineering departments.

 

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

• PLANNING, DESIGN AND MANAGEMENT
  • The University has begun an update of its 1998 Master Plan. In view of the campus’ extensive physical changes resulting from the UCONN 2000 investment and the forthcoming 21st Century UConn initiative, it is necessary to update the plan so that the University can manage its capital resources most effectively. The plan will update the existing condition baseline to reflect the current physical plant, assess current and projected space needs relative to available facilities, assess the overall parking and transportation system including its financial and operational aspects, and refine the campus’ physical composition to advance improvements already in place. The planning effort includes activities on the West Hartford and Torrington campuses. The consultant for the Master Plan revision is JJR of Ann Arbor, Michigan.
  • The Law School Library has experienced an on-going series of leaks since opening in 1996. The project’s construction, which predates UCONN 2000, was managed by the Department of Public Works. Corrections undertaken did not resolve the situation, so the University hired its own consultants (Hoffman Architects of New Haven, and Simpson Gumpertz and Heger, Inc. of Boston) to investigate and propose solutions to the problems. The University is working with the Office of the Attorney General, the Department of Public Works, and original project architects and firms involved with its construction to address the issue.
  • Design activities are complete for the Cogeneration/Central Chilled Water Facility that will produce electricity for the Storrs campus, and secondary waste heat that will provide heating, hot water and/or cooling for the Storrs campus. The bid process was undertaken as a prerequisite to determine the feasibility and advisability of moving to cogeneration. Independent analysis projected the potential for significant energy cost-savings, and data from the bid process informed a cost/benefit analysis that led the Board of Trustees to endorse proceeding with the project. A contract award has been given to Select Energy. The project will be financed through Caterpillar Financial Services Corporation using a capital lease structure with an interest rate of 4.3%. Savings generated by the facility will pay the debt and debt service. Construction has just started on the building and chilled water portion of the project.
  • The University continues standardizing building systems and system components within its overall building and renovation program, (e.g., electrical circuitry, panel boxes, etc.). This process will reduce the number of replacement parts UConn needs to inventory, speed repairs, improve the level of maintenance, and lower overall costs.
  • At the September 23, 2003 University Board of Trustees meeting, the Board approved the project list for the Phase III of the UCONN 2000 Program, also known as 21st Century UConn. Also, at this meeting, the Board approved a Supplemental Indenture to serve as the amendment to the General Obligation Master Indenture of the UCONN 2000 program. The two approved resolutions have been forwarded to the State Office of Policy and Management (OPM) for submission to the State Bond Commission. The project list adopted by the Board is the same list that appears in the law. The list of projects and the State Debt Service Commitment is included in this report as Exhibit “A.”
  • The architectural selection process has begun for the Torrey Renovation Completion and Biology Expansion project, which will include research labs and office spaces for the Ecology and Evolutionary Biology programs as well as the Physiology and Neurobiology Departments. Also included will be classroom facilities. The new building will be constructed on the site of the Torrey Life Sciences building.
• CONSTRUCTION
  • Construction is underway for the new School of Pharmacy/Biology building. This building will include 120,000 square feet of space for teaching and research for the Pharmacy program and 80,000 square feet of research space for the Biology program. Also included in the project is a consolidated 26,000 square foot animal care facility to support the research programs in this area of the Storrs campus. The architect for this construction project is Davis, Brody, Bond of New York City. Gilbane of Glastonbury is the construction manager for this project, to be completed in July 2005.

ABOVE: Husky Village, a new centralized complex to house some of the University’s fraternities and sororities, is located near the Towers dorms.BELOW: Charter Oak Apartments and Suites, located north of the Northwest Quad dorms, provide 504 beds of apartment style housing and 468 beds of suite style housing.		ABOVE and BELOW: Construction is nearing completion of the first phase on the Student Union Building major renovations and additions. The work will expand the range and quality of student activities available in the campus core. The facility will also provide new space for each of the campus’ cultural centers.

ABOVE: Construction of the addition to the William Benton Museum of Art is scheduled for completion in December 2003.		ABOVE: Construction on renovations and an addition to the Neag School of Education’s Gentry building is underway. The project includes complete renovation of the building’s interior, exterior improvements to the façade and roof, and a 20,000 square foot addition to the building.

• ABOVE and BELOW: Construction is underway on renovations to the former School of Business as well as a 20,000 square foot addition. This project will transform the facility into a new Center for Undergraduate Education that will provide a centralized location for academic support for students and instructional support for faculty members and graduate students.		ABOVE: Jason Mitchell, a graduate student, demonstrates a tri-color laser experiment in the new high-tech Information Technologies Engineering facility for Governor John G. Rowland during his recent visit to campus. BELOW: Construction is complete on the Waterbury Downtown campus project, which relocated the Waterbury regional campus from its Hillside location to East Main Street. Existing academic programs and additional Bachelor of Business and MBA programs are offered in the new facilities.

• Students study and chat in the Waterbury Downtown campus

• Construction of the Benton Museum addition is scheduled for completion in December 2003. This $3.2 million project is funded through a combination of UCONN 2000 funds and private gifts. Arbonies King Vlock of Stony Creek is the architect for the project. Gilbane of Glastonbury is the construction manager for the project.
• Construction on renovations and an addition to the Neag School of Education’s Gentry Building is underway. The project scope includes a complete renovation of the building’s interior, exterior improvements of the faade and roof, and a 20,000 square foot addition to the building. The architect for the project is Svigals Associates of New Haven. Gilbane of Glastonbury is the construction manager on the project. It is anticipated that construction on the project will be complete in March 2004.
• Construction is underway on renovations to the former School of Business as well as a 20,000 square foot addition. This project will transform the facility into a new Center for Undergraduate Education that will provide a centralized location for academic support for students and instructional support for faculty members and graduate students. The facility will house the First Year Experience program, Career Services, the Institute for Teaching & Learning, the Study Abroad program, the Urban Semester program, the Center for Community Outreach, the Instructional Research Center, the Honors Program, and the Learning Research Center. The architect for the project is Svigals Associates of New Haven. The construction manager for the project is Gilbane of Glastonbury, Connecticut. It is anticipated that construction will be completed in December 2003.
• Construction is underway on the Student Union building that includes major renovations and additions to the current facility designed to expand the range and quality of activities in the campus core for students. Included are a food court, 500-seat theatre, student activity meeting space, a ballroom, and a central post office for all student mail. The facility also will provide new space for each of the campus’ cultural centers. Implementation of the Student Union building project will be phased over several years. The architect for the project is Cannon Associates of Boston. Konover Construction of West Hartford is the project’s construction manager. The first phase of the project, which includes the theatre, is scheduled for completion in January 2004. Immediately thereafter the second phase of the construction will begin.
• Construction is complete on the 504 beds of apartment style housing and 468 beds of suite style housing known as Charter Oak Apartments and Suites. These facilities are located north of the Northwest Quad Dorms. The floor plans are similar to those at Hilltop Apartments and the Hilltop Suites. The project was funded by special obligation bonds, to be repaid by the University from room fee revenue. The project was completed in August, in time for the start of the Fall 2003 semester. The design-build firm was JPI of Irving, Texas.
• In August 2003 a centralized complex to house some of the University’s fraternities and sororities was completed. The complex is called Husky Village and provides housing for 300 students. Capstone Builders led the design/build team. The project budget of $12 million was funded through special obligation bonds, to be repaid by revenue from the rent paid by fraternity and sorority members.
• Construction is complete on a new central dining facility at the Towers Dorms Complex to replace four small dining facilities and provide dining for Husky Village. The project was completed in August 2003, in time for the start of the fall semester. Funding came from a combination of UCONN 2000 and Dining Services operating funds. The construction manager was FIP of Cheshire.
• Construction is complete on work at the Law School that provided for the phased renovations of facilities including the old Library Building. The architect for this project was Allan Dehar Associates of New Haven. Dimeo Construction of New Haven was the construction manager.
• Construction is complete on the Waterbury Downtown Campus project, which relocated the Waterbury regional campus from its Hillside location to East Main Street. Existing academic programs and additional Bachelor of Business and MBA programs are offered in the new facilities. The architect for the project was Jeter Cook & Jepson of Hartford. Although this project was not part of UCONN 2000 funding, legislation provided that the University of Connecticut, under the authority set forth in UCONN 2000, manage the project. O&G Industries of Torrington was the construction manager for the project. The new campus was open for the Fall 2003 semester.
• Installation of new exterior signage has been completed at the main campus and the Health Center. The Law School and regional campuses will have new signs by December 2003. The purpose of this project is to incorporate signage that will provide a unified look and better directional information to visitors at all of the University’s campuses.
• Various renovations and deferred maintenance projects have been completed or are in the construction or design phase at the Avery Point campus. These projects are located in various facilities with different contractors.
• Renovations and installation of sprinklers in the Towers, Grad and East campus North (Holcomb, Whitney & Sprague) dormitories were completed in time for the start of the Fall 2003 semester. Completion of these projects leaves the West Campus complex as the only group of dorms without sprinklers. The installation of sprinklers in the West Campus complex will be completed in the Summer of 2004. The completed projects were funded by a combination of special obligation bonds to be repaid by the University and UCONN 2000 funds. The construction manager for these projects was Whiting Turner of New Haven.
• A new pedestrian walkway from Babbidge Library to South campus is under construction. This project is an integral component of the Master Plan to make the central core of the campus pedestrian-fr iendly and move traffic to the perimeter. O&G Industries of Torrington is the construction manager. The project is scheduled for completion in December 2003.

UCONN 2000: SET-ASIDE CONTRACTOR SUMMARY

• Public Act 99-241 called for, among other things, information regarding use of Connecticut-owned businesses on UCONN 2000 program projects, including those owned by women and minorities (“set-aside” contractors). Since Fiscal Year 1996, construction and related contracts for the UCONN 2000 program totaled $792.2 million. Twenty-four percent of this total, or $183.4 million, has gone to “set-aside” general contractors, contracted architects and engineers, and subcontractors. In this period, Connecticut businesses have accounted for $701.3 million or 89% of the total contracted dollars. Small business participation has amounted to $107.3 million and minority-and women-owned participation has accounted for $48.3 million.

UCONN 2000: FINANCE

• Debt Service Commitment Bond Issues Completed

Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds” or “DSC Bonds”). These Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and Fleet National Bank of Connecticut as Trustee (now U.S. Bank N.A.). The University’s Board of Trustees on November 10, 1995 and the State Bond Commission approved the Master Indenture of Trust on December 21, 1995. UConn’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The University and Office of the State Treasurer, working in conjunction, manage the Debt Service Commitment Bond sale process. University General Obligation Debt Service Commitment Bonds issues to date are summarized below:

The eight series of UCONN General Obligation DSC bonds issued total $814,637,146.50 in face value. Project funding to date totals $812,000,000 available for UCONN 2000 project spending. The remaining balance, together with accrued interest and net original issue premium, funded the costs of issuance.

On March 26, 2003 The University issued $96,210,000 face amount of the University of Connecticut Debt Service Commitment Bonds 2003 Series A, at a very favorable true interest cost of 3.97%, the lowest in the history of the program, with a 10.5 Years Average Life and with very favorable call redemption terms of 2013 @ Par. The 2014 through 2023 maturities carried MBIA bond insurance.

• UConn 2000 General Obligation Debt Service Commitment Projects

To date, fifty projects totaling $912 million have been authorized to receive General Obligation Debt Service Commitment bond proceed funding, as follows:

UCONN2000 GENERAL OBLIGATION BONDS SECURED
BY THE DEBT SERVICE COMMITMENT OF THE STATE

As of October 1, 2003, General Obligation Debt Service Commitment bonds have been issued to fund $812,000,000 of the above projects with $100,000,000, representing Fiscal Year 2004 authorizations effective July 1, 2003, expected to be issued during early winter 2004.

As of October 1, 2003 the General Obligation Debt Service Commitment Bond Proceeds Construction Account remaining balance available to pay for Projects was only $1,459,588.09.

• University’s Financial Statements
  As the issuer of the UCONN 2000 program debt, the University now incorporates UCONN 2000 debt into its financial statements. As a result of recent changes in the Government Accounting Standards Board rules, the University’s General Obligation and Special Obligation bonds are shown as liabilities on the University’s financial statements. The financed UCONN 2000 projects and any unspent bond proceeds are shown as assets. The State’s commitment to pay the debt service for the University’s General Obligation Bonds is also shown as an asset on the University’s financial statements.
• Trustee Banks
  The proceeds of the sale by the University of any Bonds are part of the Trust Estate established under the General Obligation Master Indenture of Trust with the Trustee Bank as security for bondholders. Consequently the Trustee Bank holds all of the bond proceeds, with this exception: the State Treasurer’s Office may hold and invest the University’s General Obligation Bonds Debt Service Commitment funded Cost of Issuance account. The Special Obligation Master Indenture has similar Trust Estate provisions and the Trustee Bank holds all the Special Obligation bond proceeds received at issuance including the cost of issuance account.Prior to June 1998, all University General Obligation Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer and treated like State bond proceeds, including payments made to vendors through the Office of the State Comptroller. Subsequently, the Office of the Attorney General opined that the University, and not the State, issues UCONN 2000 bonds. Accordingly, upon advice of bond counsel and in conformity with the Master Indenture of Trust, Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank and disbursed as directed by the University pursuant to the Indenture. Per the State’s preference, the University General Obligation Debt Service Commitment Bond proceeds for cost of issuance are still treated like State bond proceeds and deposited with the Office of the State Treasurer, and disbursed through the Office of the State Comptroller.The Indentures of Trust provide that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Trustee bank, and in the case of the Debt Service Commitment bonds, also the State Treasurer. The Indentures provide that such certification shall be signed by an Authorized Officer of the University and include certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse payments.
• University Special Obligation Revenue Bonds Secured by Pledged Revenues
  UCONN 2000 also authorizes the University to issue Special Obligation Revenue bonds. Unlike the University’s General Obligation Debt Service Commitment Bonds that are paid from the State’s General Fund, debt on the Special Obligation Bonds is paid from certain Pledged Revenues of the University as defined in the particular bond series indenture.A Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the Board of Trustees determines that the Special Obligation bond issue is self-sufficient as defined in the Act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the State Treasurer prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1, annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.
• Special Obligation Student Fee Revenue Bond Issues
  Student Fee Revenue Bonds have been issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University as Issuer and U.S. Bank N.A. as successor to State Street Bank & Trust as Trustee (“the Special Obligation Master Indenture”). The Board of Trustees approved the Master Indenture on November 8, 1996.UConn’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each Special Obligation bond issue. The University and Office of the State Treasurer, working in conjunction, manage the Special Obligation Bond sale process. University Special Obligation Student Fee Revenue Bonds issues to date are summarized below:

On February 4, 1998, the University issued $33,560,000 of University of Connecticut Student Fee Revenue Bonds 1998 Series A (“SFR 1998-A Bonds”) with a final maturity of November 15, 2027. The Special Obligation First Supplemental Indenture was also dated January 1, 1997 and authorized the issuance of bonds up to a principal amount not to exceed $30,000,000 for construction of the South Campus Residence and Dining Hall, plus amounts necessary to fund a Special Capital Reserve Fund (“SCRF”) and provide for costs of issuance. The University managed the issuance and sale of these bonds and realized a favorable true interest cost over the term. Debt service for these bonds is paid from the student Infrastructure Maintenance Fee instituted in 1997 and other Pledged Revenues as further defined in the Indenture of Trust. Such Pledged Revenues also help support future operation and maintenance costs for facilities built or expanded through UCONN 2000.

On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A (“SFR 2000-A”) pursuant to the Special Obligation Master Indenture, and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture dated as of May 1, 2000. Bond proceeds funded $87,000,000 of construction for the Hilltop Dormitory, Hilltop Student Rental Apartments, and Parking Garage South and also provided for capitalized interest and costs of issuance. The $89,570,000 SFR 2000 Bonds were defeased in substance on February 27, 2002, as further described below, and are no longer reflected as outstanding debt on the University’s financial statements.

On February 14, 2002, the University issued $75,430,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Fourth Supplemental Indenture, dated as of November 16, 2001. Bond proceeds funded $72,180,000 of construction for the Alumni Quadrant Renovations, Shippee/Buckley Renovations, East Campus North Renovations, Towers Renovations (including Greek Housing), and North Campus Renovations (including North Campus Student Suites and Apartments).

On February 27, 2002, the University issued $96,130,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Refunding Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Third Supplemental Indenture, dated as of February 1, 2002. Bond proceeds were used to take advantage of favorable market conditions to advance refund and defease in substance all of the $89,570,000 of Student Fee Revenue Bonds 2000 Series A bonds outstanding. Proceeds were deposited with the Trustee bank in an irrevocable escrow fund sufficient to satisfy future debt service and call premiums on the prior issue.

• UCONN2000 Special Obligation Student Fee Revenue Projects
  To date, nine projects have been authorized to receive the University’s Special Obligation Student Fee Revenue bond proceed funding. Some of these projects were also supported by General Obligation or other funding, as follows:

  UCONN2000 SPECIAL OBLIGATION STUDENT FEE
  REVENUE BOND PROCEEDS FUNDED PROJECTS

  Projects Special Obligation Authorized and Issued
  Alumni Quadrant Renovations	$ 7,000,000
  East Campus North Renovations	1,000,000
  Hilltop Dormitory New	21,000,000
  Hilltop Student Rental Apartments	42,000,000
  North Campus Renovation (including North Campus Student Suites and Apartments)	45,000,000
  Parking Garage-South	24,000,000
  Shippee/Buckley Renovations	5,000,000
  South Campus Complex	30,000,000
  Towers Renovations (including Greek Housing)	14,180,000
  Totals	$189,180,000

  ---

• Credit Ratings
  Since the inception of UCONN 2000, the University’s bond issues have experienced a favorable credit rating history, including several credit rating upgrades. For example, as of October 1, 2003 Moody’s assigned a “Aa3” rating to both the University’s General Obligation Bonds secured by the State’s Debt Service Commitment and the University’s Special Obligation Student Fee Revenue Bonds. It is a strong vote of confidence in the University that both these ratings are ranked the same as the State’s General Obligation Bond “Aa3” credit rating.The capital markets have recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals of the program, as well as the University’s success in implementing them. A high quality credit rating not only provides the State and the University with less expensive access to the capital markets but also supports the State’s quality reputation among investors. A University milestone occurred in 2002 with the achievement of the high-grade “double A” credit-rating category from Moody’s Investors Service for both its General Obligation and Special Obligation bonds.As of October 1, 2003, the UCONN 2000 General Obligation Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa3” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Also the University’s Special Obligation Bonds not secured by SCRF were rated “AA-” by Standard & Poor’s and “Aa3” Moody’s Investors Service. Fitch Investors Service does not rate the Special Obligation bonds not secured by SCRF. The Special Obligation Bonds Series 1998-A carry a Special Capital Reserve Fund and are rated “AA” by Standard & Poor’s “Aa3” by Moody’s, and “AA-” by Fitch. In addition to the underlying credit ratings, “AAA” rated municipal bond insurance secures certain maturities of several of the above bond issues.

  February 1996: the first issue of the University’s General Obligation Bonds secured by the State’s Debt Service Commitment carried underlying ratings of “A1” by Moody’s Investors Service, “AA-” by Standard & Poor’s and “AA-” by Fitch.

  February 1998: the first issue of UCONN 2000 Special Obligation bonds depended upon the State’s SCRF credit rating. An underlying “stand alone” credit rating was not available for this nascent program. At the time of issuance, the State SCRF enhancement allowed the bonds to obtain an “AA-” rating from Standard & Poor’s, “AA-” from Fitch Investors Service, and “A-1” from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to an “AAA” at Fitch and Standard & Poor’s and “Aaa” at Moody’s Investors Service.

  October 1998: Standard & Poor’s upgraded the UCONN 2000 General Obligation DSC Bonds and the UCONN SFR 1998-A (SCRF) bonds to “AA” from “AA-“.

  March 2000: Moody’s upgraded UCONN 2000 General Obligation DSC Bonds to “Aa3” from “A1”.

  June 2000: the University achieved a milestone with its first underlying Special Obligation Bond “stand alone” credit rating of “AA-” (S&P), and an “A1” (Moody’s).

  February 2001: Moody’s upgraded UCONN 2000 General Obligation DSC Bonds to “Aa2” from “Aa3”. In April 2001, the General Obligation DSC 2001 Series A bonds were sold without any bond insurance security enhancement on any maturity, another successful first-time accomplishment for the UCONN 2000 bond program. Moody’s upgraded UConn’s SFR 1998-A Bonds, which are secured by the State SCRF, at this time to “Aa3” from “A1”.

  January 2002: UConn’s 2000 Special Obligation Bonds (Non-SCRF) were upgraded to “Aa3” from “A1” by Moody’s. This graduated UConn’s Special Obligation bonds to Moody’s “high-grade” bond category and impacted the underlying credit on all outstanding Special Obligation Student Fee Revenue Bonds. (The $33.6 million Special Obligation Student Fee Revenue Bonds Series 1998-A bonds which are secured by the State’s SCRF already carried the “Aa3” rating.) This high rating was assigned a stable outlook and represented a positive judgment by the capital markets regarding UConn’s financial strength, real and potential growth as an institution, and management.

  August 2002: Reflecting the outlook changes for the State’s General Obligation Bonds, Moody’s and Standard and Poor’s both moved their outlook from “stable” to “negative” for UConn’s General Obligation DSC Bonds while retaining their respective credit rating levels at “Aa2” and “AA”. Fitch took no action. In a sign of confidence for the University’s management and growth potential, Moody’s and Standard & Poor’s kept UConn’s Special Obligation Bond ratings levels and stable outlook unchanged.

  March 2003: During tougher economic times the rating agencies confirmed the University’s General Obligation DSC bond ratings as follows: Fitch “AA-“; S&P “AA”; and Moody’s “Aa2”. Moody’s also confirmed UConn’s Special Obligation and Foundation bond ratings at “Aa3”. Holding the credit ratings was a good sign, in light of Moody’s February 2003 move of the State General Obligation bonds, and consequently the University’s DSC and SCRF security bonds, to Watch list for possible downgrade.

  July 2003: On July 2, 2003, citing State budget problems, Moody’s downgraded the University’s General Obligation DSC bond ratings to “Aa3” from “Aa2” consistent with its action on the State General Obligation bond rating. The good news was that Moody’s also confirmed UConn’s Special Obligation (“non-SCRF) bond ratings at “Aa3”. Moody’s also briefly downgraded the University’s 1998 Special Obligation Bonds secured by the State’s SCRF to “A-1” following a general downgrade of any bonds backed by the State’s SCRF, but then upgraded the University’s 1998 Special Obligation Bonds back to “Aa-3” on July 14, 2003.

• Debt Service
  The State General Fund pays the debt service on the University’s General Obligation Debt Service Commitment Bonds. The University pays the debt service on the Special Obligation Student Fee Revenue Bonds from its own resources. For all the UCONN 2000 General Obligation Debt Service Commitment securities issued since the program’s inception in 1996 to October 31, 2003, debt service totals $814.6 million of principal and $413.7 million of interest (including capital appreciation bonds). As of October 31, 2003 there will be $669.2 million of principal outstanding, and $282.2 million of interest remaining (including capital appreciation bonds.) For the Fiscal Year Ending June 30, 2003 the Debt Service Commitment paid for the University’s General Obligation Bonds amounted to $66 million (representing $37.7 million of principal and $28.3 million of interest).UCONN 2000 Special Obligation Student Fee Revenue securities debt service amounts to $205.1 million of principal and $187.5 million of interest over the course of the maturity spectrum, net of pre-refunded and defeased bonds. As of October 31, 2003 there will be $197.5 million of principal and $161.2 million of interest remaining (including capital appreciation bonds). All other things equal, the Special Obligation bonds incur proportional ly more interest expense because they are generally issued for terms of up to thirty years compared to twenty years for the Debt Service Commitment bonds. For the Fiscal Year Ending June 30, 2003 the University paid from its own resources Special Obligation Bond debt service of $13.2 million (representing $3.7 million of principal and $9.5 million of interest).
• UCONN 2000 Bond Proceed Investments
  The investment of Tax-exempt bond proceeds is heavily regulated by the Internal Revenue Service, the relevant Indentures of Trust with bondholders, Connecticut law, and other regulatory mechanisms. In addition to meeting those requirements, the University’s general investment policy is to balance an appropriate risk-return level, heavily weighted towards safety of assets, with estimated cash flow needs and liquidity requirements. The University is also mindful that the rating agencies, bond buyers, and bond insurers often weigh the quality of an issuer’s investment portfolio.Bond Proceeds form part of the Trust Estate established with the Trustee Bank as security for bondholders. To date, the University has directed the Trustee Bank to invest any Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund (“STIF”) which is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields. The State Treasurer’s Office wishes to hold and invest the University’s General Obligation Bonds Debt Service Commitment funded Cost of Issuance account, a much smaller account.Similarly, the University has directed the Trustee Bank to invest all the Special Obligation new money bond proceeds in dedicated STIF accounts, with the exception of the 1998 Special Obligation Special Capital Reserve Fund which is invested in longer term “AAA” rated federal agencies’ fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust.

  The Special Obligation Student Fee Revenue Refunding Series 2002-A proceeds, other than the cost of issuance and debt service accounts that are invested in STIF, are held by the Trustee Bank in an irrevocable escrow fund, which is invested in U.S. Treasury State and Local Government Securities (“SLGS”) and cash pursuant to the Escrow Agreement.

• UCONN 2000 Bond Proceed Investment Earnings
  The Debt Service Commitment bond proceeds investment earnings are retained by the State Treasurer’s Office and do not flow to the University or to the Trustee Bank.Fiscal Year End June 30, 2003 UCONN 2000 Special Obligation Student Fee Revenue Bonds investment earnings amounted to approximately $0.9 million (cash basis). The Student Fee Revenue Bonds investment earnings are part of the Pledged Revenues and are directly retained by the Trustee Bank to pay debt service on the bonds, and may also be used to flow to other Trustee bond accounts, if necessary, pursuant to the Indenture of Trust.The investment earnings on the Special Obligation Student Fee Revenue Series 2002-A Escrow Account flow to the irrevocable escrow and are used by the Trustee Bank to meet debt service payments on the defeased bonds.
• Future UCONN 2000 Debt Issuance
  The University anticipates offering a Debt Service Commitment Bond issue during the winter of 2004 to fund an expected $100 million of UCONN 2000 Projects. The passage of 21st Century UConn allows for $1.3 billion of additional securities backed by the State’s Debt Service Commitment, phasing in during fiscal year 2005. Generally, the University plans on issuing a series of new money Debt Service Commitment bonds about every twelve months.Additionally, the University could issue Special Obligation Revenue bonds for certain projects that have a financial self-sufficien cy capacity, and/or if aggregate pledged revenues are sufficient to meet requirements of the Special Obligation Indenture. Market conditions and other factors might also lead to issuance of either General Obligation or Special Obligation refunding bonds in the future. Finally, the law also enables the University to enter into tax-exempt lease financing. The Heating Plant/Co-generati on facility currently under development is an example of this type of financing option.

PRIVATE FINANCIAL SUPPORT

Progress toward Campaign UConn’s $300 million goal continues and as of September 30, 2003 more than $257 million (85.7% of the goal) has been achieved. The Campaign is the largest ever undertaken by a public research university in New England and seeks to raise $75 million for merit and need-based scholarships, $75 million for faculty support, and $150 million for program support.

Since Campaign UConn began in 1998 through June 30, 2003, a total of 340 new endowments have been established in support of students, faculty, and programs. Thanks to donor generosity, these gifts of endowment are having a lasting impact on Connecticut’s flagship university.

At the close of fiscal year 2003, nearly $50 million ($49.7 million) in new gifts and commitments were recorded, an increase of $3.3 million, or 7%, over FY 02. The number of donors increased as well, with 38,483 contributing – an increase of 9% over FY 02. Alumni are playing a pivotal role in UConn’s success. The University is ranked 7th in the nation among public universities, with an annual giving rate among alumni of 24%, according to U.S. News & World Report.

Total assets in the UConn Foundation stood at $262 million, an increase of 7% over the prior year. Investment returns for the year were positive and added nearly $12M in revenues. The FY 03 return for the endowment pool was +5.2% vs. the composite benchmark of +3.2%.

A record-high $25 million in support was disbursed by the Foundation to the University; this compares to last year’s record high of $22 million. The primary uses of these funds by the University were for student scholarships ($8 million); faculty compensation, including endowed chairs ($6 million); and program enhancements and other uses ($11.1 million).

The first five years of the state matching endowment gift program had a profound effect in attracting major donors to support the University. However, the University continues to experience delays in receiving over $14 million in matching funds for endowment gifts received since calendar year 2000. This delay is having an unfortunately negative impact on our present and prospective donors, who have collectively contributed millions of dollars based on the expectation of the state match. Future private support, as well as the fulfillment of existing donor pledges, may be in jeopardy if the state fails to match gifts in a timely manner; therefore, restoration of state matching funds is a high priority for the University.

Significant Commitments
The UConn Foundation received $372,090 from the Estate of Sylvia Lazar to support the Louis and Sylvia Lazar Endowment Fund. The fund provides merit scholarships for full-time students enrolled in the School of Fine Arts.

The John W. Kluge Foundation committed $275,000 to the Thomas J. Dodd Prize in International Justice and Human Rights. The biannual prize is awarded by University’s Thomas J. Dodd Research Center to a leader or group who has made a significant effort to advance the cause of international justice and global human rights.

A. David ’61 and Brenda Maxen Roth ’61 committed $200,000 and Pelton’s Pharmacy committed $50,000 to the School of Pharmacy Endowment for the 21st Century, which provides financial support for faculty, scholarships, and programmatic enhancements at the School of Pharmacy.

The UConn Foundation received $81,789 from the Estate of Robert S. Dennison to support the Robert S. and Naomi C. Dennison Fund for Acquisition at the William Benton Museum of Art, Connecticut’s State Art Museum. The fund is used to purchase works of art created before 1950 for the Museum’s permanent collection and to cover other expenses that may be related to preserving the works of art for future generations.

The UConn Foundation received $61,681 from the Estate of Alice K. Norian to support the Norian Armenian Studies Programs that include a lecture and student-faculty exchange program.

PREVAILING WAGE COMPLIANCE REPORT

The attachments referred to below cover the period of April 1, 2003 through September 30, 2003 and are issued pursuant to the requirements of subsection (f) of section (7) of Public Act 02-3, an Act Concerning 21st Century UCONN, by providing the following information:

1. The names and addresses of contractors and subcontractors performing repair, addition, alteration and new construction on the university’s campuses in the previous six months.Attachment A (Download or open as an Excel spreadsheet) provides the list in alphabetical order. This is the third report, which is being filed in conjunction with the October 2003 Report Number Seventeen to provide a consolidated report for UCONN 2000 activities. There is no sub grouping of contractors or subcontractors, as the nature of their business makes each interchangeable with the other as business opportunities become available.
2. The extent to which the listed contractors and subcontractors have been in compliance with the provisions of part III of Chapter 557 and provisions of Chapter 558 [of the Connecticut General Statutes having to do with the payment of prevailing wage rates].This information is in Attachment B (Download or open as an Excel spreadsheet) which is based on information from the State of Connecticut Department of Labor, Wage and Workplace Standards Division, Contract Compliance Unit and represents a combined sharing of information by the University of Connecticut and the Department of Labor.
3. Any actions taken by the University to cooperate with the Labor Department in the enforcement of said provisions [in item (2)].Attachment C lists support initiatives by the University.Attachment D is the Debarment list issued by the Department of Labor

CURRENT PROJECT STATUS: PHASE I (As of October 2003)

CURRENT PROJECT STATUS: PHASE II (As of October 2003)

CURRENT PROJECT FUND SOURCES: PHASE I (As of October 2003)

CURRENT PROJECT STATUS: PHASE II (As of October 2003)

CHARTS

UCONN 2000

• PLANNING, DESIGN AND MANAGEMENT
• CONSTRUCTION
• CONNECTICUT CONTRACTOR SUMMARY
• FINANCE
• PRIVATE FINANCIAL SUPPORT
• PREVAILING WAGE COMPLIANCE REPORT

The Biology/Physics Building opened in January and will be dedicated in May. The 145,000 square-foot building features state-of-the-art labs, two 150-seat classrooms and a rooftop research greenhouse.

ABOVE: Jason Ucci, graduate student, works on his research in a new lab in the Biology/Physics Building.BELOW: Peter Lemaire, graduate student, performs an experiment in one of the new labs at the Biology/Physics Building.

UCONN 2000: THE UPDATE

This is the sixteenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999.

21st Century UConn will continue the transformation of the University and its campuses. The program represents an endorsement and recognition of UCONN 2000’s achievements and of the University’s management of the program.

The impact of UCONN 2000, as articulated by President Austin last month to the Appropriations Committee of the General Assembly, is well documented. We are slowing the “brain drain”, as academically talented students are choosing to come to UConn rather than go out-of-state. Since 1995: freshman enrollment has increased 58%; minority freshman enrollment has grown 61%; average SAT scores have risen almost 40 points; and, nearly 400 valedictorians have joined the student body. And, total applications to the University have increased 4,047 over last year as of the end of March, a remarkable 28 percent.

UCONN 2000 also has enhanced our ability to generate additional revenue from such sources as private giving and research support. Since 1995, UConn’s endowment has nearly quadrupled, from $50 million to $195 million. Research support at Storrs has grown from $56 million in FY 1996 to $90 million this year.

In December 2002, the Legislative Program Review & Investigations Committee of the Connecticut General Assembly issued the final report on its review of UCONN 2000 construction management. The report is a very positive assessment of the University’s management of the UCONN 2000 construction program. The Committee concluded that the program has been well managed, incorporating industry best practices and, overall, producing quality facilities on time and on budget. There were no proposals for legislative changes, and the three programmatic recommendations are already underway. It is enormously gratifying to the University that the legislature’s investigative arm has independently verified that management of the program to date validates the 1995 and 2002 decisions to make this extraordinary capital investment. Findings from the report include:

The University has demonstrated its ability to manage, oversee, and administer the UCONN 2000 program in a responsible, efficient and productive manner. It intends to maintain this success, and make improvements for optimal performance as the UCONN 2000 program transitions into 21st Century UConn and builds upon its great success.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

ABOVE: Gov. John G. Rowland signs 21st Century UConn into law at a ceremony at South Campus on Aug. 26, 2002, as Sen. President Kevin Sullivan, House Speaker Moira Lyons, House Minority Leader Robert Ward, and other legislators look on.BELOW: The new Biologicial Sciences Building, scheduled to open in January 2003, will be the tallest, and one of the largest, buildings on campus. The structure houses high-tech classrooms, offices, and research laboratories for students, faculty and staff in the departments of ecology and evolutionary biology, physics, molecular and cell biology, and other areas.

UCONN 2000: THE UPDATE

This is the fifteenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required a four-year report, which was filed on January 15, 1999.

21st Century UConn, a $1.3 billion program that will continue the transformation of the University and its campuses, was approved on August 13, 2002 by the General Assembly and signed into law by Governor John G. Rowland at a ceremony at the main campus in Storrs on August 26th. The $1 billion UCONN 2000 program is unprecedented in the nation. 21st Century UConn is an equally remarkable commitment to the continuation of the program; it represents an endorsement and recognition of UCONN 2000’s achievements and of the University’s management of the program.

UCONN 2000 and its successor, 21st Century UConn, provide the means for the University to attract a high-achieving and increasingly diverse student body, high quality faculty, and funding from both private donors and grants. Connecticut has long ranked tops among states in the ratio of residents who leave their home state for college. UCONN 2000 has helped the University do its part in stemming the “brain drain.”

The University, ranked the top public university in New England by U.S. News & World Report, has seen incredible growth since the UCONN 2000 legislation was adopted in 1995: freshmen enrollment at Storrs is up 58 percent, and freshman minority enrollment is up 61 percent. Since 1995, SAT scores have risen nearly 40 points and 394 valedictorians and salutatorians have enrolled.

Annual gifts to UConn have increased dramatically, from $8.2 million in 1994 to $43.3 million for Fiscal Year 2002; and endowment assets have grown from $50 million to $197 million.

The UCONN 2000 program already has resulted in more than two dozen new buildings, including a new chemistry building, new ag-biotech buildings, School of Business, the Marine Sciences Building in Avery Point, the downtown Stamford campus, new music building, new residence halls including Hilltop Apartments, Hilltop Suites and South Campus and two new parking garages (one of which is funded by special obligation bonds issued under the authority of UCONN 2000 and to be paid off by the University).

There have also been renovations to Babbidge Library, the Wilbur Cross Building, the Gant Complex, the old chemistry building – now the College of Liberal Arts and Sciences Building – Wood and Storrs Halls, the student recreation center, and many residence halls including Northwest, which has a new cafeteria, and Mansfield Apartments, which house graduate students.

The new, expanded UConn Co-op, located on Hillside Road adjacent to the Harry A. Gampel Pavilion, is scheduled to open in late October. The Biology/Physics Building, located on North Eagleville Road, is expected to be open in time for the spring semester. And a new building in the center of campus that will house several departments associated with computer engineering will open during the spring semester.

The Student Union, already under reconstruction, will be completed in 2004. North Campus Apartments and housing for sororities and fraternities will open next September. And a new pharmacy/biology building will be constructed as well. At present, all remaining project funds for the remaining two and one-half years of UCONN 2000 are dedicated to projects under construction or, in the case of Pharmacy/Biology, in the final stage of design.

The UCONN 2000 program has also been responsible for millions of dollars of infrastructure improvements including a new steam plant, new chiller plants, and sprinklers for the residence halls and has enabled the University to fund the equipment so critical to attracting top-notch researchers and grant funds.

Still, much remains to be done. 21st Century UConn is designed to allocate $1 million to address remaining significant infrastructure needs at Storrs and the regional campuses. In addition, the initiative provides $300 million for infrastructure improvements at the UConn Health Center to support the medical and dental education programs, as well as research activities.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

• PLANNING, DESIGN AND MANAGEMENT
  • At the April 16, 2002 Board of Trustees meeting the Board approved the FY 2003 Capital Budget. The listing of projects and their corresponding FY 2003 funding are as follows:
    

    Projects	Amounts
    Deferred Maintenance, Renovation Lumpsum-GF	$30,000,000
    Equipment Replacement/Upgrade	20,000,000
    Technology Quadrant Phase II (Engineering)	15,120,000
    Student Union Addition	10,000,000
    Gentry Renovation	2,000,000
    Avery Point Renovation	3,000,000
    Residential Life Projects:
    Alumni Quadrant Renovations	9,000,000
    East Campus North Renovations	2,000,000
    Shippee/Buckley Renovations	7,000,000
    North Campus Renovations	1,880,000
    TOTAL	$100,000,000

  • At its June 25, 2002 meeting the Board of Trustees approved the Capital Budget Plan for the final two years of UCONN 2000, FY 2004 and FY 2005.

  Projects	Amounts
  Deferred Maintenance, Renovation Lumpsum-GF	$19,835,000
  Equipment Replacement/Upgrade	35,312,000
  Residential Life Projects	31,696,000
  School of Pharmacy/Biology (New)	51,153,000
  Student Union Addition	7,500,000
  Avery Point Undergraduate Renovations	2,323,000
  Torrey Life Science Renovations	2,181,000
  TOTAL	$150,000,000

  The closing of the ten-year Capital Budget cycle of UCONN 2000 will encompass final funding of projects already authorized. These include a re-direction of funds between the Torrey Life Science and Pharmacy/Biology projects, which will increase the amount of new research space for the biological sciences while focusing Torrey renovations to address basic building systems and safety issues. New space for biology in the Pharmacy/Biology and Biology/Physics building will now total approximately 220,000 square feet.

  • Bids have been received for the development of a Cogeneration/Central Chilled Water Facility. Such a facility would produce electricity for the Storrs campus, and the secondary waste heat would provide heating, hot water or cooling for the campus. The bid process was undertaken as a prerequisite to determining the feasibility and advisability of moving to cogeneration. Independent analysis projected the potential for significant energy cost-savings, and data from the bid process informed a cost/benefit analysis that led the University’s Board of Trustees to decide to proceed with cogeneration. A notice of award has been given to Select Energy, a Connecticut company, with the next step being the negotiation of the design component of the project.
  • An Environmental Impact Evaluation (EIE) is being prepared in contemplation of the construction of Graduate Student Apartments. This project would provide for 500 to 1,000 beds of apartment style housing. Two potential sites are being evaluated: one, west of the University’s Northwood Apartments and the other, east of the Storrs commercial block on Route 195. Baystate Environmental Consultants was hired to conduct the EIE. As part of the evaluation of the latter site the cumulative environmental impact of the Storrs Center redevelopment project will be examined. The draft EIE has been completed and is being circulated for comment.
  • As part of the overall building and renovation program, the University continues the process of standardizing building systems and system components (e.g., electrical circuitry, panel boxes, etc.). This process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance and lower overall costs.
  • Construction documents are being prepared for the new School of Pharmacy/Biology building. The project involves the construction of a 120,000 square foot building for teaching and research for the Pharmacy program and the creation of an 80,000 square foot building of research space for the Biology program. Also included in the project is a consolidated animal care facility for the research programs in this area of campus. The animal care facility is 26,000 square feet. The architect for the project is Davis, Brody, Bond of New York City. Gilbane, of Glastonbury, is the construction manager for the project. Construction will begin in November 2002.
  • The construction documents are being finalized for an addition to the Benton Museum. This $3.2 million project is funded through a combination of UCONN 2000 funds and private gifts. Arbonies King Vlock of Stony Creek is the architect for the project. Gilbane, of Glastonbury, is the construction manager for the project. Construction activities are scheduled to begin in January 2003.

LEFT: The new, expanded UConn Co-op, on Hillside Rd. adjacent to Gampel Pavilion, is scheduled to open in late October. RIGHT: Rendering of the planned addition to the William Benton Museum of Art.

• CONSTRUCTION
  • Construction has begun on renovations to the Neag School of Education’s Gentry building. The project scope includes complete renovation of the building’s interior, exterior improvements of the façade and roof, and a 20,000 square foot addition to the building. The architect for the project is Svigals Associates of New Haven. Gilbane, of Glastonbury, is the construction manager on the project. It is anticipated that construction on the project will be complete in December 2003.
  • Construction has begun on renovations to the former School of Business building as well as a 20,000 square foot addition. The purpose of this project is to transform the old facility into a new Center for Undergraduate Education that will provide a centralized location for academic support for students as well as instructional support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, the Institute for Teaching & Learning, the Study Abroad program, the Urban Semester program, the Center for Community Outreach, the Instructional Research Center, Honors Program, and the Learning Research Center. Due to competing needs, the budget for the project has been reduced to $11 million. The architect for the project is Svigals Associates of New Haven. It is anticipated that construction will be completed in September 2003. The construction manager for the project is Gilbane, of Glastonbury, Connecticut.
  • Construction has begun on the Student Union Building project, which will include major renovations and additions to the current facility. The primary goal of the project is to expand the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, student activity meeting space, a ballroom and a central post office for all student mail. This facility also will provide new space for each of the campus’ cultural centers. Implementation of the project will be phased over several years. The architects for the projects are Cannon Associates of Boston. Konover Construction of West Hartford is the project’s construction manager. The first phase of the project, which includes the theatre, is scheduled for completion in December 2003.

    ABOVE: Interior renovations and an addition to the Neag School of Education’s Gentry Building have begun. The work is scheduled for completion in December 2003.		ABOVE: The former School of Business Building is being transformed into a new Center for Undergraduate Education that will provide academic support for students and instructional support for faculty and gradaute students in a centralized location.
    BELOW: Major renovations have begun on the Student Union Building. Students will have access to a wide range of activities in the campus core upon completion of the project. The first phase, including a 500-seat theatre, is scheduled for completion in December 2003.		BELOW: Renovations to the Alumni Quad were undertaken during the summer of 2002 and were completed by the start of the fall 2002 semester. The project included installation of sprinklers wh9ch were also installed in Shippee, Buckley, East Campus, and North residence halls.

  • Renovations and installation of sprinklers for Alumni Quad, Shippee/Buckley, and East Campus North (Hicks and Grange) were completed for the start of the fall 2002 semester. The project was funded from a combination of funds from special obligation bonds to be repaid by the University and UCONN 2000. The construction manager for the project was Whiting Turner of New Haven.
  • Construction has started on a new central dining facility at the Towers Dorms. This facility will replace the current six small dining facilities and provide a dining facility for the new Greek Housing Complex. The completion date is August 2003, in time for the start of the fall semester. Funds for the project come from a combination of UCONN 2000 and Dining Services operating funds. The construction manager for the project is FIP of Cheshire.
  • Construction has begun on 504 beds of apartment style housing and 468 beds of suite style housing to be located north of Northwest Quad Dorms. The floor plans for the units are similar to those at Hilltop Apartments and the Hilltop Suites. Funding for the project is from special obligation bonds to be repaid by the University from room fees revenue. Completion of the project is scheduled for the start of the Fall 2003 semester. The design build firm is JPI of Irving, Texas. Early in the construction a pocket of solid waste material was found on site. The material has been removed, and construction has continued. The University has begun further investigation to ensure that if any more waste material is located in this area of campus it will be removed.
  • Construction is underway on renovations to locker rooms, training facilities and coach offices for the basketball teams. Construction began in April 2002 with completion set for October 14, 2002. Funds for the project are coming from a combination of private fund raising and UCONN 2000. The architect for the project is Jeter Cook & Jepson of Hartford. The construction manager is O&G Industries of Torrington.
  • North of the Towers Dorm complex, the University is building a centralized complex to house the University’s fraternities and sororities that will provide housing for 300 students. The Environmental Impact Evaluation for the project was approved by the Board of Trustees on May 30, 2002. The design/build team is led by Capstone Builders. Construction on the project has begun and is scheduled for completion for the start of the Fall 2003 semester. The project budget of $12 million is funded through special obligation bonds to be repaid by revenue from fees paid by fraternity and sorority members.

    ABOVE: Ground was broken in September behind North Campus for an apartment-style residential complex and a village for UConn fraternities and sororities. The two complexes will add nearly 1,000 beds to campus.BELOW: The School of Engineering’s Information Technology building will include space for classrooms, research labs and offices, as well as a 390-seat lecture hall.		Phase II of the Agricultural Biotechnology Building has been completed. ABOVE: The second building provides research and incubator space.BELOW: The greenhouse facility.

  • Construction is underway for renovations at the School of Law that will provide for the phased renovations of Law School facilities including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven. The construction manager is Dimeo Construction of New Haven. The first phase of the project will be complete in March 2003.
  • Construction continues on the Waterbury Downtown campus project, which will relocate the Waterbury Regional campus from its present Hillside location to East Main Street. The existing academic programs and additional Bachelor of Business and MBA programs will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford. Although not part of UCONN 2000 funding, legislation provides that the project will be managed by the University under the authority set forth in UCONN 2000. O & G Industries of Torrington is the construction manager for the project. The new campus is scheduled to open for the Fall 2003 semester.
  • Construction has been completed on Phase II of the Agricultural Biotechnology facility. A $7,770,682 Department of Energy Grant and $3,000,000 from UCONN 2000 funded this second phase of the project, that included construction of a second building (approximately 16,000 sq. ft.) and a new greenhouse facility (approximately 14,000 sq. ft.) as provided in the original project and the Master Plan. The facility provides research and incubator space. Architects for the project were Svigals Associates of New Haven, and the construction manager was Turner Construction of Milford. Construction was completed in July 2002.
  • Construction is underway on a new building for the School of Engineering’s Information Technology program, with approximately 94,000 gross square feet of classrooms, and research lab and office space, and a 350-seat lecture hall. The architect for the project is Burt Hill Kosar Rittlemann of Washington, DC. The construction manager for the project is O & G Industries of Torrington. The main building will be completed in January 2003 and the lecture hall in June 2003.
  • Installation of new exterior signage has been completed at the main campus and the Health Center. The law school and regional campuses will see their new signs beginning in November 2002. The purpose is to incorporate signage that will provide a unified look and better directional information to visitors at all of the University’s campuses.
  • Phase II of the Wilbur Cross renovation was completed in July 2002. This project locates all business functions relating to student services in one central, customer-friendly location. Functions include financial aid, bursar, registrar, dining services, residential life, and services to students with disabilities. The project’s contractor was Aspinet Construction of Avon. As part of the rejuvenation of one of the campus’ most important old buildings, a new slate roof is being installed along with masonry repairs and window replacement.
  • Construction was completed in September 2001 for the second parking garage, located next to the Gampel Pavilion. The cost of the project is borne by a special obligation bond issued under UCONN 2000 authority. Revenue to support the debt service will come from parking and transportation fees. The facility contains 1,547 parking spaces and 53,000 gross square feet of retail space for the UConn Co-op. The Co-op space was completed in October 2002. The contractor for the project was Manafort Brothers of New Britain.
  • Construction activity continues on the Biology/Physics project after the original contractor was terminated by the University on February 4, 2000. These activities resumed when the University and Liberty Mutual, the Surety that held the payment and performance bond for the project, came to a fronting agreement whereby the Surety agreed to pay the University $25,350,000 to complete the project. Grounds for the termination included: unqualified general contractor staffing, removal of key personnel, unauthorized substitutions, subcontractor mismanagement, schedule-failure to comply with contract requirements, failure to prosecute the work, subcontractor payment irregularities, inadequate staffing/manning, change order processing failures, disregard for University property, refusal/delay in allowing document review, failure to timely provide general conditions documents, inadequate quality control, and inadequate safety supervision. Turner Construction of Milford is the construction manager on the project. It is anticipated that the project will be completed in December 2003.

  UCONN 2000: SET-ASIDE CONTRACTOR SUMMARY

  Public Act 99-241 called for, among other things, information on the use of Connecticut-owned businesses on UCONN 2000 program projects, including those owned by women and minorities. Since FY 1996, construction and related contracts for the UCONN 2000 program totaled $640.6 million. Twenty-six percent of this total, or $165 million, has gone to set-aside general contractors, contracted architects and engineers, and subcontractors. In this period, Connecticut businesses have accounted for $533.1 million or 84% of total contracted dollars. Small business participation has amounted to $89.8 million and minority-and women-owned participation has accounted for $74.8 million.

  UCONN 2000: FINANCE

  Phase I Debt Service Commitment Bond Issues Completed
  Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds” or “DSC Bonds”). These Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer and Fleet National Bank of Connecticut as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995 and by the State Bond Commission on December 21, 1995. UConn’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The University and Office of the State Treasurer, working in conjunction, manage the Debt Service Commitment Bond sale process. University General Obligation Debt Service Commitment Bonds issues to date are summarized below:

  Date of Issue	Par Amount	General Obligation Bond Issue
  Phase I
  February 21, 1996	$ 83,929,714.85	1996 Series A
  April 24, 1991	124,392,431.65	1997 Series A
  June 24, 1998	99,520,000.00	1998 Series A
  April 8, 1999	79,735,000.00	1999 Series A
  Phase II
  March 29, 2000	$130,850,000.00	2000 Series A
  April 11, 2001	100,000,000.00	2001 Series A
  April 18, 2002	100,000,000.00	2002 Series A

  The seven series of DSC bonds issued total $718,427,146.50 in face value, of which $712,000,000 was available for UCONN 2000 Project spending. The balance, together with accrued interest and net original issue premium, funded the costs of issuance.

  On July 1, 2002, the Ninth Supplemental General Obligation Debt Service Commitment Indenture became effective authorizing $100,000,000 of bond proceeds for UCONN 2000 Project financings. This brought total authorized DSC bond proceeds for Project spending to $812,000,000.

  Project Authorizations
  To date, 47 projects have been authorized to receive General Obligation Debt Service Commitment bond proceed funding: Agricultural Biotechnology Facility Completion; Agricultural Biotechnology Facility; Alumni Quadrant Renovations; Avery Point Marine Science Research Center-Phase I; Avery Point Marine Science Research Center-Phase II; Avery Point Renovation; Benton State Art Museum Addition; Business School Renovation-Phase II; Central Warehouse New; Chemistry Building; Deferred Maintenance & Renovation Lump Sum-Phase I; Deferred Maintenance & Renovation Lump Sum Balance-Phase II; East Campus North Renovations; Equipment, Library Collections & Telecommunications-Phase I; Equipment, Library Collections & Telecommunications Completion-Phase II; Gant Plaza Deck; Gentry Renovation; Heating Plant Upgrade; Hilltop Dormitory Renovations; Ice Rink Enclosure; International House Conversion/(a.k.a. Museum of Natural History); Litchfield Agricultural Center-Phase I; Mansfield Apartments Renovation; Mansfield Training School Improvements; Monteith Renovation; Music Drama Addition; North Campus Renovation; North Superblock Site & Utilities; Northwest Quadrant Renovation-Phase I; Northwest Quadrant Renovation-Phase II; Parking Garage-North; Pedestrian Walkways/(a.k.a. Fairfield Road Pedestrian Mall); School of Business; School of Pharmacy; Shippee/Buckley Renovations; South Campus Complex; Stamford Downtown Relocation-Phase I; Student Union Addition; Technology Quadrant-Phase IA; Technology Quadrant-Phase II; Towers Renovation; Underground Steam & Water Upgrade-PhaseI; Underground Steam & Water Upgrade Completion-PhaseII; Waring Building Conversion; Waterbury Property Purchase; White Building Renovation; and the Wilbur Cross Building Renovation.

  Trustee-Held Construction Fund
  Prior to June 1998, all Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer and treated like State bond proceeds, including payments made to vendors through the Office of the State Comptroller. Subsequently, the Office of the Attorney General opined that the University, and not the State, issues UCONN 2000 bonds. Accordingly, upon advice of bond counsel and in conformity with the Master Indenture of Trust, Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank and disbursed as directed by the University pursuant to the Indenture. Bond proceeds for cost of issuance are still deposited with the Office of the State Treasurer, and disbursed through the Office of the State Comptroller.

  The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University and include certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse payments.

  University Special Obligation Revenue Bonds Secured by Pledged Revenues
  UCONN 2000 also authorizes the University to issue Special Obligation Revenue bonds. Unlike the University’s General Obligation Debt Service Commitment Bonds that are paid from the State’s General Fund, the Special Obligation Bonds are paid from certain Pledged Revenues of the University as defined in the particular bond series indenture.

  A Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the Board of Trustees determines that the Special Obligation bond issue is self-sufficient as defined in the Act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the State Treasurer prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1, annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.

  Student Fee Revenue Bonds have been issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University as Issuer and State Street Bank & Trust as Trustee (“the Special Obligation Master Indenture”). The Master Indenture was approved by the Board of Trustees on November 8, 1996.

  On February 4, 1998, the University issued $33,560,000 of University of Connecticut Student Fee Revenue Bonds 1998 Series A (“SFR 1998-A Bonds”) with a final maturity of November 15, 2027. The Special Obligation First Supplemental Indenture was also dated January 1, 1997 and authorized the issuance of bonds up to a principal amount not to exceed $30,000,000 for construction of the South Campus Residence and Dining Hall, plus amounts necessary to fund a Special Capital Reserve Fund (“SCRF”) and provide for costs of issuance. The University managed the issuance and sale of these bonds and realized a favorable true interest cost over the term. Debt service for these bonds is paid from the student Infrastructure Maintenance Fee instituted in 1997 and other Pledged Revenues as further defined in the Indenture of Trust. Such Pledged Revenues also help support future operation and maintenance costs for facilities built or expanded through UCONN 2000.

  On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A (“SFR 2000-A”) pursuant to the Special Obligation Master Indenture, and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture dated as of May 1, 2000. Bond proceeds funded $87,000,000 of construction for the Hilltop Dormitory, Hilltop Student Rental Apartments, and Parking Garage South and also provided for capitalized interest and costs of issuance. The $89,570,000 SFR 2000 Bonds were defeased in substance on February 27, 2002, as further described below, and are no longer reflected as outstanding debt on the University’s financial statements.

  On February 14, 2002, the University issued $75,430,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Fourth Supplemental Indenture, dated as of November 16, 2001. Bond proceeds funded Alumni Quadrant Renovations, Shippee/Buckley Renovations, East Campus North Renovations, Towers Renovations (including Greek Housing), and North Campus Renovations (including North Campus Student Suites and Apartments).

  On February 27, 2002, the University issued $96,130,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Refunding Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Third Supplemental Indenture, dated as of February 1, 2002. Bond proceeds were used to take advantage of favorable market conditions to advance refund and defease in substance all of the $89,570,000 of Student Fee Revenue Bonds 2000 Series A bonds outstanding. Proceeds were deposited with the Trustee bank in an irrevocable escrow fund sufficient to satisfy future debt service and call premiums on the prior issue.

  ABOVE: The extension of Bolton Road, connecting Route 195 with Hillside Road, will be completed by early November. The new road is expected to lead guests to the Nathan Hale Inn and Conference Center while easing the traffic burden on area residents.	ABOVE:The historic Farwell Barn, located near Horsebarn Hill, is being restored. Work to return the more than 80 year-old barn and silo to its original post and beam style is expected to be completed by early November.

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  Credit Ratings
  Since the inception of UCONN 2000, the University’s bond issues have experienced credit rating category upgrades. The capital markets have recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals of the program, as well as the University’s success in implementing them. An improved credit rating not only provides the State and the University with less expensive access to the capital markets but also supports the State’s quality reputation among investors. During fiscal year 2002, the University marked a milestone with the achievement of the high-grade credit rating category from Moody’s Investors Service for both its General Obligation and Special Obligation bonds (“Aa2” and “Aa3”, respectively).

  As of March 2002, the UCONN 2000 Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa2” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. In addition to the underlying credit ratings, “AAA” rated municipal bond insurance secures certain maturities. Also the University’s Special Obligation Bonds (Non-SCRF) were rated “AA-” by Standard & Poor’s and “Aa3” Moody’s Investors Service. Fitch Investors Service does not rate the Special Obligation bonds. Highlights of the University’s credit rating history are shown below:

  • February 1996: the first issue of the University’s General Obligation Bonds secured by the State’s Debt Service Commitment carried underlying ratings of “A1” by Moody’s Investors Service, “AA-” by Standard & Poor’s and “AA-” by Fitch.
  • February 1998: the first issue of UCONN 2000 Special Obligation bonds depended upon the State’s SCRF credit rating. An underlying “stand alone” credit rating was not available for this nascent program. At the time of issuance, the State SCRF enhancement allowed the bonds to obtain a “AA-” rating from Standard & Poor’s, “AA-” from Fitch Investors Service, and “A-1” from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” at Fitch and Standard & Poor’s and “Aaa” at Moody’s Investors Service.
  • October 1998: Standard & Poor’s upgraded the UCONN 2000 General Obligation DSC Bonds and the UCONN SFR 1998-A (SCRF) bonds to “AA” from “AA-“.
  • March 2000: Moody’s upgraded UCONN 2000 General Obligation DSC Bonds to “Aa3” from “A1”.
  • June 2000: the University achieved a milestone with its first underlying Special Obligation Bond “stand alone” credit rating of “AA-” (S&P), and an “A1” (Moody’s).
  • February 2001: UCONN 2000 General Obligation DSC Bonds were upgraded to “Aa2” from “Aa3” by Moody’s. In April 2001, the General Obligation DSC 2001 Series A bonds were sold without any bond insurance security enhancement on any maturity, another successful first-time accomplishment for the UCONN 2000 bond program. UConn’s SFR 1998-A Bonds, which are secured by the State SCRF, were upgraded at this time to “Aa3” from “A1” by Moody’s.
  • January 2002: UConn’s 2000 Special Obligation Bonds (Non-SCRF) were upgraded to “Aa3” from “A1” by Moody’s. This graduated UConn’s Special Obligation bonds to Moody’s “high-grade” bond category and impacted the underlying credit on all outstanding Special Obligation Student Fee Revenue Bonds. (The $33.6 million Special Obligation Student Fee Revenue Bonds Series 1998-A bonds which are secured by the State’s SCRF already carried the “Aa3” rating.) This high rating was assigned a stable outlook and represented a positive judgment by the capital markets regarding UConn’s financial strength, real and potential growth as an institution, and management.
  • August 2002: Reflecting the outlook changes for the State’s General Obligation Bonds, Moody’s and Standard and Poor’s both moved their outlook from “stable” to “negative” for UCONN 2000 General Obligation DSC Bonds while retaining their respective credit rating levels at “Aa2” and “AA”. Fitch took no action. In a sign of confidence for the University’s management and growth potential, Moody’s and Standard & Poor’s kept UConn’s Special Obligation Bond ratings levels and stable outlook unchanged.

  Future Bond Issues
  The University anticipates offering a Debt Service Commitment Bond issue during Spring 2003 to fund an expected $100 million of UCONN 2000 Projects. Generally, the University plans on issuing a series of new money Debt Service Commitment bonds about every twelve months.

  The passage of 21st Century UConn allows for the eventuality of future bond issues secured by the State’s Debt Service Commitment, phasing in during Fiscal Year 2005.

  Additionally, the University could issue Special Obligation Revenue bonds for certain projects that have a financial self-sufficiency capacity, and/or if aggregate pledged revenues are sufficient to meet requirements of the Special Obligation Indenture. Depending on market conditions and other factors, the University also might issue either General Obligation or Special Obligation refunding bonds in the future.

  Debt Service
  The State General Fund pays the debt service on the University’s General Obligation Debt Service Commitment Bonds. The University pays the debt service on the Special Obligation Student Fee Revenue Bonds from its own resources. For all the UCONN 2000 General Obligation Debt Service Commitment securities issued since the program’s inception in 1996 to October 2002, debt service totals $718.4 million of principal and $368.2 million of interest (including capital appreciation bonds). As of October 31, 2002 there will be $610.6 million of principal outstanding. For the UCONN 2000 Special Obligation Student Fee Revenue securities debt service amounts to $205.1 million of principal and $179.8 million of interest over the course of the maturity spectrum, and net of defeased bonds. As of October 31, 2002 there will be $201.2 million of principal outstanding. The Special Obligation bonds incur proportionally more interest expense because they are generally issued for terms of up to thirty years compared to twenty years for the Debt Service Commitment bonds.

  UCONN 2000 Bond Proceed Investments
  The investment of Tax-exempt bond proceeds is heavily regulated by the Internal Revenue Service, the relevant Indentures of Trust with bondholders, Connecticut law, and other regulatory mechanisms. In addition to meeting those requirements, the University’s general investment policy is to balance an appropriate risk-return level, heavily weighted towards safety of assets, with estimated cash flow needs and liquidity requirements. The University is also mindful that the rating agencies, bond buyers, and bond insurers often weigh the quality of an issuer’s investment portfolio.

  To date the University has directed the Trustee Bank to invest any Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund (“STIF”) which is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields. The DSC Cost of Issuance account, a much smaller account, is held and invested by the State Treasurer’s Office.

  Similarly, the University has directed the Trustee Bank to invest all the Special Obligation new money bond proceeds in dedicated STIF accounts, with the exception of the 1998 Special Obligation Special Capital Reserve Fund which is invested in longer term “AAA” rated federal agencies’ fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust.

  The Special Obligation Student Fee Revenue Refunding Series 2002-A proceeds, other than the cost of issuance and debt service accounts that are invested in STIF, are held by the Trustee Bank in an irrevocable escrow fund, which is invested in U.S. Treasury State and Local Government Securities (“SLGS”) and cash pursuant to the Escrow Agreement.

  UCONN 2000 Bond Proceed Investment Earnings
  The Debt Service Commitment bond proceeds investment earnings are retained by the Office of the State Treasurer and do not flow to the University or to the Trustee Bank.

  Fiscal Year 2002 UCONN 2000 Special Obligation Student Fee Revenue Bonds investment earnings amounted to approximately $1.1 million (cash basis). The Student Fee Revenue Bonds investment earnings are part of the Pledged Revenues and are directly retained by the Trustee Bank to pay debt service on the bonds, and may also be used to flow to other Trustee bond accounts, if necessary, pursuant to the Indenture of Trust.

  The investment earnings on the Special Obligation Student Fee Revenue Series 2002-A Escrow Account flow to the irrevocable escrow and are used by the Trustee Bank to meet debt service payments on the defeased bonds.

  UCONN 2000: PRIVATE FINANCIAL SUPPORT

  The University of Connecticut Foundation, Inc. reported at the close of fiscal year 2002 on June 30, 2002, that a total of $43.3 million gifts were received.

  Progress toward Campaign UConn’s $300 million goal continues on target, with $202.3 million already raised. The Campaign, which began in July 1998 and concludes in June 2004, is the largest ever undertaken by a public research university in New England. It seeks to raise $75 million for merit and need-based scholarships, $75 million for faculty support, and $150 million for program support. Since the Campaign began, a total of 292 endowments have been established, including 62 in the past fiscal year alone, highlighted by the creation of two faculty chairs in the School of Business and three at the Health Center.

  The state of Connecticut’s matching endowment gift program continues to have a significant impact in raising private support for the University. The legislature authorized during its 2002 session a $10 million bond issue to provide funding for the state matching endowment funds.

  Significant Commitments
  Sandra Dobrowolsky ’81 and Steven Perlman committed $200,000 to establish the Dobrowolsky Family Day of Pride Scholarship Fund. This prestigious scholarship will provide financial support to help recruit and retain academically talented students for the University.

  Mrs. Jan Youngblood Hall pledged $125,000 to establish the John M. Hall Memorial Athletic Scholarship Fund in memory of her late husband. The scholarship will provide financial support for student-athletes participating in varsity intercollegiate athletics in the University’s Division of Athletics.

  Sudhakar V. Shenoy ’73 committed $100,000 to provide additional seed money within the School of Business for a number of important initiatives in technological entrepreneurship.

  The estate of Alice Norian is providing more than $440,000 for the Armenian Studies Program within the School of Social Work. The funds will be used to support a lecture and student-faculty exchange program.

  The estate of Samuel “Sy” Birnbaum is providing $250,000 to fund the Ida, Louis and Richard Blum/Samuel “Sy” Birnbaum Endowed Chair in Psychiatry at the UConn Health Center.

  The Gary A. Epling Scholarship was established in memory of the former professor and head of the Chemistry department. It will provide financial support for students enrolled in the College of Liberal Arts and Sciences with priority consideration given to students with a major or minor in Chemistry.

  The Spirer/Dueker Humanitarian Achievement Endowment Fund was established to provide financial support to full time students at the University who have engaged in humanitarian activity promoting the public good during the preceding twelve months. Thus far, $11,000 has been contributed.

  The William Gasparrini, Sr. Family Trust Fund for Italian Studies was established with a $25,000 commitment to provide financial support for programs at the College of Liberal Arts and Sciences, Department of History, for Italian Studies program.

  The Nugget Fund was established with a commitment of $25,000 to provide financial support for programs in the Department of Geology and Geophysics within the College of Liberal Arts and Sciences.

  The Lander Family Scholarship Fund was established with a $25,000 commitment to provide financial support for undergraduate students enrolled in the Marketing Department in the School of Business.

  Private support plays a critical role in providing the “margin of excellence” expected of a nationally recognized flagship university. Thanks to the generosity of our donors, these gifts are having a lasting impact by making more scholarships available to attract and retain the best students, by providing support to attract the best scholars to supplement our corps of excellent faculty, and by supporting programs and new initiatives.

CURRENT PROJECT STATUS: PHASE I (As of October, 2002)

CURRENT PROJECT STATUS: PHASE II (As of October, 2002)

CURRENT PROJECT FUND SOURCES: PHASE I (As of October, 2002)

CURRENT PROJECT FUND SOURCES: PHASE II (As of October, 2002)

CHARTS

Construction began in August 2001 on a new building for the School of Engineering’s Information Technology program. The main building will be completed in January 2003 and the lecture hall in June 2003. A rendering of the building is also in this report.

UCONN 2000: THE UPDATE

This is the fourteenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required four-year a progress report, which was filed on January 15, 1999.

On June 22, 1995, Governor John G. Rowland signed UCONN 2000 into law at a ceremony in front of Babbidge Library, the symbol of the University’s crumbling infrastructure. Through UCONN 2000, the executive and legislative branches recognized and addressed the University’s need for a comprehensive infrastructure renewal program to attract Connecticut’s high-achieving students, educate a top-notch workforce and compete effectively for job-creating research grants. The legislative program was designed to rebuild, restore and enhance the University’s physical infrastructure, but it was also designed to enhance programmatic excellence by jump-starting the University’s private fundraising efforts with an endowment matching grant program. The overwhelming bipartisan support for UCONN 2000 reflected the depth of consensus regarding the goals as articulated in the law’s statement of purpose:

The purpose of the University of Connecticut 2000 Act is to promote the welfare and prosperity of the people of the state and the continuation and improvement of their educational opportunities by approving a special capital improvement program for the University of Connecticut and enabling the University of Connecticut to borrow money and enter into financing transactions in its own name, on behalf of the state, to expand the authority of the University of Connecticut to construct projects and to assure a state commitment to support the financing of the acquisition, construction, reconstruction, improvement and equipping of facilities, structures and related systems for the benefit of the educational and economic development needs of the state and the University of Connecticut, all to the public benefit and good, and the exercise of the powers, to the extent and manner provided in the University of Connecticut 2000 Act, is declared to be for a public purpose and to be the exercise of an essential governmental function.

Thus far, the following has been accomplished through the UCONN 2000 program:

• $700 million has been authorized in bonds with state debt service commitment.
• $199 million in special obligation bonds has been authorized, with debt to be repaid by the University from room/board and fee proceeds. Recently, Moody’s Investors Service upgraded the University’s bond rating to Aa3, or “high grade,” its second highest category. This occurred despite its January 2002 report indicating a generally gloomy forecast for the higher education sector.
  
• Of $595 million in construction-related contracts (i.e. exclusive of equipment) to date, 83% of all funds have been contracted to Connecticut businesses, and 26% to set-aside (minority- and women-owned and small business) contractors.
• Over 100 projects have been completed to date, including a new Chemistry building, a new downtown Stamford campus, a new Marine Science building at Avery Point, a new Business School building, an expanded Fine Arts complex, a new Biology and Physics building, a renovated Wilbur Cross library to serve as a one-stop-shopping center for student services, a new Agricultural Biotechnology building completed with an addition already underway, new residence and dining halls at Hilltop, South and Northwest campus, an aggressive sprinkler and smoke alarm program that has made UConn dorms among the safest in the country, a new Dairy Bar, a new Visitors Center, new facilities for parking and for the UConn Co-op, a new ice rink, a revamped field house, a beautiful pedestrian campus core, new shuttle roadways, high-tech classroom and laboratory renovations too numerous to mention, and state-of-the-art energy-efficient utility infrastructure.
• Currently under construction or in design are a center for undergraduate academic services, a renovated and expanded Student Union, an Information Technology Engineering building, a new downtown campus in Waterbury, a new Pharmacy and Biology building, and another 1200 beds in new residence halls.
• This year’s freshman class is the largest ever in the University’s history. Since the fall of 1995 at UConn’s main campus:
  • Freshman enrollment has increased 56%.
  • Minority freshman enrollment has increased 62%.
  • Average SAT scores have risen almost 30 points.
  • Freshman enrollment in the honors program has increased 50%.
  • 314 valedictorians and salutatorians have joined the student body.
  • Student athletes have won 47 Big East regular season and/or tournament championships, appeared in 33 NCAA tournaments, reached 10 Final Fours, and brought home to Connecticut four national championships.
• Virtually every Connecticut town has a student enrolled at UConn. Our 2001-02 cost of $12,122 for Connecticut undergraduates has been assessed an excellent educational value by financial analysts. In addition, over two-thirds of UConn’s students receive some form of financial assistance; in the current year this amount totals almost $142 million. This year the University will dedicate 38% ($47 million) of its tuition fund to financial aid.
• UConn is consistently ranked by U. S. News and World Report, America’s Best Colleges, as New England’s top public university. In 2002, U. S. News reported that the University catapulted 10 positions (to #28), representing the largest rankings jump among the top 50 national public universities ranked in 2001.
• Since 1995, the University’s endowment has grown from $50 million to over $210 million today. Annual gift receipts, at $8.2 million in 1995, were at $50.6 million in 2001 a remarkable 37% increase over the prior year. In addition, UCONN 2000 has spurred other forms of private investment, such as the construction of the Nathan Hale Inn and Conference Center on the Storrs campus.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

• PLANNING, DESIGN AND MANAGEMENT
  • At the November 16, 2001 Board of Trustees meeting the Fourth Supplemental Indenture authorizing $72,180,000 of the University of Connecticut Special Obligation Student Fee Revenue Bonds was approved. This issuance financed the following projects:
    

    Projects	Amounts
    Alumni Quadrant Renovations	$ 7,000,000
    Shippee/Buckley Renovations	5,000,000
    East Campus North Renovations	1,000,000
    Towers Renovations	2,180,000
    Greek Housing	12,000,000
    North Campus Student Suites & Apartments	45,000,000

  • These funds are being used to augment UCONN 2000 debt service commitment funds to provide additional bed space and renovations to existing dorms and dining facilities.
  • North of the Towers Dorm complex, the University will be building a centralized complex to house the University’s fraternities and sororities. This complex will provide housing for 300 students. The Environmental Impact Evaluation for the project has been completed and is being circulated for public comment. The project is out to bid for the selection of the design/build team. Construction on the project will begin later in spring 2002 with completion at the start of the fall 2003 semester. The project budget of $12 million is funded through this Fourth Supplemental Indenture.

    This rendering depicts a new central dining facility at the Towers Dorms which will replace the current six small dining facilities and serve as a dining facility for the new Greek Housing Complex. Construction is scheduled to begin in June 2002.

  • Renovations and installation of sprinklers for Alumni Quad, Shippee/Buckley, and East Campus North (Hicks and Grange) are in the final stages of design. At the end of the spring semester, construction will begin on the project with completion at the start of the fall 2002 semester. Funding for the project comes from a combination of funds from the Fourth Supplemental Indenture and UCONN 2000. The construction manager for the project is Whiting Turner of New Haven.
  • Contract documents are being prepared for a new central dining facility at the Towers Dorms. This facility will replace the current six small dining facilities and provide a dining facility for the new Greek Housing Complex. Construction will begin in June 2002 with completion set for August 2003 for the start of the fall semester. Funds for the project come from a combination of UCONN 2000 and Dining Services operating funds. The construction manager for the project is Whiting Turner of New Haven.
  • Contract documents are being prepared for the construction of 500 beds of apartment style housing and 500 beds of suite style housing to be located north of Northwest Quad Dorms. The floor plans for these suites will be similar to those at Hilltop Apartments and the Hilltop Suites. Funding for the project is coming from the Fourth Supplemental Indenture. Debt service will be paid by room fees. Construction on the project will begin in May 2002 with completion scheduled for the start of the fall 2003 semester. The design build firm is JPI of Irving, Texas.
  • Construction documents are being finalized for renovations of locker rooms, training facilities and coaching offices for the basketball teams. Construction will begin in April 2002 with completion set for October 2002. Funds for the project are coming from a combination of private fundraising and UCONN 2000. Architects for the project are Jeter Cook & Jepson of Hartford. The construction manager is O&G Industries of Torrington.
  • Development of a Cogeneration/Central Chilled Water Facility is out to bid. Such a facility could produce electricity for the Storrs campus, and the secondary waste heat could provide heating, hot water or cooling for the campus. The bid process has been undertaken as a prerequisite to determining the feasibility and advisability of moving to cogeneration. Data from the bid process will further inform a cost/benefit analysis that will enable the University Board of Trustees to make a determination whether to proceed with cogeneration.
  • At the January 18, 2002 Board of Trustees meeting, a Student Union Building fee was approved that will provide $5,000,000 of the funding necessary to implement the full project scope of the Student Union renovation and expansion. This fee revenue would be in addition to the UCONN 2000 funding of $35,000,000 for the Student Union Renovation/Addition.

    Models for the addition and renovation of the Student Union offer two views: from the Student Union Mall (top); and from Hillside Road near Gampel Pavilion. The work will nearly double the size of the 50-year-old building.

  • Contract documents are being finalized for the Student Union project, which will include major renovations and additions to the current facility. The primary goal of the project is to expand the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, student activity meeting space, a ballroom and a central post office for all student mail. This facility also will provide new space for each of the campus’ cultural centers. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston. Konover Construction of West Hartford is the construction manager for the project. It is anticipated that construction will begin in May 2002.
  • An Environmental Impact Evaluation (EIE) is being prepared for the construction of Graduate Student Apartments. This project would provide for 500 to 1000 beds of apartment style housing. Two potential sites are being evaluated: one, west of the University’s Northwood Apartments and the other, east of the Storrs commercial block. Baystate Environmental Consultants was hired to conduct the EIE that is anticipated to be finished in June 2002. As part of the evaluation of the site by the commercial block, the cumulative environmental impact of the Storrs Center redevelopment project will be examined.

    Preliminary plan for the revitalization of downtown Storrs.

  • Contract documents are being prepared for renovations to the former School of Business building. The purpose of this project is to transform the old facility into a new Center for Undergraduate Education that will provide a centralized location for academic support for students as well as instructional support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, the Institute for Teaching & Learning, the Study Abroad program, the Urban Semester program, the Center for Community Outreach, the Instructional Research Center, Honors Program, and Learning Research Center. Due to competing needs, the budget for the project has been reduced to $11,000,000. The architect for the project is Svigals Associates of New Haven. It is anticipated that construction will begin in May 2002. The construction manager for the project is Gilbane of Glastonbury.
  • As part of the overall building and renovation program, the University continues the process of standardizing building systems and system components (e.g., electrical circuitry, panel boxes, etc.). This process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance and lower overall costs.
  • Design development drawings are under review for the new School of Pharmacy/Biology building. The project involves the construction of a 120,000 square foot building for teaching and research for the Pharmacy program and the creation of an 80,000 square foot building of research space for the Biology program. Also included in the project is a consolidated animal care facility for the research programs in this area of the campus. The architect for the project is Davis, Brody, Bond of New York City. Gilbane, of Glastonbury, is the construction manager for the project.
  • Preparation of contract documents for renovations to the Neag School of Education’s Gentry building are underway. The project scope includes complete renovation of the building’s interior along with exterior improvements of the faìade and roof and an addition to the building. The architect for the project is Svigals Associates of New Haven. Gilbane, of Glastonbury, is the construction manager on the project. It is anticipated that construction on the project will begin in August 2002.
  • Design activities are underway for an addition to the Benton Museum. This $1.5 million project is funded through a combination of UCONN 2000 funds ($700,000) and private gifts. Arbonies King Vlock of Stony Creek are the architects for the project.

• CONSTRUCTION
  • Contract documents are being prepared for renovations at the School of Law that will provide for the phased renovations of facilities including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven. The construction manager is Dimeo Construction of New Haven.
  • Construction has begun on the Waterbury Downtown campus project. The project will involve relocation of the Waterbury regional campus from its present Hillside location to East Main Street. The existing academic programs, along with additional Bachelor of Business and MBA programs, will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford. Although not part of UCONN 2000 funding, legislation provides that the project will be managed by the University under the authority set forth in UCONN 2000. O & G Industries of Torrington is the construction manager for the project. The new campus is scheduled to open in the fall 2003 semester.

  • Construction has begun on the completion of the Agricultural Biotechnology facility. A $7,770,682 Department of Energy Grant, along with $3,000,000 from UCONN 2000, will fund this second phase of the project. The University has already occupied the completed first building. The project includes construction of a second building (approximately 16,000 sq. ft.) and a new greenhouse facility (approximately 14,000 sq. ft.) as provided in the original project and the Master Plan. The facility will provide research and incubator space. Architects for the project are Svigals Associates of New Haven, and the construction manager is Turner Construction of Milford. Construction will be completed in July 2002.

    ABOVE: Construction of Phase II of the Agricultural Biotechnology Facility is underway. The second building will provide further research and incubator space. A new greenhouse will be attached to the first building.BELOW: This early rendering of the Agricultural Biotechnology facility depicts the location of the greenhouses which will be attached to the first building. The height of the second building has been increased from the original plan. The facility is scheduled for completion in July 2002.

  • Construction began in August 2001 on a new building for the School of Engineering’s Information Technology program. This facility has approximately 94,000 gross square feet of classrooms, research lab and office space, and a 350-seat lecture hall. The architect for the project is Burt Hill Kosar Rittlemann of Washington, DC. The construction manager for the project is O & G Industries of Torrington. The main building will be completed in January 2003 and the lecture hall in June 2003.

    This rendering depicts the new building for the School of Engineering’s Information Technology program. The new School of Business is to the right. Construction (pictured above) began in August 2001.

  • Installation of new exterior signage has been completed at the main campus and the Health Center. The law school and regional campuses will see their new signs beginning in May 2002. The purpose is to incorporate signage that will provide a unified look and better directional information to visitors at all of the University’s campuses.
  • Phase I of the Wilbur Cross renovation was completed in July 2001. This project locates all business functions relating to student services in one central, customer-friendly location. These functions include financial aid, bursar, registrar, dining services, residential life, and services to students with disabilities. The contractor for the project is Aspinet Construction of Avon. The remainder of the project will be completed in July 2002. As part of the rejuvination of one of the campus’ most important old buildings, a new slate roof is being installed along with masonry repairs and window replacement in the original wing.

  • Construction was completed for the second parking garage, located next to the Gampel Pavilion, in September 2001. The cost of the project is borne by a special obligation bond issued under UCONN 2000 authority. Revenue to support the debt service will come from parking and transportation fees. The facility contains 1547 parking spaces and 53,000 gross square feet of retail space for the UConn Co-op. The Co-op space will be completed in June 2002. The contractor for the project is Manafort Brothers of New Britain.

    The new UConn Co-op, scheduled for completion in June 2002, is attached to the South Parking Garage, located next to the Harry A. Gampel Pavilion. The garage opened in September.

  • Construction activity continues on the Biological Sciences project. These activities began when the University and Liberty Mutual, the Surety that held the payment and performance bond for the project, came to a fronting agreement whereby the Surety agreed to pay the University $25,350,000 to complete the project. The University terminated the original contractor on February 4, 2000. Grounds for this termination included: unqualified general contractor staffing, removal of key personnel, unauthorized substitutions, subcontractor mismanagement, schedule-failure to comply with contract requirements, failure to prosecute the work, subcontractor payment irregularities, inadequate staffing/manning, change order processing failures, disregard for University property, refusal/delay in allowing document review, failure to timely provide general conditions documents, inadequate quality control, and inadequate safety supervision. Turner Construction of Milford is the construction manager on the project. It is anticipated that the project will be completed in January 2003.

    Construction continues on the Biological Sciences project. The 145,000-square-foot building is scheduled completion in January 2003.

  SET-ASIDE CONTRACTOR SUMMARY

  Public Act 99-241 called for, among other things, information on the use of Connecticut-owned businesses on UCONN 2000 program projects, including those owned by women and minorities. Since FY 1996, construction and related contracts for the UCONN 2000 program totaled $595.2 million. Twenty-six percent of this total, or $152.5 million, has gone to set-aside general contractors, contracted architects and engineers, and subcontractors. In this period, Connecticut businesses have accounted for $492.6 million or 83% of the total contracted dollars. Small business participation has amounted to $81.1 million and minority- and women-owned participation has accounted for $71.5 million.

  FINANCE

  Phase I Debt Service Commitment Bond Issues Completed
  Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds” or “DSC Bonds”). These Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer and Fleet National Bank of Connecticut as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995 and the State Bond Commission on December 21, 1995. UConn’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The University and Office of the State Treasurer, working in conjunction, manage the Debt Service Commitment Bond sale process. University General Obligation Debt Service Commitment Bonds issues to date are summarized below:

  Date of Issue	Par Amount	General Obligation Bond Issue
  Phase I
  February 21, 1996	$ 83,929,714.85	1996 Series A
  April 24, 1991	124,392,431.65	1997 Series A
  June 24, 1998	99,520,000.00	1998 Series A
  April 8, 1999	79,735,000.00	1999 Series A
  Phase II
  March 29, 2000	$130,850,000.00	2000 Series A
  April 11, 2001	100,000,000.00	2001 Series A

  The six series of DSC bonds issued were $618,427,146.50 in face value, of which $612,000,000 was for UCONN 2000 projects. The balance, together with accrued interest and original issue premium, funded the cost of issuance in conjunction with the Office of the State Treasurer.

  Trustee-Held Construction Fund
  Prior to June 1998, all Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer and treated like State bond proceeds, including payments made to vendors through the Office of the State Comptroller. Subsequently, the Office of the Attorney General determined that the University, not the State, issues UCONN 2000 bonds. Accordingly, upon advice of bond counsel and in conformity with the Master Indenture of Trust, Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank. Bond proceeds for cost of issuance are still deposited with the Office of the State Treasurer, and disbursed through the Office of the State Comptroller. To date the University has directed the Trustee Bank to invest any Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund (STIF) which is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields.

  The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University and include certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse payments.

  University Special Obligation Revenue Bonds Secured by Pledged Revenues
  UCONN 2000 also authorizes the University to issue Special Obligation Revenue bonds. Unlike Debt Service Commitment Bonds, paid from the State’s General Fund, these bonds are paid from pledged revenues of the University as defined in the particular bond series indenture.

  A Special Capital Reserve Fund may be established for University Special Obligation bond issues only if our Board of Trustees determines that the Special Obligation bond issue is self-sufficient as defined in the Act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the State Treasurer prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1, annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.

  Student Fee Revenue Bonds are issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University as Issuer and State Street Bank & Trust as Trustee (“the Special Obligation Master Indenture”). On November 8, 1996, the University’s Board of Trustees approved the Special Obligation Master Indenture along with the Special Obligation First Supplemental Indenture also dated January 1, 1997 that authorized issuance of bonds up to a principal amount not to exceed $30,000,000 for construction of the South Campus Residence & Dining Hall, plus amounts necessary to fund a Special Capital Reserve Fund (“SCRF”) and provide for costs of issuance.

  On February 4, 1998, the University issued $33,560,000 of University of Connecticut Student Fee Revenue Bonds 1998 Series A (“SFR 1998-A Bonds”) with a final maturity of November 15, 2027. The University managed the issuance and sale of these bonds and realized a favorable true interest cost over the term. Debt service for these bonds is paid from the student Infrastructure Maintenance Fee instituted in 1997 and other Pledged Revenues as further defined in the Indenture of Trust. Such Pledged Revenues also help support future operation and maintenance costs for facilities built or expanded through UCONN 2000. The University invested the bond proceeds in the State Treasurer’s Short Term Investment Fund (“STIF”) and, in regard to the Special Capital Reserve Fund, also in longer term “AAA” rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust.

  On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A (“SFR 2000-A”) pursuant to the Special Obligation Master Indenture, and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture dated as of May 1, 2000. Bond proceeds funded $87,000,000 of construction for the Hilltop Dormitory, Hilltop Student Rental Apartments, and Parking Garage South and also provided for capitalized interest and costs of issuance, all of which was invested in STIF. The $89,570,000 SFR 2000 Bonds were defeased on February 27, 2002, as further described below, and will no longer be reflected as outstanding debt on the University’s financial statements.

  On February 14, 2002, the University issued $75,430,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Fourth Supplemental Indenture, dated as of November 16, 2001. Bond proceeds funded Alumni Quadrant Renovations, Shippee/Buckley Renovations, East Campus North Renovations, Towers Renovations (including Greek Housing), and North Campus Renovations (including North Campus Student Suites and Apartments).

  On February 27, 2002, the University issued $96,130,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Refunding Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Third Supplemental Indenture, dated as of February 1, 2002. Bond proceeds were used to take advantage of favorable market conditions to advance refund and defease all of the $89,570,000 of Student Fee Revenue Bonds 2000 Series A bonds outstanding.

  Credit Ratings
  Since the inception of UCONN 2000, the University’s bond issues have experienced credit rating upgrades. Capital markets have recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals of the program, as well as the University’s success in implementing them. An improved credit rating not only provides the State and the University with less expensive access to the capital markets but also supports the State’s quality reputation among investors. This year, the University marked a milestone with the achievement of the high-grade credit rating category from Moody’s Investors Service for both its General Obligation and Special Obligation bonds (“Aa2” and “Aa3”, respectively).

  As of March 2002, the UCONN 2000 Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa2” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. In addition to the underlying credit ratings, “AAA” rated municipal bond insurance secures certain maturities. Also the University’s Special Obligation Bonds (Non-SCRF) were rated “AA-” by Standard & Poor’s and “Aa3” Moody’s Investors Service. Fitch Investors Service does not rate the bonds. Highlights of the University’s credit rating history are shown below:

  • February 1996: the first issue of the University’s General Obligation Bonds secured by the State’s Debt Service Commitment carried underlying ratings of “A1” by Moody’s Investors Service, “AA-” by Standard & Poor’s and “AA-” by Fitch.
  • February 1998: the first issue of UCONN Special Obligation bonds depended upon the State’s SCRF credit rating. An underlying “stand alone” credit rating was not available for this nascent program. At the time of issuance, the State SCRF enhancement allowed the bonds to obtain a “AA-” rating from Standard & Poor’s, “AA-” from Fitch Investors Service, and “A-1” from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” at Fitch and Standard & Poor’s and “Aaa” at Moody’s Investors Service.
  • October 1998: Standard & Poor’s upgraded the UCONN General Obligation DSC Bonds and the UCONN SFR 1998-A (SCRF) bonds to “AA” from “AA-“.
  • March 2000: Moody’s upgraded UCONN’s General Obligation DSC Bonds to “Aa3” from “A1”.
  • June 2000: the University achieved a milestone with its first underlying Special Obligation Bond “stand alone” credit rating of “AA-” (S&P), and an “A1” (Moody’s).
  • February 2001: UCONN’s General Obligation DSC Bonds were upgraded to “Aa2” from “Aa3” by Moody’s. In April 2001, the UCONN General Obligation DSC 2001 Series A bonds were sold without any bond insurance security enhancement on any maturity, another successful first-time accomplishment for the UCONN 2000 bond program. UCONN’s 1998 Special Obligation Bonds (SCRF) were upgraded to “Aa3” from “A1” by Moody’s.
  • January 2002: UCONN’s Special Obligation Bond (Non-SCRF) were upgraded to “Aa3” from “A1” by Moody’s. This graduated UCONN’s Special Obligation bonds to Moody’s “high-grade” bond category and impacted the underlying credit on $171.5 million of outstanding Special Obligation Student Fee Revenue Bonds. (The $33.6 million Special Obligation Student Fee Revenue Bonds Series 1998-A bonds which are secured by the State’s SCRF already carried the “Aa3” rating.) This high rating carries a stable outlook and represents a positive judgment by the capital markets regarding UConn’s financial strength, real and potential growth as an institution, and management.

  Future Bond Issues
  At the time this report was being prepared for submission, the University was engaged in the issuance process for its UCONN 2000 General Obligation Bonds Series 2002-A to fund an expected $100 million of UCONN 2000 Projects. Additionally, the University anticipates offering a Debt Service Commitment Bond issue during the spring of 2003 to fund an expected $100 million of UCONN 2000 Projects. Generally, the University plans on issuing a series of new money Debt Service Commitment bonds about every twelve months. Also, the University could issue Special Obligation Revenue bonds for certain named projects with capacity for financial self-sufficiency, and/or if aggregate pledged revenues are sufficient to meet requirements of the Special Obligation Indenture. Depending on market conditions and other factors, the University also might issue either General Obligation or Special Obligation refunding bonds in the future.

  PRIVATE FINANCIAL SUPPORT

  The University of Connecticut Foundation, Inc. reported that as of February 28, 2002, gifts and receipts for fiscal year 2002 total $25.4 million and progress toward the $300 million Campaign UConn goal stood at $181.4 million. The Campaign, which began in July 1998 and concludes in June 2004, is the largest ever undertaken by a public research university in New England. It seeks to raise $75 million for merit and need-based scholarships, $75 million for faculty support, and $150 million for program support.

  The State of Connecticut’s matching endowment gift program continues to have a significant impact in raising private support for the University. Despite a difficult economy, the total match-eligible gift receipts and commitments for calendar year 2001 totaled nearly $14 million.

  Significant Commitments
  Robert Cizik, Class of 1953, committed an additional $250,000 to the Robert Cizik Manufacturing and Technology Management Fund to support an endowed chair and professorship in the School of Business. These endowments will foster the development of business leaders with solid technology, manufacturing, and business decision-making skills; bring University faculty together who have multi-disciplinary expertise and overlapping interest in technology and manufacturing; and advance UConn’s emergence as a leader in this discipline.

  Roger Tamer committed $245,000 to establish the Tamer Family Endowment for Women’s Basketball. Funds from this general endowment will be used to meet specific program priorities.

  Leslie and Stephen Rothenberg committed $100,000 toward the UConn Orthodontic Alumni/Ravi Nanda Endowment Fund. The fund will provide financial support for an endowed chair in orthodontics within the UConn Health Center’s School of Dental Medicine.

  Wilda Van Dusen committed $1,000,000 to establish an endowment in support of the Albert and Wilda Van Dusen Chair in Academic Medicine at the Health Center’s School of Medicine.

  Philanthropy is enabling UConn to recruit and retain highly talented faculty and support academic research that is spawning breakthroughs in the sciences and new paradigms in the humanities and arts. Likewise, the University is increasingly successful in enrolling outstanding students of diverse backgrounds whose decision to study at UConn is influenced by the quality and breadth of our enhanced academic programs, and availability of merit- and need-based scholarships.

  Contributors invest because they understand the importance of the flagship public university to the state of Connecticut and share in UConn’s vision to be one of the best public research universities in the nation.

CURRENT PROJECT STATUS: PHASE I (As of April, 2002)

CURRENT PROJECT STATUS: PHASE II (As of April, 2002)

CURRENT PROJECT FUND SOURCES: PHASE I (As of April, 2002)

CURRENT PROJECT FUND SOURCES: PHASE II (As of April, 2002)

CHARTS

Table of Contents
I. UCONN 2000: THE UPDATE

II. ACTIVITIES COMPLETED OR UNDERWAY:

• PLANNING, DESIGN AND MANAGEMENT
• CONSTRUCTION
• CONNECTICUT CONTRACTOR SUMMARY
• FINANCE
• PRIVATE FINANCIAL SUPPORT

Attachment A – Budget Adjustments Presented to the Board of Trustees
Attachment B – Animal Facilities Master Plan
Attachment C – Last 3 Year Project Balances
Attachment D – UConn 2000 Project Listing
Attachment E – Capital Budget – FY 1995-96 to FY 2004-05 (All Funds)

III. CURRENT PROJECT STATUS – PHASE I (as of October 2001)
IV. CURRENT PROJECT STATUS – PHASE II (as of October 2001)
V. CURRENT PROJECTS FUND SOURCES: PHASE I (as of October 2001)
VI. CURRENT PROJECTS FUND SOURCES: PHASE II (as of October 2001)
CHARTS

UCONN 2000: THE UPDATE

This is the thirteenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999. The structure of the previous reports is utilized in this report.

As UConn’s enrollment continues to grow, so has the need to provide adequate housing. Residential facilities that have come on-line this fall have increased the range of student housing options. With the completion of the Hilltop Apartment Community and the Hilltop Suites, the University not only added more than 1,400 beds, but also added to the spectrum of housing students may choose from. The former offers apartment-style living for upperclassmen and graduate students and the latter provides suites to complement the standard dormitory room options also available to students.

Significant renovations of residential facilities also have been done. Northwest Campus, the freshman residence complex, was completely refurbished last summer. In this complex, about 950 freshmen are joined by upper-classmen who serve as role models and mentors and help the new students with academic issues. The mentors receive training on how to work with and assist the students. The complex also houses the Academic Center for Entering Students (ACES), which counsels students on academic and career choices, and the First Year Experience Program. On the other side of campus, the Mansfield Apartments were converted into undergraduate and graduate housing.

The upgrade of our residence halls continues to be a priority. Structural improvements were made and fire safety sprinkler systems installed in the McMahon residence halls during the summer, with new lighting, carpets and paint in the hallways and stairwells added at the same time. Sprinkler systems will be installed next summer in the Alumni complex and Buckley and Shippee residence halls. All residence halls are already equipped with smoke detectors and fire alarms as well as automatic door closers. The University is on track with its plan to install sprinklers in all dorms by Fall of 2003.

Top notch residence halls not only help recruit more students but also help the University retain students. The broader concept of what UConn is doing is to match housing to students’ appropriate development levels by:

• clustering freshmen together in structured areas with more programs for new students;

• offering mid-level students options that enhance privacy; and,

• providing opportunities for upperclassmen and graduate students to further increase their independence and take on responsibility as they move toward life after UConn.

The addition this semester of the Hilltop apartments and new residence halls was timed to handle a burgeoning student body, rapid growth that began in 1997. Nearly 9,500 of the current total of more than 14,000 undergraduates live on campus Ñ making UConn a national leader in the percentage of undergraduate students living in University housing.

• PLANNING, DESIGN AND MANAGEMENT
  At the July 24, 2001 Board of Trustees meeting a discussion took place that outlined the funding needs for the remainder of the UCONN 2000 Program. This discussion was a follow-up to the Annual Budget Workshop that took place on June 26, 2001 and was based upon a preliminary plan that had been presented at the November 9, 2000 meeting of the Board of Trustees.The immediate funding needs are shown as revised on Attachment A. Brief descriptions of these needs are as follows:

• Pharmacy/Biology
  After completion of the Tech Quad Biology Building project, staff will be relocated from the Life Science Annex building except for two teaching lab facilities. The Annex building will then be demolished, as it is the site of the new Pharmacy/Biology Building. The original plan proposed that these teaching labs be temporarily placed in a modular facility until Torrey Life Science Building could be renovated. After a thorough analysis and realignment of the scheduling of teaching labs, the need for this additional temporary facility has been eliminated. The funding has been reallocated.
• Technology Phase II/Engineering Large Lecture Hall
  As part of the effort to address the campus-wide need for large lecture hall space, a 350 seat lecture hall is planned as part of the Information Technology Building to be located between the new School of Business building and Babbidge Library. Previously, $1,200,000 of funding had been identified for this project with the need for an additional $2,200,000 to be identified. The lecture hall funding has been included in the project budget for the Information Technology building.
• Gant Plaza
  As part of the Gant Plaza reconstruction, plans call for a facility for the Institute for Material Sciences. This facility would meet two needs: provide needed additional space for one of the University’s most productive research centers and to reduce surface area that is the plaza. The additional costs are based on bids received. This additional amount was included in the revised FY 2000-01 Capital Budget. The project is being completed this summer.
• Wilbur Cross Building Renovations
  The Wilbur Cross renovation, which also required relocation of the Booth Research Center, was bid twice. After the first bid, redesign activities were undertaken to reduce project scope. Then the project was re-bid, and responses demonstrated that, even with reduced scope, $3 million was necessary for project completion in order to meet its purpose to provide one location to meet all of the business service needs of under-graduate students. The additional amount was included in the revised FY 2000-01 Capital Budget, and Phase I of the project has been completed.
• Animal Facilities
  In order for UConn to continue and to expand animal research activities, animal care facilities must be upgraded. The U.S. Department of Agriculture’s inspection of these facilities underscored this need. There are 23 animal care facilities at various locations on campus. Consultants have been retained to assist and evaluate facilities to enable UConn to improve the quality of care, reduce the number of facilities and identify the project scope for necessary physical upgrades. The preliminary cost estimate was $10 million to start work on identified deficiencies. Upon completion of the consultant’s master plan the cost estimate was increased to $20 million. A summary of the recommendations is shown on Attachment B. Appropriate space will be provided through renovation of targeted facilities and expansion of the Pharmacy/Biology building project. Funding is allocated in that project budget and Deferred Maintenance/Renovation Lumpsum projects.
• Book Storage Facility
  Babbidge Library will exhaust available space for the storage of library materials in the next several years. When this occurs, current plans contemplate moving materials to an off-site storage facility. It now appears the need for the facility will not occur during the duration of UCONN 2000 and can be deferred to a future date.
• Lakeside Renovation
  The current facility housing University Communications and Governmental Relations has numerous leaks throughout the roof and faade. It is in such bad condition that significant repair or renovation is not a wise or cost-effective option. The new Hotel, Hilltop Apartments, and Hilltop Dorms will preclude the need for Lakeside to be used for housing overnight University guests and provide appropriate space for University Communications and Governmental Relations. Because of the costs identified with the renovation of the building for these departments and competing needs, lower cost alternatives are being explored. Within Deferred Maintenance/Renov ation Lumpsum, $1,000,000 has been budgeted for a project to meet these departments’ needs.
• New School of Business
  $4.5 million of this $26.6 million project was to be obtained through private fundraising. The project is being completed this summer, and there is a cash flow shortfall ($3 million) in private funds; accordingly, additional funds are needed from UCONN 2000. This amount was included in the revised FY 2000-01 Capital Budget, and will be repaid as private funds are deposited.
• Gentry Renovation
  This project provides for complete renovation of the existing building and a possible addition for the School of Education, which is undertaking a fund raising campaign to supplement UCONN 2000 funding. Their goal is to raise $8 million by June 2002 that, along with the UCONN 2000 funding, would create an $18 million project budget. If funds are not raised by the target date, the project will be done on a $10 million budget.
• Agricultural Biotechnology Facility Completion
  $3 million in UCONN 2000 funds, augmented by a Department of Energy Grant of $7,770,682, will provide for the completion of the Agriculture Biotechnology project. The University already has occupied the first building. This project includes the construction of the second building (approximately 16,000 sq. ft.) and a new greenhouse facility (approx. 14,000 sq. ft.) as envisioned in the original project and the Master Plan. The facility will provide research and incubation space. Also included is space that could potentially be used for the Center for Regenerative Biology. Funding was included in the FY 2001-02 Capital Budget approved by the Board of Trustees at its April 2001 meeting.

To offset the above-mentioned increases in project needs, the administration proposed a reduction of funds for other projects as shown on Attachment A. For three of the projects (Beach Hall Renovation, Manchester/DRM Renovations, and Monteith/Arjona Renovations) work will be deferred to a future date. Also, the bond allocation for the renovation of the former School of Business facility to a Center for Undergraduate Education has been reduced from $15 million to $8 million. When funds become available from private fundraising activities for the new School of Business, these funds will be added to the Center for Undergraduate Education project. In determining need and sequencing, high priority was given to health and safety issues as well as the University’s ability to complete projects appropriately within available funding.

Attachment C identifies project balances for the last three years of UCONN 2000. The funding totals as identified in the law are $100 million for FY 2002-03; $100 million for FY 2003-04; and $50 million for FY 2004-05. Attachment D identifies changes made to the Phase II UCONN 2000 project list since its approval at the May 26, 1999 Board of Trustees meeting. Attachment E lists projects managed by the University since UCONN 2000’s inception in 1995.

Current plans call for the administration to present to the Board of Trustees in Fall 2001 a Third Supplemental Indenture authorizing issuance of University of Connecticut Special Obligation Revenue Bonds to support the following projects:

• Greek Housing
  This project will provide a centralized complex to house University’s fraternities and sororities. The site for the project is north of the Towers Dorms where some chapters have existing houses and would provide housing for approximately 300 students. The Environmental Impact Evaluation for the project is underway, and a consultant has been hired to develop the program, which will be used as a basis to receive bids from Design/Build Teams. The project’s estimated cost is $12 million.
• Improvements to Residence and Dining Halls
  The majority of the funding within UCONN 2000 identified for Residential Life improvements are for code and life safety improvements as presented to the Board of Trustees on November 9, 2000, January 2, 2001 and February 22, 2001. Because of these costs, there is not enough funding available to complete other necessary improvements to the existing facilities. These improvements include such items as:
  • Modernization of community bathrooms
  • Window replacements
  • Upgrade of electrical systems
  • Upgrade of finishes
  • Modernization of elevators
  • Roof replacements

Additionally, at the Towers Dorms, a new central dining facility is planned to replace the five existing small dining facilities. This new facility, which will enable both efficiencies and service advancements, also will serve the new Greek Community. The estimated project budget is $24 million.

• Student Union Addition
  At the April 12, 2001 Board of Trustees meeting a discussion was held about the Student Union Addition project budget and that, based on its design, the project was over budget. Since that time value engineering has taken place, but the project will still require more funding because any additional reductions in the project scope will materially alter the project to the point of affecting the programs. It is estimated that $5 million more is needed above the $35 million funding provided by UCONN 2000.
• One other capital project is in the preliminary stages of planning: a new Athletic Indoor Practice Facility. A consultant has been hired to start programming activities. Funding for the project would come from private fund raising. The project budget is estimated to be $35 million.
• As a follow-up to the discussion of the remainder of the UCONN 2000 Program, the Board of Trustees at its September 26, 2001 meeting approved and revised the FY 2000-01 capital budget, as follows:

• The University began an Environmental Impact Evaluation (EIE) for the construction of Graduate Student Apartments to meet a need for 500 to 1,000 beds of apartment style housing. Two potential sites are being evaluated: one, west of the University’s Northwood Apartments and the other, east of the Storrs commercial block. Baystate Environmental Consultants was hired to conduct the EIE that is anticipated to be finished by April 2002.
• The Environment Impact Evaluation has been approved for the North Campus Master Plan. The primary land uses for the North Campus will be University-related research, technology/research, student residential housing, remote parking, and special academic and support services. The North Campus parcel occupies the same approximate boundaries as the formerly proposed Technology Park.
• Contract documents are being prepared for renovations at the School of Law that will provide for the phased renovations of facilities including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven.
• Design Development is underway for renovations to the former School of Business building. The purpose of this project is to turn the old facility into a new Center for Undergraduate Education that will provide academic support for students as well as instructional support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, Institute for Teaching & Learning, Study Abroad, Urban Semester, Center for Community Outreach, Instructional Research Center, Honors Program, and the Learning Research Center. Due to competing needs, the budget for the project has been reduced to $11,000,000. The architect for the project is Svigals Associates of New Haven.
• Construction documents are being finalized for the Student Union project, which will include major renovations and additions to the current facility. The primary goal of the project is to expand the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, student activity meeting space, ballroom, and central post office for all student mail. This facility also will provide new space for each of the campus’ cultural centers. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston. Konover Construction of West Hartford is the construction manager for the project.
• As part of the overall building and renovation program, the University continues the process of standardizing building systems and system components (e.g., electrical circuitry, panel boxes, etc.). This process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance, and lower overall costs.
• Design development drawings are under review for the new School of Pharmacy/Biology building. The project involves construction of a 120,000 square foot building for teaching and research for Pharmacy and the creation of a 55,000 square foot building of research space for Biology. The architect for the project is Davis, Brody Bond of New York City. Gilbane, of Glastonbury, is the construction manager for the project.
• Preparation of design documents for renovations to the Neag School of Education’s Gentry building are underway. The project scope includes complete renovation of the building’s interior along with exterior improvements of the faade and roof and an addition to the building. The architect for the project is Svigals Associates of New Haven.
• Design activities are underway for an addition to the Benton Museum. This $1.5 million project is funded through a combination of UCONN 2000 funds ($700,000) and private gifts.
• Contract documents are being prepared for the Waterbury Downtown campus project funded by State General Obligation bonds. The project will involve relocation of the Waterbury Regional campus from its present Hillside location to East Main Street. The existing academic programs, along with additional Bachelor of Business and MBA programs will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford. Although not part of UCONN 2000 funding, new legislation provides that the project will be managed by the University with the authority set forth in UCONN 2000. O & G Industries of Torrington is the construction manager for the project. It is anticipated construction will begin in December 2001.

• CONSTRUCTION
  • Construction has begun on the completion of the Agricultural Biotechnology Facility. A $7,770,682 Department of Energy Grant along with $3,000,000 from UCONN 2000 will fund this second phase of the project. The University has already occupied the completed first building. The project includes construction of a second building (approx. 16,000 sq. ft.) and a new greenhouse facility (approx. 14,000 sq. ft.) as provided in the original project and the Master Plan. The facility will provide for research and incubator space. Architects for the project are Svigals Associates of New Haven and the construction manager is Turner Construction of Milford. Construction will be completed in May 2002.
  • Construction began in August 2001 on the Technology Quad Phase II project, which involves construction of a new building for the School of Engineering’s Information Technology program. This facility (projected at approximately 94,000 gross square feet) will include offices, classrooms, research labs, and a 350-seat lecture hall. The architect for the project is Burt Hill Kosar Rittlemann of Washington, DC. Construction manager for the project is O & G Industries of Torrington.
  • Construction was completed for the Waring Building renovation, which created additional classrooms and offices for the College of Liberal Arts and Sciences and its Geography, English and Statistics Departments. The building was occupied in July 2001. The contractor for the project was Hayes Construction of Seymour.
  • Installation of new exterior signage is underway at the main campus, Health Center, law school and regional campuses. The purpose is to incorporate signage that will provide a unified look and better directional information to visitors at all of the University’s campuses.
  • Dedication of the new Marine Sciences Building at Avery Point took place on September 19, 2001. This project included a new 116,000 square foot research building, a 30,000 square foot Project Oceanology building, and a new central chilled water plant. The Project Oceanology building was occupied in June 2000. The contractor on the project was C.R. Klewin of Norwich.
  • Phase I of the Wilbur Cross renovation was completed in July 2001. This project locates all business functions relating to student services in one central, customer-friendly location. These functions include financial aid, bursar, registrar, dining services, residential life, and services to students with disabilities. The contractor for the project is Aspinet Construction of Avon. The remainder of the project will be completed in March 2002.
  • Construction was completed on the Gant Plaza Deck repair project in August 2001. The project included construction of a 14,000 square foot building on the deck for the Institute of Material Science and installation of a new deck waterproofing system. The construction manager for the project was Whiting-Turner of New Haven.
  • Construction is being completed on a hotel located on the Storrs campus, developed under a land-lease agreement with the University. The hotel portion of the project was opened October 15, 2001. The hotel is being built next to the Lewis B. Rome Commons building at South Campus to take advantage of its conferencing and catering capacity in conjunction with the hotel. The partnership for the project is Robert Freidman (hotel developer and owner of the Norwich Navigators) along with the Maristar Group, which manages hotels worldwide, including many university hotel facilities such as the Princeton Forestal. The restaurant/lounge will be completed at the end of October. The contractor for the project is G. Schnip Construction of Norwich.
  • Construction was completed for the second parking garage, located next to the Gampel Pavilion, in September 2001. The cost of the project is borne by a special obligation bond issued under UCONN 2000 authority. Revenue to support the debt service will come from parking and transportation fees. The facility contains 1,547 parking spaces and 53,000 gross square feet of retail space for the UCONN Co-op. The Co-op space will be completed in March 2002. The contractor for the project is Manafort Brothers of New Britain.
  • Construction of additional dormitories at the Hilltop complex was completed in August 2001. The project created 450 beds for students in suite style rooms. Financing was secured by special revenue bonds to be repaid through room-and-board fees. As enrollments increase, these added beds are absolutely critical. The project was completed in ten months, ahead of schedule. Konover Construction of West Hartford was the contractor for the project.
  • Construction was completed for the Hilltop Student Apartments in August 2001. This project accommodates 968 students. Part of the Hilltop residential neighborhood, the project is on Alumni Drive, immediately south of the Hilltop Dorms. The apartments are rented to University students only, with residents subject to the University’s Code of Conduct.
  • Construction is being completed on a Community Center facility at the School of Social Work in West Hartford. This project is funded through the generosity of Henry and Judith Zachs, a UConn alumna. The relocated computer center moved into new facilities, which were completed in June 2001. The contractor for the project is Enfield Builders.
  • Construction was completed on the new School of Business in September 2001. The contractor for the project was FIP Construction of Cheshire. The project’s funding was augmented with $4.5 million raised from private donations. However, these funds were not in hand in time to meet cash flow needs, so $3 million was provided from adjustments in the FY 2001 Capital Budget and will be repaid as private funds are deposited. The building was dedicated on October 26, 2001.
  • Construction activity has restarted on the Biological Sciences project. These activities began when the University and Liberty Mutual, the surety that held the payment and performance bond for the project, came to a fronting agreement whereby they agreed to pay the University $25,350,000 to complete the project. The University terminated the original contractor on February 4, 2000. Grounds for this termination included the following: unqualified general contractor staffing, removal of key personnel, unauthorized substitutions, subcontractor mismanagement, schedule-failure to comply with contract requirements, failure to prosecute the work, subcontractor payment irregularities, inadequate staffing/manning , change order processing failures, disregard for University property, refusal/delay in allowing document review, failure to timely provide general conditions documents, inadequate quality control, and inadequate safety supervision.
  • The Agricultural Arena completed in August 2001 contains a polo arena to replace the current outdoor facility. The majority of funds for this project were from private donations. All Phase Enterprises of Stafford Springs was the design-build firm on this project.
  • The Manufacturing Enterprise Facility was completed in September 2001. The majority of funding, $2 million, came from a grant from the federal Economic Development Agency. PDS Construction of Bloomfield was the general contractor on the project.
  • During Summer 2001 the University installed sprinklers in McMahon Hall and Hilltop Dorms as part of the plan to have all dormitories with sprinkler capacity by the start of the Fall 2003 semester. As part of this project 10,000 lineal feet of high-pressure mains were installed. Additional renovations, code updates and systems modifications were completed for both residential complexes.

SET-ASIDE CONTRACTOR SUMMARY

Public Act 99-241 called for, among other things, information on the use of Connecticut-owned businesses, including businesses owned by women and minorities on UCONN 2000 program projects. From FY 1996 to FY 2001, construction and related contracts for the UCONN 2000 program totaled $566.7 million. Twenty-six percent of this total, or $146.5 million, has gone to set-aside general contractors, contracted architects and engineers, and subcontractors. Over this period, Connecticut businesses have accounted for $443.4 million or 79% of the total contracted dollars. Small business participation has amounted to $76.0 million and minority- and women-owned participation has accounted for $70.4 million.

FINANCE

• Phase I Debt Service Commitment Bond Issues CompletedSection 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds” or “DSC Bonds”). These Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and, Fleet National Bank of Connecticut, as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995 and the State Bond Commission on December 21, 1995. The University’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The State Treasurer and the University manage the Debt Service Commitment Bond sale process. University General Obligation Debt Service Commitment Bond Issues are summarized below:
  

  Date of Issue	Par Amount	General Obligation Bond Issue
  Phase I
  February 21, 1996	$ 83,929,714.85	1996 Series A
  April 24, 1991	24,392,431.65	1997 Series A
  June 24, 1998	99,520,000.00	1998 Series A
  April 8, 1999	79,735,000.00	1999 Series A
  Phase II
  March 29, 2000	$130,850,000.00	2000 Series A
  April 11, 2001	100,000,000.00	2001 Series A

  The six series of DSC bonds issued totaled $618,427,146.50 in face value, of which $612,000,000 was for UCONN 2000 projects. The balance, together with accrued interest and original issue premium, funded the cost of issuance through the Office of the Treasurer.

  During the process of issuance for the UCONN General Obligation Debt Service Commitment 2001-A Bond Issue, the University working with the State Treasurer’s Office was able to achieve an upgrade to “Aa2” from “Aa3” for the State’s Debt Service Commitment Bonds. This is the second rating grade increase for the DSC bonds by Moody’s Investors Service during the past twelve months. The 2001 Series A bonds were sold without any bond insurance, another successful first time accomplishment for the UCONN 2000 program. The capital markets thus recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals of the program, as well as the University’s success in implementing them. As of September 2001, the UCONN 2000 Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa2” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Certain maturities of prior bond issues are secured by “AAA” rated municipal bond insurance.

• Trustee-Held Construction Fund
  Prior to June 1998, all Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer and treated like State bond proceeds. Subsequently, the Office of the Attorney General determined that the University, not the State, issues UCONN 2000 bonds. Accordingly, upon advice of bond counsel and to conform to the Master Indenture of Trust, Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank. Bond proceeds for cost of issuance are still deposited with and disbursed by the Office of the State Treasurer. The University has directed the Trustee Bank to invest Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund, that is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields.The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University and include certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse payments.
• University Special Obligation Revenue Bonds Secured by Pledged Revenues
  UCONN 2000 also authorizes the University to issue Special Obligation Revenue bonds. Unlike Debt Service Commitment Bonds, paid for out of the State’s General Fund, Special Obligation Bonds are paid for out of pledged revenues of the University as defined in the particular bond series indenture.A Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the University’s Board of Trustees determines that the Special Obligation bond issue is self-sufficient as defined in the Act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the State Treasurer prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1, annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.Student Fee Revenue Bonds were issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University, as Issuer, and, State Street Bank & Trust, as Trustee. The University’s Board of Trustees approved this on November 8, 1996. The Supple-mental Indenture authorized the issuance of bonds up to a principal amount not exceeding $30,000,000 for construction of the South Campus Residence and Dining Hall plus the amounts necessary to fund a Special Capital Reserve Fund (“SCRF”) and to provide for costs of issuance.On February 4, 1998, the University issued $33,560,000 of University of Connecticut Student Fee Revenue Bonds 1998 Series A (“SFR 1998-A Bonds”) with a final maturity of November 15, 2027. The University managed issuance and sale of these bonds and realized a favorable true interest cost over the term. Debt service for Student Fee Revenue Bond 1998 Series A’s is paid from revenues from the student Infrastructure Maintenance Fee instituted in 1997 to provide for such debt service and help support future operation and maintenance costs for facilities built or expanded through UCONN 2000. The University invested the bond proceeds in the State Treasurer’s Short Term Investment Fund, and, in regard to the Special Capital Reserve Fund, in “AAA” rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust. The State SCRF enhancement allowed the bonds to obtain a “AA” rating from Standard & Poor’s, “AA-” from Fitch Investors Service, and “A-1” from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” at Fitch and Standard & Poor’s and “Aaa” at Moody’s Investors Service. In October 1998, Standard & Poor’s upgraded the SFR 1998-A Bond ratings to “AA” with a stable outlook, and in February 2001, Moody’s Investors Service upgraded the 1998 bonds to “Aa3”.On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture, dated as of May 1, 2000. The Indenture authorized issuance of bonds up to a principal amount not exceeding $90,000,000 for construction of the Hilltop Dormitory, Hilltop Student Rental Apartments, and the Parking Garage South Projects and provide for capitalized interest and costs of issuance. The Special Obligation Student Fee Revenue Bonds 2000 Series A do not have a Special Capital Reserve Fund (“SCRF”). The University managed issuance and sale of these bonds and realized a favorable true interest cost. The bonds have a final maturity of November 15, 2029. Debt service is paid from Pledged Revenues as defined pursuant to the Indentures. Bond proceeds are being used to provide the aforementioned student housing and parking garage. The University has invested the bond proceeds in the State Treasurer’s Short Term Investment Fund.The University obtained a “AA-” stand-alone credit rating from Standard & Poor’s for its second issue of Special Obligation Bonds, a validation of the University’s ability to professionally administer complexities of the tax-exempt bond program. This was the first time the University obtained a credit rating based on its own merit without use of Debt Service Commitment or Special Capital Reserve Fund state-backed credit supports. This signaled a vote of confidence by capital markets in the University and its ability to provide benefits to the State’s economy. Also, Special Obligation Student Fee Revenue Bonds 2000 Series A bonds were rated “A-1” by Moody’s on a stand-alone basis. At issuance, certain maturities of the bonds were covered by municipal bond insurance and upgraded to a “AAA” rating at Fitch and Standard & Poor’s, and “Aaa” at Moody’s.
• Future Bond Issues
  The University currently anticipates offering a $100 million new money Debt Service Commitment Bond issue during the spring of 2002. Generally, the University plans on issuing a series of new money Debt Service Commitment bonds about every twelve months. Also, the University could issue Special Obligation Revenue bonds for certain projects with capacity for financial self-sufficiency, and/or if aggregate pledged revenues are sufficient to meet requirements of the Special Obligation Indenture. Depending on market conditions and other factors, the University also might issue either General Obligation or Special Obligation refunding bonds at some future date.

PRIVATE FINANCIAL SUPPORT

The UCONN 2000 endowment matching gift program continues to be a powerful incentive for donors. As of September 30, 2001, total match-eligible, calendar year gift receipts and commitments are $11,626,394, a 13 percent increase over the same period last year.

The University of Connecticut Foundation, Inc. reports the fiscal year ending June 30, 2001 marked the seventh straight year of record-breaking private fund-raising support for the University Ñ from $8.2 million in FY 1995 to $50.6 million in FY 2001. This achievement is a testimonial to the impact of the private-public partnership.

The original legislation in 1995 appropriated $20 million to support the state’s matching grant program for private donations to establish new endowments or add to existing ones. It was such a resounding success that the State of Connecticut extended the program twice. The most recent extension, granted last June, will run through fiscal year 2014. It is expected to generate up to an additional $230 million in private endowment funds, which, together with the state match, enhances the total endowment by $345 million. This combination of private and state funds will support UConn’s services to Connecticut and its students in perpetuity.

When the public phase of the $300 million Campaign UConn was announced on May 3, 2001, over $150 million had been raised and 230 new endowment funds supporting students, faculty, and programs had been established. The Campaign, which began in July 1998 and concludes in June 2004, is the largest ever undertaken by a public research university in New England. It is a logical step in helping UConn attain its goal to be among the country’s top 25 public research universities by the end of the decade.

Significant Commitments
The Berkley Foundation, Inc. has committed $200,000 to establish the W.R. Berkley Endowment Fund for the Program for Talented Teens. Its purpose is to support programs designed to pair secondary school students with education mentors in the University’s Neag School of Education. The programs will work toward encouraging the students to apply their powers of intellectual creativity toward solving “real world” problems.

An anonymous donor committed $400,000 to fund a Nutmeg Scholarship and a Day of Pride Scholarship, both prestigious awards for incoming freshmen.

Dr. Charles J. Burstone, retired head of the UConn Health Center School of Medicine’s Orthodontics Department, endowed a professorship with $500,000 to advance research and education in orthodontics at the School of Dental Medicine. His gift will help recruit a senior faculty member with clinical experience to prepare qualified professionals to enter the field.

Daniel Flynn, Class of 1962, his wife Barbara, and the John G. Martin Foundation together pledged $1 million to create the Flynn-Martin Fund for Excellence at the UConn School of Law. The fund’s resources will enable faculty to participate in high-profile activities assuming leadership roles, and will sponsor prominent legal scholars and other speakers who visit the school.

The Kim Family Fund has committed $250,000 to provide financial support for programs at the University’s Department of Neuroscience within the School of Medicine. Specific uses for the income allocated to this fund shall be determined by the Dean of the School.

Private investment at the level of magnitude we are seeing at the University of Connecticut is not simply a function of loyalty or generosity, though our donors possess both qualities in great measure. It is the outcome of a rational assessment of our goals, our level of performance, the state’s commitment of ongoing support for our transformation, and the University’s decision to invest resources in fund raising efforts.

ATTACHMENT A

ATTACHMENT B

ATTACHMENT C

ATTACHMENT D

ATTACHMENT E

CURRENT PROJECT STATUS: PHASE I (As of October, 2001)

CURRENT PROJECT STATUS: PHASE II (As of October, 2001)

CURRENT PROJECT FUND SOURCES: PHASE I (As of October, 2001)

CURRENT PROJECT FUND SOURCES: PHASE II (As of October, 2001)

CHARTS

• CONSTRUCTION
• CONNECTICUT CONTRACTOR SUMMARY
• FINANCE
• PRIVATE FINANCIAL SUPPORT

This is the twelfth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999. The structure of the previous reports is utilized in this report.

There are many tangible indicators of success of the UCONN 2000 Program: new and renovated facilities, state-of-the-art equipment, growing enrollment, enhanced faculty recruitment, and increased funding via sponsored research and major donations. These all breed investor confidence in the University, as respect among those in the financial markets continues to grow.

Moody’s Investors Services upgraded the University’s General Obligation Bonds secured by the State’s Debt Service Commitment to “Aa2” from “Aa3” in February. The strong link between the State’s and University’s credit ratings was shown by the simultaneous equivalent upgrade of the State’s General Obligation Bonds. Underscoring the University’s and State’s perceived linkage by financial markets, the UCONN 2000 Student Fee Revenue Bonds Series 1998-A were upgraded to “Aa3” from “A1.” These upgrades represent the market’s recognition of the University and its UCONN 2000 program as a sound investment.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

PLANNING, DESIGN AND MANAGEMENT

The Board of Trustees at its November 9, 2000 meeting approved a revised FY 2000-01 Capital Budget. The projects included and their budgets are listed below:

At the February 22, 2001 Board of Trustees meeting, an accelerated plan for completion of fire safety renovations in campus residence halls was approved; specifically, insuring that sprinklers would be installed and operational for 95% of all beds by the start of the Fall 2003 semester in accordance with the following schedule.

By Fall 2000, smoke detectors, automatic door closers and addressable alarms had been installed in all residence halls.

At its February 22, 2001 meeting the Board of Trustees accepted the final draft of the University of Connecticut Outlying Parcels Master Plan including the Agricultural Area, North Campus and the Depot Campus. The Master Plan identifies opportunities for potential future development in these outlying parcels and completes the long-range planning for all of the University’s significant holdings at the main campus.

The Board of Trustees at its April 12, 2001 meeting approved the FY 2001-02 Capital Budget. The projects included and their budgets are listed below:

The Board also approved the Seventh Supplemental Indenture that covered these general obligation projects.

The University is proceeding with completion of the Agricultural Biotechnology Facility.

A Department of Energy Grant ($7,770,682) along with $3,000,000 from UCONN 2000 will provide funding for the second phase of the project. The University has already occupied the completed first building. The project includes construction of a second building (approx. 16,000 sq. ft.) and a new greenhouse facility (approximately 14,000 sq. ft.) as provided in the original project and the Master Plan. The facility will provide for research and incubation space. Architects for the project are Svigals Associates of New Haven and the construction manager is Turner Construction of Milford. Construction will begin in May and be completed in March 2002.

The Environmental Impact Evaluation is being completed for the North Campus.

The primary land uses for the North Campus will be University-related research, technology/research, student residential housing, remote parking, and special academic and support services. The North Campus parcel occupies the same approximate boundaries as the formerly proposed Technology Park.

Developers have been selected for the student residential housing to be located in the southernmost portion of North Campus (immediately adjacent to the Northwest Quad complex). The project to be developed at this site will be for 1,000 beds of apartment style housing. A land lease agreement will be signed with the developer who will be responsible for obtaining his financing. At the completion of the construction, the developer will own and manage the buildings and manage the leasing of the apartments. The developer selected is JPI of Irving, Texas. They have developed over 20,000 beds of apartment style housing at other universities under similar arrangements.

The firm of Wank Adams Slavin Associates of New York City is finalizing designs for installation of sprinklers in the Hilltop Dorms and McMahon Hall. Along with this work will be other fire code repairs, roof and faìade repairs, asbestos abatement and interior improvements. The construction manager for the project is Whiting-Turner of New Haven. This project will be completed over the summer so the buildings will be ready for the Fall 2001 semester.

Schematic Design activities have been completed for renovations at the School of Law that will provide for the phased renovations of facilities including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven.

Design Development activities are underway for renovations to the current School of Business building. The purpose of this project is to turn the old facility into a new Learning Center that will provide academic support for students as well as instructional support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, Institute for Teaching & Learning, Study Abroad, Urban Semester, Center for Community Outreach, Instructional Research Center, Honors Program, and Learning Research Center. The architect for the project is Svigals Associates of New Haven.

Construction documents are being prepared for the Student Union project, which will include major renovations and additions to the current facility. The primary goal is to expand the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, meeting space, a ballroom and a central post office for all student mail. This facility also will provide new space for each of the campus’ cultural centers. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston. Konover Construction of West Hartford has been selected as construction manager for the project.

As part of the overall building and renovation program, the University of Connecticut continues the process of standardizing building systems and system components (such as electrical circuitry, panel boxes, etc.). This standardization process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance and lower overall costs.

Design development drawings are under review for the new School of Pharmacy/Biology building. The project involves the construction of a 120,000 square foot building for teaching and research for Pharmacy and the creation of a 55,000 square foot building of research space for Biology. The architect for the project is Davis, Brody Bond of New York City. Gilbane of Glastonbury was selected as construction manager for the project.

Construction documents are being prepared for the Technology Quad Phase II project. This project involves the construction of a new building for the School of Engineering’s Information Technology program. This facility, projected to be approximately 94,000 gross square feet, will include offices, classrooms, research labs, and a 350-seat lecture hall. The architect for the project is Burt Hill Kosar Rittlemann of Washington, D.C. O&G Construction of Torrington was selected as construction manager for the project.

Preparation of design documents for renovations to the Neag School of Education’s Gentry building are underway. The project scope includes a complete renovation of the building’s interior along with exterior improvements of the faìade and roof, and an addition to the building. Architects for the project are Svigals Associates of New Haven. UCONN 2000 funds for the project will be augmented by private fundraising.

Design activities are underway for an addition to the Benton Museum. This $1,500,000 project is funded through a combination of UCONN 2000 funds ($700,000) and private gifts. Architects for the project are Gregg & Weiss of New Haven.

Design development activities are underway for the Waterbury Downtown campus project, funded by State General Obligation bonds. The project will involve relocation of the Waterbury Regional campus from its present Hillside location to East Main Street. The existing academic programs, along with additional Bachelor of Business and MBA programs, will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford. Although not part of UCONN 2000 funding, new legislation provides that the project will be managed by the University with the authority set forth in UCONN 2000. O&G Construction of Torrington was selected as construction manager for the project.

The Architectural and Engineering Services Home Page on the World Wide Web continues to be very successful in providing information to interested parties. The site has been visited almost 25,000 times since its introduction in October 1996.

CONSTRUCTION

• Construction activities are almost complete for the Waring Building renovation, which creates additional classrooms and offices for the College of Liberal Arts and Sciences and the English and Geography Departments. The building will be occupied in June 2001. The contractor for the project is Hayes Construction of Seymour.
• Installation of new exterior signage is underway on the main campus, Health Center, law school and regional campuses. The purpose of the program is to incorporate signage that will provide a unified look and better directional information to visitors at all University campuses.
• Construction activity is continuing on the Avery Point Marine Sciences project. This project includes a new 116,000 square foot research building, a 30,000 square foot Project Oceanology building, and a new central chilled water plant. The Project Oceanology building was occupied in June 2000. The Marine Sciences Center was completed in February 2001. The contractor on the project is C.R. Klewin of Norwich. Demolition of old buildings and other site activities remain to be completed.
• Construction is complete on the Litchfield Agricultural Center project. The contractor for the project is Hayes Construction of Shelton. Funding for the project included UCONN 2000 funds and a grant from the Litchfield Agricultural Center.
• Construction is underway for the complete renovation of the Wilbur Cross building. This project will provide an opportunity to locate all business functions related to student services in one central, customer-friendly location. These functions include dining services, residential life, financial aid, bursar, registrar, and services to students with disabilities. The contractor for the project is Aspinet Construction of Avon. Construction activities will be completed in two phases, with the first phase completion scheduled for June 2001. The remainder of the project will be completed in March 2002.
• Construction is complete on renovations to the Horticultural Storage building, which is the new location of the Natural History Museum. The museum is undertaking fund raising activities to supplement UCONN 2000 funds.
• Construction activities are underway for the Gant Plaza Deck repair project. The project will include the construction of a 14,000 square foot building on the deck for the Institute of Materials Science and installation of a new deck waterproofing system. The construction manager for the project is Whiting-Turner of New Haven. The project is scheduled for completion in June 2001.
• Construction is underway on a hotel located on the Storrs campus being constructed under a land-lease agreement with the University. The hotel is being built next to the Lewis B. Rome Commons building at South Campus to take advantage of its conferencing and catering capacity in conjunction with the hotel. The partnership for the project is Robert Freidman (hotel developer and owner of the Norwich Navigators) along with the Maristar Group, which manages hotels worldwide, including many university hotel facilities such as the Princeton Forestal. It is anticipated that the construction will be complete in September 2001. The contractor for the project is G. Schnip Construction of Norwich.
• Construction is underway for the second parking garage, to be located next to the Gampel Pavilion. The cost of the project is borne by a special obligation bond issued under UCONN 2000 authority. The revenue to support the debt service will come from parking and transportation fees. The facility will contain 1,547 parking spaces and 53,000 gross square feet of retail space for the UConn Co-op. The garage will be completed in May 2001 and the Co-op space in October 2001. The contractor for the project is Manafort Brothers of New Britain.
• The construction of additional dormitories at the Hilltop complex is underway. The project will create 450 beds for students in suite style rooms. Financing for the project is secured by special revenue bonds to be repaid through room and board fees. With enrollments increasing, these additional beds will help avoid overcrowding. The project schedule will have 248 beds ready in August 2001 with the remaining 202 beds available in January 2002. Konover Construction of West Hartford is the contractor for the project.
• Construction is underway for the Hilltop Student Apartments. This project will accommodate 972 students. Part of the Hilltop residential neighborhood, the project is on Alumni Drive, immediately south of the Hilltop Dorms. The apartments will be rented to University students only; tenants will be subject to the University’s code of conduct. The design-build firm for the project is Capstone Development of Mobile, Alabama, an organization, which has successfully built similar projects in a number of other states. The complex is scheduled for completion by August 2001.
• Construction is underway for the development of a Community Center facility at the School of Social Work on the West Hartford campus. This project is funded through the generosity of Henry and Judith Zachs, a UConn alumna. The relocated computer center will go into new facilities on the West Hartford campus. The contractor for the project is Enfield Builders. The project is scheduled for completion in July 2001.
• Construction is underway on the new School of Business. The contractor for the project is FIP Construction of Cheshire. The project’s funding will be augmented with $4.5 million to be raised from private donations. However, these funds will not be in hand in time to meet cash flow needs, so $3 million in additional funds were provided for the project from adjustments in the FY 2001 Capital Budget. The project will be completed in Summer 2001.
• Turner Construction of Milford has signed the construction manager’s contract to complete the construction of the Biological Sciences project. After repeated discussions, notifications and warnings, the original contractor for the Biological Sciences project was terminated by the University on February 4, 2000. Grounds for this termination included:
  • Unqualified general contractor staffing
  • Removal of key personnel
  • Unauthorized substitutions
  • Subcontractor mismanagement
  • Schedule-failure to comply with contract requirements
  • Failure to prosecute the work
  • Subcontractor payment irregularities
  • Inadequate staffing/manning
  • Change order processing failures
  • Disregard for University property
  • Refusal/delay in allowing document review
  • Failure to timely provide general conditions documents
  • Inadequate quality control
  • Inadequate safety supervision
• The University is working with Liberty Mutual, the Surety that holds the payment and performance bond to complete the project. On April 10, 2000, Liberty Mutual informed the University that it is committed to discharging its performance bond obligations in connection with the project. The start of construction will begin in June 2001.
• Construction has been completed on a utility tunnel that will connect central campus buildings to the central utility plant. Inside the tunnel will be the following services: Steam, Sprinkler Main, Emergency Power, Chilled Water, Domestic Water, and Tele-Data Systems. The contractor for the project was Allstate Boilers of Farmington.
• All Phase Enterprises of Stafford Springs is the design-build firm for the construction of the Agricultural Arena. This facility will contain a polo arena to replace the current outdoor facility. The majority of funds for this project are coming from private donations. Construction of this project is scheduled to be complete in July 2001.
• PDS Construction of Bloomfield is the contractor for the construction of the Precision Manufacturing Facility. The majority of the funding for this project is a $2 million grant from the federal Economic Development Agency. The project will be complete in September 2001.

UCONN 2000: CONNECTICUT CONTRACTOR SUMMARY

Public Act 99-241 called for, among other things, information on the use of Connecticut-owned businesses, including businesses owned by women and minorities on UCONN 2000 program projects. From FY 1996 to FY 2001, construction and related contracts for the UCONN 2000 program totaled $556.7 million. Twenty-four percent of this total, or $131.6 million, has gone to set-aside general contractors, contracted architects and engineers, and subcontractors. Over this period, Connecticut businesses have accounted for $441.7 million or 79% of the total contracted dollars. Small business participation has amounted to $66.1 million and minority- and women-owned participation has accounted for $65.5 million.

FINANCE

• Phase I Debt Service Commitment Bond Issues Completed
  Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds” or “DSC Bonds”). These Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and, Fleet National Bank of Connecticut, as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995 and the State Bond Commission on December 21, 1995. The University’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The State Treasurer and the University manage the Debt Service Commitment Bond sale process. University General Obligation Debt Service Commitment Bond Issues are summarized below:

• Date of Issue	Par Amount	General Obligation Issue
  Phase I
  February 21, 1996	$83,929,714.85	1996 Series A
  April 24, 1997	24,392,431.65	1997 Series A
  June 24, 1998	99,520,000.00	1998 Series A
  April 8, 1999	79,735,000.00	1999 Series A
  Phase II
  March 29,2000	$130,850,000.00	2000 Series A
  April 11, 2001	100,000,000.00	2001 Series A

• The six series of DSC bonds issued totaled $618,427.146.50 in face value, of which $612,000,000 was for UCONN 2000 projects. The balance, together with accrued interest and original issue premium, funded the cost of issuance through the Office of the Treasurer.
• During the process of issuance for the UCONN General Obligation Debt Service Commitment 2001-A Bond Issue, the University working with the State Treasurer’s Office, was able to achieve an upgrade to “Aa2” from “Aa3” for the State’s Debt Service Commitment Bonds. This is the second rating grade increase for the DSC bonds by Moody’s Investors Service during the past twelve months. The 2001 Series A bonds were sold without any bond insurance, another successful first time accomplishment for the UCONN 2000 Program. The capital markets thus recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals of the program, as well as the University’s success in implementing them. As of April 2001, the UCONN 2000 Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa2” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Also, certain maturities of prior bond issues are secured by “AAA” rated municipal bond insurance.
• Trustee-Held Construction Fund
  Prior to June 1998, all Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer and treated like State bond proceeds. Subsequently, the Office of the Attorney General determined that UCONN 2000 bonds are issued by the University, not the State. Accordingly, upon advice of bond counsel and to conform to the Master Indenture of Trust, Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank. Bond proceeds for cost of issuance are still deposited with and disbursed by the Office of the State Treasurer. The University has directed the Trustee Bank to invest Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund, that is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields.
• The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University and include certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse payments.
• University Special Obligation Revenue Bonds Secured by Pledged Revenues
  UCONN 2000 also authorizes the University to issue Special Obligation Revenue bonds. Unlike Debt Service Commitment Bonds, paid for out of the State’s General Fund, Special Obligation Bonds are paid for out of pledged revenues of the University as defined in the particular bond series indenture.
• A Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the University’s Board of Trustees determines that the Special Obligation bond issue is self-sufficient as defined in the Act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the State Treasurer prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1, annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.
• Student Fee Revenue Bonds were issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University, as Issuer, and, State Street Bank & Trust, as Trustee. This was approved by the University’s Board of Trustees on November 8, 1996. The Supplemental Indenture authorized the issuance of bonds up to a principal amount not exceeding $30,000,000 for construction of the South Campus Residence and Dining Hall plus the amounts necessary to fund a Special Capital Reserve Fund (“SCRF”) and to provide for costs of issuance.
• On February 4, 1998, the University issued $33,560,000 of University of Connecticut Student Fee Revenue Bonds 1998 Series A (“SFR 1998-A Bonds”). The bonds have a final maturity of November 15, 2027. The University managed issuance and sale of these bonds and realized a favorable true interest cost over the term. Debt service for Student Fee Revenue Bond 1998 Series A is paid from revenues from the student Infrastructure Maintenance Fee instituted in 1997 to provide for such debt service and help support future operation and maintenance costs for facilities built or expanded by virtue of UCONN 2000. The University invested the bond proceeds in the State Treasurer’s Short Term Investment Fund, and, in regard to the Special Capital Reserve Fund, in “AAA” rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust. The State SCRF enhancement allowed the bonds to obtain a “AA” rating from Standard & Poor’s, a “AA-” from Fitch Investors Service, and an “A-1” from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” at Fitch and Standard & Poor’s and “Aaa” at Moody’s Investors Service. In October 1998, Standard & Poor’s upgraded the SFR 1998-A Bond ratings to “AA” with a stable outlook, and in February 2001, Moody’s Investors Service upgraded the 1998 bonds to “Aa3”.
• On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture, dated as of May 1, 2000. The Indenture authorized issuance of bonds up to a principal amount not exceeding $90,000,000 for construction of the Hilltop Dormitory; Hilltop Student Rental Apartments; and the Parking Garage South Projects and provide for capitalized interest and costs of issuance. The Special Obligation Student Fee Revenue Bonds 2000 Series A do not have a Special Capital Reserve Fund (“SCRF”). The University managed issuance and sale of these bonds and realized a favorable true interest cost. The bonds have a final maturity of November 15, 2029. Debt service is paid from Pledged Revenues as defined pursuant to the Indentures. Bond proceeds are being used to provide the aforementioned student housing and parking garage. The University has invested the bond proceeds in the State Treasurer’s Short Term Investment Fund.
• The University obtained a “AA-” stand-alone credit rating from Standard & Poor’s for its second issue of Special Obligation Bonds, showing its ability to professionally administer complexities of the tax-exempt bond program. This was the first time the University obtained a credit rating based on its own merit without use of Debt Service Commitment or Special Capital Reserve Fund state-backed credit supports. This signaled a vote of confidence by capital markets in the University and its ability to provide benefits to the State’s economy. Also, Special Obligation Student Fee Revenue Bonds 2000 Series A bonds were rated “A-1” by Moody’s on a stand-alone basis. At issuance, certain maturities of the bonds were covered by municipal bond insurance and upgraded to a “AAA” rating at Fitch and Standard & Poor’s, and “Aaa” at Moody’s.
• Future Bond Issues
  The University currently anticipates offering a new Debt Service Commitment Bond issue for all or part of the sixth year $100 million authorization during the Spring of 2002. Generally, the University plans on issuing a series of new Debt Service Commitment bonds at least every twelve months. Also, the University could issue Special Obligation Revenue bonds for certain projects with capacity for financial self-sufficiency, and/or if aggregate pledged revenues are sufficient to meet requirements of the Special Obligation Indenture. Depending on market conditions and other factors, the University also might issue refunding bonds at some future date.

PRIVATE FINANCIAL SUPPORT

The UCONN 2000 endowment matching gift program continues to be a powerful incentive for donors. As of March 31, 2001, total match-eligible calendar year gift receipts are $2,319,229, a 26 percent increase over the same period last year.

At June 30, 2000, annual private donations reached another all-time high of $37 million. The Foundation realized a total return on investment of 16.5 percent, widely outperforming our composite benchmark index of 9.1 percent. A combination of new contributions maximized by the state matching program and strong investment performance made UConn’s endowment one of the fastest growing nationally.

‘The $20 million in 1:1 state match funds for private gifts, as provided by the original UCONN 2000 legislation, is in-hand. During the first year of the program, $9.1 million in match-eligible gifts was received; an additional $6.5 million was received in calendar year 1997; $4.4 million was received in calendar year 1998.

‘In recognition of the program’s success, the General Assembly enacted a continuation and restructuring of the match on a 1:2 basis (one state dollar to every two private dollars). The State of Connecticut’s grant will total up to $52.5 million from fiscal year 2000 to fiscal year 2007, depending on the level of match-eligible donations actually received on behalf of the University by December 31, 2005. Total match-eligible receipts for calendar year 2000 was $16.9 million. This resulted in an over subscription of $1.9 million, which will be submitted for calendar year 2001 and is expected to be received in the fall.

Significant Commitments
In December 2000, James L. and the late Shirley A. Draper, both Class of 1941, donated $1 million to endow the James L. and Shirley A. Draper Chair in American History. A prominent scholar will be named to the new chair by the 2002-03 academic year. The Drapers had provided previously for the University in their estate plans to establish scholarships to UConn for students from Litchfield County.

Dr. Raymond R. and Beverly Sackler donated $200,000 to the School of Fine Arts to support the Raymond and Beverly Sackler Composition Award. It provides the opportunity to invite aspiring, young composers to create new works that will be premiered and performed at the University of Connecticut.

Keith Fox, Class of 1980, donated $1 million to establish the Auran J. Fox Chair in e-Business within the School of Business at the Storrs Campus.

In February 2001, the Kluge Foundation donated $500,000 in support of the Thomas J. Dodd Research Center. The funds will support the Dodd Human Rights Prize, which will honor an individual who has made a significant contribution in the area of human rights internationally.

CURRENT PROJECT STATUS- PHASE I (as of April 2001)

CURRENT PROJECT STATUS- PHASE II (as of April 2001)

CURRENT PROJECT FUND SOURCES- PHASE I (as of April 2001)

CURRENT PROJECT FUND SOURCES- PHASE II (as of April 2001)

CHARTS

Table of Contents
I. UCONN 2000: THE UPDATE
II. ACTIVITIES COMPLETED OR UNDERWAY:

• PLANNING, DESIGN AND MANAGEMENT
• CONSTRUCTION
• FINANCE
• PRIVATE FINANCIAL SUPPORT

IV. CURRENT PROJECT STATUS – PHASE I(as of October 2000)
V. CURRENT PROJECT STATUS – PHASE II (as of October 2000)
VI. CURRENT PROJECTS FUND SOURCES: PHASE I (as of October 2000)
VII. CURRENT PROJECTS FUND SOURCES: PHASE II (as of October 2000)
CHARTS

UCONN 2000: THE UPDATE

This is the eleventh in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, and now known as UCONN 2000. These reports have been issued each October and April since the passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999. The standard reporting structure of the previous reports is again utilized in this report.

“Incoming Class Poised for Greatness!” reads the headline from the opening fall semester issue of the University of Connecticut Advance. More and more top students are making UConn their school of choice. Thirty-four high school valedictorians are among the freshmen arriving at the University this fall, up from twenty-six last fall. This growth in academic quality (freshman SAT scores are up 28 points from Fall 1997 to 1140) is accompanied by overall expansion in the freshmen class. Since 1997, freshmen enrollment has grown 29 percent and minority freshmen enrollment has grown 51 percent.

As a result, the University made a conscious decision this fall to limit the number of students admitted to Storrs to ensure there was enough housing and there were enough classes to accommodate students who were admitted to the main campus. Not limited by available student housing, enrollment growth at the regional campuses increased. This resulted in freshmen enrollment increasing 7.8 percent at the regional campuses.

In response to housing capacity challenges in Storrs, the University has developed a range of solutions for both undergraduate and graduate students. Undergraduates will benefit from revitalized/modernized facilities, a spectrum of housing options ranging from traditional residence halls to on-campus apartment living for upper-class students. The ground has been cleared for construction of the apartment complex in the southeast corner of campus for upper classmen and graduate students. A new Greek Housing Community is in the planning stages, as well. A new dining facility has been erected in Northwest campus in addition to the complete renovation of the 1,000 bed residential facilities in the Northwest complex. Plans are in place to open a new dormitory on the Hilltop section of campus during FY 2002. By Fall 2001, the University expects to accommodate approximately 1,300 new students in new residential facilities.

“Build it, and they will come,” is an appropriate phrase for UCONN 2000. With the capital dollars and management flexibility provided this program, the University has added and renovated academic, residential, programmatic, and operations facilities. This, coupled with effective recruitment efforts, has made the University of Connecticut increasingly the “School of Choice.”

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

PLANNING, DESIGN AND MANAGEMENT

• The Board of Trustees at its April 11, 2000 meeting approved the FY 2000-01 Capital Budget. The list of projects included and their budget is listed below:
  

  Project	Budget
  Beach Hall Renovation	$ 500,000
  Deferred Maintenance Renovation Lumpsum GF	20,000,000
  Equipment Replacement/Upgrade	20,000,000
  Gentry Renovations	500,000
  Hilltop Dorm Improvements	700,000
  Mansfield Training School Improvements	1,500,000
  Monteith Renovations	5,300,000
  North Campus Renovations	5,000,000
  School of Pharmacy/Biology	29,000,000
  School of Business-Renovation Existing	12,000,000
  Student Union Addition	5,000,000
  Towers Renovation	500,000
  Total	$100,000,000

  The Board also approved the Second Supplemental Indenture authorizing $90,000,000 of University of Connecticut Special Obligation Student Fee Revenue Bonds 2000 Series (A & B) and revised the UCONN 2000 projects to include the Hilltop Student Rental Apartments.

  At its May 8, 2000 meeting the Board approved the Sixth Supplemental Indenture Issuance that covered the general obligation projects. The Board also approved the following budgets for the projects included in the revenue bonds:

  Project	Budget
  South Parking Garage	$24,000,000
  New Hilltop Dormitory	$21,000,000
  Hilltop Student Rental Apartments	$42,000,000

• Program development activities have been completed for renovations at the School of Law that will provide for the phased renovations of facilities including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven.
• Schematic design activities are underway for renovations to the current School of Business building. The purpose of this project is to turn the old facility into a new Learning Center that will provide academic support for students as well as instructiona l support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, the Institute for Teaching & Learning, Study Abroad, Urban Semester, the Center for Community Outreach, Instructional Research Center, Honors Program, and the Learning Research Center. The architect for the project is Svigals Associates of New Haven.
• Construction documents are being prepared for the Student Union project which will include major renovations and additions to the current facility. The primary goal is to expand the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, meeting space, ballroom and a central post office for all student mail. This facility will also provide new space for each of the campus’ cultural centers. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston.
• As part of the overall building and renovation program, the University of Connecticut continues the process of standardizing building systems and system components (such as electrical circuitry, panel boxes, etc.). This standardization process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance and lower overall costs.
• Design development drawings are under review for the new School of Pharmacy/Biology building. The project involves the construction of a 120,000 square foot building for teaching and research for Pharmacy and the creation of a 55,000 square foot building of research space for Biology. The architect for the project is Davis, Brody Bond of New York City.
• Design development is underway for the Technology Quad Phase II project. This project involves the construction of a new building for the School of Engineering’s Information Technology program. This facility, which is projected to be approximately 94,000 gross square feet, will include offices, classrooms, research labs, and a 350-seat lecture hall. The architect for the project is Burt Hill Kosar Rittlemann of Washington, DC.
• Renovations to the Neag School of Education’s Gentry building are currently being reviewed. This project includes a complete renovation of the building’s interior along with exterior improvements of the faade and roof, and may include an addition to the building. Architects for the project are Svigals Associates of New Haven.
• Schematic design activities are underway for an addition to the Benton Museum. This $1,500,000 project is funded through a combination of UCONN 2000 funds ($700,000) and private gifts. Architects for the project are Gregg & Weiss of New Haven.
• Design development activities are underway for the Waterbury Downtown campus project. This project, funded by State General Obligation bonds, will involve the relocation of the Waterbury Regional campus from the present Hillside location to East Main Street. The existing academic programs, along with additional Bachelor of Business and MBA programs, will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford. Although not part of UCONN 2000 funding, the project will be managed by the University with the authority granted by UCONN 2000.
• The Architectural and Engineering Services Home Page on the World Wide Web continues to be very successful in providing information to interested parties. The site has been visited over 21,048 times since its introduction in October 1996.

CONSTRUCTION

• Construction activities are underway for the Waring Building renovation. Plans for the building include the creation of additional classrooms as well as offices for the College of Liberal Arts and Sciences, the English Department, and the Geography Department. Occupancy of the building is scheduled for June 2001. The contractor for the project is Haynes Construction of Seymour.
• Occupancy of the University’s new Visitors Center took place on September 18, 2000. This project, funded through a generous gift from alumni Philip and Christine Lodewick, includes a center for visitor tours and information about the University and events. The construction manager for the project was BB&E of Bloomfield.
• Installation of new exterior signage has begun on the Storrs and Health Center campuses. The purpose of the program is to incorporate signage that will provide a unified look and better directional information to visitors at all of the University’s campuses.
• Construction is complete on the Central Warehouse project. The project team is Konover Construction of West Hartford and Kagan Architects of New Haven. This 85,000 square foot facility will include purchasing, central warehouse and accounts payable functions, mail services, printing services, parking and transportation services, and program space for the campus police. The facility is located in the R-Lot as part of the University’s plan to move support services to the perimeter of campus.
• Construction activity is continuing on the Avery Point Marine Sciences project. This project includes a new 116,000 square foot research building, a 30,000 square foot Project Oceanology building, and a new central chilled water plant. The Project Oceanology building was occupied on June 2000. The Marine Sciences Center will be completed in February 2001. The contractor on the project is C.R. Klewin of Norwich.
• Construction is underway on the Litchfield Agricultural Center project. The contractor for the project is Hayes Construction of Shelton. Funding for the project includes UCONN 2000 funds and a grant from the Litchfield Agricultural Center. It is anticipated that construction will be completed in November 2000.
• Bids were received for the complete renovation of the Wilbur Cross building. This project will provide an opportunity to locate all of the business functions relating to student services in one central, customer-friendly location. These functions include dining services, residential life, financial aid, bursar, registrar, and services to students with disabilities. The contractor for the project is Aspinet Construction of Avon. Construction activities will be completed in three phases with the first phase completion scheduled for June 2001.
• Construction documents are being prepared for the renovations to the Horticultural Storage building, which will be the new location of the Natural History Museum. The museum is undertaking fund raising activities to supplement UCONN 2000 funds. The contractor for the project is MCC of Tolland.
• Construction activities are underway for the Gant Plaza Deck repair project. The project will include the construction of a 14,000 square foot building on the deck for the Institute of Material Sciences and installation of a new deck waterproofing system. The construction manager for the project is Whiting-Turner of Shelton. The project is scheduled for completion in June 2001.
• As part of the University’s commitment to safety and security, by the start of the Fall 2000 semester, all sleeping rooms had self-closers on the doors and all residence halls had alarm and smoke detection systems in place. Coupled with an aggressive fire safety education program and practice drills, these facility upgrades represent an important milestone in the effort to build a protective environment. The program also includes the installation of sprinklers in all residence halls by the completion of UCONN 2000. The installation of sprinklers at the North Campus dormitory was completed for the Fall 2000 semester.
• Construction has begun on a hotel located on the Storrs campus. This facility is being constructed under a land-lease agreement with the University. The facility will be built next to the Lewis B. Rome Commons building at South Campus to take advantage of its conferencing and catering capacity in conjunction with the hotel. The partnership for the project is Robert Freidman (hotel developer and owner of the Norwich Navigators) along with the Maristar Group, which manages hotels worldwide, including many university hotel facilities such as the Princeton Forestal. It is anticipated that the construction will be complete in May 2001. The contractor for the project is G. Schnip Construction of Norwich.
• Manafort Brothers of New Britain has been selected for the construction of a second parking garage to be located next to the Gampel Pavilion. Funding for the project will come from parking fee revenue. The facility will contain 1,547 parking spaces and 53,000 gross square feet of retail space for the UConn Co-op. The garage portion of the project will be completed in May 2001 and the Co-op space August 2001.
• Konover Construction of West Hartford has been selected for the construction of additional dormitories at the Hilltop complex. The project will create 450 beds for students in suite style rooms. Financing for the project is secured by special revenue bonds to be repaid through room-and-board fees. With enrollments increasing these additional beds will help avoid overcrowding. The project schedule will have 248 beds ready in August 2001 with the remaining 202 beds available in January 2002.
• Construction is underway for the Hilltop Student Apartments. This project will accommodate 972 students. Part of the Hilltop residential neighborhood, the project is on Alumni Drive, immediately south of the Hilltop Dorms. The apartments will be rented to University students only; tenants will be subject to the University’s code of conduct. The design-build firm for the project is Capstone Development of Mobile, Alabama, an organization, which has successfully built similar projects in a number of other states. The complex is scheduled for completion by August 2001.
• Construction is underway for the development of a Community Center facility at the School of Social Work on the West Hartford campus. This project is funded through the generosity of Henry and Judith Zachs, a UConn alumnus. The relocated computer center will go into a new freestanding building on the West Hartford campus. The contractor for the project is Enfield Builders. The project is scheduled for completion July 2001.
• The renovation of the Northwest Quad residence halls was completed on schedule for the Fall 2000 semester. The construction manager for the project was Whiting-Turner of Baltimore, Maryland. The project included a new central dining facility for the complex, which will eliminate the small kitchens that currently exist in each of the seven buildings. This change will significantly reduce operating costs for dining services while freeing up additional program support space in each building. The dorm rooms will be renovated and brought up to building code, including the installation of sprinklers. This dormitory complex provides housing for freshmen.
• Construction is underway on the new School of Business project. The contractor for the project is FIP Construction of Cheshire. The project’s funding will be augmented with $4.5 million to be raised from private donations. It is anticipated the project will be completed in June 2001.
• Construction is underway for a utility tunnel that will connect central campus buildings to the central utility plant. Inside the tunnel will be the following services: Steam, Sprinkler Main, Emergency Power, Chilled Water, Domestic Water, and Tele-Data Systems. This project is scheduled for completion in December 2000. The contractor for the project is Allstate Boilers of Farmington.
• Turner Construction of Shelton has been selected to complete the construction of the Biological Sciences project. They are in the process of determining the cost for the project in conjunction with the bonding company. After repeated discussions, notifications and warnings, the original contractor for the Biological Sciences project was terminated by the University on February 4, 2000. The grounds for this termination included:
  • Unqualified general contractor staffing
  • Removal of key personnel
  • Unauthorized substitutions
  • Subcontractor mismanagement
  • Schedule-failure to comply with contact requirements
  • Failure to prosecute the work
  • Subcontractor payment irregularities
  • Inadequate staffing/manning
  • Change order processing failures
  • Disregard for University property
  • Refusal/delay in allowing document review
  • Failure to timely provide general conditions documents
  • Inadequate quality control
  • Inadequate safety supervision

  The University is working with Liberty Mutual, the Surety that holds the payment and performance bond to complete the project. On April 10, 2000, Liberty Mutual informed the University that it is committed to discharging its performance bond obligations in connection with the project.

• All Phase Enterprises of Stafford Springs has been selected the design-build firm for the construction of an Agricultural Arena. This facility will contain a polo arena to replace the current outdoor facility. The majority of funds for this project are coming from private donations. Construction of this project is scheduled to be complete in Spring 2001.
• PDS Construction of Bloomfield, Connecticut has been selected for the construction of the Precision Manufacturing Facility. The majority of funding for this project is through a $2,000,000 grant from the Economic Development Agency. The project will be complete in September 2001.

FINANCE

• University General Obligation Debt Service Commitment Bonding AuthoritySection 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds”). The Debt Service Commitment Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and, Fleet National Bank of Connecticut, as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995, and the State Bond Commission on December 21, 1995. The University’s Board of Trustees and the Office of the Governor approve the subsequent Supplemental Indentures for each bond issue. The University and the Office of the State Treasurer manage the Debt Service Commitment Bond sale process. The State Treasurer disburses the cost of issuance out of the proceeds of the Debt Service Commitment Bond issues.
• Overview of University General Obligation Bond ProgramConnecticut General Statutes Sections 10a-109 through 10a-109y lists $1,250,000,000 of UCONN 2000 Projects of which $962,000,000 may receive authorization to be financed with the University’s General Obligation Bonds secured by the State’s Debt Service Commitment, plus costs of issuance. Additionally, the amount of Debt Service Commitment bonds that may be authorized by the Board of Trustees is capped by the fiscal year allocations contained in the Statute.As of the date of this legislative report, the University has issued Debt Service Commitment bonds with a face value of $518,427,146. 50, of which $512,000,000 was for UCONN 2000 Projects with the difference representing costs of issuance. The balance of $450,000,000 of Debt Service Commitment Bonds remains to be issued. As of July 1, 2000 the University’s Board of Trustees and the Office of the Governor authorized for issuance all of the Statute’s Fiscal Year 2001 $100,000,000 allocation.
• University General Obligation Debt Service Commitment Bond IssuesOn February 21, 1996, the University, in conjunction with the Office of the State Treasurer, issued $83,929,714.85 of “The University of Connecticut General Obligation Bonds 1996 Series A,” the first series of bonds secured by the State’s Debt Service Commitment.On April 24, 1997, “The University of Connecticut General Obligation Bonds 1997 Series A,” the second series of bonds secured by the State’s Debt Service Commitment, was issued in the amount of $124,392,431.65.On June 24, 1998, the third series of bonds, “The University of Connecticut General Obligation Bonds 1998 Series A,” was issued in the amount of $99,520,000.On April 8, 1999, the Phase I Debt Service Commitment Bond financings were completed with the issuance of $79,735,000 of “The University of Connecticut General Obligation Bonds 1999 Series A.” The four series of Phase I bonds totaled $387,577,146.50 in face value of which $382,000,000 was for UCONN 2000 projects. The balance, together with accrued interest, funded the cost of issuance through the Office of the Treasurer.

  On March 29, 2000, the University, in conjunction with the Office of the State Treasurer, issued $130,850,000 of “The University of Connecticut General Obligation Bonds 2000 Series A.” This was the fifth series of bonds issued in the UCONN 2000 program.

• Credit Rating Upgrade – University’s Debt Service Commitment BondsDuring the process of issuance for the UCONN General Obligation Debt Service Commitment 2000-A Bond Issue, the University the Debt Service Commitment 2000-A Bond Issue, working together with the State Treasurer’s Office, was able to achieve an upgrade to “Aa3” from “A-1” for the State’s Debt Service Commitment Bonds. The capital markets thus recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals contained in the UCONN 2000 program, as well as the University’s success in implementing them. As of September 2000, the UCONN 2000 Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa3” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Additionally, certain maturities of the bonds were insured with “AAA” rated municipal bond insurance at issuance.
• Trustee-Held Construction FundPrior to June 1998, all of the Debt Service Commitment Bond proceeds were treated as State General Obligation Bond proceeds and were deposited with the Office of the State Treasurer, and disbursed through the Office of the State Comptroller. Subsequently, the Office of the Attorney General advised that the UCONN 2000 bonds are issued by the University, and should be treated as distinct from State General Obligation bonds. Accordingly, upon the advice of bond counsel and in order to conform to the Master Indenture of Trust, the Debt Service Commitment Bond construction fund proceeds are now deposited to the Trustee Bank and disbursed from that account. The bond proceeds for cost of issuance are still deposited with, and disbursed by, the Office of the State Treasurer.The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and the Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University, and that it provides certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse the payments.The University has directed the Trustee Bank to invest the Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund, which is “AAAm” rated by Standard & Poor’s Investor’s Service, and offers daily liquidity and historically attractive risk-adjusted yields.
• University Special Obligation Revenue Bonds Secured by Pledged Revenues Bonding AuthorityUCONN 2000, as codified in Connecticut General Statutes Section10a-109 through 10a-109y, also authorizes the University to issue Special Obligation Revenue bonds. Unlike the Debt Service Commitment Bonds, which are paid for out of the State’s General Fund, the Special Obligation Bonds are paid for out of certain, pledged revenues of the University as defined in the particular bond series indenture.Two Student Fee Revenue Bond issues have been made pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University of Connecticut as Issuer and State Street Bank & Trust as Trustee (“Special Obligation Master Indenture”) and respective Supplemental Indentures as approved by the University’s Board of Trustees and the Office of the Governor.The legislation provides that a Special Capital Reserve Fund may be established for University Special Obligation Bond issues only if the Board of Trustees of the University determines that the Special Obligation Bond issue is self-sufficient as defined in Connecticut General Statutes Section 10a-109 through 10a-109y the act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the Treasurer of the State, prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1 annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.
• University Special Obligation Bond IssuesOn February 4, 1998, the University issued $33,560,000 of the University of Connecticut Student Fee Revenue Bonds 1998 Series A pursuant to the Special Obligation Master Indenture, and the Special Obligation Student Fee Revenue Bonds First Supplemental Indenture, both dated as of January 1, 1997. The First Supplemental Indenture authorized the issuance of bonds up to a principal amount not exceeding $30,000,000 for construction of the South Campus Residence and Dining Hall, plus the amounts necessary to fund a Special Capital Reserve Fund (“SCRF”), and to provide for costs of issuance. The bonds have a final maturity of November 15, 2027.The University managed the issuance and sale of the UCONN 2000 Student Fee Revenue Bonds 1998 Series A, and realized a favorable true interest cost over the twenty-nine year term. Debt service for the Student Fee Revenue Bond 1998 Series A ‘s debt service is paid from Pledged Revenues, including the Infrastructure Maintenance Fee, as further defined in the Special Obligation Master Indenture. This fee is paid by students and was instituted in 1997 to provide for such debt service and to help support future operation and maintenance costs for facilities built or expanded by virtue of UCONN 2000.The University has invested the bond proceeds in the State Treasurer’s Short Term Investment Fund, and, in regard to the Special Capital Reserve Fund, also in “AAA” rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust. The State SCRF enhancement allowed the bonds to obtain a “AA-” rating from Standard & Poor’s with a positive outlook, a “AA-” rating from Fitch Investors Service, and an “A-1” rating from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” rating category at Fitch and Standard Poor’s and “Aaa” at Moody’s Investors Service. During October 1998, Standard & Poor’s upgraded the SCRF bond ratings to “AA” with a stable outlook.On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture, dated as of May 1, 2000. The Second Supplemental Indenture authorized the issuance of bonds up to a principal amount not exceeding $90,000,000 for construction of the Hilltop Dormitory; Hilltop Student Rental Apartments; and the Parking Garage South Projects and to provide for capitalized interest and costs of issuance. The Special Obligation Student Fee Revenue Bonds 2000 Series A does not have a Special Capital Reserve Fund (“SCRF”).

  The University managed the issuance and sale of the UCONN 2000 Special Obligation Student Fee Revenue Bonds 2000 Series A, and realized a favorable true interest cost. The bonds have a final maturity of November 15, 2029. Debt service is paid from the Pledged Revenues as defined pursuant to the Indentures. Proceeds of the bonds are being used to provide much needed student housing for the Storrs Campus, and a parking garage that will be located near Gampel Pavilion.

  The University has invested the bond proceeds in the State Treasurer’s Short Term Investment Fund.

• Credit Rating Success – University’s Stand Alone Credit Rating EstablishedThe University successfully obtained a “AA-” stand-alone credit rating from Standard & Poor’s with its second issue of Special Obligation Bonds, demonstrating its investment potential as well as its ability to professionally administer the complexities of the tax-exempt bond program. The “AA-” rating was the first time the University obtained a credit rating based on its own merit without the use of the Debt Service Commitment or Special Capital Reserve Fund state backed credit supports.The “AA-” credit rating signaled a strong vote of confidence by the capital markets in the University and the future of the State’s flagship university in providing tangible benefits to the State’s economy by meeting the infrastructure and educational goals contained in the UCONN 2000 program.Additionally, the Special Obligation Student Fee Revenue Bonds 2000 Series A bonds were rated “A-1” by Moody’s on a stand-alone basis. At issuance, certain maturities of the bonds were covered by municipal bond insurance and upgraded to a “AAA” rating category at Fitch and Standard Poor’s, and “Aaa” at Moody’s Investors Service.
• Future Bond Issues
  Connecticut General Statutes Section 10a-109 through 10a-109y authorizes $962,000,000 of projects to be financed with University General Obligation Bonds secured by the State’s Debt Service Commitment, plus costs of issuance. As of the date of this report, the University has issued $512,000,000 of DSC Bonds for UCONN 2000 Projects leaving $450,000,000 to be issued. Of the latter amount, $100,000,000 has been authorized for possible bond issuance by the University’s Board of Trustees and the Office of the Governor. The University has issued bonds with a face value of $518,427,146.50. The difference is for cost of issuance.Based on projected spending, the University currently anticipates offering a new Debt Service Commitment Bond issue, for all or part of the $100,000,000 authorization, sometime during the Spring of Fiscal Year 2001. Generally, the University plans on issuing a series of Debt Service Commitment bonds at least every twelve months.Additionally, the University could issue Special Obligation Revenue bonds for certain projects with the capacity for financial self-sufficiency, and if pledged revenues are sufficient to meet the requirements of the Special Obligation Indenture. The projects the University is considering at this time are to meet the critical demand for student housing.

PRIVATE FINANCIAL SUPPORT

The UCONN 2000 endowment matching gift program continues to be a resounding success. The program is providing a powerful incentive for donors, who are investing in the University’s people, programs, and facilities at record levels. Since 1995, the year prior to the commencement of the UCONN 2000 program, private giving has increased steadily. Fundraising on behalf of the University is managed by the University of Connecticut Foundation, Inc.

UConn’s average annual fundraising growth rate of 22% for the past five years is double the national average. UConn has surpassed other New England public universities and put its fund raising program in line with others such as the Universities of Alabama, Georgia, Missouri, Delaware, Kansas State, and Oklahoma State.

A comparison of the Foundation’s five-year performance, from Fiscal Year 1995 to Fiscal Year 2000, is very telling:

• Annual private donations have increased to $37 million from $8 million.
• The endowment has increased to $221 million this year from $50 million.
• Total assets under management have increased to $264 million this year from $65 million.
• The cost of raising money has been cut in half to 18 cents per dollar from 36 cents.

The Foundation’s Fiscal Year 1999 investment performance of the endowment ranked in the top 1 percent of the country’s colleges and universities. The UConn Foundation’s investment performance was in the top 10 percent of all colleges and universities for the three year period ending June 30, 1999. Comparisons for Fiscal Year 2000 are not available yet, but the Foundation realized a total return on investment of 16.5 percent, significantly outperforming the composite benchmark index of 9.1 percent.

A combination of new contributions, maximized by the state matching program, and strong investment performance made UConn’s endowment one of the fastest growing nationally.

• The $20 million in 1:1 state match funds for private gifts, as provided by the original UCONN 2000 legislation, is in-hand. During the first year of the program, $9.1 million in match-eligible gifts was received; an additional $6.5 million was received in calendar year 1997; $4.4 million was received in calendar year 1998.
• In recognition of the program’s success, the General Assembly enacted a continuation and restructuring of the match on a 1:2 basis (one state dollar to every two private dollars). The State of Connecticut’s grant will total up to $52.5 million from Fiscal Year 2000 to Fiscal Year 2007, depending on the level of match-eligible donations actually received on behalf of the University by December 31, 2005. As of June 30, 2000, $35.6 million in pledges had been received as part of the 1:2 matching gift program.
• Total endowment assets for the benefit of the University as of June 30, 2000 were $227 million. This includes the UConn Foundation’s total endowment assets of $221 million. Foundation endowment assets grew 26 percent from $176 million on June 30, 1999.
• In February 2000, the Board of Trustees submitted to the State a request for $5 million to match endowment gifts received in 1999. The match is expected to be received in the fall 2000. Eligible gifts received in 1999 exceeded the maximum subscription by $2.8 million. They will be carried forward and submitted with the calendar 2000 match eligible gift receipts.

Significant Commitments

• United Technologies Corporation committed $4 million to the University of Connecticut School of Engineering to support new engineering education initiatives. The UTC gift is the largest ever to the UConn School of Engineering and the largest corporate gift ever to a public school of engineering in New England. As the largest gift UTC has ever given to an educational institution, it will be used to endow three chaired faculty positions, establish an Advanced Technology Clinic, sponsor four junior faculty positions and establish an endowment for undergraduate scholarships.
• Aetna Financial Services committed more than $2.7 million to the School of Business Administration. The Aetna Center for Financial Services will conduct research on long-term savings, investment, and income management, and will seek to inform relevant public policy debate. Fundamental to the center’s mission will be the creation of a financial services database, to be sustained by and available to academic and corporate subscribers. Part of Aetna’s gift will be used to endow the Aetna Chair in Financial Services, a new faculty position.
• The University of Connecticut Visitors Center, which will be dedicated on October 28, 2000, was made possible thanks to the generosity of Philip H. ’66 ’67 and Christine ’67 Lodewick. Longtime supporters of UConn, their generous commitment of $1.3 million for a visitors program ensures that newcomers to the Storrs campus will be introduced to the many education, cultural and athletic activities that make campus life here so special.
• The Treibick Family Foundation donated $1 million to establish the Treibick Family Chair for the Connecticut Information Technology Institute (CITI). CITI is an innovative program that addresses the educational and professional development needs of Connecticut’s growing information technology sector. The program partners with area businesses to identify technology-training needs and provides state-of-the-art education and training solutions. This gift is in addition to the earlier generous contributions the Treibick Family Foundation has given in support of the Treibick Family Electronic Commerce Initiative Fund at the School of Business, women’s athletics, human rights, the Health Center, Nutmeg Scholarships, and support of the University’s Honors Program.

CURRENT PROJECT STATUS: PHASE I (as of October 2000)

CURRENT PROJECT STATUS: PHASE II (as of October 2000)

CURRENT PROJECT FUND SOURCES: PHASE I (as of October 2000)

CURRENT PROJECT FUND SOURCES: PHASE II (as of October 2000)

CHARTS

Table of Contents
I. UCONN 2000: THE UPDATE
II. ACTIVITIES COMPLETED OR UNDERWAY:

• PLANNING, DESIGN AND MANAGEMENT
• CONSTRUCTION
• FINANCE
• PRIVATE FINANCIAL SUPPORT

IV. CURRENT PROJECT STATUS (as of April 2000)
V. CURRENT PROJECT STATUS – PHASE II (as of April 2000)
VI. CURRENT PROJECTS FUND SOURCES: PHASE I (as of April 2000)
VII. CURRENT PROJECTS FUND SOURCES: PHASE II (as of April 2000)
CHARTS

UCONN 2000: THE UPDATE

This is the tenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, and now known as UCONN 2000. These reports have been issued each October and April since the passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999. The standard reporting structure of the previous reports is again utilized in this report.

As documented in past reports, UCONN 2000 has revitalized the University’s main and regional campuses. New buildings have been constructed and old buildings have been refurbished. Freshman enrollment is up, minority enrollment is up, and the average SAT score of incoming freshmen has climbed. Private fundraising has benefitted, dramatically. But, most important, the student experience has been enhanced significantly, both in and out of the classroom, via state-of-the-art facilities, cutting-edge equipment, and pedestrian-friendly surroundings.

So much has been accomplished in five years. Prior to 1995, students and parents visiting the Storrs Campus for the first time came up over the hill on Route 195 and were greeted on the right by dormitories in need of repair and a rural setting on the left, with cows grazing next to deteriorating facilities. When they turned onto North Eagleville Road into the main section of campus, little caught the eye but the ducks swimming on the pond. The family probably parked in old Lot 9, if they could find a space. On foot, they made their way up the hill past the old ROTC Quonset hut, and a Field House looking every bit its age. They then turned onto Fairfield Road a risky proposition on foot, because the core of the campus was in fact a congested thoroughfare and parking lot, dominated by a library wrapped in plastic to protect pedestrians from falling bricks.

Fast forward to the year 2000. A new century and a new UConn. The same family, now arriving with a younger sibling, is in for a pleasant surprise. Those dorms on the right have pitched roofs, clean facades and neat trim, all a sharp contrast from the last visit. The cows are still there on the left (although one happens to be cloned), but now a beautiful Agricultural Biotechnology facility sits at the foot of the hill. As they turn into campus, the ducks are still there, but on this sunny day, the pond’s surface reflects an impressive structure, the new Chemistry building. The family heads toward old Lot 9 but it’s gone, replaced by a new parking garage. They walk up the hill. No ROTC hangar. An attractive brick building, the new home of the UConn Foundation stands there in its place. And that Field House looks a lot nicer, too. A peek inside shows ultra-modern recreational facilities filled with students. Heading toward the core of campus, our family witnesses the most impressive transformation of all. Where once there was a perennial traffic jam, now is a beautiful pedestrian landscape, a campus core with brick paths, plazas and seating walls that welcome residents and visitors alike. A glance past the rebuilt library reveals a glimpse of the magnificent South Campus residential complex. A lot has changed in five years.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

PLANNING, DESIGN AND MANAGEMENT

• Bids are being received for the Wilbur Cross project, a complete renovation of the former library building. This project will provide an opportunity to locate all of the business functions relating to student services in one central customer-friendly location. These functions include dining services, residential life, financial aid, bursar, registrar, and services to students with disabilities. The architects for the project are Arbonies King & Vlock, of Stony Creek, Connecticut.

• Program development activities are underway for renovations at the School of Law that will provide for phased renovations of facilities including the old Library Building. The architects for this project are Allan Dehar Associates of New Haven, Connecticut.

• Programming activities have begun for renovations to the current School of Business building. The purpose of this project is to turn the old facility into a new Learning Center. The Learning Center will provide academic support for students as well as instructional support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, the Institute for Teaching & Learning, Study Abroad, Urban Semester, the Center for Community Outreach, Instructional Research Center, Honors Program, and the Learning Research Center. Also included with this project is an addition to the building that will be the new home for the Counseling Program for Intercollegiate Athletes. Architects for the project are Svigals Associates of New Haven, Connecticut.

• Design development has begun for the Student Union project. This project, which will include major renovations and additions to the current facility, has a primary goal of expanding the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, meeting space, ballroom and a central post office for all student mail. This facility will also provide new space for each of the campus’ cultural centers. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston, Massachusetts.

• As part of the overall building and renovation program, the University of Connecticut continues the process of standardizing building systems and system components (such as electrical circuitry, panel boxes, etc.). This standardization process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance and lower overall costs.

• Program design activities have begun for renovations to the Arjona and Monteith buildings. This project will include renovations to the exterior and the interior of these heavily used classroom buildings, including the addition of central air conditioning. The exterior renovations will add pitched roofs as dictated by the architectural standards of the University’s Master Plan. Architects for the project are Herbert Beckhardt and Frank Richlan and Associates of New York City.

• Design development drawings are being prepared for the new School of Pharmacy building. The project involves the construction of a 120,000 square foot building for teaching and research for pharmacy and the creation of a 55,000 square foot building of research space for biology. The architects for the project are Davis, Brody Bond of New York City.

• Bids were received for the Gant Plaza Deck repair project. The bids were over the planned budget and redesign has begun. It is anticipated that construction will begin in the spring of 2000.

• The installation of sprinklers at the North Campus Dormitory is underway. It is anticipated that construction will be complete in August 2000. This project is part of the program that will include the installation of sprinklers in all residence halls by the completion of UCONN 2000. By fall of 2000, all residence halls will have alarm and smoke detection systems, the first line of defense in a fire emergency.

• A private developer has been selected for the construction and management of a hotel on the Storrs campus. This hotel will be constructed under a land-lease agreement with the University. The facility will be built next to the Lewis B. Rome Commons building at South Campus to take advantage of its conferencing and catering capacity in conjunction with the hotel. The partnership for the project is Robert Freidman (hotel developer and owner of the Norwich Navigators) along with the Maristar Group, which manages hotels worldwide, including many university hotel facilities such as the Princeton Forestal. It is anticipated that the construction will be complete in December 2001.

• Programming activities have begun for the Technology Quad Phase II project. This project involves the construction of a new building for the School of Engineering’s Information Technology program. This facility, which is projected to be approximately 94,000 gross square feet, will include offices, classrooms, research labs, and a 350-seat lecture hall. Architects for the project are Preiss Breismeister of Stamford, Connecticut in conjunction with Burt Hill Kosar Rittlemann of Washington, DC.

• Programming activities have begun for renovations to the Neag School of Education’s Gentry building. This project will include a complete renovation of the building’s interior along with exterior improvements of the facade and roof. Architects for the project are Svigals and Associates of New Haven, Connecticut.

• Construction documents are being completed for renovations to the Horticultural Storage building, which will be the new location of the Natural History Museum. The museum is undertaking fund raising activities to supplement UCONN 2000 funds. Architects for the project are Arbonies King & Vlock of Stony Creek, Connecticut.

• Prequalification has begun for design-build firms for the second parking garage, to be located next to the Gampel Pavilion. Funding for the project will come from parking fee revenue. The facility will contain approximately 1,500 parking spaces and 60,000 gross square feet of retail space for the UConn Co-op. The environmental assessment is now being prepared and permitting activities are underway.

• Prequalification is underway for an additional residential tower at the Hilltop complex. This project will contain 400 to 500 beds for students in suite style rooms. Financing for the project will be secured by special revenue bonds to be repaid through room and board fees. With enrollments increasing, additional residential space is crucial to avoid serious over crowding. It is anticipated that this project will be complete in August 2001.

• A design-build firm has been selected to construct and manage apartment style housing on the Storrs campus to accommodate 996 students. Part of the Hilltop residential neighborhood, the project is on Alumni Drive, immediately south of the Hilltop Dorms. The apartments will be rented to University students only; tenants will be subject to the University’s code of conduct. The design-build firm for the project is Capstone Development of Mobile, Alabama, an organization which has successfully built similar projects in a number of other states. The complex is scheduled for completion by August 2001.

• Master planning activities have been completed for the north campus (former Tech Park), Agricultural campus, and the Depot campus (former Mansfield Training School) areas. Previous master planning activities had focused on the core campus areas. Potential for further campus development will be realized with the settlement of the lien that had been placed against the north campus property by the former Tech Park developer.

• Architectural plans are being finalized for the development of a Community Center facility at the School of Social Work on the West Hartford campus. This project is funded through the generosity of Henry and Judith Zachs, a UConn alumna. The relocated computer center will go into a new free-standing building on the West Hartford campus. The architect for the project is Barkin Andrade of New Haven, Connecticut.

• Programming activities are underway for the Waterbury downtown campus project. This project, funded by State General Obligation bonds, will involve the relocation of the Waterbury Regional Campus from the present Hillside location to East Main Street. The existing academic programs, along with additional MBA and Bachelor of Business programs, will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford, Connecticut. Although not part of UCONN 2000 funding, the project will be managed by the University with the authority granted by UCONN 2000.

• The Facilities Management Home Page on the World Wide Web continues to be very successful in providing information to interested parties. The site has been visited over 16,700 times since its introduction in October 1996.

CONSTRUCTION

• A construction contract is being awarded for the Waring Building renovation. Plans for the building include offices for the College of Liberal Arts and Sciences, the English Department, and the Geography Department. Also included in the project is the creation of additional classrooms. The contractor for the project is Haynes Construction of Seymour, Connecticut.

• Construction has begun for the University’s new Visitors Center. This project, funded through a generous gift from alumni Philip and Christine Lodewick, includes a center for visitor tours and information about the University and events. The Construction Manager for the project is BB&E of Bloomfield, Connecticut. Project completion is scheduled for September 2000.

• An exterior signage program has been developed for all campus locations, including the Health Center. The purpose of the program is to incorporate signage that will provide a unified look and better directional information to visitors to the campuses. Installation of the new signage will begin in May 2000.

• Construction has begun on the Central Warehouse project. The project team includes Konover Construction of West Hartford and Kagan Architects of New Haven, Connecticut. This 85,000 square foot facility will include purchasing, central warehouse and accounts payable functions, mail services, parking and transportation services, and program space for campus police. The facility is located in the R-Lot as part of the University’s plan to move support services to the perimeter of campus. It is anticipated construction will be complete in October 2000.

• Construction activity is continuing on the Avery Point Marine Science project. This project includes a new 116,000 square foot research building, a 30,000 square foot Project Oceanology building, and a new central chilled water plant. This project will be completed in February 2001. The contractor on the project is C.R. Klewin of Norwich, Connecticut.

• Researchers moved into the Agricultural Biotechnology facility in January 2000. The 46,000 square foot facility will include research labs for transgenic animal, plant biotechnology, and transgenic plant activities. Funding for the project included UCONN 2000 and federal funds. The contractor for the project was HRH/Atlas of Stamford, Connecticut.

• Construction has begun again on the Litchfield Agricultural Center project after a winter shutdown due to a shortage of masonry workers. The contractor for the project is Hayes Construction of Shelton, Connecticut. Funding for the project includes UCONN 2000 funds and a grant from the Litchfield Agricultural Center. It is anticipated that construction will be completed in September 2000.

• The renovation of the Northwest Quad residence halls is moving on schedule for completion in August 2001. The construction manager of the project is Whiting-Turner of Baltimore, Maryland. The project includes a new central dining facility for the complex, which will eliminate the small kitchens that currently exist in each of the seven buildings. This change will significantly reduce operating costs for dining services while freeing up additional program support space in each building. The dorm rooms will be renovated and brought up to building code, including the installation of sprinklers.

• Classroom renovations completed in summer 1999 included Avery Point, West Hartford, and Waterbury campuses.

• Construction is underway on the new School of Business project. The contractor for the project is FIP Construction of Cheshire, Connecticut. The project’s funding will be augmented with $4.5 million to be raised from private donations. It is anticipated the project will be completed in April 2001. .

• After repeated discussions, notifications and warnings, the contractor for the Biological Sciences project was terminated by the University on February 4, 2000. The grounds for this termination included:

• Unqualified general contractor staffing

• Removal of key personnel

• Unauthorized substitutions

• Subcontractor mismanagement

• Schedule-failure to comply with contact requirements

• Failure to prosecute the work

• Subcontractor payment irregularities

• Inadequate staffing/manning

• Change order processing failures

• Disregard for University property

• Refusal/delay in allowing document review

• Failure to timely provide general conditions documents

• Inadequate quality control

• Inadequate safety supervision

The University is working with Liberty Mutual, the Surety that holds the payment and performance bond to complete the project. On April 10, 2000 Liberty Mutual informed the University that it is committed to discharging its performance bond obligations in connection with the project.

FINANCE

Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds”). The Debt Service Commitment Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and, Fleet National Bank of Connecticut, as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995 and the State Bond Commission on December 21, 1995. The University’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The State Treasurer and the University manage the Debt Service Commitment Bond sale process.

• February 21, 1996: the University, in conjunction with the Office of the State Treasurer, issued $83,929,714.85 of “The University of Connecticut General Obligation Bonds 1996 Series A,” the first series of bonds secured by the State’s Debt Service Commitment.

• April 24, 1997: “The University of Connecticut General Obligation Bonds 1997 Series A,” the second series of bonds secured by the State’s Debt Service Commitment, was issued in the amount of $124,392,431.65.

• June 24, 1998: the third series of bonds, “The University of Connecticut General Obligation Bonds 1998 Series A,” was issued in the amount of $99,520,000.00.

• April 8, 1999: the Phase I Debt Service Commitment Bond financings were completed with the issuance of $79,735,000.00 of “The University of Connecticut General Obligation Bonds 1999 Series A.”

• The four series of Phase I bonds totaled $387,577,146.50 in face value of which $382,000,000.00 was for UCONN 2000 projects. The balance, together with accrued interest, funded the cost of issuance through the Office of the Treasurer.

• March 9, 2000: Moody’s upgraded the UCONN 2000 Debt Service Commitment Bonds to “Aa-3,” the same as the State’s General Obligation Bond rating. As of March 2000, the UCONN 2000 Debt Service Commitment Bonds were rated “AA” by Standard & Poor’s; “Aa-3” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Additionally, certain maturities of the bonds were insured with “AAA” rated municipal bond insurance at issuance.

• March 29, 2000: the first series of Phase II Debt Service Commitment Bond financings was completed with the issuance of $130,850,000.00 of “The University of Connecticut General Obligation Bonds 2000 Series A.” Together, the five series of DSC bonds issued totaled $518,427,146.50 in face value, of which $512,000,000.00 was for UCONN 2000 projects. The balance, together with accrued interest, funded the cost of issuance through the Office of the Treasurer.

Trustee-Held Construction Fund
Prior to June 1998, all of the Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer, and treated similar to State bond proceeds. Subsequently, the Office of the Attorney General determined that the UCONN 2000 bonds are issued by the University and not by the State. Accordingly, upon the advice of bond counsel and in order to conform to the Master Indenture of Trust, the Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank. The bond proceeds for cost of issuance are still deposited with, and disbursed by, the Office of the State Treasurer.

The University has directed the Trustee Bank to invest the Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund, which is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields.

The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and the Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University, and that it provide certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse the payments.

University Special Obligation Revenue Bonds Secured by Pledged Revenues
UCONN 2000, as codified in Connecticut General Statutes Section 10a-109 through 10a-109y, also authorizes the University to issue Special Obligation Revenue bonds. Unlike the Debt Service Commitment Bonds, which are paid for out of the State’s General Fund, the Special Obligation Bonds are paid for out of certain, pledged revenues of the University as defined in the particular bond series indenture.

Additionally, a Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the Board of Trustees of the University determines that the Special Obligation bond issue is self-sufficient as defined in the act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the Treasurer of the State, prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December first annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.

The Student Fee Revenue Bonds were issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University of Connecticut, as Issuer, and, State Street Bank & Trust, as Trustee. The Special Obligation Indenture of Trust and the Student Fee Revenue Bonds Supplemental Indenture was approved by the University’s Board of Trustees on November 8, 1996. The Supplemental Indenture authorized the issuance of bonds up to a principal amount not exceeding $30,000,000.00 for construction of the South Campus Residence and Dining Hall, plus the amounts necessary to fund a Special Capital Reserve Fund (“SCRF”), and to provide for costs of issuance.

On February 4, 1998, the University issued $33,560,000.00 of the University of Connecticut Student Fee Revenue Bonds 1998 Series A. The bonds have a final maturity of November 15, 2027. The University managed the issuance and sale of the UCONN 2000 Student Fee Revenue Bonds 1998 Series A, and realized a favorable true interest cost over the twenty-nine year term. Debt service for the Student Fee Revenue Bond 1998 Series A’s debt service is paid from Infrastructure Maintenance Fee revenues. This fee is paid by students, and was instituted in 1997 to provide for such debt service, and to help support future operation and maintenance costs for facilities built or expanded by virtue of UCONN 2000.

The University has invested the bond proceeds in the State Treasurer’s Short Term Investment Fund, and, in regard to the Special Capital Reserve Fund, in “AAA” rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust.

The State SCRF enhancement allowed the bonds to obtain a “AA” rating from Standard & Poor’s, a “AA-” rating from Fitch Investors Service, and an “A-1” rating from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” rating category at Fitch and Standard & Poor’s and “Aaa” at Moody’s Investors Service. During October 1998, Standard & Poor’s upgraded the SCRF bond ratings to “AA” with a stable outlook.

Future Bond Issues
Phase II projects totaling $450,000,000.00 remain to be financed with future series of Debt Service Commitment Bonds. Generally, the University plans on issuing a series of Debt Service Commitment Bonds at least every 12 months. Additionally, the University is currently considering issuing Special Obligation Revenue Bonds for a parking garage near Gampel Pavilion, and for student housing facilities in the Hilltop campus area.

PRIVATE FINANCIAL SUPPORT

The UCONN 2000 endowment matching gift program has been a resounding success. The program is providing a powerful incentive for donors, who are investing in the University’s people, programs, and facilities at record levels. Since 1995, the year prior to the commencement of the UCONN 2000 program, private giving has increased 300 percent. In addition, the UConn Foundation’s investment performance was in the top 10 percent of all colleges and universities for the past three years. A combination of new contributions, maximized by the state matching program, and strong investment performance made UConn’s endowment one of the fastest growing nationally.

• The $20 million in 1:1 state match funds for private gifts, as provided by the original UCONN 2000 legislation, is in-hand. During the first year of the program, $9.1 million in match-eligible gifts was received; an additional $6.5 million was received in calendar year 1997; and $4.4 million was received in calendar year 1998.

• The $6.8 million in state funds to match the private gifts received in 1997 was transferred by the State to the University in December 1998 and January 1999, and was invested promptly.

• In February 1999, the Board of Trustees submitted to the State a request for $7.5 million in matching funds to match endowment gifts received in 1998, 1997, and 1996, which had not been previously submitted. The match was received in October 1999.

• In recognition of the program’s success, the General Assembly enacted a continuation and restructuring of the match on a 1:2 basis (one state dollar to every two private dollars). From fiscal year 2000 to fiscal year 2007, the state grant will total up to $52.5 million, depending on the level of match-eligible donations actually received. As of December 31, 1999, $29.0 million in pledges had been received as part of the 1:2 matching gift program.

• Total endowment assets for the University as of December 31, 1999 were $207 million, including the UConn Foundation’s total endowment assets of $202 million. Foundation endowment assets grew 17 percent from $172 million on June 30, 1999. The Foundation’s outstanding investment performance in fiscal year 1999 placed it among the top five percent of endowments in American higher education.

Significant Gifts

• Robert G. Burton, a successful Greenwich businessman and former professional football player, contributed $1 million to establish a scholarship for UConn football players enrolled in the School of Business. The Michael G. Burton Endowed Scholarship Fund is named for the donor’s son, a UConn senior and a captain of the football team. Burton’s investment, which demonstrates his dual commitment to athletics and academics, comes at a critical time as the UConn football program makes the transition to Division 1-A.

• International philanthropists Raymond and Beverly Sackler donated $250,000 to support genetic research at the Health Center. The Raymond and Beverly Sackler Research Fund for Genetics and Molecular Medicine will support research in an innovative technology believed to be important in brain development and the immune system, with strong potential implications for drug development and the treatment of disease. The gift will advance UConn’s emerging prominence as a leader in genetic research.

• A $1.5 million gift from Gary Gladstein through the SGM Foundation in January 2000 will support two exciting new initiatives in the School of Business: the Gladstein Professorship in Information Technology and Innovation, and the Gladstein Endowment for the MIS Research Laboratory. These endowed funds are vital to moving UConn to the forefront of technology research and development. The comprehensive gift will also support the Marsha Lilien Gladstein Visiting Professor in Human Rights and the new School of Business Building.

• Judith ’77 and Henry Zachs gave $1 million to endow a faculty chair and to support a proposed doctoral program in the School of Social Work. The program will offer a strong core of advanced courses in theory and methods, research, history and philosophy, and policy and planning. The Henry M. and Judith M. Zachs Chair in Social Work will be filled by a prominent scholar in the field. As the first doctoral program in Connecticut, the gift will help fulfill a critical need in the state and the profession.

CURRENT PROJECT STATUS – PHASE I (as of April 2000)

CURRENT PROJECT STATUS – PHASE II (as of April 2000)

CURRENT PROJECT FUND SOURCES – PHASE I (as of April 2000)

CURRENT PROJECT FUND SOURCES – PHASE II (as of April 2000)

CHARTS

Table of Contents
I. UCONN 2000: THE UPDATE
II. ACTIVITIES COMPLETED OR UNDERWAY:

• PLANNING, DESIGN AND MANAGEMENT
• FINANCE
• PRIVATE FINANCIAL SUPPORT

IV. CURRENT PROJECT STATUS (as of October 1999)
V. CURRENT PROJECT STATUS – PHASE II (as of October 1999)
V. CURRENT PROJECTS FUND SOURCES: UCONN 2000 (as of April 1999)
CHARTS

UCONN 2000: THE UPDATE

This is the ninth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, and now known as UCONN 2000. These reports have been issued each October and April since the passage of UCONN 2000 on June 7, 1995. The law also required a four year progress report, which was filed on January 15, 1999. The eighth report contained fully up-to-date project status charts; for prose project updates the reader is directed to UCONN 2000: Four Year Progress Report, Chapter III. The standard reporting structure utilized in reports one through seven resumes with this report, the ninth in the series.

The true promise of UCONN 2000 continues to be fulfilled. With this unprecedented support from the citizens of Connecticut, the University has:

* attracted talented students as never before. During the past two years, freshman enrollment at Storrs has increased more than 34%; average SAT scores are up 24 points; and freshman minority enrollment has climbed more than 39%. This year, 26 Connecticut valedictorians are part of UConn’s freshman class.

* become a magnet for private fundraising and investment, tripling annual gift receipts and endowment assets to support scholarships and academic excellence.

* implemented a Master Plan to transform our physical infrastructure with this landmark building program, creating a beautiful pedestrian-friendly campus that is worthy of its magnificent Storrs setting and ready for the 21st century.

* enhanced facilities and programs at our School of Law, Health Center and regional campuses.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

PLANNING, DESIGN AND MANAGEMENT

* Schematic design has begun for the Student Union project. This project, which will include major renovations and an addition to the current facility, has a primary goal of expanding the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500 seat theatre, meeting space and a central post office for all student mail. This facility will enable all of the campus’ cultural centers to be housed in one location. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston, Massachusetts.

* Construction documents are being finished for the Waring Building renovations. Plans for the building would include housing the College of Liberal Arts and Sciences offices, the English Department, and the Geography Department. Also included in the project is the creation of additional classrooms. The process of pre-qualifying contractors to bid on the project has started and bidding will begin in November 1999. The architect for the project is Herbert Newman and Partners of New Haven, Connecticut.

* Design development drawings have been completed for the Wilbur Cross project, a complete renovation of the Wilbur Cross library building. The project will provide an opportunity to locate all of the business functions relating to student services in one central customer-friendly location. These functions include dining services, residential life, financial aid, bursar, registrar, and services to students with disabilities. The process of pre-qualifying contractors to bid on the project has begun with bidding scheduled for January 2000. The architects for the project are Arbonies King & Vlock, of Stony Creek, Connecticut.

* Construction documents are being finalized for the University’s new Visitors Program. This program, funded through a generous gift from alumni Philip and Christine Lodewick, includes a center for visitor tours and information about the University and University events. Construction is anticipated to begin in November 1999 with completion in June 2000. The architectural firm for the project is Flad & Associates of Stamford, Connecticut. The Construction Manager for the project is BB&E of Bloomfield, Connecticut.

* Program development activities have begun for renovations at the School of Law. This project will provide for the phased renovations of several buildings including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven, Connecticut.

* Architectural selection has begun for renovations to the current School of Business building. The purpose of this project is to create a facility for the Center for Undergraduate Education (CUE). The CUE will provide academic support for students as well as instructional support for faculty members and graduate students. Functions included in the facility will be First Year Experience (special seminars and activities for incoming freshmen), Career Services, the Institute for Teaching & Learning, Study Abroad, Urban Semester, the Center for Community Outreach, Instructional Research Center, Honors Program, and the Learning Research Center.

* As part of the overall building and renovation program, the University of Connecticut continues the process of standardizing building systems and system components (such as electrical circuitry, panel boxes, etc.). This standardization process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance and lower overall costs.

* An exterior signage program has been developed for all campus locations, including the Health Center. The purpose of the program is to implement signage that will provide a unified look and better directional information to visitors to the campuses. Installation of the new signage will begin in December 1999.

* The Facilities Management Home Page on the World Wide Web continues to be very successful in providing information to interested parties. The site has been visited over 13,454 times since its introduction in October 1996. It provides an e-mail alert list for those firms with Internet access in order to inform them of project opportunities at the University as part of UConn’s efforts to provide wider distribution of professional service solicitations.

* Architectural selection has begun for renovations to the Arjona and Monteith buildings. This project will include renovations to the exterior and the interior of these heavily-used classroom buildings, including the addition of central air conditioning. The exterior renovations will add pitched roofs as dictated by the architectural standards of the University’s Master Plan.

* Design development drawings are being prepared for the new School of Pharmacy building. The project involves the construction of a 120,000 square foot building for teaching and research. The architects for the project are Davis, Brody Bond of New York City.

* Bids were received for the Gant Plaza Deck repair project. The bids were over the budget and redesign has begun. It is anticipated that construction will begin in the spring of 2000.

* Design is underway for the installation of sprinklers at the North Campus Dormitory. It is anticipated that construction will begin in January 2000.

* A developer has been selected for the construction and management of a hotel on the Storrs campus. The facility will be built next to the South Campus Commons building to take advantage of its conferencing and catering capacity in conjunction with the hotel. The partnership for the project is Robert Freidman (hotel developer and owner of the Norwich Navigators) along with the Maristar Group, which manages hotels worldwide including many university hotel facilities such as the Princeton Forestal.

* A design-build team has been selected for the Central Warehouse project. The project team is Konover Construction of West Hartford and Kagan Architects of New Haven, Connecticut. This 85,000 square foot facility will include mail services, parking and transportation services, and the University’s purchasing, central warehouse and accounts payable functions. The facility is to be located in the R-Lot as part of the University’s plan to move support services to the perimeter of campus. It is anticipated construction will begin in November 1999.

* A developer has been selected to construct and manage apartment style housing on the Storrs campus. The project would be built in two phases of 400 to 500 beds each. The location for the project is on Alumni Drive, south of the Hilltop Dorms. The developer has responsibility for obtaining project financing and then building the facilities on the land leased from the University. The facilities will be rented to University students; tenants will be subject to the University’s code of conduct. The developer of the project is Capstone Development of Mobile, Alabama, an organization which has successfully built similar projects in a number of other states. The environmental assessment is now being prepared.

CONSTRUCTION

* Construction activity is continuing on the Avery Point Marine Science project. This project includes a new 116,000 square foot research building, a 30,000 square foot Project Oceanology building, and a new central chilled water plant. This project will be completed in August 2000. The contractor on the project is C.R. Klewin of Norwich, Connecticut.

* Construction is complete for the Music and Drama/Music additions and renovations project. The project includes renovations to the Drama/Music building and construction of a new Orchestra and Music Library Buildings. Classes were held in the building beginning in the fall of 1999. The general contractor for this project is O&G Industries of Torrington, Connecticut.

* The White Building code improvements project was finished in May 1999. This project included construction of a new Dairy Bar and renovations to the ice cream production facilities. Contractor for the project was Carlin Construction of Waterford, Connecticut.

* Construction continues on the Agricultural Biotechnology building project. The 46,000 square foot facility will include research labs for Transgenic Animal, Plant Biotechnology, and Transgenic Plant activities. Funding for the project includes UCONN 2000 and federal funds. The contractor for the project is HRH/Atlas of Stamford, Connecticut. Completion of the project is scheduled for December 1999.

* Bids were received in March 1999 for the Litchfield Agricultural Center project. As the bids were over the budget available for the project, the University entered into a negotiation process with the low bidder. The process was successful and a contract has been awarded to Hayes Construction of Shelton, Connecticut. Funding for the project is a combination of UCONN 2000 funds and a grant from the Litchfield Agricultural Center. It is anticipated that construction will be completed in the summer 2000.

* Construction activity continues on the Biological Sciences project. The contractor is HRH/Atlas of Stamford, Connecticut. The building is a seven-story 145,000 square foot facility designed for biology and physics research. The exterior of the building will be brick veneer; a glass greenhouse will occupy the roof. The project is currently scheduled for completion in April 2000.

* A construction manager has been selected for the renovation of the Northwest Quad. The firm chosen is Whiting-Turner of Baltimore, Maryland. The project includes a new central dining facility for the complex, which will eliminate the small kitchens that currently exist in each of the seven buildings. This change will significantly reduce operating costs for dining services while freeing up additional program support space in each building. The dorm rooms will be renovated and brought up to building code. The project is scheduled for completion in August 2000.

* Construction will be complete for the University Program building in October 1999. Construction Manager on the project is BB&E of Bloomfield, Connecticut. This project is being built on land leased by the University to the University of Connecticut Foundation to house the Foundation’s private fundraising activities. Funding for the project has been provided by the Foundation.

* Classroom renovations continue, with projects being completed in the summer 1999 at the Avery Point, West Hartford, and Waterbury campuses.

* Bids were received in May 1999 for the new School of Business building. The bids received were over the budget available for the project. Negotiations began with the low bidders, resulting in a construction contract being awarded to FIP Construction of Cheshire, Connecticut. The project’s funding will be augmented with $4.5 million to be raised from private donations. It is anticipated the project will be completed in April 2001.

FINANCE

Phase I Debt Service Commitment Bond Issues Completed

Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds”).

The Debt Service Commitment Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and, Fleet National Bank of Connecticut, as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995, and the State Bond Commission on December 21, 1995. The University’s Board of Trustees and the Office of the Governor approve the subsequent Supplemental Indentures for each bond issue. The University and the Office of the State Treasurer manage the Debt Service Commitment Bond sale process.

On February 21, 1996, the University, in conjunction with the Office of the State Treasurer, issued $83,929,714.85 of “The University of Connecticut General Obligation Bonds 1996 Series A”, the first series of bonds secured by the State’s Debt Service Commitment.

On April 24, 1997, “The University of Connecticut General Obligation Bonds 1997 Series A,” the second series of bonds secured by the State’s Debt Service Commitment, was issued in the amount of $124,392,431.65.

On June 24, 1998, the third series of bonds, “The University of Connecticut General Obligation Bonds 1998 Series A,” was issued in the amount of $99,520,000.00.

On April 8, 1999, the Phase I Debt Service Commitment Bond financings were completed with the issuance of $79,735,000.00 of “The University of Connecticut General Obligation Bonds 1999 Series A”. The four series of Phase I bonds totaled $387,577,146.50 in face value of which $382,000,000 was for UCONN 2000 projects. The balance, together with accrued interest, funded the cost of issuance through the Office of the Treasurer.

Projects funded at the time of issuance of the Debt Service Commitment 1999-A Bond Issue include the Agricultural Biotechnology Facility; the Benton State Art Museum Addition; the Deferred Maintenance & Renovation Lump Sum-Phase I; the Equipment, Library Collections & Telecommunications-Phase I; the Gant Plaza Deck; the Heating Plant Upgrade; the Litchfield Agricultural Center-Phase I; the North Superblock Site & Utilities; the Pedestrian Walkways (a.k.a. Fairfield Road Pedestrian Mall); the School of Business; the School of Pharmacy; the Stamford Downtown Relocation-Phase I; the Technology Quadrant-Phase IA; the Underground Steam & Water Upgrade-Phase I; and the Wilbur Cross Building Renovation.

As of September 1999, the UCONN 2000 Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “A-1” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Additionally, certain maturities of the bonds were insured with “AAA” rated municipal bond insurance at issuance.

Trustee-Held Construction Fund

Prior to June 1998, all of the Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer, and treated similar to State bond proceeds. Subsequently, the Office of the Attorney General determined that the UCONN 2000 bonds are issued by the University and not by the State. Accordingly, upon the advice of bond counsel and in order to conform to the Master Indenture of Trust, the Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank. The bond proceeds for cost of issuance are still deposited with, and disbursed by, the Office of the State Treasurer.

The University has directed the Trustee Bank to invest the Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund, which is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields.

The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and the Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University, and that it provide certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse the payments.

University Special Obligation Revenue Bonds Secured by Pledged Revenues

UCONN 2000, as codified in Connecticut General Statutes Section 10a-109 through 10a-109y, also authorizes the University to issue Special Obligation Revenue Bonds. Unlike the Debt Service Commitment Bonds, which are paid for out of the State’s General Fund, the Special Obligation Bonds are paid for out of certain, pledged revenues of the University as defined in the particular bond series indenture.

Additionally, a Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the Board of Trustees of the University determines that the Special Obligation bond issue is self-sufficient as defined in the act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the Treasurer of the State, prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December first annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.

The Student Fee Revenue Bonds were issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University of Connecticut, as Issuer, and, State Street Bank & Trust, as Trustee. The Special Obligation Indenture of Trust and the Student Fee Revenue Bonds Supplemental Indenture was approved by the University’s Board of Trustees on November 8, 1996. The Supplemental Indenture authorized the issuance of bonds up to a principal amount not exceeding $30,000,000 for construction of the South Campus Residence and Dining Hall, plus the amounts necessary to fund a Special Capital Reserve Fund (“SCRF”), and to provide for costs of issuance.

On February 4, 1998, the University issued $33,560,000.00 of the University of Connecticut Student Fee Revenue Bonds 1998 Series A. The bonds have a final maturity of November 15, 2027. The University managed the issuance and sale of the UCONN 2000 Student Fee Revenue Bonds 1998 Series A, and realized a favorable true interest cost over the twenty-nine year term. Debt service for the Student Fee Revenue Bond 1998 Series A’s debt service is paid from Infrastructure Maintenance Fee revenues. This fee is paid by students, and was instituted in 1997 to provide for such debt service, and to help support future operation and maintenance costs for facilities built or expanded by virtue of UCONN 2000.

The University has invested the bond proceeds in the State reasurer’s Short Term Investment Fund, and, in regards to the Special Capital Reserve Fund, in “AAA” rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust.

The State SCRF enhancement allowed the bonds to obtain a “AA-“rating from Standard & Poor’s with a positive outlook, a “AA-” rating from Fitch Investors Service, and a “A-1” rating from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” rating category at Fitch and Standard Poor’s and “Aaa” at Moody’s Investors Service. During October 1998, Standard & Poor’s upgraded the SCRF bond ratings to “AA” with a stable outlook.

Future Bond Issues

Phase II projects totaling $580,000,000 remain to be financed with future series of Debt Service Commitment Bonds. Of this amount $130,000,000 has been authorized for possible bond issuance by the University’s Board of Trustees and the Office of the Governor.

Based on projected spending, the University currently anticipates offering a new Debt Service Commitment Bond issue, for all or part of the $130,000,000 authorization, sometime during the winter of Fiscal Year 2000. Generally, the University plans on issuing a series of Debt Service Commitment bonds at least every twelve months.

Additionally, at some future point, the University could issue Special Obligation Revenue Bonds for certain projects with the capacity for financial self-sufficiency. In this regard, two such projects that may warrant further consideration are a second parking garage and a student housing facility project.

PRIVATE FINANCIAL SUPPORT
The UCONN 2000 endowment matching gift program has been an unprecedented success, resulting in record levels of giving from alumni and other friends of the University.

Giving

• To date, the $20 million in 1:1 match of state funds to private gifts as provided by the original UCONN 2000 legislation is in-hand. During the first year of the program, $9.1 million in match-eligible gifts was received. During calendar year 1997, an additional $6.5 million was received and $4 million was received in calendar year 1998.
• The $6.8 million in state funds to match the private gifts received in 1997 was transferred by the state to the University in December 1998 and January 1999 and invested promptly.
• In February 1999, the Board of Trustees submitted to the State a request for $7.5 million in matching funds to be paid against the endowment gifts received in 1998, 1997 and 1996, which had not been previously submitted.
• In recognition of the program’s success, the General Assembly enacted a continuation and restructuring of the match on a 1:2 basis (one state dollar to every two private dollars). From Fiscal Year 2000 to Fiscal Year 2007, the state grant will total up to $52.5 million, depending on the level of match-eligible donations actually received. Through June 30, 1999 $17.0 million in pledges have been received as part of the 1:2 matching gift program.
• Total endowment assets for the University as of June 30, 1999 were $181 million, including the Foundation’s total endowment assets of $176 million. Foundation endowment assets grew 43% from the $123 million in Foundation assets as of June 30, 1998.

Significant Gifts

• Richard Treibick, a trustee at the University, has donated $1 million to support three key areas at UConn: the School of Business Administration, the Division of Athletics, and the Thomas J. Dodd Research Center. The gift is the largest ever from a University trustee. Treibeck’s comprehensive gift included $600,000 to establish a new program to conduct technical research and development in electronic commerce at the School of Business. The business faculty includes a number of renowned experts in this emerging field. Treibick’s gift also included $200,000 to establish a scholarship fund for academically gifted student-athletes in the Women’s Tennis and Crew Programs. The final $200,000 will help support another new initiative, the Thomas J. Dodd Program for the Study of International Justice and Human Rights.
• Tommie dePaola, an award-winning illustrator and writer of children’s books, donated a substantial body of archival materials (including illustrations, sketches, collages and books) to the Thomas J. Dodd Research Center.
• The University received a remainder trust, established by Dorothy and Cameron Carlyle ’55. The $300,000 trust will ultimately add to their family scholarship fund, which supports undergraduate student scholarships.
• Samuel J. Orr, Jr., ’61 endowed a $3 million scholarship for students from 11 north-central Connecticut towns to attend the University. Orr created the scholarship fund in remembrance of a former professor who helped finance his education at the University of Connecticut in the early 1940’s. Orr, a former UConn soccer player, also gave $100,000 to support the men’s and women’s soccer programs.
• Rosalie and Edward Zuraw ’50 established the Ed and Rosalie (Barry) Zuraw Scholarship Fund, an endowment that helps undergraduate and graduate students attend UConn.

CURRENT PROJECT STATUS

CURRENT PROJECT STATUS- PHASE II

CURRENT PROJECTS FUND SOURCES: UCONN 2000

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Table of Contents
I. UCONN 2000: THE UPDATE
II. ACTIVITIES COMPLETED OR UNDERWAY:

• PLANNING, DESIGN AND MANAGEMENT
• FINANCE
• PRIVATE FINANCIAL SUPPORT

IV. CURRENT PROJECT STATUS (as of April 1999)
V. CURRENT PROJECTS FUND SOURCES: UCONN 2000 (as of April 1999)
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UCONN 2000: THE UPDATE

This is the eighth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, and now known as UCONN 2000. These reports have been issued each October and April since the passage of UCONN 2000 on June 7, 1995. However, since the law also required a four year progress report to be filed on January 15, 1999, much of the information for the time period normally covered in the semi-annual report has already been submitted. Although this report does contain fully up-to-date project status charts, for prose project updates the reader is directed to UCONN 2000: Four Year Progress Report, Chapter III. The standard reporting structure utilized in reports one through seven will resume with the report due in October, 1999.

THE LEGISLATIVE FINDING
Section 10a-109y of the Connecticut General Statutes provides as follows:
On January 15, 1999, the university shall submit to the Governor and to the joint standing committees of the General Assembly having cognizance of matters relating to education and finance, revenue and bonding, a four-year UConn 2000 performance review report detailing for each project undertaken to date under the program the progress made and the actual expenditures compared to original costs. In addition, the report shall include a summary of programs, services and facilities which the university coordinates with other public and independent institutions of higher education. Not later than sixty calendar days after receipt of said report, such joint committees shall consider the report and determine whether there has been insufficient progress in implementation of UConn 2000 or whether there has been significant cost increases over original estimates as a result of actions taken by the university. If so, the committees may make recommendations for appropriate action to the university and to the General Assembly.

The report was submitted to the Governor and members of the General Assembly on January 15, 1999. On March 10, 1999, the chairmen and ranking members of the Education Committee and of the Finance, Revenue and Bonding Committee wrote to President Austin thanking him for the report and finding that the University is managing the UCONN 2000 capital projects, discharging its responsibilities, and achieving and implementing the UCONN 2000 goals, in full accord with the intent of Public Act 95-230. (The full text of the letter can be found on the preceding pages). With this finding, the University will move forward to Phase II of UCONN 2000. On June 14, 1999, the University Board of Trustees is scheduled to consider the project list for Fiscal Year 2000, the fifth year of UCONN 2000.

Go to the letter from the General Assembly (295K Image File)
Go to the editorials supporting the UConn 2000 project.

UCONN 2000: CHAMPIONSHIP BONDS
The basketball court wasn’t the only place where Connecticut scored a first in March, 1999. It was also the first time in state history, according to the State Treasurers Office, that a State of Connecticut secured bond issue was sold completely to retail investors.

The State Treasurers Office opened a two-day retail order for $80 million in 1999 Series A UConn 2000 bonds March 26, in advance of a planned sale in the institutional market. By the time the retail order period closed March 29, the bonds were totally sold out, eliminating the need to go to the institutional market. It is the first time that a State of Connecticut secured bond issue has been sold entirely to retail investors. Selling predominantly to retail customers is a clear indication of market enthusiasm. It also benefits the state by lowering he rate of interest and reducing the amount of debt service the state must pay.

This unprecedented level of retail purchases demonstrates investor confidence both in the bonds as an investment and in the University as an institution. UConn really had the numbers in the tournament and in the market, said State Treasurer Denise L. Nappier. We worked very closely with officials at the University and with our financial team, Nappier said. As with the Huskies, ours was a real collaborative effort that paid off with record-setting returns.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

PLANNING, DESIGN AND MANAGEMENT

For design and construction updates, please go to the Current Project Status chart.

FINANCE

Phase I Debt Service Commitment Bond Issues Completed

During April 1999 the University completed the last of the $382,000,000 of Phase I project financings with the fourth issue of University General Obligation Bonds secured by the States Debt Service Commitment. The four bond issues, sometimes referred to as Debt Service Commitment Bonds, were issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and Fleet National Bank of Connecticut (now State Street Bank & Trust, as successor), as Trustee.

On February 21, 1996, the University, in conjunction with the Office of the State Treasurer, issued $83,929,714.85 of The University of Connecticut General Obligation Bonds 1996 Series A, the first series of bonds secured by the State’s Debt Service Commitment. On April 24, 1997, The University of Connecticut General Obligation Bonds 1997 Series A, the second series of bonds secured by the States Debt Service Commitment, were issued in the amount of $124,392,431.65. The third series, The University of Connecticut General Obligation Bonds 1998 Series A, was issued in the amount of $99,520,000.00 on June 24, 1998.

On April 8, 1999, The University of Connecticut General Obligation Bonds 1999 Series A, the fourth series of bonds secured by the State’s Debt Service Commitment, were issued in the amount of $79,735,000.00. Of this amount, $79,032,918.52 was for UCONN 2000 projects, and the balance , together with accrued interest, funded the cost of issuance through the Office of the Treasurer. With this bond issue the University completed the $382,000,000 of Phase I financings.

Projects funded at the time of issuance of the Debt Service Commitment 1999-A Bond Issue include the Agricultural Biotechnology Facility; the Benton State Art Museum Addition; the Deferred Maintenance & Renovation Lump Sum-Phase I; the Equipment, Library Collections & Telecommunications-Phase I; the Gant Plaza Deck; the Heating Plant Upgrade; the Litchfield Agricultural Center-Phase I; the North Superblock Site & Utilities; the Pedestrian Walkways (a.k.a. Fairfield Road Pedestrian Mall); the School of Business; the School of Pharmacy; the Stamford Downtown Relocation-Phase I; the Technology Quadrant-Phase IA; the Underground Steam & Water Upgrade-Phase I; and the Wilbur Cross Building Renovation.

As of April 1999, the UCONN 2000 Debt Service Commitment bonds were rated AA by Standard & Poors; A-1 by Moodys Investors Service; and AA- by Fitch Investors Service. Additionally, certain maturities of the bonds were insured with AAA rated municipal bond insurance at issuance. The University and the Office of the State Treasurer managed the Debt Service Commitment Bond sale process.

Trustee-Held Construction Fund
Pursuant to the Indenture of Trust, the construction fund proceeds from the Debt Service Commitment Bonds were deposited to State Street Bank & Trust, as Trustee. Prior to June, 1998, these funds had been deposited with the State. The University directed the Trustee to invest the proceeds so deposited in the State Treasurer’s Short Term Investment Fund which is AAA rated and offers daily liquidity and historically attractive risk-adjusted yields.

The Indenture of Trust authorizes and directs the University to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and the Trustee, signed by an Authorized Officer of the University. Once the filings are made the University directly disburses the payments.

University Special Obligation Revenue Bonds Secured by Pledged Revenues
UCONN 2000, as codified in Connecticut General Statutes ection 10a-109 through 10a-109y, also authorizes the University to issue Special Obligation Revenue bonds. Unlike the Debt Service Commitment Bonds, which are paid for out of the State’s General Fund, the Special Obligation Bonds are paid for out of certain, pledged revenues of the University as defined in the particular bond series indenture.

Additionally, a Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the Board of Trustees of the University determines that the Special Obligation bond issue is self-sufficient as defined in the act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the Treasurer of the State, prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December first annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.

On November 8, 1996, the Board of Trustees approved the Special Obligation Master Indenture and Supplemental Indenture drafts authorizing the issuance of up to $30,000,000 of Special Obligation bonds for construction of the South Campus Residence and Dining Hall. The Board of Trustees subsequently found project self-sufficiency for the creation of a Special Capital Reserve Fund.

On February 4, 1998, the University issued $33,560,000.00 of the University of Connecticut Student Fee Revenue Bonds 1998 Series A. The bonds have a final maturity of November 15, 2027. The University managed the issuance and sale of the UCONN 2000 Student Fee Revenue Bonds 1998 Series A, and realized a favorable true interest cost over the twenty-nine year term. The main source of repayment of the bonds is the Infrastructure Maintenance Fee that is paid by students. The fee was instituted in 1997 as a means to fund South Campus debt service and as a revenue source to help support future operation and maintenance costs for facilities built or expanded by virtue of UCONN 2000. This long-term planning is essential to protect the investment.

The majority of the Student Fee Revenue Bonds 1998 Series A proceeds is being used to finance a portion of the cost of the South Campus project, including dormitories and a consolidated dining hall facility. Additionally, part of the proceeds was used to fund a Special Capital Reserve Fund (SCRF). The University has invested the bond proceeds in suitable Investment Obligations pursuant to the Indenture of Trust

The State SCRF enhancement allowed the bonds to obtain a AA- rating from Standard & Poors with a positive outlook, a AA- rating from Fitch Investors Service, and a A-1 rating from Moodys Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a AAA rating category at Fitch and Standard Poors and Aaa at Moodys Investors Service. During October 1998, Standard & Poors upgraded the SCRF bond ratings to AA with a stable outlook.

Future Bond Issues
Phase II projects totaling $580,000,000 remain to be financed with future series of Debt Service Commitment Bonds. Pursuant to the law, the initial Phase II allocation of $130,000,000 will be available as of July 1, 1999, and is subject to approval by the University Board of Trustees and the Governor.

Based on projected spending the University currently anticipates offering a new Debt Service Commitment Bond issue during the Fall of 1999 or early Spring of 2000. Generally, the University plans on issuing a series of Debt Service Commitment bonds at least every twelve months.

Additionally, at some future point, the University could issue Special Obligation Revenue bonds for certain projects with the capacity for financial self-sufficiency. In this regard, two such projects that may warrant further consideration are a second parking garage and a Greek housing project to replace sorely outdated facilities for the fraternities and sororities on campus.

PRIVATE FINANCIAL SUPPORT

The UCONN 2000 endowment matching gift program has been a resounding success, resulting in unprecedented levels of giving from alumni and other friends of the University.

Giving:

• To date, the $20 million in 1:1 match of state funds to private gifts as provided by the original UCONN 2000 legislation is in-hand. During the first year of the program, $9.1 million in match-eligible gifts was received. During calendar year 1997, an additional $6.5 million was received and, $4.4 million was received in calendar year 1998.
• The $6.8 million in state funds to match the private gifts received in 1997 was transferred by the state to the University in December 1998 and January 1999 and invested promptly.
• In February 1999, the Board of Trustees submitted to the State a request for $7.5 million in matching funds to be paid against the endowment gifts received in 1998, 1997 and 1996, which had not been previously submitted.
• In recognition of the programs success, the General Assembly enacted a continuation and restructuring of the match on a 1:2 basis (one state dollar to every two private dollars). From Fiscal Year 2000 to Fiscal Year 2007, the state grant will total up to $52.5 million, depending on the level of match-eligible donations actually received. Through December 31, 1998, $5.8 million in pledges have been received as part of the 1:2 matching gift program.
• Total endowment assets for the University at December 31, 1998 were $144 million, including the Foundations total endowment assets of $139 million. Foundation endowment assets grew 13% from the $123 million in Foundation assets as of June 30, 1998.

Significant Gifts:

• On February, 25, 1999, the University had the pleasure of announcing a $23 million gift from alumnus Raymond Neag 56. $21 million of the gift is slated for the School of Education and $2 million is for the Health Center. This contribution is the largest gift ever given to a School of Education in the nation, the largest to a public university in New England and the largest in UConn history. The total value of the gift, with additional funding from the states endowment matching grant program, is approximately $27.4 million. The UConn Board of Trustees has voted to rename the School of Education the Neag School of Education, making this the first named school at the University.
• With another gift from Ray Neag in the amount of $225,000 to benefit the Lynn Wood Neag Distinguished Visiting Professor of British Literature, the British Literature program in the College of Liberal Arts and Sciences has been greatly enhanced. This generous donation will provide financial support for a Distinguished Visiting Professor of British Literature in the English Department.
• A $250,000 gift from Raymond and Beverly Sackler to create the Sackler Master Artists Institute will help bring nationally and internationally renowned artists, playwrights and musicians to the University to create new works, while also working with students and faculty. As a result of another of the Sacklers gifts, one of the most prominent Latina playwrights in the United States, Migdalia Cruz, was named the first Sackler Artist in the School of Fine Arts, and has been commissioned to write a play dealing with the effects of war on children.
• UConns Stamford campus received $375,000 from SBC Warburg Dillon Read, Inc., $150,000 from Robert N. Rich, and $100,000 from Xerox, to benefit the Connecticut Information Technology Institute (CITI). CITIs goal is to enhance Connecticuts labor force by establishing undergraduate and graduate information technology degree programs, as well as offering customized courses in subjects specific to the corporate market.
• Gary Gladstein contributed $500,000 to establish The Marsha Lilien Gladstein Visiting Professor in Human Rights in the Universitys College of Liberal Arts and Sciences. The professorship will allow UConn to appoint annually one internationally renowned scholar to lecture, teach, and ollaborate with faculty. The Gladstein Visiting Professor will provide the College flexibility to offer courses not taught by the Colleges faculty, provide seminars on groundbreaking areas of study, and complement existing faculty expertise.
• A $500,000 gift from Southern New England Telephone (SNET) for the School of Engineering will establish a named professorship in information and communications echnologies. The new program is designed to encourage more high school students to pursue careers in Engineering. With this support, the University will recruit a top faculty member to conduct state-of-the-art research in information technology and train undergraduate and graduate research assistants. This professor will also direct the SNET Program for Future Focus, a new initiative intended to recruit young scholars to information technology and to the School of Engineering.
• A $1 million pledge from Philip and Christine Lodewick will establish a visitors program at the University that will become a gateway to the UConn Storrs Campus. At a new center, those who visit the main campus will be greeted and provided with information about University activities, events and programs. The visitors center will serve as the first point of contact for the hundreds of thousands of people who come to the main campus each year.
• Thanks to a $300,000 commitment from Northeast Utilities (NU), the School of Engineering will launch a new campaign to enhance environmental education and encourage Connecticut students to pursue careers in environmental engineering. With NUs support, the University will recruit an internationally recognized faculty member to conduct advanced research and development in the area of environmental engineering, and will focus on undergraduate and graduate-level education and training.
• The University of Connecticut Athletic Development Fund received a $100,000 gift from former UConn baseball All-American player Charles Nagy and his wife Jacquelyn to establish the Charles and Jacquelyn Nagy Endowed Baseball Scholarship.
• UConns School of Social Work received the largest gift in its history from Judith and Henry Zachs. The generous $250,000 donation will be used to renovate the first floor of the School of Social Work building to create a community room for lectures, meetings, receptions and other activities.
• Geno Auriemma and Jim Calhoun, UConn’s two basketball coaches, are each making gifts that together total a quarter million dollars to benefit the University. Women’s basketball coach Geno Auriemma will contribute $125,000 to Homer Babbidge Library, while men’s basketball coach Jim Calhoun will donate $125,000 to the cardiology program at the Health Center.

CURRENT PROJECT STATUS

CURRENT PROJECT FUND SOURCES: UCONN 2000

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