Regional Library Services Center
Leadership Group Site Recommendation

Unanimous recommendation of the RLSC Leadership Group:

Council and the RLSC Leadership Group should proceed under the assumption that RLSC will be built at Linfield College. In the course of its work, the Leadership Group will report any changes in circumstances or new information relevant to this location. In recognition of the selection of Linfield College and in order to facilitate communication, Susan Barnes Whyte is invited to join the RLSC Leadership Group.

Allocate up to $30,000 from existing Alliance funds (no impact on member fees) for a Site Feasibility Study at Linfield College. The RLSC Leadership Group will oversee such an engineering study to be conducted through the UO Office of University Planning.

Discussion

The RLSC Leadership Group met by conference call on January 27, February 3, February 10, and March 3. Although the group discussed RLSC in general and helped plan the February 17 Collaborative Fundraising Meeting, the primary topic of each meeting was discussion of a site recommendation for RLSC.

Initial activity centered on a review of RLSC site-selection work completed to date, including:

Site Selection Criteria (December 2002)

Capital Construction Advisory Group Funding Strategies Meeting (July 2003)

RLSC Task Force Recommendation to "Focus the site selection process on Linfield College and OHSU West Campus" (July 2003)

Financial and Contractual Questionnaire for Potential Host Institutions (August 2003)

Site proposals (September 2003) :

• Linfield College: Proposal
• OHSU: Proposal, Overall site, Scenario 1, Scenario 3

Feasibility Report, Dill & Company (May 2005)

Financial Planning Meeting (December 2005)

Criteria and Site Information in a Tabular Form

In the course of analyzing the site selection work done to date, group members created a tabular representation of key information drawn from the Site selection Criteria, Financial and Contractual Questionnaire, and the two site proposals. The resulting table lists criteria in rows and sites in columns, thus facilitating a comparison of criteria for each site. The task force recommends this document to Council members as a quick means of understanding these two sites. Please see criteria and sites in a tabular form.

Analysis of Key Criteria

At the Leadership Group's February 3 meeting participants determined that both sites meet all minor criteria and went on to identify six determining criteria and pick a preferred site for each.

Purchase vs. Lease Discussion

In discussing the pros and cons of purchasing or leasing land, the Leadership Group determined that the key questions were cost and the preferences of UO as presumed fiscal agent.

Fiscal agent preference

After consultation, it was determined that UO has a slight preference for ownership but does not feel that this should be a determining factor.

Cost

Purchasing and leasing impact both start-up and recurring costs. For example,

Lease: decreases the amount of debt and/or fundraising required but adds to recurring costs.

Purchase: requires more fundraising or the assumption of more debt. Debt adds to recurring costs through debt service and increases the complexity of the project.

An accurate analysis of such costs depends on financial terms, projected costs, ROI expectations, prospects for fundraising, prospects for assuming bonded debt, income stream, etc. Depending on specific circumstances, either option may be preferred.

Conclusion: The Leadership Group concludes that the sites should be judged as equal with respect to the question of long-term lease vs. ownership. Further budget analysis is clearly part of the RLSC Leadership Group's charge and site costs will be an important component of the next RLSC budget presented to Council.

Changing Circumstances at OHSU

In early February OHSU notified the Leadership Group of a recent decision to sell much of the West Campus. Carver, Morgan, and Helmer met via phone conference with Lesley Hallick (OHSU Provost and VP for Academic Affairs) and Marilyn Lanier (OHSU, Vice Provost, West Campus) to clarify implications for RLSC. In brief, these include:

• Possible continued availability of land for RLSC although sale of such a small parcel would depend on whether or not a developer requires the entire available land
• Probable need for the Alliance to work directly with a real estate broker (soon to be selected by OHSU)
• Requirement to pay market value (to be determined by OHSU and the real estate broker)
• OHSU's substantial withdrawal from the property over the next 7-10 years

The Leadership Group discussed this new information and determined that the nature of OHSU's proposal was significantly altered and that emerging plans for the West Campus increased the uncertainty and risk associated with this site. OHSU's proposal under these new circumstances was seen to be something closer to a commercial real estate offer rather than an opportunity for collaboration between RLSC and a member institution.

Final Site Recommendation

The Leadership group determined that Linfield College's site proposal is preferred in four of six criteria and is judged to be equal to OHSU in the remaining two criteria. In recognition of the selection of Linfield College and in order to facilitate communication, Susan Barnes Whyte should be invited to join the RLSC Leadership Group.

OHSU should be formally thanked for their generosity in offering a site on the West Campus and for OHSU's outstanding leadership role in the RLSC project.

Next Steps: Site Feasibility Study at Linfield College

In keeping with advice from campus planning staff at UO and Seattle University and the Dill report, which states that "there are a number of site engineering questions that should be answered ... and this work should be done by a local engineering firm with local information about local seismic, zoning and access issue," the Leadership Group recommends funding a Site Feasibility Study. The Leadership Group asked if the UO, as presumptive fiscal agent, is willing to engage an architectural engineering firm to conduct the study. UO's Office of University Planning agreed to play such a role.

RLSC Leadership Group

Deb Carver, Chair
Karyle Butcher
Deb Dancik
Vickie Hanawalt
Jim Morgan
Tom Peischl
John Popko
Helen Spalding
John F. Helmer, ex officio & non-voting