R702, Non-State Funded Projects

R702-1. Purpose: To provide guidelines and requirements for institutional requests to program, plan, design, or construct a facility using non-state funds.

R702-2. Definitions

2.1. Architectural Programming: A formal decision-making process used to identify and define the goals and uses of a capital project and to define the scope of work and cost prior to design or construction.

 2.2. Capital Development: Has the same definition as Utah Code 63A-5-104(1)(a).

2.3. Non-State Funded Project: Any capital development project whose source of funding comes from anything other than state funds appropriated by the Utah State Legislature.

R702-3. Requests for Non-State Funded Projects: Regardless of the funding source, the Board of Regents shall review and authorize institutional requests for non-state funded projects that require Building Board or Legislative approval before the requests are submitted to those bodies.  Such requests shall be based upon master planning requirements of Regent Policy R706, Capital Facilities Master Planning. Types of funding sources include:

3.1. Projects Funded from Student Fees, Contractual Debt, or Disposal or Exchange or Capital Assets: Proposals for capital development projects funded in whole or in part from an adjustment in student fees, incurring of contractual debt, or the disposal or exchange of land or other capital assets shall be approved by the institutional Board of Trustees prior to submission to the Board of Regents.

3.2. Projects Funded from Private Sources: The institutional Board of Trustees must approve capital development projects funded through private sources or a combination of private sources and other non-state funds before the president may submit the request to the Board of Regents for consideration.

3.3. Projects for which Legislative Revenue Bonding Authorization is Required: Institutions shall submit capital development projects requiring revenue bonding to the Board of Regents for approval as required by Regent Policy R590, Issuance of Revenue Bonds for Higher Education.

 3.4. Requests to use Donated or Institutional Funds for Planning and Design: Requests to the Building Board for approval to use donated or institutional funds for planning and design of proposed capital development projects require prior Regents’ authorization.

R702-4. Operating and Maintenance (O & M) Costs on Non-State Funded Projects: A capital development project funded from private sources, or from a combination of private sources and other non-state appropriated funds will be eligible for state appropriated O & M when the use of the building is primarily for approved academic and training purposes and associated support and is consistent with the institution’s facilities master plan requirements.

4.1. Excess Space: If an academic facility, funded in whole or in part by non-state funds, is built to a scale larger than Board approved programmatic or facilities planning requirements, the excess space may not qualify for state appropriated O & M funding. The Board will consider the eligibility of the institution to receive state O & M funding for such excess space on a case-by-case basis.

4.2. Non-Academic Space: In most cases, a capital development project that  is not primarily for approved for academic and training purposes or associated support, it will not be eligible for state appropriated O & M funding. If the institution requests to the Board of Regents to allow state-funded O & M, it shall include a detailed statement showing how space types included in the facility will relate to important institutional activities.

4.3. O & M Funding Sources for Projects Not Eligible for State Appropriated O & M: In those cases where property acquisitions, construction, or remodeling projects are not eligible for state appropriated O & M funding, the institution’s proposal must explain how it will pay the ongoing O & M as defined by the State Building Board. When making arrangements for ongoing O & M funding, institutions shall give first priority to separate non-state funding assured through private contracts or an O & M endowment established by a private donor; second, an institutional O & M funding plan with additional revenue to support the new space to be credited to its O & M accounts.

R702-5. Architectural Programming of Non-State Funded Projects: A capital development project funded from private sources or other non-state appropriated funds does not require approval by the State Building Board or the Board of Regents for the architectural programming of the facility.

Approved January 20, 2017; amended 21, 2017 and July 21, 2017.