Board Resolution -1- Month, Day, Year M E M O R A N D U M
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1 Board Resolution -1- Month, Day, Year M E M O R A N D U M March 11, 2015 TO: FROM: SUBJECT: Members of the Board of Trustees Nancy L. Zimpher, Chancellor Ground Lease Purchase College Action Requested The proposed resolution approves the issuance of a ground lease of approximately 40.5 acres by Purchase College to the Purchase College Advancement Corporation for the purpose of developing and operating a senior learning community as authorized by Chapter 405 of the Laws of New York of Resolution I recommend that the Board of Trustees adopt the following resolution: Whereas pursuant to Education Law 351, the State University of New York is charged with providing the people of New York educational services of the highest quality, with the broadest possible access which is fully representative of all segments of the population; and Whereas Chapter 405 of the Laws of 2011 (the Legislation ) (attached hereto as Exhibit A) declares that the development of a senior learning community on the grounds of Purchase College would advance the objectives and purposes of the State University of New York; and Whereas the Legislation will increase access for students who might not otherwise be able to afford the cost of attendance by requiring that 75 percent of the proceeds generated from leasing residential units in the senior learning community be allocated to financial aid for students
2 Board Resolution -2- March 11, 2015 who are eligible to receive a tuition assistance award or supplemental tuition assistance; and Whereas the balance of the residential lease proceeds are required to be used to support the hiring of additional fulltime faculty positions, thereby enabling the College to continue providing educational services of the highest quality, as required by statute, even in times of fiscal constraint; and Whereas at least 20 percent of the residential units will be provided on an affordable basis to individuals or families whose incomes, at the time of initial occupancy, are less than or equal to 80 percent of the median household income for Westchester County; and Whereas 50 percent of such affordable units shall be provided on a priority basis to residents of Westchester County, provided they meet the income requirements; and Whereas it is anticipated that residents of the senior learning community will actively participate in college life by enrolling in classes at the College, becoming members of the Neuberger Museum of Art, attending performances at the Performing Arts Center, participating in cultural, social and entertainment activities, and by engaging in generational learning and mentoring; and Whereas the Legislation gives the Board of Trustees the authority to lease approximately 40.5 acres of land to the Purchase College Advancement Corporation ( PCAC ), a not-for-profit corporation, for an initial term not to exceed 40 years for the purpose of developing and operating a senior learning community on College property; and Whereas the Legislation sets forth certain prerequisites to entering into such lease, including the permanent designation of 80 acres of College property as open space land, together with the creation of a stewardship plan for the care thereof, which have been met; now, therefore, be it is, authorized to enter into a ground lease agreement with the PCAC, in accordance with the terms of the Legislation, for a parcel of land as described in the Legislation, pursuant
3 Board Resolution -3- March 11, 2015 Background to which the PCAC will develop and cause to be operated a senior learning community; and, be it further is, authorized in accordance with the provisions of Education Law 355 to approve any subsequent amendments, modifications, or waivers of any provisions in the ground lease and related documents, to the extent permitted by the Legislation, which confer on the State University of New York or any of its officers or employees any rights of approval in regard to the senior learning community; and be it further is, authorized in accordance with the provisions of section 355 of the Education Law to provide all other approvals, notices, assurances or instruments or take such other actions in connection with the senior learning community as may be necessary from time to time, under the ground lease and related documents, including any sublease, to the extent permitted by the Legislation; and be it further is, authorized to approve the permanent designation by the College of 80 acres of open space land (as depicted on the map attached hereto as Exhibit B) and the Open Space Stewardship Plan (attached hereto as Exhibit C) for the management of such property. Chapter 405 of the Laws of 2011 authorizes SUNY to lease to the PCAC, without public bidding, approximately 40.5 acres of land on the College campus for the purpose of building and developing a senior learning community. A legal description of the property to be leased is provided in paragraph 14 of the Legislation. The proposed ground lease will have a term of 40 years. The concept of a senior learning community was borne out of the College s analysis of mission-related uses of its available real estate. The local community has a significant senior population and inadequate senior retirement housing alternatives. For years, the College has had a significant number of senior citizens auditing classes. In addition, the Neuberger Museum of Art and Performing Arts Center have a subscriber base of older patrons. The College, with the support and input of its faculty and foundation, developed a plan for a
4 Board Resolution -4- March 11, 2015 senior learning community that would have as its mission extensive academic and cultural interaction with the College, its museum and performing arts center. By resolution dated April 20, 2004, the Board of Trustees approved the legislative proposal for the project. After many years of effort, the Legislation was passed in All prerequisites have been satisfied and it is now an appropriate time for the Board of Trustees to approve the ground lease. The Legislation sets forth certain key elements of the project and the ground lease, including that: The PCAC will have access to approximately 40.5 acres of College property for a period of 40 years; The rent will be $1.00 per year; The real property to be leased shall be used exclusively for the purposes of building, developing and operating a senior learning community with no more than 385 units; In the event that the real property shall cease to be used for purposes of a senior learning community, the lease shall immediately terminate and the real property, and any improvements thereto, shall immediately revert to SUNY; The proceeds from the lease of the residential units shall be allocated as follows: 75 percent of the proceeds to financial aid for students who are eligible to receive a tuition assistance award or supplemental tuition assistance, and 25 percent to hiring additional, full-time faculty; At least 20 percent of the residential units will be provided on an affordable basis to individuals or families whose incomes, at the time of initial occupancy, are less than or equal to 80 percent of the median household income for Westchester County; and No less than 50 percent of such affordable units shall be provided on a priority basis to residents of Westchester County, provided they meet the income requirements. At present, the PCAC has approved contracts with a development consultant, an operator and an investment banker. Discussions have begun with land use experts and architects to determine the design, scope and composition of the senior learning community. Over the next year, market research will yield critical information that will guide the PCAC in determining whether the senior
5 Board Resolution -5- March 11, 2015 learning community will offer full continuing care retirement community services, from independent living to a continuum of long term care services which meet the residents health and social needs as they change over time, and the type of housing units to be included. The PCAC will work closely with its investment banker to arrange the financing necessary to launch the project.
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