Wednesday, February 18, 2009

Cross-posted to Building & Grounds

Even the giant of higher education is not immune to the ills of the current economy. Drew Gilpin Faust, president of Harvard University, said in two letters issued today that the university will reconsider many of its building plans amid the economic downturn.

“The current yearly endowment distribution — the dollars we take out of the endowment to support activities across the university — is approximately 50 percent higher than it was when the endowment was last at the value we expect as of next June 30,” Ms. Faust wrote in an overview letter. “Tinkering around the edges will not be enough.”

A university’s buildings are inevitably a source of tremendous costs, and Ms. Faust said that Harvard officials would reassess space needs on the university’s campuses. Of particular focus is the planned development of the Allston campus, where work has begun on a 500,000-square-foot science complex that would be built to green standards.

In light of the economic downturn, “I asked our financial and capital planning teams to assess our options with regard to the complex,” Ms. Faust wrote in a separate “Allston update” letter. Construction of the science complex will continue at a slower pace while the reassessment is being considered; the foundation will be completed, a process that would have to be finished regardless of what gets built on top.

“During this time, we will rigorously review the project, including calling on any experts that may be required to work with us in assessing the building design and developing a detailed cost analysis,” the Allston letter continued. “As we approach the end of the current construction phase, we will examine whether economic conditions are enough improved to allow us to continue construction, or whether to reconfigure the building in ways that yield either new cost savings or new space realization, or whether we need to pause construction. Any decision will, of course, depend on our ability to proceed without compromising the university’s long-term financial health, and any decision will engage our academic community, the City of Boston, and the Allston Task Force in any necessary changes.” —Scott Carlson

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