Statement of Martin S. Dorph,
Executive Vice President, Finance and Information Technology
New York University
Before the New York City Planning Commission
For the Public Hearing on the New York University Core Project
April 25, 2012
Dear Chairwoman Burden:
Over the past two decades, New York University has acquired and renovated spaces at its central Washington Square campus and other locations at rate of an estimated 200,000 – 300,000 GSF per year.
The 2031 plans, which call for development on NYU-owned property and in other parts of the City will require resources that are consistent with the pace of capital investment and financing that the University has incurred over the past 20 years.
We will approach the financing of these projects in the way we typically approach a building project: with a mixture of philanthropy, debt financing (which is common practice among universities taking on a capital project); and working capital. As a capital project, it is part of a "rolling" capital budget and plan which is presented annually to our Board, because projects such as these are planned, designed, and constructed over time.
The University Leadership and its Board of Trustees — as a matter of fiduciary responsibility — do not approve building projects for which a sound financial plan is not in place. Therefore, there should be no concern that a building, once begun, would be stalled by lack of funds to complete the work on that building.
It should also be noted that the University's credit ratings are Aa3/AA- from Moody's Investor Service and Standard & Poor’s, respectively. This very high quality rating provides additional assurance that the capital markets will be available to the University as part of its financing plans.
Finally, the attached letter from NYU's chief fundraiser Ms. Debra LaMorte outlines the University's success in past fundraising and highlights the role that philanthropy will play in the project and that in fact the Superblocks provide an unprecedented opportunity for donors to help with a major capital campaign that they will be vital to the University’s future.
Cordially,
Martin S. Dorph
Executive Vice President, Finance and Information Technology
- Download a PDF of this document
