Commission on Independent

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Commission on Independent Colleges and
Universities Meeting with Presidents and
Government Affairs Officers
David D. Brown, IV Executive Director
Stephen Curro, P.E. Director, Construction Support
Services
Portia Lee Managing Director, Public Finance
September 19-20, 2007
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DASNY and CICU Partnership

• We have a shared problem rising energy costs
• We need to work together to find
  energy-efficient, sustainable solutions

Cornell University

• We have the commitment, the products and know-
  how to help you create better, greener spaces

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Dormitory Authority - State of New York

• One of the nations most frequent issuers of
  tax-exempt capital debt for higher education and
  healthcare
• 34.2 billion in bonds outstanding
• 5.01 billion sold (FY 2006-07)

• Tax-Exempt Equipment Leasing Program (TELP)
• 26 client leases totaling 159.8 million (FY
  2006-07)
• Premier public construction agency
• 3.5 billion DASNY-managed state capital
  projects
• 2.3 billion Other construction programs
• 822 million DASNY-managed construction
  expenditures (FY 2006-07)

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DASNYs Outstanding Bond Portfolio
Government Nonprofit Agencies13
Higher Education47
Private47
Public53
Health Care40
By sector
By client
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Private Higher Education Financings
Total new money and refunding/refinancing for
last five fiscal years 4.01 billion.
1,114
893
862
Millions
587
560
By Fiscal Year
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Private Higher Education Clients
(since 2000)
New York Medical College New York
University Rochester Institute of Technology The
Rockefeller University Pace University Pratt
Institute Siena College Skidmore College St.
Johns University Teachers College University of
Rochester Yeshiva University Vassar College
Barnard College Brooklyn Law School Canisius
College Columbia University Cornell
University The Culinary Institute of
America DYouville College Fordham
University Iona College Long Island
University Manhattan College Mount Saint Mary
College Mt. Sinai School of Medicine The New
School
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Higher Education Capital Matching Grant Program
(HECap)

• Status The appointments for Approval Board were
  made recently.
• 150 million in State funds to leverage up to
  600 million for construction activity and
  equipment acquisition at private colleges and
  universities statewide.
• Institutions must match each dollar of their
  grant allocation with up to three dollars of
  their own funds to access the program. For
  example, 3 million could potentially create 4
  million for a project.
• Eligible projects include design, acquisition,
  construction, reconstruction, rehabilitation or
  equipping of facilities at or near a college
  campus that would enhance programmatic offerings
  or student life at the college.

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Green Retrofit Financings
Green Bond Proceeds
DASNY
Institution
Loan Payments
Independent Energy Auditors Contractors
Investment In Green Bonds
Green Bond Payments
Green Energy Savings
Green Projects
Bond Holders
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Greening New York Campuses

• First We Live It
• By working toward LEED-Existing Building
• By respecting the environment in our
  operations choices
• Second We Fund It
• Through green bonds
• Through energy audits with savings as the
  payback
• Third We Build It
• With integrated design process
• Using energy modeling tools and commissioning
  plans

State University College at Brockport
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First We Live It
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First We Live It

• Working to obtain LEED-EB rating for our 515
  Broadway headquarters.
• DASNY encourages and supports staff in becoming
  LEED-accredited.
• Our innovative thinking in our finance and in
  construction programs makes green easy for you.

Solar panels atop DASNY headquarters

• SEEC (Sustainability Energy, Environment,
  Choices) - Internal training program educating
  all DASNY staff about green possibilities in
  construction and in daily life.

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Second We Fund It
13
DASNY Funding Options

• DASNY Higher Education Financing Programs
• Tax-Exempt Higher Education Bond Issuance
• 5.8 billion outstanding
• 1.14 billion issued last fiscal year
• Tax-Exempt Equipment Leasing Program (TELP)
• 117.1 million in higher education leases since
  inception
• 23.7 million in higher education leases last
  fiscal year
• Higher Education Capital Matching Grant Program
  (HECap)
• 150 million in state funds to leverage up to
  600 million for construction projects

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Bond Issuance

• DASNY Financing Process
• DASNY Resolution to Proceed
• Public Authorities Control
• Board (PACB) Approval
• DASNY Board Adoption
• of Financing Documents
• Sale
• Closing

Mount Saint Mary College residence hall
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Security Guidelines

• Require financings to be rated at least A3/A1.
• Require credit enhancement for those financings
  rated less than A3/A1.
• Require different security features depending on
  the rating of the financing.

Vassar College
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Overview of Tax-Exempt Equipment Leasing Program

• Tri-Party Master Lease Agreement
• DASNY leases equipment from Leasing Company at
  tax-exempt rate.
• DASNY subleases equipment to institution at the
  same tax-exempt rate.
• Institution makes tax-exempt lease payments
  directly to the Leasing Company.

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Benefits of TELP

• Cost Effective
• Save approximately 10 in borrowing costs
• Low issuance costs enable multiple financings
• Reusable
• Easily accessed for future use via
  supplementation
• Fast
• Stream-lined process 6-8 weeks start to finish
• Easy
• Brokers and other intermediaries usually not
  required
• Saves time and money
• Green
• DASNY works with NYSERDA to fund energy-efficient
  equipment leases

St. Johns University
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Customer Satisfaction Initiative (CSI)

• Overview of CSI Program
• DASNY interviewed 25 higher education
  financing clients from 2004-2006.
• 18 repeat clients 7 new customers
• Total financing value - 2.26 billion
• We asked would you use us again?
• 100 said yes
• We asked would you recommend us to others?
• 100 said yes

University of Rochester
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Third We Build It
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The Authoritys Construction Division
Project Management
Construction Support Services
Procurement and Interior Design
Quality Assurance
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Construction Division Services

• Feasibility studies and programming
• Design reviews
• Code compliance

• Budget and schedule development
• Bid and award process
• On-site project management
• Facility management services

Sienas Standish Library
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Energy Initiatives

• Integrated delivery systems for new
  and rehabilitation construction
  projects
• Leadership in Energy and
  Environmental Design (LEED) initiatives
• Sustainable, energy-efficient design and
  construction techniques
• Commissioning, retro-commissioning and
  retro-fitting
• Energy audits and resulting conservation measures
  with annual savings and payback periods
• Energy and commissioning term consultants
• Energy performance contracts

SUNY at Binghamton
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Contacts
Executive Office David D. Brown, IV - Executive
Director 518-257-3180 ddbrown_at_dasny.org Charles
Samul - Director, Client Outreach 518-257-3632 csa
mul_at_dasny.org Financing Services Portia Lee -
Managing Director, Public Finance 518-257-3362 ple
e_at_dasny.org Construction Services James Gray,
R.A. - Managing Director, Construction 518-257-32
37 jgray_at_dasny.org
DASNY headquarters
515 Broadway, Albany, NY 12207 One Penn Plaza,
52nd Floor, New York, NY 10019 539 Franklin
Street, Buffalo, NY 14202 dasny.org