Why is UMass Lowell continuing to make capital and facilities investments in the midst of our current budget challenges?

Funding for capital improvements such as building renovations comes from designated sources (such as selling bonds and borrowing money) that can only be used for that purpose. Capital funding cannot be redirected to operating expenses.
Further, evidence has shown that modern and updated facilities are a key enrollment driver and a big part of prospective students’ decision making as they choose where to enroll. Facilities investments are also critical as we continue to strive to join other top-tier research universities as an R1 institution.

How can we afford the investments being discussed for East Campus?

From the beginning idea stages around the renovation of East Campus, UMass Lowell has sought a public/private partnership with a developer precisely because the university does not currently have capital dollars or other funding sources available for such a project.
By working with a developer, it is they who make the investment to construct the buildings that the university would then lease. The university would then charge businesses and other external research partners who are eager to occupy the space to work alongside UMass Lowell faculty, researchers and students. The leasing model would also maximize the university’s flexibility as campus needs change over time.   
The university is also in conversations with the state to invest in the project. 

Why did UMass Lowell purchase LeLacheur Park on East Campus from the City of Lowell?

UMass Lowell acquired LeLacheur Park from the City of Lowell at relatively low cost. Had we declined to do so, the park may have deteriorated, as the city had little money to invest in it. Another buyer may have also purchased the park, which would have eliminated UML’s ability to control a key area of our campus. In either case, UMass Lowell would have lost the ability to make decisions and ensure the park is an asset and doesn’t negatively impact the heart of student residential life on East Campus.
Further, the university’s short-term plans involve investing to ensure usability and building code compliance at the park. No holistic renovation is planned. 

How does UML fund the recently added GPS building at 839 Merrimack?

The revenues generated by the programs housed in the GPS building exceed the leasing costs of the building. The university originally made the decision to lease precisely to enable flexibility over time as campus needs evolve.

Has the university considered pulling out of the Haverhill Campus?

UMass Lowell is committed to leases in the Haverhill Campus buildings through 2027. Those leases are paid through a dedicated revenue stream identified and provided by the state. We are reviewing all current activities in the space to determine what variable costs can be reduced or eliminated.

Has the university reconsidered its commitment to 110 Canal?

UMass Lowell earns revenue from each of the private organizations and business partners who collaborate with the university through key research partnerships such as M2D2, the iHub and the Fabric Discovery Center.
These are exactly the types of programs and partnerships we are looking to expand through future leased spaces on our newly developed East Campus. Such partnerships increase revenues, draw additional jobs, businesses and research to Lowell, create academic and career opportunities for faculty, staff and alumni and serve to elevate the city of Lowell in the Merrimack Valley and across New England.
These partnerships have cascading effects that benefit enrollment, economic development and quality of life.

What about other leased spaces across the Merrimack Valley?

Other “special use” facility and space leases, such as Cabot Street/Wannalancit and Boott Mills, and in Andover and North Star Lincoln, have been added over the years. These spaces provide ready-built specialty labs and facilities that we could not build on our own. They also offer the ability to generate revenue and partnerships that support lease payments.  Still, the university is continuing to review lease agreements and is seeking additional funding to support costs.

Has the university reconsidered its lease with Riverview Suites?

Revenue from student housing fees exceeds the cost of the lease. Unlike some of our other residence halls, the university is not responsible for the long-term capital improvement costs of Riverview Suites. This flexibility should our student housing needs change is what we are seeking to replicate with any student housing that may be built as part of our East Campus development.

Why is the university continuing with the renovation to Olney Hall?

Redirecting capital funding from Olney Hall wouldn’t allow for those dollars to be redirected to operating expenses; capital money must be used for designated capital projects. In addition, the state has allocated $37 million for Olney’s renovation. UMass Lowell would lose that money of it delayed Olney’s renovation. However, it is important to note that because of rising construction costs we have scaled back other important capital projects to redirect funding to Olney.

If budgets are tight, how can the university add a Graduate School?

The creation of the Graduate School is cost neutral in the short term and should help increase revenue in the years ahead.
Once vacant earlier this summer, the vice provost for Graduate, Online and Professional Studies (GPS) position was eliminated and those funds redistributed into the graduate school. This including a stipend to augment the existing faculty salary of the Graduate School’s interim dean as well as funding for an assistant dean position within GPS.
The administrative reorganization into a Graduate School will also help clarify and streamline the resources available for graduate students and eliminate existing redundancy in processes, such as the creation of research assistant contracts. There’s confidence that the new dean of the Graduate School will also be able to help identify additional efficiencies in collaboration with fellow deans in the months ahead.
In the longer term, the Graduate School helps increase graduate recruitment as the School and its resources are expected by prospective master’s and Ph.D. students considering UMass Lowell for their degrees.