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Clif’s Notes for Dec. 17, 2019

December 17, 2019 by Clif Smart

Citizen Scholars

The Board of Governors met last week.

The board approved more than $400,000 in equity salary increases for 125 employees. These are pay raises that cost centers on campus have agreed to fund by reallocating money from their existing budgets.

This is the first time staff and administrators have been eligible for these kind of equity adjustments in more than a year. We went through a similar process in the spring for faculty, and the board approved more than $500,000 in equity salary increases and promotions for 88 faculty members in June.

The board also approved more than $70,000 in raises that we are centrally financing for 48 employees to comply with changes to Fair Labor Standards Act regulations.

Moving forward with JVIC expansion

The board also approved a letter of intent laying out the terms of our public-private partnership with The Vecino Group to expand the Jordan Valley Innovation Center. Under this agreement, Vecino will construct a $14.4 million 30,000 square foot white box addition to JVIC. The university will have the option to purchase the facility for no more than $6.2 million in seven years.

Through a financing model that utilizes $9 million in federal New Market Tax Credits as well as conventional financing, the university will pay $530,000 in annual lease payments. The university anticipates that new revenues the university will receive from JVIC tenants will cover these lease payments.

The university and the Missouri State University Foundation will pay up to $4.6 million when the contract closes (less if additional New Market Tax Credits are secured before closing). The university and foundation will work to recuperate as much of these funds as possible by selling $3 million in state tax credits allocated by the Missouri Development Finance Board for the project and by advocating for funding from the state through the MoExcels program.

This model will allow the university to receive a $14.4 million building for between $7.5 million and $10.8 million. We initially explored this project with a goal of developing additional JVIC space for a substantial discount. I am pleased to report that we are poised to accomplish this goal.

The board is excited to move this project forward. We know this arrangement is not without risks, but the potential impact on the university’s economic development footprint and the development of areas surrounding our downtown campus is outstanding.

Darr gift will grow agriculture programs

The board also approved an agreement to establish a Springfield Public Schools agricultural magnet school and to construct a small animal education facility at the university’s Darr Agricultural Center. These projects will be funded with a $6.5 million gift from the Darr Family Foundation to the Missouri State University Foundation.

The generosity of Mr. Darr and his family through this and other gifts have truly transformed the College of Agriculture and Missouri State University as a whole. Please join me in thanking them for this transformative gift.

Recognizing outstanding students

The board also awarded this year’s Citizen Scholar Award to six high performing students:

  • Cassidy Cunningham
  • Seth Hadley
  • Rachel Prather
  • Robbyn Rose
  • Niyati (Mia) Sethi
  • Stephanie Urich

You can find more information about the award and this year’s recipients in the news release.

The board also approved a commendation to William Miller for his service on the board as student governor. It has been a pleasure working with Governor Miller in this role, and he will be greatly missed.

The board received a strategic enrollment management plan update, viewed a presentation about the Darr College of Agriculture, received a report on the Onward, Upward foundation campaign, viewed a demonstration of the university’s variable data marketing initiative and virtual tour, discussed the Springfield and West Plains campus key performance indicators, and announced and approved board committee assignments for next year.

Thanks for all you do for Missouri State!

Filed Under: Clif's Notes, Smart Tagged With: agriculture, Board of Governors, Citizen Scholar, enrollment, IDEA Commons

Clif’s Notes for March 20, 2018

March 20, 2018 by Clif Smart

IDEA Commons downtown

Last summer we announced that we were collaborating with the Springfield Business Development Corporation and The Vecino Group to evaluate the feasibility of an expansion of IDEA Commons through a public-private partnership.

Over the past several months we have worked to develop a model for two projects that will transform IDEA Commons.

Renovate, expand JVIC’s Building 4

The first project will involve the renovation and expansion of Building 4 of the Jordan Valley Innovation Center (JVIC). Building 4 is currently rundown and unoccupied, and the remainder of JVIC is fully leased. By renovating and expanding Building 4, we will create 30,000 additional square feet that can be leased to JVIC tenants.

It would be very difficult (likely impossible) to finance these changes to Building 4 if the university completed the project independently. By working with The Vecino Group, a tax credit financing tool can be used to cover a portion of the project costs. With the tax credits, we believe the project can be financed in such a way that lease payments will cover the anticipated debt service. The result is that the project will have no impact on Missouri State’s operating budget.

Develop land south of JVIC

The second project will involve the development of outdoor amenities and a commercial building on land south of JVIC. The exact business structure for this project is still a work in progress, but the building will likely consist of commercial office space owned and operated by The Vecino Group. The university currently uses some of this land for parking, so the project will need to include a structure that provides ample space for university parking.

In a time of fiscal constraints, the potential to expand JVIC and transform IDEA Commons without impacting university operations is very attractive. I hope you are as excited about this project as I am.

Thanks for all you do for Missouri State!

Filed Under: Clif's Notes, Smart Tagged With: IDEA Commons

Clif’s Notes for July 25, 2017

July 25, 2017 by Clif Smart

Hill Hall exterior

Last week the Governor’s Innovation Task Force met on our campus. This was one of five roundtables the task force is holding throughout the state.

MSU’s role in workforce development

Governor Greitens established the Innovation Task Force to bring together private and public sector leaders from across the state in a non-partisan effort to ensure that Missouri’s strategy to promote innovation and new technology start-ups is informed by the best minds from business, nonprofits and government.

I was privileged to get to meet with Governor Greitens, Drew Erdmann (the Governor’s Chief Operating Officer and the chair of the task force) and the other members of the Innovation Task Force. I advocated for the university and for our economic development initiatives and assets like the Jordan Valley Innovation Center and The eFactory. The Governor assured me that he is aware of our success at Missouri State University, and he supports our mission and work.

We were able to host these meetings and engage with the Governor because of our investments in economic and workforce development. It is important that we continue to focus on developing the state’s workforce and investing in the state’s economic infrastructure. The IDEA Commons project I discussed in last week’s note is one way we can do this as we move the university forward.

Hill Hall renovation

Last week the Board of Governors awarded the contract to renovate Hill Hall to Carson-Mitchell, Inc. In addition to submitting the lowest bid, Carson-Mitchell, Inc. is the general contractor for the Ellis Hall project.

The project will enhance the overall learning environment in Hill Hall. It will also improve accessibility, replace old mechanical systems and improve the life safety components of the building. The project also relocates offices on the fourth floor to allow for new classroom space and renovates the old pool area into a student lounge, meeting rooms and a computer lab. The work is scheduled to be completed by fall 2018.

No university reserves will be used to fund the budget for this project. Rather, $9.5 million will be funded with bond proceeds received from the state. The remaining $1.5 million will be funded with allocations for maintenance and repair and classroom upgrades.

Thanks for all you do for Missouri State!

Filed Under: Clif's Notes, Smart Tagged With: governor, IDEA Commons

Clif’s Notes for July 18, 2017

July 18, 2017 by Clif Smart

Brick City

IDEA Commons is the urban innovation park north of the square in downtown Springfield. Missouri State University developed the area with support of the city of Springfield, Springfield Area Chamber of Commerce, City Utilities and other community partners.

IDEA Commons has positive impact on downtown

IDEA Commons includes the Jordan Valley Innovation Center (JVIC), the Robert W. Plaster Free Enterprise Center (which houses The eFactory, cooperative engineering program and other university enterprises) and Brick City (which houses the art and design department along with several other university and non-university enterprises). These development projects have had a significant impact on the university, the Springfield region and the state of Missouri.

Specifically, IDEA Commons has:

  • Created opportunities for applied interdisciplinary education for students
  • Expanded opportunities for business development and commercializing research
  • Driven university partnerships with corporations and entrepreneurs
  • Attracted and retained creative and entrepreneurial talent

The university’s work in IDEA Commons has had significant economic impact. Since 2013, JVIC and The eFactory have:

  • Supported 608 students
  • Generated 1,038 jobs
  • Served 685 business clients
  • Facilitated $29,924,733 in private and $11,256,853 in government-funded capital
  • Received $4,592,996 in research and grant support

Room to grow

JVIC lab

JVIC has reached capacity and cannot provide the desired office and lab space for its existing tenants, much less prospective new tenants. In addition, the Springfield Area Chamber of Commerce has identified a need for modern office space in downtown Springfield, and parking and commercial amenities are needed to complement the demands throughout the area.

Missouri State and the Springfield Business Development Corporation are collaborating with The Vecino Group to evaluate the feasibility of an expansion of IDEA Commons through a public-private partnership. The project will likely include partial demolition and expansion of Building 4 of  JVIC as well as development of approximately 1.8 acres south of JVIC on university property, and adjacent property controlled by The Vecino Group.

Details of the project are still emerging, but we anticipate that it will include additional office and lab space to accommodate the current and future needs of JVIC, The eFactory and prospective tenants seeking to locate in IDEA Commons; community gathering space; parking; and street-level storefronts. In partnership with the city of Springfield, the project will also involve redirection of a portion of the historic Jordan Creek into an above ground channel near the proposed development site, which will result in a significant storm water benefit and will provide an amenity for IDEA Commons.

Resources are limited at Missouri State, and I have told all of our partners that Missouri State requires a net positive cash flow for the project to be feasible. This project will depend on a variety of funding sources to be successful. These will include public and private financing, incentives such as New Market Tax Credits and local incentives, as well as private contributions.

I hope you are as excited as I am about this project. Missouri State has established itself as a leader in economic development for the Springfield region and the state. This project provides a unique opportunity to grow Missouri State’s profile and spur progress throughout the region.

Thanks for all you do for Missouri State!

Filed Under: Clif's Notes, Smart Tagged With: IDEA Commons

Clif’s Notes Vol. 1, No. 3

August 10, 2011 by Clif Smart

Brick city

Clif's Notes

The Board of Governors met last Friday. The Board had its summer retreat from 8-9:45 a.m., followed by the regular Board meeting at 10 a.m. I want to report to you on three significant topics we discussed at the Board retreat and meeting.

First year implementation of the long-range planStudents walking behind the seal

At the retreat, we discussed and agreed upon the key objectives and tactics we will focus on during the first year of implementing the long-range plan, Fulfilling Our Promise.  You can find the PowerPoint we used for this discussion online.

These priorities will be the major focus of my State of the University address Sept. 28 in Springfield and Oct. 4 in West Plains. I hope you can attend one of these addresses, or see coverage of them later on the Web and Ozarks Public Television.

Our intent was to identify some significant items from the long-range plan on which we could make significant progress during 2011-12. I look forward to working with you on these initiatives.

Salaries

It is no secret that my top priority is finding a way to achieve across-the-board salary increases this year. On Friday, the Board of Governors confirmed its support and asked us to develop both short-term and long-term plans to increase salaries. I will work with Administrative Council, the Executive Budget Committee, and others to develop these plans.

Professor at white boardFor this year, whatever plan we develop will need to depend primarily, if not exclusively, on reallocated funds. Over the past several weeks, we have discussed the need to make decisions now that will allow us to reallocate funds later this year and next. Since more than 70 percent of our budget is spent on personnel (salaries and benefits), we absolutely must examine every open position to make sure we are addressing it in the best possible way.

The newspaper headline from Saturday – “Smart wants smaller MSU staff” – is misleading. My strong first preference would be to have the same or greater number of staff and to pay everyone above market rate. But that is not possible since state appropriations will continue to decrease, so we will have to make do with fewer staff as that will allow us to increase the pay for all.

Examples

I want to use the president’s office as one example of what I mean, since I have been given permission to use names of individuals.

  • For nearly 30 years, the president’s office has had two full-time administrative assistants.
  • Historically, the chief of staff has had one full-time administrative assistant.
  • As most of you know, Barb Helvey retired at the end of May 2011 and is now working 1,000 hours (halftime).
  • Marilyn Dennis will retire Dec. 31, 2011, and will begin working 1,000 hours.
  • Renee Fogle, who has been working 1,000 hours in the general counsel’s office, is going to begin working 1,000 hours in the president’s office.
  • And the administrative assistant position in the chief of staff’s office has gone unfilled since the passing of Teri Loch in June 2009.

So, by January 2012, we will have replaced three full-time positions in the president’s office and chief of staff’s office with three 1,000-hour positions, plus some increased student hours. This will save us more than $50,000 in salaries and another $12,000-$15,000 in benefits since we don’t pay benefits on 1,000-hour employees.

The end result is we will have about $62,000-$65,000 available for reallocation to the across-the-board increase.

Another example can be found in the Provost’s Office. Frank has ceased searches for two full-time staff members.Frank and his staff are redistributing responsibilities and planning to use more student employees to get the work done. This decision, too, will save several thousand dollars which can be reallocated.

Logical questions

Will we be able to combine and/or reduce positions in every unit across all campuses? Probably not, especially in those units that are very small and, therefore, have fewer options.

Will these changes cause us to stop doing some good, but non-essential, things we have done in the past? Yes.

Will we have to find ways to do things smarter and more efficiently? Absolutely.

Will the administrators in these areas work additional hours to get things done? Without a doubt.

But, if we are to position ourselves for an across-the-board increase, these kinds of personnel decisions have to be multiplied many times across campus. I hope I can count on you to help in this effort.

Brick cityInvestment in academic space at Brick City

On Friday, we had an in-depth discussion with the Board about an investment in academic space at Brick City. I want to share with you that same information.

As you know, academic space is at a premium on campus; Missouri State ranks last in the state in average square feet per student. And, quality academic space is even more precious.

For more than a decade, the University has focused its efforts on renovating buildings and space on campus (referred to as Facilities Reutilization Plan or FREUP). One of the primary goals of FREUP was to co-locate academic departments. Another strategy has been to lease space downtown instead of waiting for state funding for new buildings. All of this was intended to secure the best classroom and research space possible for our students and faculty.

We believe within the next 6 to 12 months, we will be presented with an opportunity to take yet another step in this process.

Frees other space

Missouri State already leases two of the buildings in Brick City, which house major portions of the art and design department.  Soon, the University is likely to have the ability to lease the two remaining buildings (known as Buildings 1 and 5) which could be renovated so that the entire art and design department – faculty, staff and all functions – can be consolidated there.

By consolidating art and design in Brick City, we would free up (thus the acronym FREUP) approximately 20,000 square feet of space in Ellis Hall, the Jim D. Morris Center for Continuing Education, and Hill Hall for reassignment/reallocation.

Specifically, we would gain a very large space in Hill Hall to allow conversion and addition of a large core-campus state-of-the-art classroom, which would help facilitate our course redesign initiative. We would recover the fifth floor at the Morris Center for Continuing Education for reallocation for international programs (English Language Institute classrooms). The space in Ellis Hall would allow for the music department to be located in one physical location.

Both Wade Thompson, head of the department, and Dr. Carey Adams, dean of the College of Arts and Letters, have been involved in this planning and both are excited about the positive impact of this potential investment.

The “trigger” for this investment will be the ability to partner with a private company, which we anticipate would lease 1½ floors of the largest building (Building 1). Our hope is that this private company would allow for internships and student collaborations, as well as hire our graduates and create new high-paying jobs in Springfield.

Brick City Gallary A good investment

In addition to providing quality academic space, this investment would be a good one for several reasons:

  • It further enhances and solidifies the IDEA Commons project/development area by completing the Brick City development.
  • There is no cost for the next two years as the buildings are being renovated.
  • The cost beginning in the fall of 2013 will be $550,000 annually for lease, which would be offset by about $280,000 in lease space we will discontinue, for a net increase of $270,000 per year.
  • As is the case with our other Brick City leases, we have the option to purchase the buildings after five years.

I also would point out that this would address three of the six strategic directions in the long-range plan:

  • It helps provide quality academic space for our current and prospective students – Access to Success.
  • It is a good use of limited resources – Responsible Stewardship.
  • In the process, it further develops the IDEA Commons initiative – Partners for Progress.

I believe this would be a great investment in our academic programs and I hope you agree. We will proceed as soon as a private partner is confirmed, which, again, we hope will be within the next 6-12 months.

Fall semester begins August 22

I look forward to seeing you often beginning the week of Aug. 15 as we begin welcoming students back for the fall semester. I hope you will plan to attend the New Student Convocation at 2 p.m. on Sunday, Aug. 21. Classes begin Monday, Aug. 22. Let’s have a great year.

Clif Smart–Clif

Filed Under: Clif's Notes, Financial Outlook, Smart Tagged With: Brick City, COAL, FREUP, IDEA Commons, long-range plan, salaries

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