We welcome this opportunity to provide greater clarity regarding funding for the Events Center. We are very proud of what the Events Center has become and very pleased by the level of public support for this new, state-of-the-art complex serving the academic, athletic and community needs of the university and citizens of central and northern Michigan.

Initially, we had hoped that private donations could cover the full cost of the project. However, the record is clear that the board of trustees has long recognized the importance of investing in this outstanding facility.

Board resolutions in 2008 and 2009 made clear that funding would come from a combination of private donations and university reserves, as did the Use and Finance Statement that was filed with the State of Michigan. Unfortunately, the Events Center website contained outdated information that has been removed.

Specifically, the board of trustees adopted a resolution on July 17, 2008, authorizing the contract for the planning and design phase of the project at a cost not to exceed $2.1 million, with funding to come from donations, a reserve for the Events Center and a reserve for future construction.

A year later — on July 16, 2009 — the board authorized a contract for the construction phase for an additional project cost of $18.5 million. Total project cost was not to exceed $21 million, with funding to be from donations, a reserve for future construction, a reserve for remodeling and the university recreation facility expansion reserve.

One month later, the university provided more detailed information and rationale in the Use and Finance Statement it filed with the State of Michigan: “The project will be financed with private donations and university capital construction reserve funds. By investing in the Events Center project CMU addresses inadequate infrastructure needs for academic and athletic programs, promotes student recruitment and retention, and allows the university to host a multitude of events that will add to the overall student and educational experience here at CMU.”

That document specified that $10 million of the financing — or 48 percent of the estimated cost — would be provided by university capital construction reserves and that the remaining $11 million, or 52 percent, would come from private funds, with the provision that “funds raised over and above this amount will be used to offset University funding.” It also stated clearly that “this project has no impact on student fees or tuition.”

Subsequently, on September 23, 2010, the board adopted a resolution authorizing a contract for additional work because of unforeseen conditions, design errors and omissions, the addition of enhanced internal signage, and a video and graphics package at a cost not to exceed $1,500,000. Of that, $850,000 was to be from university reserves and $650,000 was to be repaid from future athletics revenues. With that, total project cost was not to exceed $22,500,000.

To date, we have raised more than $8 million toward our $11 million goal, and active fundraising efforts remain under way.

Kathleen Wilbur Vice President of Development and External Relations

Dave Heeke Associate Vice President/Director of Athletics