NORM ABRAMS & RESIDENTIAL LEARNING CENTER/FACULTY CLUB SAM MORABITO PRESENTATION AND DISCUSSION The Executive Board had invited Administrative Vice Chancellor Morabito and Interim Chancellor Emeritus Norm Abrams to discuss the proposed Residential Learning Center and Faculty Club. Prior to the meeting, Chair Karagozian forwarded the following questions to be addressed by the visitors. Answers have been noted under each question. • What are the risk calculations? AVC Morabito explained that this project is being looked at, as would any other venture; major survey work has been done, as well as market research. Calculations have been done with year one at a 60% occupancy level; however, it is believed that demand will be much higher that that. • What happens to Profits/Losses? It is expected that this facility will cover its own expenses and will have a positive cash flow. • Will the Conference Center by managed by external third parties or by the University? It will be managed by UCLA. • Is the project being promoted presuming Anderson School use? AVC Morabito explained that the Anderson School is not being depended upon when looking at the success of this project. • Will the facility be affordable for faculty and student use? If on-campus groups cannot afford the rates, there are subsidies that can be granted by the Chancellor. • Will the faculty club still be affordable? AVC Morabito believes that faculty club rates will remain neutral; as the club will now qualify for bulk rates on supplies, food, etc. and it will in turn be cheaper to DISCUSSION operate. • Who are the target markets? The facility will accommodate both on-campus and off-campus groups but is foreseen to be for academic conferences primarily. • Is the Conference Center a business venture? AVC Morabito stressed that this project is not being driven for a specific business reason, other than to support the academic mission of the institution. • What will the rates be? AVC Morabito reported that the rates when the facility opens (four years from now) will be $240-245/night for a hotel room (with no additional occupancy tax or sales tax). For a conference, the rate would be around $365 all inclusive (food, meeting rooms, etc.). • Will sufficient parking be available? There will be approximately 280 parking spaces; if any overflow is requires, spaces will be made available in Parking Structure 2. • Will there be priorities in scheduling? AVC Morabito explained that there will have to be shifting around of reservations, to accommodate requests, but overall there will be far more meeting space, so should be able to accommodate all requests. The Faculty Club will be able to reserve Conference Center space if available and needed, in addition to the reverse. AVC Morabito informed the members that the plan is to break ground in June 2012 (with all Faculty Center bookings ending by December 2011). The temporary space for the faculty club will likely be in Ackerman; and everything possible is being done to find positions for the
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current employees at the faculty center in some unit on campus, including the temporary facility. A question was raised about the Guest House being a form of competition with the new facility, and AVC Morabito explained that he does not expect any competition as they operate under one entity. AVC Morabito reported that a mission statement for the project is currently being drafted, and feels that this will help to alleviate any further doubts/questions/concerns. A question arose after AVC Morabito and former IC Abrams left the room, pertaining to a proposed new hotel at the corner of Wilshire and Gayley, and the possibility that this could compete with the proposed UCLA conference center. When the question was posed to AVC Morabito by email, he replied that he is very much engaged with this proposed project. The hotel is being proposed as either a very high end luxury hotel (1000 square foot rooms versus standard for a Hyatt Regency of about 400 sq. ft.) with minimal meeting room space or as a condominium project. It would not be a competitor for the proposed UCLA project.
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With no additional business, the meeting adjourned at 3:00 p.m.
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