Economic Impact Assessment: UB-North Downtown Freeport

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UNIVERSITY OF THE BAHAMAS-NORTH ECONOMIC IMPACT ASSESSMENT


Introduction The relocation and expansion of University of The Bahamas-North has the potential to provide a muchneeded economic boost to the city of Freeport, Grand Bahama. This would create new jobs, increase property values, attract new investment, encourage existing businesses to grow and encourage the creation of new ones that can provide goods and services to its students, staff and faculty. The purpose of the economic impact study is to articulate the anticipated economic value generated from the relocation of the UB-North campus.

The University of The Bahamas has had a presence in Grand Bahama since the late 1970s. In September 2019, Hurricane Dorian destroyed the UB-North campus in East Grand Bahama, which was situated on 50 acres and housed classrooms, a residence hall, library, cafeteria, administrative offices and a clinic.

Just before Dorian the campus had witnessed 100% increase in residence hall capacity over the previous year and a 20% increase in overall enrolment thanks to the Government Tertiary Grant. There were over 560 enrolled. Over 200 students have applied to UB-North for Fall 2020.

UB’s 2019-2024 Strategic Plan calls for the relocation of UB-North campus to Downtown Freeport. Keeping core operations in East Grand Bahama would leave the institution exposed to further extreme events. The move downtown would improve access, and increase local, national and international enrolment.


01 FREEPORT: A COLLEGE TOWN

UB-North can transform the city of Freeport into a genuine college town. It has the potential to attract foreign students and academics to its degree programs, seminars and conferences, bringing an element of educational tourism. The campus can become a signature feature of Downtown Freeport, further enhancing Grand Bahama’s appeal as a destination for tourists seeking a cultural experience. The campus can accommodate a University Bookstore / coee shop, training restaurant, lecture theatres, library, small cinema, art gallery, museum, and a commercial centre (including a technology hub and business incubator).


02 KEYS TO UB-NORTH EXPANSION

Increased accessibility due to moving to Downtown Freeport

Improved student experience due to improved and expanded facilities

Introduction of Marine Science, Environmental Science, Computer Science and Engineering exclusively at UB-North

Introduction of the BSc. in Nursing

Commitment by UB to develop niche programs in Grand Bahama

Reintroduction of the Culinary and Hospitality Programs to UB-North

Reforms giving UB-North greater autonomy

Expansion of CELEARN course oerings with greater focus on the Tourism, Public and Industrial Sectors

Greater budget equity within the UB system

Increase in international student enrolment

Improvements in Student Recruitment and Retention

More widespread use of online classes for majors not oered to completion in Grand Bahama


03 PHASE ONE: KIPLING COMPLEX, WEST MALL DRIVE 103,000 SQUARE FT. 
 ON 4 ACRES ASKING PRICE:

$3.9 MILLION 
 STRUCTURAL REPAIRS, DESIGN ENHANCEMENT & INFRASTRUCTURE UPGRADES (OVER 2-3 YEARS) :

$8,240,000


04 PHASE TWO: HOUSING EXPANSION HOUSING LOCATION OPTIONS

Option 1

OPTION 1: WEST MALL DRIVE PROPERTY

OPTION 2: MCKENZIE STREET PROPERTY ADJACENT KIPLING BUILDINGS

OPTION 3: MCKENZIE STREET ACROSS FROM KIPLING BUILDINGS

Option 5 Option 2

Option 3

OPTION 4: ADVENTURER’S WAY PROPERTY

OPTION 5: OPPOSITE COMMONWEALTH BANK

OPTION 6: GREAT SOUTHERN APARTMENT

CONSTRUCTION

200 BED RESIDENCE HALL

ESTIMATE: $3,600,000

30,000 SQ.FT. at $120.00 PER SQ.FT.

Option 4

Option 6


05 UB-NORTH: KIPLING COMPLEX SPACE ALLOCATIONS


06 INITIAL INVESTMENT

PHASE 1 PURCHASE OF KIPLING COMPLEX

$3,900,000

PURCHASE & PREPARATION OF VACANT LAND FOR DEVELOPMENT

$1,000,000

RENOVATION OF COMPLEX (OVER 2-3 YEARS, IF NECESSARY) AT $80 PER SQ.FT.

$8,240,000

TOTAL

$13,140,000

PHASE 2 CONSTRUCTION OF 200 BED RESIDENTIAL HALL FOR STUDENTS, FAMILIES, STAFF & FACULTY (30,000 SQ.FT. at $120 PER SQ.FT.)

$3,600,000

TOTAL

$3,600,000

GRAND TOTAL

$16,740,000


07 ESTIMATED IMPACT By 2024 UB-North could have pumped over $27 million dollars into the Freeport economy and have created over 100 new permanent and temporary jobs.

Applying a 1.5x multiplier effect to represent over $67

million dollars.

UB-North could contribute over $6 million dollars annually to the economy thereafter. TOTAL NEW SPENDING 2020-2025 ACADEMIC YEARS PROPERTY SALES

$4,900,000.00

NEW SALARIES*

$4,254,800.03

CONSTRUCTION

$11,840,000.00

NEW SPENDING ON GOODS & SERVICES

$514,872.40

SPENDING BY NEW COMMUTING STUDENTS

$3,780,000.00

RESIDENTIAL STUDENT SPENDING

$2,181,000.00

TOTAL

$27,470,672.43

TOTAL ANNUAL SPENDING AS OF 2024 ACADEMIC YEAR

2024 SALARIES**

$3,207,135.70

2024 SPENDING ON GOODS & SERVICES

$437,270.40

2024 COMMUTER STUDENT SPENDING

$1,080,000

2024 RESIDENCE HALL TENANT SPENDING

$1,601,000

TOTAL

$6,235,406.10

Notes -

New salaries assumes an increase in staff of 25% annually over the period. Salaries will be spent in Grand Bahama on housing, groceries, utilities, transportation, education and entertainment. New spending on goods and services assumes an annual increase of 20% Spending of commuting students assumes an annual increase of 100 students per year. Residential spending assumes a growth from 25 to 300 beds for students, families, staff and faculty between the 2021 and 2024 academic years.

- Tuition and fees & room rental are not factored into these figures as these are currently sent directly to Nassau and integrated into UB cash deposits.

* This salary figure represents 50% of the actual projected new salaries earned ($8,509,600.05) so as to account for health insurance, pension, NIB and debt servicing. ** This salary figure represents 50% of the actual projected salaries earned ($6,414,271.40) so as to account for health insurance, pension, NIB and debt servicing.


08 RETURN ON INVESTMENT Direct Impact

Indirect Impact

• Property purchase

• Construction: services,

• Goods and services sold to

building supplies, furniture and equipment

support the work of the University

• Goods and services sold by the University

Induced Impact • Goods and services bought by students,

permanent and temporary employees of the University and by those doing business with the University.


UNIVERSITY OF THE BAHAMAS-NORTH For more information please contact us via email at ub.north.life@gmail.com


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