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Monday, May, 24, 2010

Auxiliary Services as Potent Revenue Generators

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Here's your SCUP Link to the initial source for Auxiliary Services as Potent Revenue Generators.

Today's Campus' Tom Robinson explores the scope and structure of some campus auxiliary services and how they are faring in campus plans as institutions seek ways to generate more revenues. One potential problem to look out for is whether the new revenues might jeopardize an institution's not for profit status.

 

University auxiliary divisions are becoming more sophisticated operations. North Carolina State University bundled student centers, bookstores, copy services, campus cards, trademarks, licensing, dining, vending, concessions, convenience stores, catering and retail operations under the moniker Campus Enterprises and appointed a vice-chancellor level director. 

Sacramento State's University Enterprises, Inc. (UEI) has a similar service group with some novel initiatives. UEI owns an electronic outdoor board on Highway 50 which has produced $225,000 in advertising revenue in two years. UEI also acquired the former CalSTRS building in 2007 for $3.53 million. Newly named Folsom Hall, it has 188,000 square feet of classroom and lab space for the school's nursing students. UEI has also managed $300 million in research grants since 2003. The 501(c)(3) entity was created to separate certain revenue streams from state funding. 

Florida Atlantic University has a $123 million Public-Private Partnership (PPP) with British Balfour Beatty Capital Group for the development and management of "Innovation Village," a recreation, residential and retail initiative for grad students. The PPP offers an alternative solution for higher education institutions which are looking to bridge the gap between necessary capital plans—for academic facilities, classrooms and labs, athletic spaces, wellness centers and improved student housing—and the traditional financial resources needed to execute such plans. 

 

 

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