SUBJECT:

Update on University House Project

In June 2004, we informed you that University House, the official residence of UCSD chancellors since 1967, had been closed. This decision was based on the findings of an investigative study conducted by Island Architects, which found serious code compliance issues and deficiencies in major system components of the 54-year-old structure.

We also advised at that time that UC Senior Vice President Joseph Mullinix had charged a workgroup, chaired by Senior Vice President Emeritus Wayne Kennedy and comprised of representatives from UCSD faculty, staff, students, and the external community as well as the UC Office of the President (UCOP), to consider options for possible renovation, restoration, or replacement of University House.

Last summer, the Workgroup met to determine the best options for making University House a safe living environment and University events venue once again. The options considered were to renovate the house, rebuild a new house on the current site, or possibly sell the current property and build a new house on other university property. The workgroup delivered its report to Senior Vice President Mullinix in August 2004. The recommendation was to build a new house on the current site, provided that sufficient private gifts could be raised to fund the project. Preliminary costs for a new facility were projected to be $7.2 million.

UCOP decided that retaining the La Jolla Farms property as a campus asset was a desirable goal and agreed that given the financial constraints facing the University, funding for this project must come from private funds. UCOP then asked that Vice Chancellor Jim Langley undertake an assessment to determine if sufficient private funds would be available to support the project.

The assessment period is now complete. Although this has been UC San Diego's most successful fundraising year yet, we found that though our donors are supportive, they are torn between the many competing priorities on our campus. We have come to accept, therefore, that while we have had some success we will not be able to secure all the needed funds to undertake this project. The Workgroup was reconvened and determined that there was no alternative but to recommend to UCOP that the property be sold. We have advised UCOP of the result of our fundraising assessment and have been directed to prepare the property for sale. Proceeds of the sale will be used to build a new University House on other UC land.

TheUniversity will now move expeditiously to secure the services of a real estate broker to assist with the sale of the property. Because this parcel of University land is governed by the Stull Act, the transaction requires a public, sealed bid process.

We will continue to keep everyone informed of the status of the project as it progresses.

Jim Langley Vice Chancellor External Relations John Woods Vice Chancellor Resource Management & Planning