Economy doesn't halt eastward expansion

Economic turbulence has encouraged many Americans to be more cautious, and Penn is no exception.

In 2001, the University developed PennConnects, a plan for campus development and eastward expansion. But after the economic downfall of the past year, the University plans to proceed more cautiously.

Penn President Amy Gutmann said the University will continue only with those projects that have received or been pledged funding. For the moment, larger plans with incomplete funding are still being designed but will not start construction until they have been fully-funded.

Still, other projects have received some funding but less than what is necessary for them to proceed, said Facilities and Real Estate Services Vice President Anne Papageorge.

She added that unfunded projects will officially commence as they receive funding.

According to Vice President for Development and Alumni Relations John Zeller, naming gifts - large donations rewarded by naming the building after the donors - have not yet been acquired for many buildings, like the Neural-Behavioral Sciences building on Hamilton Walk and the Nanotechnology center at 32nd and Walnut streets.

The University is also seeking a naming gift for the $100 million Hill Field College House project. Still, Papageorge is optimistic about the college house's future - she received a submission toward the project last week.

Small projects with budgets under $5 million are proceeding more comfortably, she added.

Papageorge cited the difficulty in borrowing money and the decrease in commodity prices as two influential factors in the development plans that are being closely monitored. While interest rates soar and banks are not lending, Penn has found raising funds for its larger development costs difficult.

On the other hand, she added, lower commodity prices could benefit the development plans in the near future.

Still, Zeller explained that donors have not reneged on prior commitments and that the University continues to see "a great deal of energy and support" for its efforts.

Additionally, the plan's efforts toward environmental sustainability are not being halted by the state of the economy. Papageorge explained that the incremental construction costs for sustainability are about one percent, which will be more than compensated for by the lower operational costs of the buildings.

Initially aiming to achieve LEED silver certification - a national benchmark to determine how environmentally friendly a building is - the University will increase to platinum standards where possible and decrease to lower standards where funds are lacking.

"This is an investment for the future, and it is one of the ways that we're moving towards reducing our carbon footprint and frankly, costs," Papageorge said.

Buildings that will be entering construction phase in the next few weeks include the Weiss Pavilion - also known as "Pottruck East" - and Hub II on 40th and Chestnut streets.

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