Washington Higher Education Facilities Authority
2016 Annual Report
Washington Higher Education Facilities Authority
2016 Annual Report
TABLE
OF
CONTENTS
Eligible Colleges and Universities........................................... Page 1
Executive Summary.......................................................................... Page 3
Authority Members, Staff, and Consultants........................ Page 4
Message from the Secretary & Executive Director......... Page 5
Summary of Activities.................................................................... Page 6
University Information.................................................................. Page 9
Bonds Outstanding........................................................................... Page 10
Credits..................................................................................................... Page 11
Eligible Colleges
& Universities
Northwest Indian College
Bastyr University
Seattle University
Bellingham
Seattle Pacific
University
WASHINGTON
STATE
Everett
Cornish College
of the Arts
Whitworth University
University of Puget
Sound
Spokane
Seattle
Gonzaga University
Tacoma
Lacey
Olympia
Pacific Lutheran
University
Yakima
Walla Walla
Whitman College
Walla Walla University
Heritage University
Saint Martin’s University
0
25
50
Pacific Northwest
University of Health
Sciences
100 Miles
WHEFA 2016 Annual Report | Pg. 2
Reflecting Pool, Chapel of St. Ignatius
Seattle University
Executive Summary
The Washington Higher Education Facilities Authority (the “Authority”) was created in 1983.
The Authority’s purpose is to support the qualified independent colleges and universities, and the
students of Washington State by lowering the cost of financing for the expansion and modernization
of campus facilities through the issuance of tax-exempt revenue bonds.
To date, the Authority has helped provide over $1.965 billion in tax-exempt financing to the qualified
colleges and universities in the state of Washington for many critical projects ranging from student
residence halls to science laboratories. All of this is done without the use of tax payer dollars and
without pledging the faith and credit of the State of Washington.
The Authority board has seven voting members. The ex-officio members of the Authority include
the Governor (Chair of the Authority), the Lieutenant Governor, and the Chair of the Student
Achievement Council. The Governor appoints four public members, one of whom must be the
president of an institution of higher education.
WHEFA 2016 Annual Report | Pg. 3
Authority Members
Tom Johnson
Jay Inslee
Claire Grace
David Schumacher
Governor of Washington
Secretary
Public Member
Treasurer
Public Member
Governor’s Designee
Director, Office of
Financial Management
Brad Owen
Dr. Gene Sharratt
Dr. Roy Heynderickx
Jerome Cohen
Lt. Governor of
Washington
Executive Director,
Washington Student
Achievement Council
WHEFA STAFF & CONSULTANTS
Kim Herman, Executive Director
Paul Edwards, Deputy Director
Bob Cook, Senior Finance Director
Debra Stephenson, Senior Controller
Carol Johnson, Manager
Maureen Smith, Web Manager
Margret Graham, Communications Manager
Cody Field, Program Assistant
Public Member
President,
Saint Martin’s
University
Public Member
Pacifica Law Group, Bond Counsel
- Faith Pettis
- Deanna Gregory
Foster Pepper, PLLC, Bond Counsel
- Marc Greenough
Assistant Attorney General - General Counsel
John Ryan (July 1, 2015 - September, 2015)
Rusty Fallis (October 1, 2015 - present)
Springsted, Inc. - Financial Advisor
- Barry Fick
WHEFA 2016 Annual Report | Pg. 4
JAY INSLEE, Chair
KIM HERMAN
Governor
Executive Director
We are extremely proud and pleased to present the 2016 Annual Report of the Washington Higher Education
Facilities Authority (WHEFA).
For the past 32 years WHEFA has provided our 14 member colleges and universities access to private and public
capital markets at lower costs than are available to them in the conventional marketplace. We have issued more
than $1.965 billion in tax-exempt revenue bonds in 86 separate financings since our creation in 1983.
We have saved our member institutions $75 million on a net present value basis since we began tracking it in
2009. This savings has benefited thousands of students and families by improving the quality of their education
as a result of providing modern, state of the art campus facilities.
We would like to take this opportunity to highlight some changes that have occurred over the past year.
Recently we said goodbye to board member Dr. Gene Sharratt, retiring head of the Washington Student
Achievement Council (WSAC). Gene has been WSAC’s representative on the WHEFA Board since 2013. We
are extremely grateful for his excellent work with us and with WSAC. His expertise and passion have been an
asset to us all, and he will be missed. Dr. Rachelle Sharpe will become the Interim Executive Director at WSAC
and their representative on the WHEFA board next year. Rachelle has many years of experience in the higher
education arena and has been with the agency for over ten years. We are also extremely pleased to announce
that the Governor reappointed Dr. Roy Heynderickx to another four year term on the Board. Finally, Robert
(Rusty) Fallis became the newly appointed Assistant Attorney General (AAG) to the Authority. We thank John
Ryan, the previous AAG for WHEFA, for his service on our behalf.
We continue to be grateful for the unwavering support of Governor Inslee and Lieutenant Governor Owen.
Their backing is critical to our mission.
On behalf of the board of directors of the Authority, our staff and business partners, we wish to express our
pride and sincere appreciation for the dedication to educational excellence demonstrated by the independent
colleges and universities that we serve. We also commend the board and staff for their hard work and
contribution to our success over the past year.
It is with great pleasure that we look forward to another year of serving and supporting our member schools and
the students of Washington state.
Sincerely,
Sincerely,
Tom Johnson,
Secretary
Kim Herman,
Executive Director
1000 Second Avenue, Suite 2700 • Seattle, WA 98104 -1046
(206) 464-7139 • FAX (206) 587-5113 • 1-800-767-4663
FISCAL YEAR ‘16
Summary of Activities
Bastyr University
Cornish College of the Arts
University of Puget Sound
School Leadership changes
The past fiscal year has brought a number of leadership changes to the schools that we serve. Bastyr University
welcomed a new president, Dr. Charles “Mac” Powell. He replaced Dr. Daniel K. Church. At University of Puget
Sound, Dr. Isiaah Crawford was appointed to replace President Ron Thomas. Cornish College of the Arts named
Chris Kevorkian as interim president to succeed Dr. Nancy Uscher. We welcome these new leaders and thank their
predecessors for their good work and for their support of the students at the independent colleges and universities of
Washington.
NAHEFFA Conference
In September of 2015 the Authority co-hosted the fall National Association of Health and Higher Education Facilities
Authority (NAHEFFA) Conference in Seattle. NAHEFFA conferences provide informative sessions on a variety of
topics typically focused on key issues which directly influence the availability of, or access to, tax-exempt financing
for healthcare and higher education institutions. Staff was integral to the planning and development of the two day
conference. We assisted with the selection of venue and speakers, and also helped with planning evening activities that
highlighted Seattle and the Pacific Northwest. Board member, Jerry Cohen, accompanied staff for the conference. It
was well attended and a great success.
WHEFA 2016 Annual Report | Pg. 6
Financings
Authority member colleges and universities have access
to low interest, tax-exempt financing through our bond
financing program. Access to lower interest rates
generates considerable savings for our borrowers, which
ultimately benefits the students of Washington State.
In September of 2015 Seattle University completed a
$54.8 million bond financing that refunded bonds issued
by the Authority in 2005 and 2007. The 2005 bonds
refunded bonds issued by the Washington State Housing
Finance Commission (WSHFC) in 1998 for student
housing and related improvements. The 2007 bonds
helped finance the purchase of property, renovations
to university facilities, and other capital improvements
on campus. The transaction generated over $9 million
in interest savings over the life of the bonds. This
represents $6.8 million in today’s dollars (net present
value). To date, Seattle University has completed 16
financings totaling $358,381,402 through the Authority.
“We were able to realize substantial savings to support
the education of our students and the scholarship of
our faculty,” said Connie R. Kanter, Chief Financial Officer
and Vice President for Finance and Business Affairs at
Seattle University. “WHEFA worked in partnership with
the university providing valuable expertise throughout
the process. We are tremendously grateful to the WHEFA
team for their support and assistance.”
“This financing will save the university over $9 million,
which will benefit the students of Washington State,” said
Tom Johnson, chair of the Washington Higher Education
Facilities Authority board of directors. “We’re pleased that
we were able to help Seattle University access favorable
rates and terms to make this possible for the public
good.”
Sculpture, Murphy Apartments
Seattle University
School Visits
The Board and staff of the Authority feel strongly that it
is important to get out and visit our clients regularly. Part
of providing good customer service is knowing our clients
and understanding their needs.
This past year staff made visits to Bastyr University,
Gonzaga University, Heritage University, Pacific
Lutheran University, Pacific Northwest University of
Health Sciences, University of Puget Sound, Walla Walla
University, Whitman College, and Whitworth University.
As always, it is a pleasure and an honor to partner with
these institutions and play a part in the creation of
successful projects on their campuses. We are fortunate
to work with such talented and passionate people.
Legislative Update
Our goal is always to stay informed and active in the state
and federal legislative arenas in order to better serve our
member colleges and universities.
On the federal level, the threat of elimination of taxexempt financing as a low cost financing resource
for non-profit organizations is not going away. In this
uncertain political environment the risk has increased. It
is critical that we make sure that our federal legislators
understand the value of tax-exempt financing to nonprofit organizations such as the colleges and universities
that the Authority serves.
MISSION
To provide qualified non-profit, independent colleges
and universities in Washington with access to lowcost capital for the expansion and modernization of
campus facilities.
PUBLIC BENEFIT
The ability to obtain lower interest rates through the
sale of tax-exempt bonds has saved our borrowers
millions of dollars. The savings ultimately benefit the
students of Washington State and support the mission
of the institution.
Authority staff also continue to monitor proposed
legislation on the state level. This includes having
ongoing dialogue with key state legislators and legislative
committees about the programs of the Authority and the
importance of tax-exempt financing to our clients.
WHEFA 2016 Annual Report | Pg. 8
Wyatt Hall, University of Puget Sound
University
Information
Bastyr University
www.bastyr.edu
14500 Juanita Drive NE,
Kenmore, WA 98028
Cornish College of the Arts
www.cornish.edu
1000 Lenora Street
Seattle, WA 98121
8 Financings
$53,477,955
2 Financings
$41,108,000
Gonzaga University
www.gonzaga.edu
502 E. Boone Avenue
Spokane, WA 99258
Heritage University
www.heritage.edu
3240 Fort Road
Toppenish, WA 98948
Northwest Indian College
www.nwic.edu
2522 Kwina Road
Bellingham, WA 98226
18 Financings
$479,700,000
2 Financings
$14,000,000
No Financings to date
Pacific Lutheran University
www.plu.edu
12180 Park Street S.
Tacoma, WA 98447
Pacific Northwest University of
Health Sciences
www.pnwu.org
200 University Parkway
Yakima, WA 98901
Saint Martin’s University
www.stmartin.edu
5300 Pacific Avenue SE
Lacey, WA 98503
7 Financings
$150,915,000
1 Financing
$24,500,000
5 Financings
$86,677,000
Seattle Pacific University
www.spu.edu
3307 Third Avenue W.
Seattle, WA 98119
Seattle University
www.seattleu.edu
901 12th Avenue
Seattle, WA 98122
University of Puget Sound
www.pugetsound.edu
1500 N. Warner Street
Tacoma, WA 98416
4 Financings
$345,725,000
16 Financings
$358,381,402
9 Financings
$187,978,824
Walla Walla University
www.wallawalla.edu
204 S. College Avenue
College Place, WA 99324
Whitman College
www.whitman.edu
345 Boyer Avenue
Walla Walla, WA 99362
Whitworth University
www.whitworth.edu
300 W. Hawthorne Road
Spokane, WA 99251
2 Financings
$6,387,777
3 Financings
$84,875,000
9 Financings
$131,325,000
WHEFA 2016 Annual Report | Pg. 9
Schedule of Bonds Outstanding
Year Ended June 30, 2016
School
Issue Date
Original Amount
Outstanding as of
6/30/2016
University of Puget Sound
2001
10,620,000
10,310,000
10/1/2031
Whitman College
2004
28,770,000
28,770,000
10/1/2029
Walla Walla University
2005
3,963,000
1,659,446
Pacific Lutheran University
2006
62,160,000
51,765,000
11/1/2036
Seattle University
2007
38,075,000
1,820,000
11/1/2037
Seattle University
2008
26,595,000
18,120,000
5/1/2028
Whitworth University
2009
63,720,000
57,825,000
10/1/2040
Whitman College
2008
30,395,000
26,580,000
1/1/2038
Gonzaga University
2009
39,845,000
33,445,000
4/1/2029
Seattle University
2009
41,775,000
41,775,000
9/1/2039
Gonzaga University
2009
53,460,000
49,365,000
4/1/2029
Gonzaga University
2010
42,420,000
23,815,000
4/1/2029
Cornish College of the Arts
2010
20,323,000
20,323,000
12/1/2035
Seattle University
2011
15,230,000
12,665,000
5/1/2032
Whitworth University
2012
19,500,000
18,720,000
10/1/2046
Bastyr University
2012
24,230,000
21,562,733
7/1/2037
University of Puget Sound
2012
34,805,000
34,805,000
10/1/2042
Gonzaga University
2012
10,625,000
10,055,000
4/1/2043
University of Puget Sound
2012
29,195,000
27,105,000
10/1/2036
Pacifc Northwest University
of Health Sciences
2013
24,500,000
23,325,439
3/1/2043
Heritage University
2013
9,000,000
8,491,857
1/1/2035
Seattle Pacific University
2013
85,515,000
75,220,000
10/1/2038
Gonzaga University
2013
53,000,000
53,000,000
4/1/2043
Saint Martin’s University
2014
33,535,000
27,990,000
2/1/2037
Pacific Lutheran University
2014
10,000,000
10,000,000
11/1/2044
Seattle University
2015
54,815,000
54,155,000
11/1/2037
Totals
866,071,000
Maturity Date
3/1/2035
742,667,475
WHEFA 2016 Annual Report | Pg. 10
Credits
Graphic Design: Cody Field
Articles: Carol Johnson and Paul Edwards
Annual Report Coordinator: Cody Field
Photos:
• Cover image: Murphy Apartments, Seattle University - Cody Field
• Pg. 3: Reflecting Pool, Chapel of St. Ignatius, Seattle University - Cody Field
• Pg. 6:
Bastyr University - Cody Field
Cornish College of the Arts - Cody Field
Thomspon Hall Tower, University of Puget Sound - Cody Field
• Pg. 7: Metal Sculputure, Murphy Apartments, Seattle University - Cody Field
• Pg. 9 - Wyatt Hall, University of Puget Sound - Ross Mulhausen, University Photographer (2013)
University logos and permission for use provided by:
Bastyr University: Mae Ling Slaughter, Marketing
Cornish College of the Arts: Rosemary Jones, Director of Communications
Gonzaga University: Mary Joan Hahn, Director, Community and Public Relations
Heritage University: Bonnie Hughs, Communications Director
Northwest Indian College: Lisa Santana, Director of Development
Pacific Lutheran University: Simon Sung, Executive Creative Director
Pacific Northwest University of Health Sciences: Darren Stankey, Marketing Coordinator
Saint Martin’s University: Marki Carson, Creative Director
Seattle Pacific University: Tracy Norlen, Manager of Public Information
Seattle University: Eli Voigt, Senior Digital Marketing Manager
University of Puget Sound: Julie Reynolds, Creative Services Director
Walla Walla University: Jodi Wagner, Vice President for University Relations and Advancement
Whitman College: Gina Ohnstad, Manager of Media and Public Relations
Whitworth University: Nancy Hines, Director of Marketing
WHEFA Logo Design, 1996, Rachel L. Arbogast, Pacific Lutheran University
WHEFA 2016 Annual Report | Pg. 11
The offices of the Authority are located at:
1000 Second Avenue, Suite 2700
Seattle, WA 98104-3601
Phone: (206) 464-7139
In Washington State: (800) 767-4663
Fax: (206) 587-5113
www.whefa.org