At private institutions, new construction is closely linked to the capital campaigns and the subtle or overt influences of the giver. In between these opportunities, funding demands are still present. The institutions typically look to borrow funds for new construction or renovations in lean- capital times. Borrowing is not always a good idea. Some states and boards strictly limit the debt capacity of their respective institutions.
Debt does adversely affect the balance sheet of the institutions as well.
This approach is leading into large-scale project consideration. A recent project under consideration for the construction of a new parking deck provides a look into the evaluation process. For any one of a host of reasons, a small college may decide to investigate non-traditional forms of financing for a new parking structure. The college has a clear need for the parking deck and a good location identified for it on the campus master plan. Land is in short supply near the center of campus so the deck must be of multi-story design.