BU Nears Initial Fundraising Goal

Administrators have raised $43 million in gifts and pledges for the Student Village Project and hope to reach $50 million this spring before launching the full fundraising campaign for a project which could total as much as $200 million, according to Boston University Executive Vice President Joseph Mercurio.

The money will go toward the construction of the arena, garage and student health and recreation center on the site on Commonwealth Avenue between Buick Street and Harry Agganis Way, the first Student Village site development since the construction of the existing apartments at 10 Buick St.

Initial estimates placed the first part of construction costs at $150 million, but Mercurio said they could reach as much as $200 million.

The three new dormitories planned for the back of the same site are too early in development for a cost estimate, Mercurio said. Construction on the dorms, set to border the Massachusetts Turnpike on the site, should begin about two years after the first part of construction is complete.

Mercurio said the Armory site is still several regulatory processes from the initial phases of construction, but destruction of the Armory should begin in late May.

Previously raised money and loans will finance the initial stages of construction, Mercurio said, adding that the loans will be paid back from money raised throughout the next years of the project.

University-issued bonds, which Mercurio said should be sold this spring, will also finance the project. The bonds will finance several other BU development projects as well, he said.

Contributions to the project range from $25,000 to several million dollars, according to Mercurio.

Mercurio said the initial fundraising goal was $50 million before the start of the full-scale fundraising campaign.

“We wanted to test for ourselves the viability of our capacity to raise money for this project,” Mercurio said. “We felt if we didn’t raise the first $50 million quickly, it would be an indication that it would be difficult to raise the money that we would like to raise in total.”

Naming rights have been granted for several parts of the new buildings and will be announced when the official fundraising campaign begins, he said.

“When we make the announcement that we’re launching the fundraising campaign, we will announce simultaneously those naming opportunities that have already been availed of,” Mercurio said. “We hope to have some of the naming opportunities put in place that will arouse a lot of other interest that will be viewed by members of the community and residents of the city as a positive influence on the area.”