@lkm It’s not like Columbia is writing a $6 billion dollar check soon. This construction will be happening over a projected period of 22 years (does anyone think a project of this magnitude in New York City and done by Columbia will be done on time?). Let’s say it takes 30 years. 6 billion over thirty years is about 200 million a year. IDK what the return rate Columbia gets on the endowment is but let’s say it’s 6 percent = 450 million a year in interest. They can afford to pull this huge construction project off using the yearly growth of the giant piggy bank.

I’m sure it’s more complicated than that with future expected interest rates but, still.

@Alum There’s not much relationship between a university’s endowment and its long-term construction budgets, since endowments are generally reserved for other things. Construction is usually financed with long-term bonds; the bonds are then paid back with donations and other revenue (including some tuition money). Usually there will be some major donations before a building is greenlighted in order to ensure a solid financial footing for the project; other donations usually come in while the building is going up and soon after it opens.

Keep in mind that the neuroscience building is already fully funded (or nearly so) by the $200M+ gift from Jerome and Dawn Greene.

he bond revenue that goes toward the residential buildings will largely be repaid from the occupants’ rent. Rental income from the retailers will help pay down some of the other bonds. Parking revenue will help pay for the underground portions of the project.

Besides, it’s not like Columbia is going to spend the entire $6.28 billion in one year. Spread out over 20 years it would be $314 million annually, which is about what the university spends now on facilities (including new construction, renovation and purchases). Existing buildings will still have to be renovated while M’ville is under construction, but the annual facilities budget won’t increase as drastically as you might suppose.