This document provides an overview of public-private partnerships (P3s) for university housing. It begins with an agenda for the presentation and then provides a definition of P3s as partnerships between public and private entities to fund and operate services. Several sections then discuss the pros and cons of P3s, different university objectives for pursuing them, and financing models options. Case studies are presented and factors to consider in the decision-making process are outlined. University and developer roles and responsibilities are also addressed. The presentation aims to provide information on promising practices and advice for considering P3s for university housing.

1. PUBLIC PRIVATE PARTNERSHIPS
January 20, 2014

2. AGENDA
Experience in the Room
P3 Defined
Case Study
Pros
Cons
University Objectives
Financing Models
Promising Practices & Advice
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3. ACUHO-I – 3

4. 20%
20%
20%
20%
20%
MY OPINION OF P3 UNIVERSITY HOUSING
IS:
1. Excellent
2. Good
3. Neutral
4. Poor
5. Bad
January 20, 2014
1
2
3
4
5

5. I HAVE WORKED WITH A HOUSING P3:
50%
50%
1. Yes
2. No
1
January 20, 2014
2

6. IF “YES” MY HOUSING OPERATION
REPORTS THROUGH:
33%
33%
33%
1. Business/Finance
2. Student Affairs
3. Other
1
January 20, 2014
2
3

7. 20%
20%
20%
20%
20%
MY EXPERIENCE WITH P3 UNIVERSITY
HOUSING HAS BEEN:
1. Excellent
2. Good
3. Neutral
4. Poor
5. Bad
January 20, 2014
1
2
3
4
5

8. MY PARTICIPATION/ROLE IN THE
PROJECT BEGAN:
1. Pre-selection
2. During RFP
process
3. After Selection
4. V- not sure how
to phrase…
January 20, 2014
25%
1
25%
2
25%
3
25%
4

9. MY PARTICIPATION/ROLE:
33%
33%
33%
1. Selection
2. ……………..
3. Make it work
1
January 20, 2014
2
3

10. ACUHO-I – 10

11. CASE STUDY
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12. CASE STUDY
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13. WHAT
A public private partnership
(PPP, P3) is a government
(public) service or private
business venture which is
funded and operated through a
partnership of government
(public) and one or more
private sector companies.
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14. DEFINED
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15. WHERE
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16. P3=LOSS OF PROJECT
CONTROL
50%
50%
1. True
2. False
1
January 20, 2014
2

17. INSIDER INFO
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18. WHEN THE CONTRACT IS SIGNED THE
STUDENT/DEVELOPER RELATIONSHIP IS
OVER- WHEN THE CONTRACT IS SIGNED
THE UNIVERSITY/STUDENT
RELATIONSHIP BEGINS.
50%
50%
1. True
2. False
1
January 20, 2014
2

19. INSIDER INFO
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20. P3=POOR
CONSTRUCTION
QUALITY
50%
50%
1. True
2. False
1
January 20, 2014
2

21. INSIDER INFO
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22. PRODUCT EVOLUTION
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23. ACUHO-I – 23

24. PROCESS - PROCUREMENT
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25. Case Study
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26. PRE-PROCUREMENT
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27. MOTIVATION
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28. DIVERSE UNIVERSITY OBJECTIVES
Lack of $
Preservation of debt capacity
Lower development cost
Lack of expertise
Faster delivery
Operational savings/efficiency
Potential revenue
Reduced liability
Expand land holdings
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29. WHY
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30. ACUHO-I – 30

31. WHAT DEVELOPERS NEED FROM INSTITUTIONS
Strong institutional leadership
Information to effectively evaluate options
Institutional strategic plan
Campus master plan
Capital improvement plan
Strategic housing plan
Housing facilities analysis
Res Life outcomes/assessment methods
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32. ACUHO-I – 32

33. FINANCIAL GOALS
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34. CASE STUDY
Key Facts:
• Presidential Initiative
• Debt capacity constrained
• Sophomore Residency Req
• Occupancy- 100% on, Off-not full
• Athletic Director- unsatisfied on/looking off
• Current housing stock
• RH 1900+
• Suite 200…10%
• Apt O
Why Privatize?
 Market Based approach/product type
 Renovate/Replace
 Expand Suites
 Offer new apartments
 Combination
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35. HOW TO DECIDE
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36. UNIVERSITY OBJECTIVES
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37. PROJECT FEASIBILITY
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38. TRANSACTION STRUCTURE & FINANCING ALTERNATIVES
General Obligation Bonds
• University ownership & risk
• Lowest cost of capital
• Direct debt of University
• Developer is service
provider
Taxable Project-Based Debt
• Developer takes construction
risk
• University and developer
share cash flow
• Long-term management
agreement
Tax-Exempt, Project-Based Bonds
• Use of a 501(c)3 foundation
• Cash flow to University
• Debt/credit impacts
Developer Equity
• Developer ownership & risk
• Ground rent to
University/Foundation
• Property tax implications
• Ownership/control vs. risk
assumption
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39. ACUHO-I – 39

40. CHO ROLE
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41. Finance
Officers
•Key decision makers
Auxiliary
Services
•Access /Filter
•Informational resource
Student
Affairs
•Decision Maker
•Informational resource
• Access
Housing
Officer
•Client Relations
•Industry Credibility
Facilities
•Filter/Info/Evaluate
•Relationships/Credibility
Planning
Officers
•Info/Initial Docs
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42. ACUHO-I – 42

43. BONUS ADVICE
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44. 1 CAMPUS --- 1 DEVELOPER PERSPECTIVE
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45. CAMPUS/DEVELOPER PERSPECTIVR
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46. INITIAL OUTLINE- SEE NOTES- INFO ONLY-NOT FOR PRESENTATION
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