7 Reasons to Choose a Developer
Determining which delivery method to select is a critical step towards ensuring an expedited student housing project. Some key advantages of selecting a design-build-finance partner are:
- Cash flow from university-owned student housing remains available for the necessary repair and renovation of university-owned facilities.
- Management of the new facility may be retained by the University, thereby ensuring a seamless continuity of housing policies and procedures throughout the campus.
- Working through the non-profit entity, the development manager is able to more efficiently secure contracts and services as compared to the process of strictly following public procurement guidelines.
- The coordination of direct purchase tax savings can be substantial.
- May avoid elongated capital planning requirements and processes.
- Can eliminate the traditional finance model requiring university housing pledges and cross-pledges of operating revenue.
- Has the potential to create additional capital that can be used to take care of other University needs such as renovation of existing housing stock
How the Developer Route Was the Right Choice for These Universities:
Louisiana State University at Alexandria
"[UHS] helped us to avoid mistakes that would have produced negative consequences for us in the
future. Securing expert help for a first-time student housing project was a good investment for us
and one that we would advocate for others . . .Partnering with experienced consultants was very
positive for us and enabled us to successfully achieve our short-term goals while also planning
for long-term success."
- Larry Williams, Director of Procurement
Florida Gulf Coast University
"UHS has assisted our university by providing a level of expertise in the development and planning
for current and future construction on our college campus. We are a rapidly growing university that
is only in its second decade. It is vital for us to make smart decisions about the future of our
campus. UHS brings expertise and working knowledge about student housing that assists us in making
wise choices about the style and type of housing we want to offer on our campus."
- Brian Fisher, Director of Housing & Residence Life
Armstrong Atlantic State University
"Like many state institutions AASU could not have built new housing without the public-private partnership using tax-exempt financing. The developer is at-risk in this venture by providing the up front funding to design and build and the university owns the property and will manage the housing, which decreases the cost of the project to the developer. The advantage of using a developer is the professional expertise in design and building of residential housing and negotiated cost savings in construction and purchase of furnishings.
"While the developer provides the initial funding base, the tax-exempt bonds support the project
and the rates that will be charged to the students pays for the tax-exempt bonds used for financing.
A key to the success of the partnership is a strong working relationship among developer, foundation
and university. The university brings to the table the hands on knowledge of working with students,
understanding their developmental needs and how that translates into designing a living environment
that will work with today's student and continue to be viable living space for future students.
I think this is a win-win relationship for the partnership."
- Vicki L. McNeil, Vice President of Student Affairs