After Moody’s and other credit ratings agencies tightened their standards a few years ago, universities had to become much more disciplined about their financing mechanisms.
“Internally, we are paying a great deal of attention to cash on hand relative to debt to maintain our good ratings,” says Gonzaga University EVP Marty Martin. “It’s a constant reference point.”
“The financing climate is different than it was 20 years ago,” notes UC Santa Barbara Campus Architect Marc Fisher, AIA. “The state is not funding construction at the same pace. We’re going to see more student-funded, donor-funded, and research-funded projects. We’ll see more creative funding in the future.”
One such creative funding option is the public-private partnership. The PPP strategy is most popular for student housing, mixed-use buildings, parking facilities, and retail—any project with a revenue stream.
The University of Texas at Dallas recently selected Balfour Beatty and Wynne/Jackson to develop a mixed-use project near the edge of the campus. To be called “Comet Town,” the project will be financed through a land lease, whereby the university will lease the land to the developer who will build, own, and operate the building for a specific period.
Apartments will be open to the public, but most residents are expected to be part of the UT community, says Dr. Calvin Jamison, VP of Administration.
The University of Wisconsin–Madison has employed third-party partnerships sparingly, but did so twice when a private developer needed more space to build on a couple of residential/retail properties adjacent to campus.
The state university also teamed up with the Morgridge Institute for Research a few years ago to build the Wisconsin Institutes for Discovery, a research lab that includes retail/restaurant space. Half of the lab space is privately owned.
In the wake of the recession, Cornell University instituted new guidelines for major capital projects. “One of the pillars of the new policy was no new debt,” says University Architect Gilbert Delgado, AIA. “Funding for all projects has to be either identified or on hand before a project goes forward.”
For Weill Cornell Medical College, a New York City institution since 1898, the university is exploring the construction of a major residential tower with a private developer. “Our goal is to make housing more affordable for students, faculty, and staff,” says Delgado.
To keep rents affordable, future residential projects in the city might include so-called micro apartments about half the size of a studio unit, supplemented with more generous common areas. Delgado says the university is also studying how to build more affordable housing in Ithaca—“maybe through PPP-type land-lease agreements,” he says.
More from BD+C's exclusive report, "How your firm can gain an edge on university projects."
Related Stories
| Mar 16, 2011
AIA offers assistance to Japan's Architects, U.S. agencies coordinating disaster relief
“Our hearts go out to the people of Japan as a result of this horrific earthquake and tsunami,” said Clark Manus, FAIA, 2011 President of the AIA. “We are in contact with our colleagues at AIA Japan and the Japan Institute of Architects to offer not only our condolences but our profession's technical and professional expertise when the initiative begins focusing on rebuilding."
| Mar 16, 2011
Are you working on a fantastic residence hall project? Want to tell us about it?
The feature story for the May 2011 issue of Building Design+Construction will focus on new trends in university residence hall design and construction, and we’re looking for great projects to report on and experts to interview. Projects can involve new construction or remodeling/reconstruction work, and can be recently completed, currently under construction, or still on the boards.
| Mar 16, 2011
Foster + Partners to design carbon-neutral urban park for West Kowloon Cultural District in Hong Kong
Foster + Partners has been selected by the board of the West Kowloon Cultural District Authority to design a massive 56-acre urban park on a reclaimed harbor-front site in Hong Kong. Designed as a carbon-neutral development, “City Park” will seamlessly blend into existing streets while creating large expanses of green space and seventeen new cultural venues.
| Mar 15, 2011
What Starbucks taught us about redesigning college campuses
Equating education with a cup of coffee might seem like a stretch, but your choice of college, much like your choice of coffee, says something about the ability of a brand to transform your day. When Perkins + Will was offered the chance to help re-think the learning spaces of Miami Dade College, we started by thinking about how our choice of morning coffee has changed over the years, and how we could apply those lessons to education.
| Mar 15, 2011
What will the architecture profession look like in 2025?
The global economy and the economic recession have greatly affected architecture firms' business practices. A Building Futures survey from the Royal Institute of British Architects looks at how these factors will have transformed the profession and offers a glimpse of future trends. Among the survey's suggestions: not only will architecture firms have to focus on a financial and business approach rather than predominantly design-led offices, but also company names are predicted to drop ‘architect’ altogether.
| Mar 15, 2011
Passive Strategies for Building Healthy Schools, An AIA/CES Discovery Course
With the downturn in the economy and the crash in residential property values, school districts across the country that depend primarily on property tax revenue are struggling to make ends meet, while fulfilling the demand for classrooms and other facilities.
| Mar 14, 2011
Renowned sustainable architect Charles D. Knight to lead Cannon Design’s Phoenix office
Cannon Design is pleased to announce that Charles D. Knight, AIA, CID, LEED AP, has joined the firm as principal. Knight will serve as the leader of the Phoenix office with a focus on advancing the firm’s healthcare practice. Knight brings over 25 years of experience and is an internationally recognized architect who has won numerous awards for his unique contributions to the sustainable and humanistic design of healthcare facilities.
| Mar 11, 2011
University of Oregon scores with new $227 million basketball arena
The University of Oregon’s Matthew Knight Arena opened January 13 with a men’s basketball game against USC where the Ducks beat the Trojans, 68-62. The $227 million arena, which replaces the school’s 84-year-old McArthur Court, has a seating bowl pitched at 36 degrees to replicate the close-to-the-action feel of the smaller arena it replaced, although this new one accommodates 12,364 fans.
| Mar 11, 2011
Temporary modular building at Harvard targets sustainability
Anderson Anderson Architecture of San Francisco designed the Harvard Yard childcare facility, a modular building manufactured by Triumph Modular of Littleton, Mass., that was installed at Harvard University. The 5,700-sf facility will remain on the university’s Cambridge, Mass., campus for 18 months while the Harvard Yard Child Care Center and the Oxford Street Daycare Coop are being renovated.
| Mar 11, 2011
Holiday Inn reworked for Downtown Disney Resort
The Orlando, Fla., office of VOA Associates completed a comprehensive interior and exterior renovation of the 14-story Holiday Inn in the Downtown Disney Resort in Lake Buena Vista, Fla. The $25 million project involved rehabbing the hotel’s 332 guest rooms, atrium, swimming pool, restaurant, fitness center, and administrative spaces.
