Presentation to Napa Valley College 1

An Introduction to Balfour Beatty Campus Solutions

About Balfour Beatty

Applies Public-Private

Partnership (P3)

methodologies to higher

education development

projects

Focuses on the unique

needs of campus

planning for colleges and

universities

Draws its strength from

the worldwide family of

companies

$13 Billion in P3 projects

executed globally

Construction

Management

P3 Investment

Property

Management

Higher Education

Development

“We found the right

partner in Balfour

Beatty. From quality of

construction, to their

attention to detail, and

their focus on students’

success - we hope

they’ll be here with us in

the long run as we carry

Tarleton State

University into the

future.”

Dr. F. Dominic Dottavio

15th President of Tarleton State

University

2

BALFOUR BEATTY IS RESPONSIBLE FOR OVER

Beds Designed and

Built in CaliforniaFLEXIBLE FINANCING APPROACH

1. Taxable Equity Structure - (Developer Owned)

2. Tax-Exempt Bond Structure - (Foundation Owned)

3. Concession Model - (Taxable or Tax-Exempt)

AWARD WINNING PROPERTY

MANAGEMENT TEAM –

BALFOUR BEATTY COMMUNITIES

UNDER LONG-TERM MANAGEMENT

50,000

120,000

UNITS

BEDS

$13B IN P3 GLOBALLY

$6B IN P3 IN NORTH AMERICA

(including Campus Projects)

3 OPTIONS

5,100

IN-HOUSE

RENOVATION

EXPERTISE 2,000

Units Operated

in California

31,000 UNITS

$900M+DEVELOPED

Mission Driven Partnerships

3

Recent On-Campus Projects Delivered

Moore Hall Redevelopment

Lake Forest College, Lake Forest, IL

Innovation Village Apartments

Florida Atlantic University, Boca Raton, FL

Ponderosa Village

University of Nevada, Reno, Reno, NV

Aspire at West Campus, Phase 1

University of Iowa, Iowa City, IA

Northside

University of Texas at Dallas, Dallas, TX

White Creek Apartments

Texas A&M University, College Station, TX

Multi-Phase Development 3, Honors Hall/Traditions

Hall, Tarleton State University, Stephenville, TX

Multi-Phase Development 2, Integrity Hall, Tarleton

State University, Stephenville, TX

Multi-Phase Development 1, Heritage Hall, Tarleton

State University, Stephenville, TX

4

Tax Exempt Structure

• Project Financed through

501(c)(3) Foundation on 32-40

year ground lease

• Balfour Beatty is Fee Developer

• College receives 100% of Net

Cash Flow

• College or Developer operates

• Opportunity to purchase existing

housing

• Project reverts to College at end

of ground lease

• Off Balance Sheet Treatment

Description

ArchitectContractor

Ground Lease

(New and/or Existing)

Construction Contract A&E

Contract

Property Mgmt

Agreement

Financial UnderwriterNon-Profit Entity

Project

Funding

5

College

Development Partners

Trends in Community Colleges

• Attract out-of-region and international student

• Offer a housing solution closer to campus

• Diversify College’s revenue sources

• Support student outcomes:

– Retention / Persistence / Graduation

– Support student engagement and GPA

– Prepare for life at a 4-year institution

8

Why do Community Colleges Offer Housing?

A Path Forward

Procurement - PDA

(Oct 2017 – Dec 2017)

Implementation Stage

Mar 2018 – Mar 2019

Feasibility Stage

Dec 2017 – Mar 2018

Delivery Stage

(Apr 2019 – Aug 2020)

• Interview / Clarifications

• Award / BOT Approval

• Pre-Development Agreement

• SmartStart + Project Visioning

• Market Study

• Project Finance Planning

• Schematic Design / Master Planning

• Conceptual Cost Estimating

• Entitlements

• Design

• Financing

• Ground Lease

• Mobilization

• Groundbreaking

• Renovation Works

• Safety Regime / Zero Harm

• 90 Days

• 120 Days

• 13 months

• 16 months

* Activities in red involve key decisions, approvals or discussion on the critical path to achieving the schedule

Thank You