VASCUPP 2013 Convention Virginia Beach, Virginia Adult Mental Health Treatment Center at Eastern State Hospital, Williamsburg, VA Houston Independent Schools Houston, TX Rhode Island School of Design Providence, RI Loudoun County Government Center Leesburg, VA Centenary College, Founders Hall Hackettstown, NJ Hancock Geriatric Treatment Center at Eastern State Hospital, Williamsburg, VA John D. Keegan, P.E. – Vice President Gilbane Development Company September 25, 2013 Public-Private Partnerships for Colleges and Universities
Transcript
VASCUPP2013 Convention
Virginia Beach, Virginia
Adult Mental Health Treatment Center at Eastern State Hospital, Williamsburg, VA
Houston Independent SchoolsHouston, TX
Rhode Island School of Design Providence, RI
Loudoun County Government Center Leesburg, VA
Centenary College, Founders Hall Hackettstown, NJ
Hancock Geriatric Treatment Center at Eastern State Hospital, Williamsburg, VAJohn D. Keegan, P.E. – Vice President
Gilbane Development Company
September 25, 2013
Public-Private Partnerships for Colleges and Universities
Something to keep in mind about PPPs…
A “vision” – the seed of any PPP – is nothing unless it’s…
Supported – There needs to be a “champion” behind the PPP!
Articulated – Precisely what is that you want/need to achieve and why?
Shared – Equally understood and embraced by both/all partners.
Sustained – “Durable” enough to survive, even if/as stakeholders change.
What are some common misconceptions about PPPs?
Not a replacement for traditional procurement methods. Simply “another tool in the tool box” that encourages creativity, helping define problem statements and craft corresponding business solutions (beyond just “bricks and mortar”).
Need not exist only when private-sector financing is involved. Consider as means of overcoming common project constraints:
Time – Achieve faster delivery (can be 25% to 50% sooner), critical for meeting internally or externally-driven deadlines.
Dollars – Reduce cost through efficiencies gained by turnkey/streamlined delivery.
Staff – Overcome human resource constraints (privatizing “non-core” operations, if need be).
Risk – Outsource to achieve appropriate allocation/balance of risk among project partners.
What if private-sector financing is involved?
If private-sector financing is involved, candidate project must:
Have dedicated revenue stream associated with it;
Involve some sort of in-kind exchange, such as surplus land for private development;
Provide opportunity for tax-increment financing (or similar); and/or,
Provide opportunity to “monetize” existing assets of public sector partner (for example, sale-leaseback transactions).
How can you benefit from PPPs?
Balance program objectives with resource realities, promoting creative solutions through bundled delivery.
Increase flexibility and speed of delivery, overcoming constraints borne of traditional procurement process.
Take more strategic approach toward debt management and planning of capital projects, mitigating construction/operating cost escalation and preserving borrowing capacity for core facilities.
CASE STUDY – PPEAGeorge Mason University – Manassas, VirginiaUpper Level Student Housing
Scope = Design / Build / Furnish / Finance:
152-bed, 105,000 SF on-campus apartment-style housing and retail.
Ground lease from University to 501(c)(3) Foundation and building lease vice-versa.
Tax-exempt and taxable debt issued through Prince William County Industrial Development Authority.
Retail leasing, financing, fit-out, and management by Gilbane Development Co.
CASE STUDY – PPEAGeorge Mason University – Manassas, VirginiaLife Sciences Lab Building
Scope = Design / Build / Furnish / Finance:
75,000 SF on-campus life sciences lab building.
Ground lease from University to 501(c)(3) Foundation and building lease vice-versa.
Tax-exempt and taxable debt issued through Prince William County Industrial Development Authority.
“Incubator Space” on 3rd Floor.
CASE STUDY – PPEAHancock Geriatric Treatment Center – Williamsburg, Virginia
406-bed, 136-unit, 260,000 SF apartment-style student housing.
Referral agreement from VCU.
Fully-furnished apartments (including flat screen TVs) plus lounges, fitness center, courtyards, 200-car garage, etc.
Every bedroom has private bathroom.
Includes adaptive reuse of historic building and partial tax abatement.
VCU’s needs met without committing its own capital.
www.1200westmarshall.com
CASE STUDYCollege Town – University of Rochester
Scope = Design / Build / Finance / Own / Operate:
Mixed-use development at “front door” to University of Rochester.
110,000 SF of street-level retail and restaurants (including Barnes & Noble and Constantino's Market), 50,000 SF of Class A office space, 155,000 SF of residential space, 136-room Hilton Garden Inn, and 1,600-space parking garage.
Support university’s mission, strengthen surrounding neighborhoods, increase tax revenue, and create jobs.
U of R’s needs met without committing its own capital.
www.collegetownrochester.com
CASE STUDYGarrett College – McHenry, Maryland
Scope = Design / Build / Furnish / Finance: Development feasibility study (dovetailed with findings of independent market study). 126-bed apartment-style residence hall (delivered 11 months from agreement to occupancy). 100 on-campus parking spaces. Co-developer agreements regarding off-campus sewer and water extensions to site. Ground lease from College to 501(c)(3) Foundation and building lease vice-versa. Tax-exempt debt issued through Maryland Economic Development Corporation (MEDCO).
CASE STUDYGarrett College – McHenry, Maryland
CASE STUDYCentenary College – Hackettstown, New Jersey
Reeves Center
Lackland CenterBennett-Smith Hall
Founders Hall
Scope = Design / Build / Furnish / Interim Finance: Two 126-bed apartment-style residence halls. 44,000 SF renovated/expanded recreation center. Significant off-campus road/park infrastructure (development proffers). 439 parking spaces (4,000 LF of 4’ diameter underground storm water detention). Real estate consulting services in negotiating conditional permitted use ordinance. Predevelopment services for 70,000 SF student center and 26,000 SF “virtual lab.”
CASE STUDYCentenary College – Hackettstown, New Jersey
Original New / Proposed
CASE STUDYRhode Island School of Design – Providence, Rhode Island
Scope = Operating (Master) Lease with Purchase Option: 1031 exchange of Fairfax, Virginia asset Acquisition of B of A (formerly Fleet Bank) assets:
1912 – 12 stories, 350,000 SF (historic) 1973 – 28 stories, 370,000 SF Common lobby and HVAC/sprinkler systems
Adaptive reuse of 1912 building for RISD: Retire 100-year ground lease Integrate shared access and utility easements Consolidate office uses into 1973 building Create living-learning center:
Library and museum: Floors 1 & 2 Student housing: Floors 3 - 11 Student union (food service): Floor 12
20-year operating lease (options to 50 years) Distinct windows for purchase options:
Converted taxable to tax-exempt debt
CASE STUDYLoudoun County Government Center – Leesburg, Virginia
Scope = Design / Build / Furnish / Finance:
158,000 SF, five-story government center including administrative headquarters and 418-car garage.
Scattered operations consolidated in two locations and capitalized using tax-exempt bonds, creating ~$1 million in annual savings (~$22 million over lease term).
County outsourced financing, design, development and construction risk, realizing significant savings.
Project-specific 501(c)(3) ownership entity established by Gilbane.
Site master planned to accommodate future expansion.
VASCUPP2013 Convention
Virginia Beach, Virginia
Adult Mental Health Treatment Center at Eastern State Hospital, Williamsburg, VA
Houston Independent SchoolsHouston, TX
Rhode Island School of Design Providence, RI
Loudoun County Government Center Leesburg, VA
Centenary College, Founders Hall Hackettstown, NJ
Hancock Geriatric Treatment Center at Eastern State Hospital, Williamsburg, VAJohn D. Keegan, P.E. – Vice PresidentGilbane Development Company
