2. A Crash Course in P3 Housing (Public Private Partnerships)
Session #904
A Crash Course in P3 Housing (Public Private Partnerships)
Patrick “PC” Call Executive Director, Housing and Residential Education, University of Denver (DU)
Matt Crouse Director, Housing and Residential Life, New Mexico State University (NMSU)

3. Who are we? PC Patrick Call University of Denver Four Year Private MC
Matt Crouse New Mexico State University
Four Year Public

4. Our 3 Objectives
Articulate different management agreements associated with a P3 Housing Partnership (Ancillary Partnerships)
Able to evaluate the financial opportunities and risks to public institutions associated with a P3 partnership (Fiscal Resources & Control)
Able to provide two supervision strategies for leading a staff through transitions associated with a P3 agreement negotiation or implementation (Supervision)

5. P3 Projects Rated by Moody’s 1998-2015
Setting the Context
P3 Projects Rated by Moody’s
36%
84%
10 out of 28 Projects
21 of 25
Managed by the University

6. Our State Environments
State Appropriation Trends
0.5%
Annual Growth of State Appropriations
Expenditure Growth
IPEDs
Private 2 & 4 Years
Public 2 & 4 Years
Unrestricted Revenue Growth
0.8%
0.7%
Annual Growth of Expenses
1.9%
1.5%
Source: Parthenon-EY Education Practice – Public Private Partnerships in Higher Education: What is right for your institution? (

7. Our State Environments
Enrollment Growth 2%
Total Enrollment Growth at US Higher Education Institutions
Most states saw relatively FLAT enrollment rates.
Source: Parthenon-EY Education Practice – Public Private Partnerships in Higher Education: What is right for your institution? (

8. Part I: The Art of the Deal
Why do housing departments (or more accurately institutions of higher education (IHE)) enter into private-public partnerships?
What might an institution get out of the deal?
What are the management/partnership deals that arise from these P3s?

9. Why do housing departments enter into P3 deals?
To address an Urgent Need
To gain experience or expertise
To expedite the development process
Source: Scion Group LLC White Paper – Public-Private Partnerships in Student Housing: Why and How Institutions of Institutions of Higher Education seek partners to deliver, own, and operate (

10. What might an institution get out of the deal?
To reduce RISK
To preserve debt capacity
To obtain favorable balance sheet and credit treatment (Wayne State example)

11. What are the management/partnership models?
Referral
Affiliation
Structured
Ownership
Delivery
Operations
IHE Participation

12. Management Deals/Continuum
Referral
An institution agrees to direct students to the third party partner’s property in exchange for concessions such as discounted rent, participation in mediation prior to evicting student tenants, and/or payment of a nominal fee.
Affiliation
A more formal arrangement in which an institution directs students to a third party partner’s property as if it were a part of its own inventory and has some control over operations – typically related to student life. Sometimes land lease and/or some institutional guarantees.
Structured
A not for profit entity (existing or new) issues tax exempt debt to finance the project and its board controls all facets of delivery and operations. Typically land leased and institutional guarantees.

13. Management Deals/Continuum
“Referral”
“Affiliate”
“Structured”
(did not happen)
Equity Model ”quasi-Affiliate”
External build, external manage
External build, self manage
Hybrid system
External build, hybrid manage
2007
2011
2010
2008
2016

14. Part II: Developing a Partner/ Influencing the Process
How do we select a partner?
Is there help navigating the process?
Who needs/should be at the table?
What do I need to know as a C/SHO?

15. Developing a Partner/ Influencing the Process
Request for Proposals (RFP) & Request for Quotation(RFQ) Process
Use of Consultants (P3, Bond Council)
Campus Housing Master Plan as driver
Pre-Closing Agreement
Financing the Deal
Tax Exempt Bonds (and taxable bonds)
USDA Bonds
Private Equity

16. Part III: Impact to Staff/ Leading Others
How did your housing staff view the possibility of a P3?
What are some ways you and others have lead internal staff through a P3 process?

17. Impact to Others/Leading Your Team
Focus on Residence Life through LLCs (MC)
Focusing on our mission (PC)
Sharing the balance book (MC)
Constant communication in person & in writing (PC)
Involve Central Staff in interaction with acquisition partners – tours example (MC)
Show your positivity about project at all times (PC)

18. Part IV: Managing the Message/ Leading the Campus Conversation
What impact did this have on current relationships housing had on campus?
How did the institution or housing drive a conversation with internal or external stakeholders?
In hindsight, would you do anything differently in the management of public relations related to the P3?

19. Leading the Campus Conversation
Governing Bodies/Board of Regents
Top Level Administrators
Internal Housing Stakeholders – LLCs, athletics, international, admissions
External Housing Stakeholders – parents and students
External audiences – media; state/local governments

20. Questions?
Need the info (our jump drive) with the presentation content and articles? Matt at

21. SESSION #904: A Crash Course in P3 Housing
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SESSION #904: A Crash Course in P3 Housing