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Issue link: https://studenthousingbusiness.epubxp.com/i/616872
NOVEMBER/DECEMBER 2015 51 PUBLIC/PRIVATE PARTNERSHIPS Coakley: From a developer's point of view, what operational model do you prefer? Brinkman: I wouldn't say we have a preference as a company. We certainly manage a lot of on-campus assets, whether we develop them for the institu- tion or the institution engages us to manage the facility itself. If we're going to manage the facility ourselves, we defnitely want to be seamless in our interaction with the institution. Case in point: Arizona State University. At different buildings we have different relationships to different extents. We want to remain nimble and respectful of the institution to maximize their value in the student experience and it's not really driven by us needing to manage a facility or not wanting to manage it. Some institutions want to manage, and some don't. Smith: I think that gets back to the fnancial struc- ture that's used. On a tax-exempt structure there's not an equity investment so you don't have the private sector saying, 'You need to operate to this budget to protect our investment and project.' The tax-exempt side is more just universities, but the fnancial structure can sometimes dictate the operational structure. To Noel's point, I think the seamless piece is the most important, and we don't want students to say, 'I'm going to live in a Balfour Beatty community, I thought I was living at the University of Iowa.' You don't want them to feel that. At the end of the day, if there are any issues, the parents are going to call the school. That's the core of it. The seamless piece of that is what's really important. Coakley: Todd, from an institutional viewpoint, what operational model do you prefer? Todd Duncan, assistant vice president, Hous- ing, Food and Retail Services, University of Cincinnati: Well, I'm a control freak, so I want to manage it. At the P3s we did at Oklahoma, we did manage the property and collect the rents with a tax-exempt structure. So it was easy enough to do that. Obviously the fnancial accounting and back-end was separate, as it needed to be. To Josh's point, going from the P3 housing to the existing inventory was just a room change. There were no barriers, it was all seamless for the stu- dents. The P3 at UC that I currently manage and operate for the owner is the same way. The only variance is the back-end and the fnancial, not co-mingling the funds. The model where there is equity and the owner is doing things like the facilities operations can work very well. It's just newer to the market. Most people are more comfortable with the tax-exempt model, but it may not be the best fnancial structure. So it's an evolution, as it is with anything in life and any activity that continues to grow and evolve. Coakley: Do you think the session title, "Not a Fad and Here to Stay," is a true statement? Bach: Absolutely. Smith: I hope so, or I'll be looking for another job. Brinkman: I think it's expanding and going to be more and more embraced. Duncan: It's here to stay and has a long tenure people don't recognize. SHB AmericanCampus.com It's not just our new tagline. It's how we run our business every day. We believe every student should love where they live, no matter what their budget. That's why whether we're creating a new development, upgrading an acquired property, or partnering with a university to develop or manage on-campus housing, our goal is the same: Deliver the best possible experience for students by creating communities designed for healthy living, personal growth and academic success. It's a philosophy that shapes our values as an organization, motivates our people, and drives our decisions every day. When you partner with ACC, it's a win-win. Because when students succeed, we all do. TODD DUNCAN AVP, Housing, Food and Retail Services, University of Cincinnati JOSH SMITH SVP, Balfour Beatty Campus Solutions To read the full transcript of the panel discussion, visit http://www.studenthousingbusiness.com/from-the-magazine/ p3s-not-a-fad