DIXIE STATE College of Utah

1
DIXIE STATE College of Utah

• Public/Private Student Housing Project

2
40 Years 700 Enrollment Increase, No new
housing

• Dixie State College has a critical need for new
  housing stock on the campus.
• The existing student housing was built in 1962
  and 1968 in traditional dormitory style sans
  kitchens and living rooms.
• Dixies enrollment in 1968 was 1,074.
• With a student body of nearly 9,000 and continued
  strong growth anticipated, the current 250 beds
  on campus are woefully inadequate.
• Historically Dixie State has had a mix of about
  2/3 Washington County students and 1/3 from
  outside the county.

3
Private Housing is Limited by Available Space

• During the 70s, 80s, and 90s the College
  encouraged private developers to build new
  apartment style housing near the campus.
• A total of 1,500 beds have been built in off
  campus locations some as far as two miles from
  campus.
• Private housing developers havent been building
  around the campus in recent years because of the
  lack of available land.

4
2005 Student Housing Architectural Program

• In 2005 Dixie State was authorized by the
  Building Board to complete an architectural
  program for new housing.
• The resulting plan called for a phased 500 bed
  facility at a total cost estimated at
  23,629,280.
• Dixie State lacked the bonding capacity to
  accomplish a phase one of this programmed housing
  and the plan for new on campus student housing
  was shelved.

5
Dixie Seeks a New Approach to Student Housing

• Rapid enrollment growth during the past three
  years has prompted the College to look at the
  housing options through a new set of lenses.
• A Student Housing Feasibility and Market Analysis
  was conducted by Brailsford Dunleavy in 2009.
• Their total cost estimates using traditional
  bonding were between 59,000 and 68,000 per bed.
  
• These estimates again led Dixie State to the
  conclusion that the conventional bonding approach
  was out of reach for the institution.

6
Dixie Studied Public/Private Student Housing
Options

• Dixie State studied the state and national
  private student housing options.
• Developers came to campus to present options for
  a public/private. partnership

7
Best Solution to Address the Student Housing
Shortage

• The public/private partnership will not require
  state funding or student bonding.
• The planned 314 bed three story facility includes
  the latest in student housing design
• Layered security from the exterior entrance to
  the bedrooms
• Study rooms
• Building wide Wi-Fi
• Recreation amenities
• Kitchens, living rooms, and options for private
  bedrooms

8
Financial Summary
Construction 8,310,000
Furnishings 477,630
Amenities 210,000
Total Project Cost   8,997,630

Shared Room Monthly Rate 290
Private Room Monthly Rate 525
Occupancy Rate
Fall Spring 95
Summer 50
Supplemental Rents
(Conferences Camps)
Total Annual Income 1,199,175
Net Operating Income 734,059
Annual Payment _at_ 5.75 613,051
Coverage Ratio 1.2
9
Public/Private Partnership Concept

• Dixie State will lease land for the student
  housing development, adjacent to the current
  student housing.
• The Student Housing development will revert to
  the College at the end of the lease.
• Compliance with Policy
• Regents 712 (Nontraditional Arrangements for
  Development of Facilities and Campuses)
• Utah State Code
• 53B-20-103 (Powers of state board -- Capital
  facilities projects -- Exceptions)
• 53B-21-108 (Financing project by contract or
  lease agreement instead of by bond issue --
  Authority of board -- Term of lease -- Terms of
  agreement -- Board covenants)

10
Lease Development Model
Dixie State College

• Dixie State issues RFP for Lessee/Owner to
  finance and develop student housing.
• Lessee/Owner contracts with developer/contractor
  to design, build, and operate student housing.
• St. George City and Washington County offer
  lease guarantee.

Financial Group
Operator
City of St. George Washington County
Developer
11
The Best Student Housing Option For Dixie State

• The most effective and efficient way to meet
  Dixies critical housing shortage.
• Funded with outside capital - no state bonding
  required.
• No student fees required.
• Dixie State College will be gifted the housing
  property after the 30 year lease.

Thank You!