University Architect @FrankCunhaIII Leads Architectural Walking Tour of @MontclairStateU’s Campus for Architect Guests, @AIANJ AIA Newark Suburban #AIA #University #Architect

On May 18th, AIA Newark Suburban held a campus walking tour of Montclair State University led by fellow member, Architect Frank Cunha III, AIA.  The tour addressed the history of the campus and the way it has been designed and constructed to protect and promote the health, safety, and welfare of the occupants of the buildings and grounds.

Building on a distinguished history dating back to 1908, Montclair State University is a leading institution of higher education in New Jersey.  Designated a Research Doctoral University by the Carnegie Classification of Institutions of Higher Education, the University’s 11 colleges and schools serve more than 21,000 undergraduate and graduate students with more than 300 doctoral, master’s and baccalaureate programs. Situated on a beautiful, 252-acre suburban campus just 12 miles from New York City, Montclair State delivers the instructional and research resources of a large public university in a supportive, sophisticated and diverse academic environment. University Facilities currently manages 70 buildings and approximately 5 million gross square feet of space on our campus. More information available: https://www.montclair.edu/about-montclair

Frank Cunha III, AIA, University Architect, has been with the University Facilities team since 2007.  Since graduating from the New Jersey Institute of Technology School of Architecture in 1998, he has obtained licenses to practice architecture in 9 states.  Frank is currently completing his Masters in Business Administration at Montclair State University and expects to graduate in May 2019.

Frank is passionate about strategic planning, architectural design and constructing of complex projects in a challenging and ever-changing environment.  He considers the environment, energy, and the health and wellness of the occupants during all phases of the project while addressing the programming needs to ensure the stakeholder’s program requirements are met and align with the organization’s mission, vision and values.

With the assistance of his design and construction teams, Frank has been responsible for many projects of various size and scope around campus. Some project highlights include: Student Recreation Center, Center for Environmental Life Sciences, Cali School of Music, School of Nursing, the Center for Computing and Information Science, Sinatra Hall, School of Business, Schmitt Hall and historic renovation and addition to College Hall, to name a few.

We would love to hear from you about what you think about this post. We sincerely appreciate all your comments – and – if you like this post please share it with friends. And feel free to contact us if you would like to discuss ideas for your next project!

Sincerely,

FRANK CUNHA III
I Love My Architect – Facebook


New Project by @FC3Architect is Almost 100% Completed (Teaneck, NJ) #BeforeAndAfter #CustomResidential #Home

One of the things we enjoy doing is: Helping People Make Their Dreams Come True!!! Here is another example of a successful transformation we helped imagine for the homeowners.

One of our projects is nearly completed. We more than doubled the size of the existing residence by creating a dynamic link that opens up the garden into the home with a connecting link. This “knuckle” becomes a link from the old home (which serves as the existing den and existing kitchen on the lower level) to the new home which includes a new dining area and family room. Upstairs, the addition boasts a master suite allowing us to increase the size of the existing bedrooms. Click here to read the original post about this project.

We would love to hear from you about what you think about this post. We sincerely appreciate all your comments – and – if you like this post please share it with friends. And feel free to contact us if you would like to discuss ideas for your next project!

To see more projects by FC3 Architecture + Design, please click here.

Sincerely,

FRANK CUNHA III
I Love My Architect – Facebook


Ask the Architect: Why Does Indoor Air Quality Matter?#LEED #WELL #Health #Wellness #Safety #Architect #ilmaBlog

Simply put, indoor air quality matters because human beings are spending more and more time indoors. It is becoming more important than ever to make sure that the buildings that we design, construct and occupy are suitable and safe for the occupants. The following article will draw on both research and experience in the design and construction of high performance buildings to help elaborate on this simple response.

Interesting Facts To Consider About Indoor Air Quality:

  • Indoor air often contains 4X to 10X the amount of pollutants of outdoor air.
  • Many studies have linked exposure to small particles (PM 2.5—defined as airborne particles smaller than 2.5 microns) with heart attacks, cardiac arrhythmias, strokes, chronic obstructive pulmonary disease, worsened symptoms of asthma, and an increased risk of respiratory illness.
  • The World Health Organization says that particulate matter contributes to about 800,000 premature deaths each year, making it the 13th leading cause of death worldwide.

The built environment around us plays a fundamental role in our overall well-being, particularly the indoor spaces that we inhabit to live, work, learn, play and pray, since most of us spend about 90% of our time indoors.  The buildings that we as Architects design and construct have a distinctive capability to positively or negatively impact our health and wellbeing. The air that we breathe inside a building can have a greater consequence on our health.  Unfortunately, many contaminants are not visible in the air, so we might not know that they are there.  Inhaling air or poor quality can lead to a number of health conditions, including but not limited to:  allergies, respiratory disorders, headaches, sore throat, lethargy and nausea.

Sick Building Syndrome

According to the EPA, sick building syndrome (SBS) is used to describe a situation in which the occupants of a building experience acute health- or comfort-related effects that seem to be linked directly to the time spent in the building. No specific illness or cause can be identified. The complainants may be localized in a particular room or zone or may be widespread throughout the building.

LEED Requirements

As more buildings are LEED certified, here are some things to consider about your next project:

To contribute to the comfort and well-being of building occupants by establishing minimum standards for indoor air quality (IAQ) after construction and during occupancy, USGBC LEED v4 requires that the project meet one of the following:

  • Minimum indoor air quality performance: Option 1. ASHRAE Standard 62.1–2010 or Option 2. CEN Standards EN 15251–2007 and EN 13779–2007.
  • Indoor air quality assessment: Path 1 Option 1. Flush-out, or Path 2. Option 1. During occupancy, or Path 2. Option 2. Air testing – Note: these cannot be combined.

Occupants are increasingly paying more attention to the conditions of their work environment as it relates to health and wellness. This is especially the case for researchers and their lab environments. We see surging growth in universities adopting lab design programs such as Smart Labs which places an emphasis in the indoor environment quality of the lab and through certification programs as:

We need to have a real-time measurement of the all contaminants of inside air and match that with real time control of the outside air coming into the environment. Ideally, we need to design and build facilities that:

  • Bring in lots of outside air—but only exactly where and when we need it.
  • Measures and controls more than just temperature and CO2.
  • Displays the ventilation performance for the building’s occupants.

Health and Cognitive FunctionPerformance Enhancements

Cognitive functions encompass reasoning, memory, attention, and language and lead directly to the attainment of information and, thus, knowledge. United Technologies and The Harvard School of Public Health prepared a study that was designed to simulate indoor environmental quality conditions in green and conventional buildings and evaluate the impacts on an objective measure of human performance—cognitive function.  The findings of the report concluded that the impact of the indoor air quality on the productivity of the occupants which revealed the following benefits:

  • Lowering the levels of CO2 and VOCs resulted in their participants scoring 61% higher on cognitive function tests compared with those in conventional offices.
  • There was a 101% improvement on their cognitive function tests when the ventilation levels were doubled above the standard ASHRAE prescribed levels.
  • Information usage scores were 299% higher than conventional offices when the ventilation rates were doubled.

The conclusion of this study is very clear: verified ventilation performance will increase employee and student performance.

Sources & References:

Is Your Building Ventilated Like It’s 1978? By Tom Kolsun

USGBC V4 Requirements for indoor environmental quality

Further Reading:

EPA – An Office Building Occupants Guide to Indoor Air Quality

#IAQmatters

EPA – Indoor Air Quality

We would love to hear from you about what you think about this post. We sincerely appreciate all your comments – and – if you like this post please share it with friends. And feel free to contact us if you would like to discuss ideas for your next project!

For More Questions and Answers please check out:
Architects @WJMArchitect And @FrankCunhaIII Respond to ILMA Fan’s Questions “ASK THE ARCHITECT”

Sincerely,

FRANK CUNHA III
I Love My Architect – Facebook


Bring Your Children to Work Day at @MontclairStateU #ArchWeek19 #CitizenArchitect #BlueprintForBetter #ilmaBlog #Architecture #UniversityArchitect

Brief Announcement
On April 25th, Frank Cunha III & Michael Chiappa participated in a Bring Your Children to Work Day at MSU where we were able to teach the children about architecture, planning, design and construction. We showed them the old ways, the current ways and the future ways that architects envision projects and help build the world around us.

About Bring Your Children to Work Day
National Take Our Daughters and Sons to Work Day is recognized on the fourth Thursday in April each year. This annual event is an educational program in the United States and Canada where parents take their children to work with them for one day.

Presentation
The following is the slideshow we presented to the children:

About the Event
This year some of the parents decided to focus on STEM and what it means to be an Architect….a profession that is both creative and artistic, yet methodical and scientific. We explored what it means to be an Architect and other STEM fields and how anyone, regardless of gender, race, religion or ethnicity can aspire to do great things. Architecture is just one of many pathways where we can lead through change and technology. We looked at old blue prints, 3-D modeling, 3-D printing, building materials, using our original 1908 building (College Hall) for context in describing the process and all of the wonderful people that it takes to conceive of a project — We looked at interior design and site design as part of the overall architectural design of a campus. We emphasized, that although not all the children will decide to become architects, it is important to understand what architects do and how to understand how we think and how/what we do. We all need to learn from each other and work as a team to get things done. It was exciting to see the children work with the campus hand on when we had them work on an interactive puzzle of the campus. One of the students said: ” The campus is like a small city.” It was really fulfilling to see that she understood that the university is like a small city. It felt great to make an impact and promote architecture to young children.

Coincidentally, Architecture Week is held every April as part of the American Institute of Architects (AIA) nationwide celebration of our built environment, so that made the day even more special to me.

We would love to hear from you about what you think about this post. We sincerely appreciate all your comments – and – if you like this post please share it with friends. And feel free to contact us if you would like to discuss ideas for your next project!

Sincerely,

FRANK CUNHA III
I Love My Architect – Facebook


What Will Higher Education Look Like 5, 10 or 20 Years From Now? Some Ways Colleges Can Reinvent Themselves #iLMA #eMBA #Innovation #Technology #Planning #Design #HigherEducation #HigherEd2030 #University #Architect

Introduction

Change is a natural and expected part of running a successful organization. Whether big or small, strategic pivots need to be carefully planned and well-timed. But, how do you know when your organization is ready to evolve to its next phase? Anyone that listens, watches, or reads the news knows about the rising cost of higher education and the increasing debt that education is putting on students and alumni and their families.

At a time when education is most important to keep up with increasing technological changes, institutions need to pivot or face imminent doom in an ever increasing competitive environment. Competition can come from startups or external factors in the higher education market therefore it is increasingly necessary for institutions of higher learning to take a different approach to their business operations.

This post will focus on:

  • Current Trends
  • Demographic Shifts
  • Future of Higher Education (and impacts on University Facilities & Management)
    • Changing Assumptions
    • Implications for the Physical Campus
    • Changing Trajectory
    • More Trends in Higher Education (Towards 2030)
  • Driving Technologies
  • External Forces

Current Trends

  • Online education[i] has become an increasingly accepted option, especially when “stackable” into degrees.
  • Competency-based education lowers costs and reduces completion time for students.
  • Income Share Agreements[ii] help students reduce the risk associated with student loans.
  • Online Program Manager organizations benefit both universities and nontraditional, working-adult students.
  • Enterprise training companies are filling the skills gap by working directly with employers.
  • Pathway programs facilitate increasing transnational education[iii], which serves as an additional revenue stream for universities.

Demographic Shifts

According to data from the National Clearinghouse and the Department of Education[iv]:

  • The Average Age of a College/University Student Hovers Around Twenty-Seven (Though That Is Decreasing as The Economy Heats Up)
  • 38% of Students Who Enrolled In 2011 Transferred Credits Between Different Institutions At Least Once Within Six Years.
  • 38% of Students Are Enrolled Part-Time.
  • 64% of Students Are Working Either Full-Time or Part-Time.
  • 28% of Students Have Children of Their Own or Care For Dependent Family Members.
  • 32% of Students Are from Low-Income Families.
  • The Secondary Education Experience Has an Increasingly High Variation, Resulting In Students Whose Preparation For College-Level Work Varies Greatly.

Future of Higher Education (and impacts on University Facilities & Management)

The future of higher education depends on innovation. 

University leaders who would risk dual transformation are required to exercise full commitment to multiple, potentially conflicting visions of the future. They undoubtedly confront skepticism, resistance, and inertia, which may sway them from pursuing overdue reforms.[v]

Change is upon us.

“All universities are very much struggling to answer the question of: What does [digitization[vi]] mean, and as technology rapidly changes, how can we leverage it?” . . . . Colleges afraid of asking that question do so at their own peril.”[vii]

James Soto Antony, the director of the higher-education program at Harvard’s graduate school of education.

Changing Assumptions

Until recently the need for a physical campus was based on several assumptions:

  • Physical Class Time Was Required
  • Meaningful Exchanges Occurred Face to Face
  • The Value of an Institution Was Tied to a Specific Geography
  • Books Were on Paper
  • An Undergraduate Degree Required Eight Semesters
  • Research Required Specialized Locations
  • Interactions Among Students and Faculty Were Synchronous

Implications for the Physical Campus

  • Learning – Course by course, pedagogy is being rethought to exploit the flexibility and placelessness of digital formats while maximizing the value of class time.
  • Libraries – Libraries are finding the need to provide more usable space for students and faculty.  Whether engaged in study, research or course projects, the campus community continues to migrate back to the library.
  • Offices – While the rest of North America has moved to mobile devices and shared workspaces, academic organizations tend to be locked into the private, fixed office arrangement of an earlier era – little changed from a time without web browsers and cell phones. 
  • Digital Visible – From an institutional perspective, many of the implications of digital transformation are difficult to see, lost in a thicket of business issues presenting themselves with increasing urgency. 

Changing Trajectory

University presidents and provosts are always faced with the choice of staying the course or modifying the trajectory of their institutions.  Due to failing business models, rapidly evolving digital competition and declining public support, the stakes are rising.  All should be asking how they should think about the campus built for the 21st century.[viii]  J. Michael Haggans[ix] makes the following recommendations:

  • Build no net additional square feet
  • Upgrade the best; get rid of the rest
  • Manage space and time; rethink capacity
  • Right-size the whole
  • Take sustainable action
  • Make campus matter

More Trends in Higher Education (Towards 2030)

  • The Rise of The Mega-University[x]
  • ; Public Private Partnerships (P3’s) Procurement Procedures Will Become More Prevalent
  • More Colleges Will Adopt Test-Optional Admissions
  • Social Mobility Will Matter More in College Rankings
  • Urban Colleges Will Expand[xi] — But Carefully
  • Financial Crunches Will Force More Colleges to Merge
  • The Traditional Textbook Will Be Hard to Find; Free and Open Textbooks
  • More Unbundling and Micro-Credentials
  • Continued Focus on Accelerating Mobile Apps
  • Re-Imagining Physical Campus Space in Response to New Teaching Delivery Methods
  • Transforming the Campus into A Strategic Asset with Technology
  • Education Facilities Become Environmental Innovators
  • Ethics and Inclusion: Designing for The AI Future We Want to Live In
  • Visibility (Transparency) And Connectedness
  • Sustainability from Multiple Perspectives
  • Better Customer Experiences with The Digital Supply Chain
  • Individualized Learning Design, Personalized Adaptive Learning
  • Stackable Learning Accreditation
  • Increased Personalization: More Competency-Based Education They’ll Allow Students to Master A Skill or Competency at Their Own Pace.
  • Adaptation to Workplace Needs They’ll Adapt Coursework to Meet Employer Needs for Workforce Expertise
  • Greater Affordability and Accessibility They’ll Position Educational Programs to Support Greater Availability.
  • More Hybrid Degrees[xii]
  • More Certificates and Badges, For Example: Micro-Certificates, Offer Shorter, More Compact Programs to Provide Needed Knowledge and Skills Fast[xiii]
  • Increased Sustainable Facilities – Environmental Issues Will Become Even More Important Due to Regulations and Social Awareness; Reduced Energy Costs, Water Conservation, Less Waste
  • Health & Wellness – Physical, Spiritual and Metal Wellbeing
  • Diversity and Inclusion Will Increase
  • Rise of The Micro-Campus[xiv] And Shared Campuses[xv]
  • E-Advising to Help Students Graduate
  • Evidence-Based Pedagogy
  • The Decline of The Lone-Eagle Teaching Approach (More Collaboration)
  • Optimized Class Time (70% Online, 30% Face to Face)
  • Easier Educational Transitions
  • Fewer Large Lecture Classes
  • Increased Competency-Based and Prior-Learning Credits (Credit for Moocs or From “Real World” Experience)[xvi]
  • Data-Driven Instruction
  • Aggressive Pursuit of New Revenue
  • Online and Low-Residency Degrees at Flagships
  • Deliberate Innovation, Lifetime Education[xvii]
  • The Architecture of The Residential Campus Will Evolve to Support the Future.
  • Spaces Will Be Upgraded to Try to Keep Up with Changes That Would Build In Heavy Online Usage.
  • Spaces Will Be Transformed and Likely Resemble Large Centralized, Integrated Laboratory Type Spaces. 
  • Living-Learning Spaces in Combination Will Grow, But On Some Campuses, Perhaps Not In The Traditional Way That We Have Thought About Living-Learning To Date.

Driving Technologies:

  • Emerging Technologies – Such as Augmented Reality, Virtual Reality, And Artificial Intelligence – Will Eventually Shape What the Physical Campus Of The Future Will Look Like, But Not Replace It.[xviii]
  • Mobile Digital Transformation[xix]
  • Smart Buildings and Smart Cities[xx]
  • Internet of Things
  • Artificial Intelligence (AI), Including Natural Language Processing
  • Automation (Maintenance and Transportation Vehicles, Instructors, What Else?)
  • Virtual Experience Labs, Including: Augmented Reality, Virtual Reality Learning, And Robotic Telepresence 
  • More Technology Instruction and Curricula Will Feature Digital Tools and Media Even More Prominently
  • New Frontiers For E-Learning, For Example, Blurred Modalities (Expect Online and Traditional Face-To-Face Learning to Merge)[xxi]
  • Blending the Traditional; The Internet Will Play Bigger Role in Learning
  • Big Data: Colleges Will Hone Data Use to Improve Outcomes

External Forces:

  • [xxii]: Corporate Learning Is A Freshly Lucrative Market
  • Students and Families Will Focus More on College Return On Investment, Affordability And Student Loan Debt
  • [xxiii]
  • Greater Accountability; Schools will be more accountable to students and graduates
  • Labor Market Shifts and the Rise of Automation
  • Economic Shifts and Moves Toward Emerging Markets
  • Growing Disconnect Between Employer Demands and College Experience 
  • The Growth in Urbanization and A Shift Toward Cities 
  • Restricted Immigration Policies and Student Mobility
  • Lack of Supply but Growth in Demand
  • The Rise in Non-Traditional Students 
  • Dwindling Budgets for Institutions[xxiv]
  • Complex Thinking Required Will Seek to Be Vehicles of Societal Transformation, Preparing Students to Solve Complex Global Issues

Sources & References:


[i] Online education is a flexible instructional delivery system that encompasses any kind of learning that takes place via the Internet. The quantity of distance learning and online degrees in most disciplines is large and increasing rapidly.

[ii] An Income Share Agreement (or ISA) is a financial structure in which an individual or organization provides something of value (often a fixed amount of money) to a recipient who, in exchange, agrees to pay back a percentage of their income for a fixed number of years.

[iii] Transnational education (TNE) is education delivered in a country other than the country in which the awarding institution is based, i.e., students based in country Y studying for a degree from a university in country Z.

[iv] Article accessed on April 16, 2019: https://er.educause.edu/articles/2019/3/changing-demographics-and-digital-transformation

[v]Article accessed on April 16, 2019: https://ssir.org/articles/entry/design_thinking_for_higher_education

[vi] Digitization is the process of changing from analog to digital form.

[vii] Article accessed on April 16, 2019:  https://qz.com/1070119/the-future-of-the-university-is-in-the-air-and-in-the-cloud

[viii] Article accessed on April 16, 2019: http://c21u.gatech.edu/blog/future-campus-digital-world

[ix] Michael Haggans is a Visiting Scholar in the College of Design at the University of Minnesota and Visiting Professor in the Center for 21st Century Universities at Georgia Institute of Technology.  He is a licensed architect with a Masters of Architecture from the State University of New York at Buffalo.  He has led architectural practices serving campuses in the US and Canada, and was University Architect for the University of Missouri System and University of Arizona.

[x] Article accessed on April 16, 2019:  https://www.chronicle.com/interactives/Trend19-MegaU-Main

[xi] Article accessed on April 16, 2019:  https://www.lincolninst.edu/sites/default/files/pubfiles/1285_wiewel_final.pdf

[xii] Article accessed on April 16, 2019: https://www.fastcompany.com/3046299/this-is-the-future-of-college

[xiii] Article accessed on April 16, 2019: https://www.govtech.com/education/higher-ed/Why-Micro-Credentials-Universities.html

[xiv] Article accessed on April 16, 2019: https://global.arizona.edu/micro-campus

[xv] Article accessed on April 16, 2019: https://evolllution.com/revenue-streams/global_learning/a-new-global-model-the-micro-campus

[xvi] Article accessed on April 16, 2019:  https://www.chronicle.com/article/The-Future-Is-Now-15/140479

[xvii] Article accessed on April 16, 2019:  https://evolllution.com/revenue-streams/market_opportunities/looking-to-2040-anticipating-the-future-of-higher-education

[xviii] Article accessed on April 16, 2019: https://www.eypae.com/publication/2017/future-college-campus

[xix] Article accessed on April 16, 2019: https://edtechmagazine.com/higher/article/2019/02/digital-transformation-quest-rethink-campus-operations

[xx] Article accessed on April 16, 2019: https://ilovemyarchitect.com/?s=smart+buildings

[xxi] Article accessed on April 16, 2019: https://www.theatlantic.com/education/archive/2018/04/college-online-degree-blended-learning/557642

[xxii] Article accessed on April 16, 2019: https://qz.com/1191619/amazon-is-becoming-its-own-university

[xxiii] Article accessed on April 16, 2019: https://www.fastcompany.com/3029109/5-bold-predictions-for-the-future-of-higher-education

[xxiv] Article accessed on April 16, 2019: https://www.acenet.edu/the-presidency/columns-and-features/Pages/state-funding-a-race-to-the-bottom.aspx

We would love to hear from you about what you think about this post. We sincerely appreciate all your comments – and – if you like this post please share it with friends. And feel free to contact us if you would like to discuss ideas for your next project!

Sincerely,

FRANK CUNHA III
I Love My Architect – Facebook


AIA/ALA’s 2019 Library Building Awards Includes 2 Higher Education Projects #HigherEd #University#Architect #Design #Libraries #CampusPlanning #University #Architect #ilmaBlog

Every year, the AIA is proud to partner with the American Library Association / Library Leadership and Management Association to honor the best in library architecture and design.

The AIA/ALA Library Building Award is the only award that recognizes entire library structures and all aspects of their design.

This year’s award includes two college/university libraries:

Barnard College – The Milstein Center

Architect: Skidmore, Owings & Merrill LLP (SOM)

Owner: Barnard College

Location: New York

Colorado College Tutt Library Expansion and Transformation

Architect: Pfeiffer

Owner: Colorado College

Location: Colorado Springs, Colorado

Click here to see all the award winners.

We would love to hear from you about what you think about this post. We sincerely appreciate all your comments – and – if you like this post please share it with friends. And feel free to contact us if you would like to discuss ideas for your next project!

Sincerely,

FRANK CUNHA III
I Love My Architect – Facebook


What About Public Private Partnerships? #ilmaBlog #HigherEducation #P3 #PPP #University #Architect

Example of Stakeholder Team (Source: Servitas)

Background on Public Private Partnerships (P3’s):

Many institutions of higher education are facing mounting pressure on their mission to deliver high-quality, affordable education to students and perform world-class research. Reductions in public funding support and concerns about overall affordability present substantial near-term and longer-term budget challenges for many institutions.

Public institutions are predominantly affected, having been constrained by suspensions or reductions in state funding. State appropriations across the US grew by just 0.5% annually between 2005 and 2015. State funding has still not recovered to 2008 levels, the last year in which state funding decisions would not have been affected by the Great Recession.

(Source: Integrated Postsecondary Education Data System (IPEDS) — state appropriations revenue divided by total fall enrollment, 2005–15)

Public-private partnership models are continuing to proliferate as cash-strapped colleges and universities seek to replace or update aging and outdated infrastructure amid tight finances.

(Source: Proliferating Partnerships)

What is the P3 Delivery Model?

A public-private partnership, or P3, is long-term agreement between a public entity and a private industry team that is tasked with designing, building, financing, operating and maintaining a public facility. The past decade has seen a steady increase in the use of P3 structures, both inside and outside higher education. In 2016, something of a watershed year for P3, multiple high-profile projects came online in response to a variety of public needs, including a $1-billion-plus water infrastructure project servicing San Antonio, and a $300-million-plus renovation of the Denver International Airport’s Great Hall.

(Source: A Few Lessons About Public-Private Partnerships)

“Public” is a non-profit institutional or governmental entity that engages a “private” for-profit entity to pay for a particular project.

The “private” partner provides funding (and often expertise) to deliver (and often operate) the project used by the “public” entity to meet its purposes.

In return for its capital, the “private” entity gets a revenue flow from the asset it has paid for.

(Source: Should your University enter into a Public/Private Partnership – the Pro’s and Con’s)

The emergence of the P3 option is happening where it matters most: projects that would be otherwise unattainable under the traditional public-improvement delivery models. For instance, 10 years ago, only a handful of higher education P3 projects were up and running; today, we are approaching three dozen such projects.

The biggest challenge is, of course, the financing component, but P3 teams bring much more to the table than money — they give public entities access to expertise and innovation that can add significant value to projects at each phase of development.

(Source: A Few Lessons About Public-Private Partnerships)

Motivations for P3 transactions vary widely, but include:

  • Supplementing traditional debt instruments. These include private capital, using off balance sheet or alternative mechanisms.
  • Transfer of risk. Historically, universities have born all or most of the risk of facilities-related projects themselves. A P3 is a way to either transfer or at least share the risk.
  • Speed and efficiency. A P3 allows for a faster development process, and time to completion is generally shorter and on schedule. The sole focus of the private entity is to complete the project on budget and on time. University infrastructure tends to have competing priorities across all-campus facility needs.
  • Outsourcing provision of non-core assets. Outsourcing allows institutions to focus investment of internal resources and capabilities on those functions that are closer to the academic needs of its students.
  • Experience. Private partners often have much more experience and skills in a particular development area (e.g., facility architecture and infrastructure, student housing needs) and are able to better accommodate the needs of students, faculty, administrators, etc.
  • Planning and budgeting. Private partners offer experience and know-how in long-term maintenance planning and whole life cycle budgeting.

(Source: Public-private partnerships in higher education What is right for your institution?)

The four types of P3s:

  • Operating contract/management agreement. Short- to medium-term contract with private firm for operating services
  • Ground lease/facility lease. Long-term lease with private developer who commits to construct, operate and maintain the project
  • Availability payment concession. Long-term concession with private developer to construct, operate, maintain and finance the project in exchange for annual payments subject to abatement for nonperformance
  • Demand-risk concession. Long-term concession with private developer to construct, operate, maintain and finance the project in exchange for rights to collect revenues related to the project

Pro’s and Con’s of P3’s:

Since their emergence in student housing several years ago, P3s have become important strategies for higher education institutions because of the many benefits they offer, including:

  • Lower developer costs
  • Developer expertise
  • Operational expertise
  • Access to capital
  • Preservation of debt capacity
  • More favorable balance sheets and credit statements
  • Risk mitigation
  • Faster procurement and project delivery (It can typically take a university about 5 years to get a project built. With a P3, that process can be reduced to just 2 years. Additionally, P3s can save approximately 25% in costs compared to typical projects.)

Beyond the above, the indirect advantages of P3s in student housing are numerous, such as they:

  • Provide better housing for students
  • Expand campus capacity
  • Create high-quality facilities
  • Expand the tax base for both a city and county
  • Provide an economic boost to surrounding areas, which likely lead to private growth and other improvements

It is important to note that, while there are many benefits of P3s for higher education institutions, these agreements also have disadvantages that need to be considered, including:

  • High cost of capital
  • Reduced control for the university
  • Complexity of deals
  • Multi-party roles and responsibilities
  • Limitation on future university development

(Source: Student Housing A Hot Sector For Public-Private Partnerships)

A LOOK AHEAD

Where Are We Heading?

  • More political involvement and pressure to consider P3
  • Pre-development Risks – Many projects failing to close
  • Issues with Construction Pricing & Labor Shortages
  • An increasing number of developers are getting in the on-campus business; however, developers are being more strategic on which projects/procurements to respond to
  • Exploration of other sources of funds like tax credits, USDA, and opportunity zones
  • Shared governance continues to grow
  • Larger, more complex P3 projects including long term concessions, availability payment models, Key Performance Indicators (KPIs)
  • Bundling of Procurements (food, housing (including faculty), academic buildings, hotel, energy, facility maintenance, etc.)

Further Reading:

We would love to hear from you about what you think about this post. We sincerely appreciate all your comments – and – if you like this post please share it with friends. And feel free to contact us if you would like to discuss ideas for your next project!

Sincerely,

FRANK CUNHA III
I Love My Architect – Facebook