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Public-Private Partnerships for Student Housing
By Michael J.
Coakley
Executive Director, Student Housing and Dining Services
Northern Illinois University
The use of public-private partnerships to provide student housing on college and university campuses has risen greatly over the past decade. As the number of students entering institutions of higher education has increased since the early '90's, colleges and universities have been faced with overcrowded residence halls which no longer meet the wants and desires of students and their families.
Most residence halls were built in the '50's and '60's and were primarily double-loaded corridors with common bathrooms. Each room was approximately 200 square feet. While this design may have been adequate at the time it was designed, today's students have a much different view of the amount of space and privacy they find acceptable.
Add to this dynamic, the desire of many institutions that were formally only commuter institutions to obtain a critical mass of residential students to bring a sense of the "complete collegiate experience" to campus and the time was ripe for the development of new campus housing options.
While some institutions have met this increased demand for housing by utilizing their own resources for construction, many institutions were limited financially or legally from expanding their campus housing. This author found himself in such a position.
In 1985, the author joined Wright State University (WSU), in Dayton, Ohio, as Director of Housing. At the time WSU had one residence hall and four small apartment buildings. For several years prior to the author's arrival, demand for campus housing had more than doubled existing bed space. The university was interested in expanding it's on campus population but was limited by Ohio law and fiscal resources in building it's own residential facilities. The author, therefore, was charged with finding a way to build additional housing without violating state law or using university funds.
At the time there was very little public-private partnering for campus housing. A few firms such as Cardinal and Benchmark were building modular units that some schools were using to meet increased demands but this was usually at the institution's cost. After contacting those, and similar firms, the author realized that a different approach was necessary.
After some research, the author began contacting developers who built and operated off-campus housing on traditional, residential campuses. After meeting with several, he was able to locate a firm that was willing to buy land contiguous to WSU's campus and construct a design developed by the author and the university's architect that was suite-style, frame and brick construction.
During the initial year of the partnership, the private firm handled all their own marketing, contracting, and facilities management while WSU provided the residential life component. While workable, there was confusion among students and parents about who was "in charge" of the housing.
As the size of the complex grew, from one hall to nine, the partnership also developed. WSU took on the marketing, contracting, and assignment functions in addition to keep the residential life functions, while the private firm continued to maintain the facilities. This was a much more cost-effective approach for all involved.
In addition to the residence hall, the university and the private firm also partnered on the design and construction of an apartment complex for married students, students with dependents, and graduate students. Following that development, apartments for single students were also developed as part of the partnership.
In total, over 2,200 bed spaces were added to Wright State University's residential housing mix as a result of the partnership. It has had a positive impact on the quality of campus life, recruitment, and retention of students.
On the other side of the equation, there have been some negative impacts as well. Partnering with a private firm brings another player to the decision-making process, and this can be difficult for an institution to adjust too. There is also a learning curve that is necessary for the private firm to truly understand the role of student housing to the mission of the university beyond a revenue stream.
It is the author's opinion, that the positive outweighs the negative, when considering this kind of partnership. If an institution needs additional housing and resources are scarce, it may be the only approach that is feasible. If the institution wishes to use it's resources for other purposes, again it may be the only approach that is feasible.
Many more private firms have entered the student housing market in the last decade. They are offering a wide range of products and services to meet the needs of students and institutions.
It is the author's recommendation that institutions develop strong RFPs before beginning the search process for a partner. Be very specific on the goals you are trying to achieve but be flexible when it comes to design, allowing the private firm to bring their expertise to the table. Provide compatible and complimentary approaches to marketing and assigning spaces in both institutional and partnership facilities. It is the author's final recommendation that the institution never allow the private firm to provide the residential life component, unless one doesn't currently exist. The residential life component to too closely tied in with the mission of the institution to allow an outside agency to take on the role.
A public-private partnership can do wonderful things for an institution of higher education's student housing. It is the author's opinion that it is the future of our profession.
About the Author
In addition to Northern Illinois University and Wright State University, Mr. Coakley has also worked at Western Michigan University, the University of Illinois at Urbana-Champaign, and Southern Illinois University at Carbondale. Mr. Coakley is active in both GLACUHO and ACUHO-I serving in a variety of leadership positions. Mr. Coakley also provides consulting services to both private firms specializing in the design and construction of student housing and colleges and universities.