DIXIE STATE College of Utah

Public/Private Student Housing Project

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. Dixie’s 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.

Private Housing is Limited by Available Space

During the 70’s, 80’s, and 90’s 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 haven’t been building around the campus in recent years because of the lack of available land.

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.

2005 Student Housing Architectural Program

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.

Dixie Seeks a New Approach to Student

Housing

Dixie State studied the state and national private student housing options.

Developers came to campus to present options for a public/private. partnership

Dixie Studied Public/Private Student

Housing Options

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

Best Solution to Address the Student Housing

Shortage

Financial Summary

Construction$8,310,00

0Furnishings $477,630

Amenities $210,000Total 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 $1,199,175Net Operating Income $734,059Annual Payment @ 5.75% $613,051Coverage Ratio 1.2

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)

Lease Development Model

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.

City ofSt. George & Washington

County

FinancialGroup

DixieStateCollege

Developer

Operator

Thank You!

1.The most effective and efficient way to meet Dixie’s critical housing shortage.

2.Funded with outside capital - no state bonding required.

3.No student fees required.4.Dixie State College will be

gifted the housing property after the 30 year lease.

The Best Student Housing Option For Dixie State