Leach Provides Update on Campus Housing

Thursday 28, 2016

NMU is working with a national collegiate housing development firm, EdR, to transform campus housing. The approach being considered is a public-private partnership intended to replace the Summit/Center Street apartments and the Quad I residence halls.

The proposed new apartment complex would consist of two 100-bed buildings scheduled to open in the fall of 2017. The new residence hall project would include multiple buildings housing 1,200 students. This construction would potentially be completed over two years.  

These new facilities are intended to reflect NMU’s culture and its northern region. To help guide design, NMU and EdR officials participated in a student forum last week in the Marketplace. Designers gathered feedback on conceptual renderings, layouts, amenities and affordability. This feedback will be used to refine the plans.

“All of the financing for these projects would come from EdR and the company’s share of housing revenue would finance the construction costs over time,” said Gavin Leach, vice president for Finance and Administration. “It would be a long-term agreement that would include built-in funding for continuous upgrades and modifications so, at the end of the agreement period, the facilities would be essentially the same as when they were built.”

Leach also said that, under this type of structure, the developer is responsible for the facilities’ operation and maintenance, including custodial and trades services. NMU would retain the grounds maintenance and oversight of residence life operations, including student activities and resident advisers and directors, and receive a percentage of housing revenue to fund that aspect.

“These public-private partnerships are becoming more common,” Leach said. “They allow universities to enhance student recruitment and retention by offering modern, attractive housing while reducing the impact on universities’ debt capacity. Initial review of the financing structure indicates that the plan would allow Northern to build new housing and keep rental rates at or below the level that would be needed to renovate the older facilities through traditional bond financing.” 

If both parties agree to financial, design/construction and operational terms, a final proposal may be presented to the NMU Board of Trustees in April. Pending board approval and a signed contract, construction could begin immediately after the winter semester.

According to its website, EdR is “one of America's largest owners, developers and managers of collegiate housing.” The company’s partners include the Universities of Kentucky, Minnesota and Connecticut, along with Duke and Syracuse Universities.

“We have talked with three universities that worked with EdR and all gave positive reviews,” Leach said. “The company has national buying power for construction materials and furnishings, helping produce project delivery savings that NMU could not realize if the project were constructed using traditional delivery methods.”

Leach said the Memphis-based EdR would work with Michigan architectural and construction firms on NMU’s new housing community.

Kristi Evans
9062271015
kevans@nmu.edu
News Director

Gavin Leach