Nonprofit Mississippi News. The idea for Mississippi State University’s $67 million apartment-style student housing was born on the golf course. “I was playing with Eli Capilouto from the University of Kentucky and they were having problems similar to what we had in Mississippi regarding concerns about needing upgrades their facilities — especially their housing facilities,” Mark Keenum, president of MSU during a meeting of the State Institutions of Higher Learning’s finance committee. Keenum stated that the University of Kentucky was having problems issuing bonds to construct new residences. Instead they hired a private developer to construct a hybrid building that includes apartment-style housing, retail, and restaurants all in one location on campus. Keenum stated that he was so fascinated by the project that he asked the provost and other university officials to send a delegation to University of Kentucky to learn more about the University’s activities. A provision in state code allows public universities to lease to private companies without having to undergo an open bidding process. Education Realty Trust (EdR), an Memphis-based company that specializes in development and management of university housing, was awarded the $67 million project. MSU has strong ties to the company, as its chief accountant graduated from the university. The agreement between MSU & EDR was approved by the IHL board last week. This is the first time an IHL university has used a public-private partnership in order to create a hybrid campus residence facility. This arrangement was celebrated as an example of what future arrangements for Mississippi campuses could look like during the IHL financial committee meeting. Alan Perry, an IHL board member, said that this arrangement should be considered the gold standard. “I hope anyone else does it and [they] do it this well.” Don Zant, MSU’s vice president for finance and chief fiscal officer, said that the university spent about 15% less on EDR than it would have to build it. A $67 million project would be approximately $79 million to $80 million. This is all to protect our equity. This is not something we want to bond. During the meeting of the finance committee Zant stated that this is why we went through the process. The 35-acre vacant lot is where the Aiken Village apartments used to be before falling into disrepair. The development will have 656 residential units, each with its own bathroom and room, and 46,000 square feet worth of retail, restaurants, outdoor entertainment zones, daycare centers, and other recreational amenities. Keenum stated that freshmen will not be permitted to live in the facility. Keenum stated that “we’re seeing more and greater numbers of our upperclassmen want to live on campus, and we aren’t able to accommodate their needs.” “We think that this will be a transformational addition to our campus.” Although MSU spokespersons haven’t said whether the facility will technically be classified as a residence-hall, they will have resident assistants on site and a community director. We worked with our partner, the developer, to ensure that all student life activities remain under the control of Mississippi State University. Keenum explained that students would enjoy apartment living but also have parental oversight. John Pearce, associate commissioner of finance and administration at IHL, stated that the university will lease the land to EDR over 40 years. There is a 10-year option to renew at the expiration. The total lease could last up to 50 years. EDR will determine the rates, while MSU will get five percent of gross revenue.