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Now that development rights have been sold, What now?

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Now that development rights have been sold, What now?

This may have been covered previously, but what will happen now that the new dorms are "owned"(I use that term loosely) by an outside entity?  I've read several articles and hear the same old, "FAU will remain the face of the dorms".  But I'm just curious as to how this will work in reality.  Does anyone know of any schools where this has happened already and/or have any experience with this.  I'm not trying to criticize the decision by any means, I'm just curious.  I'm glad they took that step and have finally made our stadium a reality.

FAU - We got Bowls!
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Re: Now that development rights have been sold, What now?

duder said

This may have been covered previously, but what will happen now that the new dorms are "owned"(I use that term loosely) by an outside entity?  I've read several articles and hear the same old, "FAU will remain the face of the dorms".  But I'm just curious as to how this will work in reality.  Does anyone know of any schools where this has happened already and/or have any experience with this.  I'm not trying to criticize the decision by any means, I'm just curious.  I'm glad they took that step and have finally made our stadium a reality.

I believe the University of Texas-San Antonio has a similar agreement. UCF may too.

The University still sets policies, hires the RAs, maintains the buildings, etc., but pay a percentage to the building "owner."

If I'm correct in my analogy, it's almost like the building is owned by Crocker and FAU is now the landlord.

Anyone have more experience with this stuff?

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Re: Now that development rights have been sold, What now?

I can't speak to this situation specifically, but in general business, companies "outsource" certain areas of their business all the time.  While many will say FAU is losing out on some revenue opportunities, the big picture is that there are probably some expenses that are saved by letting someone else manage the process as well.  Companies these days try to stick to their own core competencies and let others manage parts of their business when it makes sense to do so.
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Re: Now that development rights have been sold, What now?

smittysahoot said

duder said

This may have been covered previously, but what will happen now that the new dorms are "owned"(I use that term loosely) by an outside entity?  I've read several articles and hear the same old, "FAU will remain the face of the dorms".  But I'm just curious as to how this will work in reality.  Does anyone know of any schools where this has happened already and/or have any experience with this.  I'm not trying to criticize the decision by any means, I'm just curious.  I'm glad they took that step and have finally made our stadium a reality.

I believe the University of Texas-San Antonio has a similar agreement. UCF may too.

The University still sets policies, hires the RAs, maintains the buildings, etc., but pay a percentage to the building "owner."

If I'm correct in my analogy, it's almost like the building is owned by Crocker and FAU is now the landlord.

Anyone have more experience with this stuff?

Smitty,

I like your analogy, that makes sense to me.  It may be backwards though, with Crocker owning the building, and FAU providing all the services, (Ra's, staff, maint.), just like when you rent an apartment.  In any case, it looks like this has worked for other schools, so my concerns are eased.  I just worried if some other company ran certain dorms, that there may be some sort of seperation/non-compatibility between building residents.  Maybe a different key system for FAU owned dorms versus Crocker Dorms, and extra fees in the new dorms versus the FAU dorms.  But it looks like that won't happen so let's get the shovel's workin for that stadium.

FAU - We got Bowls!
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Re: Now that development rights have been sold, What now?

Part of the deal is to ensure that won't happen, making sure that uniformity will exist and why FAU will retain control over everyday operations including what to charge.  Revenue that are generated will help cover construction cost that the development company will put forth upfront & there is some option written in the agreement for flexibility on FAU's part.

All details are being work-out now and will be part of the final presentation.

It's still a pretty good deal regardless of what the economy is doing - all party's involve will benefit and FAU gets to move forward covering many needs including housing issues.  Still gives us opportunity to secure naming rights which should be easier to secure once the stadium is in the process of being built.
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