C.L.--Colleges hope to tap private funds - USM Forum -- Message Board

Date: Apr 3, 2006

C.L.--Colleges hope to tap private funds

Date: Apr 3, 2006

Is this good? It sounds good though I see the possibility of chronyism and abuse.

Let's hope SFT never personally gets to find it exceedingly helpful.

Date: Apr 3, 2006

Didn't Forrest General at one time want to build a new building for the nursing school? Is this the kind of arrangement that this law would facilitate?

Date: Apr 3, 2006

Looks to be a way for the universities to get around depending on the state legislatures to appropriate tax dollars or authorize state bonds. While it will give the universities more flexibility in pursuing building construction, I would tend to say this is neither a good thing nor a bad thing, but like most things it could be subject to abuse. My guess is that it will likely be a little more costly to obtain a building under this scheme than through bonds. My other concern would be will the construction be of equal quality compared to that overseen by the university.

Date: Apr 5, 2006

Proposal gives universities new strategy for construction

http://www.hattiesburgamerican.com/apps/pbcs.dll/article?AID=/20060405/OPINION04/604050326/1014/OPINION

Date: Apr 5, 2006

". . the state Institutions of Higher Learning would be allowed to lease land to private individuals or corporations, the latter of which would finance the construction and then lease the buildings back to the higher-education system for a period of 31 years."

The article didn't say what would happen to the property after 31 years when the leases expire. Does this mean that after 31 years Mississippi's public institutions of higher education could be sprinkled with fast food restaurants, shopping malls, business and professional offices, and other commercial ventures? Maybe I am missing something.

Date: Apr 5, 2006

Only look at Elam Arms and Hillcrest dorms at USM. I have heard that the two that privately financed, built and leased the two dorms to USM when student housing was in critical shortage were financially screwed by USM at the end of the lease.

Date: Apr 5, 2006

Property Manager wrote:

The article didn't say what would happen to the property after 31 years when the leases expire. Does this mean that after 31 years Mississippi's public institutions of higher education could be sprinkled with fast food restaurants, shopping malls, business and professional offices, and other commercial ventures? Maybe I am missing something.

The Clarion-Ledger article on this gives a little more detail: http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20060403/NEWS010504/604030352/1038

"The state College Board, which governs the university system, could then lease back the buildings constructed with private money for a period up to 31 years.

At that point, the board would be allowed to purchase the building for $1 after payment of all money due under the lease."

A private company would build a building for the university to lease and use, not for fast food operations or other commercial ventures.

Date: Apr 5, 2006

Business One wrote:

Only look at Elam Arms and Hillcrest dorms at USM. I have heard that the two that privately financed, built and leased the two dorms to USM when student housing was in critical shortage were financially screwed by USM at the end of the lease. The

Speaking of Elam Arms, I once thought that USM should convert that facility into a conference center much like that which exists at other universities. It already has the necessary features: cafeteria, lodging rooms, lobby, etc. I visualized a university maintained conference center that would help attract mid-size scientific and professional groups. The pubic facility out on Hwy 49 is too far from campus. Elam Arms would have been ideal for groups desiring immediate access to the conference center as well as to the campus.I was informed that such a facility would provide too much competition for the private sector who might frown on it. I find it ironic that today USM seems to be in the business of privitization and doen't seem to worry about competing with the community.