Regents asked to issue apartment RFP

Plan could create privately owned, upscale apartment on SDSU campus

BROOKINGS South Dakota State University could take a step forward this week with a plan that has been controversial in Brookings: to create a privately owned, upscale apartment building in the northwest corner of its campus.

The South Dakota Board of Regents, meeting today through Friday at Dakota State University in Madison, will vote Thursday on a recommendation by Executive Director Jack Warner. If approved, it would authorize the board president to appoint an ad hoc committee to issue a request for proposals (RFP) to build the apartments, evaluate proposals and make a recommendation to the board.

SDSU is requesting this in order to expand student housing through a ground lease to a private investor, who would assume full responsibility to finance, construct, operate and maintain the apartment building.

The object of the arrangement would be to provide for student housing without creating any obligation that would affect the debt capacity of the university or the board and without any adverse effect on the financial rating of the university or of the boards consolidated, multi-institutional revenue system, the boards agenda says.

Warner recommends the RFP state that acceptance of any proposal will be contingent upon confirmation by one or more rating agencies selected by the board that the financial commitments for the construction, operation and maintenance of the facility, from inception through termination of the ground lease and associated development and operating agreements, will not reduce the debt capacity of the university or the board and will have no adverse effect on the financial rating of the university or of the Boards consolidated, multi-institutional revenue system.

Part of master plan

According to SDSUs Updated Residential Life and Dining Services Master Plan for 2011-2018, this apartment building is planned as one step in the formation of an upper-division and graduate student neighborhood.

The university also plans to set aside 320 beds in Bailey and Berg apartments for upper-division students (these apartments would be modernized during Phase III of the plan), and to dedicate 132 beds in Waneta Hall and 52 beds in Wecota Annex to single-occupancy rooms for upper-division students.

The new apartment building would be located west of Medary Avenue, bounded by the Agricultural Heritage Museum on the south, Medary Avenue on the east and parking lots on the north and west.

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Regents asked to issue apartment RFP