Ohio University students could end up paying more for on-campus housing if the university chooses to privatize the residence halls rather than fund the renovation itself, according to a presentation during the Board of Trustee's meeting Thursday.
During its presentation to the Board of Trustees, Brailsford & Dunlavey, the facility planning firm that OU hired as a consultant, suggested two options for renovating and building new residence halls - OU could fund the operation entirely by itself or bring in a private company to take on the debt from the possible new construction. If OU chooses the latter, students could pay up to $1,020 more per year for on-campus housing, according to data from the firm.
In the privatization scenario, the university would own the land and control the project, but the private company would build the dorms and be responsible for their maintenance.
I think we came forward today without expectations (about the plan's cost or room styles)
OU President Roderick McDavis said.
If OU went ahead and privatized the residence halls, students would pay the same for a traditional double-occupancy room as they would if the university took on all the debt itself, but more for semi-suite and full-suite rooms. The private approach would also make OU's room rates higher than the average for other Ohio public universities for semi-suite and full-suite rooms.
The rate for a full suite could be about $6,520 per year if the residence halls are not privatized as opposed to $7,540 if privatized, according to Brailsford & Dunlavey's presentation. A semi-suite could cost students $6,970 if privatized and $6,280 if not.
The consulting group has not defined what amenities a full-suite and a semi-suite would include.
Mike Angelini, associate vice president for finance, said privatization is an important alternative to consider but that it has pros and cons.
I think there's a fair amount of study yet to be done he said. This is still part of the education process. Affordability is still at the top of everyone's priority list.
Angelini added the Board would begin to formulate a strategy for dorm renovation during its next few meetings this school year. The Board has not set a completion time for the renovations.
Julie Skolnicki, Brailsford & Dunlavey's regional vice president, said in her presentation to the Board that if OU does not renovate dorms soon, the university could fall behind competitors such as Miami University, Ohio State University and Bowling Green State University that currently have plans to renovate aging residence halls.
We want to stay consistent and stay competitive with peer institutions so we can make it affordable to live here
she said. It's not so much the age of the facility
but when it was last touched.
All residence halls on campus, except for Adams Hall, were first built between 1940 and 1970, according to a previous Post article. Adams was built in 2007.
When the consulting firm made its first presentation to the Board of Trustees during its June meeting, it said OU could raise traditional room rates by up to 10 percent and still meet the state average for other public universities.
A survey conducted by the firm after that presentation revealed an increased market demand for suite-style residence hall rooms, and both students and parents ranked preferred housing unit type higher than total cost of room rate on their list of top 10 priorities. About 20 percent of undergraduate students and parents responded to the survey.
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Pamela Engel
