University of Kansas, Central District Development

Lawrence, Kansas

The University of Kansas selected Edgemoor as the master developer of a 55-acre campus expansion.

To expand their growing campus, The University of Kansas selected Edgemoor as the master developer of 55 acres on campus referred to as the Central District. Utilizing a public-private partnership (P3) delivery method, Edgemoor will master plan the project and then develop, finance, build, and operate a 285,000 SF academic integrated science facility, a 26,500 SF student union, 1,250 beds of student housing in three buildings, a dining center, and approximately 2,000 parking spaces. The project also will include a Central Utility Plant and the necessary utility and transportation infrastructure to support the project.
Project Type
Education
Public Private Partnerships
Science
Infrastructure
Project Details
Cost: $350 million
Size: 55 acres
LEED Certification: Designed to Exceed ASHRAE 90.1 (2010) by 22%
Project Newsletter
Awards
Finalist for 2016 P3 Awards for Best Social Infrastructure Project

Long-Term Operations & Maintenance

The University of Kansas (KU) wanted to avoid long-term deferred maintenance obligations for the new facilities built in the Central District. Further, KU was looking for operating cost certainty as well as metrics to measure performance.

Solution

Edgemoor proposed and implemented an operations/maintenance and lifecycle (capital replacement) solution that addressed all of KU’s concerns. The payments for operations are fixed for the term, the contract includes a handback provision that requires the building’s systems and finishes meet a pre-determined Facility Condition Index, and our performance is measured against a set of Key Performance Indicators, with penalties for service levels below agreed upon thresholds.

Construction Coordination – Multiple Buildings and Contractors

The KU Central District Development Project includes the development of more than 900,000 SF of facilities across approximately 55 acres of land, including eight different buildings and two design-build contractors.

Solution

Edgemoor implemented a development management solution and schedule that included weekly coordination meetings, internet based collaboration, third party testing, inspections, and commissioning to insure that all the project elements were built per the quality expectations, plans, and specifications of Edgemoor and KU.

Financial Structure that Complies with State Laws

As part of the project requirements, Edgemoor was responsible for arranging and implementing the project financing consistent with KU’s goals for risk transfer of buildings delivery, long-term operations and lifecycle costing, and the lowest possible cost of capital.

Solution

As part of Edgemoor’s due diligence, we identified that Kansas state laws would not allow for a traditional lease-lease structure with the private sector. To address this regulation, Edgemoor developed a creative alternative solution, vetted the approach with attorneys to insure compliance with state laws, and then implemented this financial structure that met KU’s financial and transaction structure goals. The approach was further vetted by the Rating Agencies and the project financing received the same credit rating as KU’s existing debt.

"I also want to thank you for how collaborative you and your team were to work with..."

Shannan Nelson

Assistant Vice Provost, Campus Operations, University of Kansas

Kansas Central District Lifecycle

We understand that every client is different and that each project will contain some, if not all, of the Project Lifecycle elements. The University of Kansas Central District Development, structured as a Design-Build-Finance-Operate-Maintain (DBFOM) project, included the following lifecycle elements:

Learn More About Edgemoor

Edgemoor is a leading vertically-integrated developer and asset manager of buildings and infrastructure and offers tailored comprehensive development solutions to a broad range of clients.

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