State Building Commission approves MTSU predevelopment agreement for P3 residence hall

The State Building Commission on an affirmative voice vote approved a predevelopment agreement allowing Middle Tennessee State University (MTSU) and a private developer to proceed with design and negotiation for a public–private partnership residence hall.

President Sydney McPhee told the commission the "P3 residence hall project will provide approximately 550 student housing beds" to the MTSU campus and asked the commission to approve a predevelopment agreement with the Annex Group to move design activities and agreement negotiations forward until a final ground lease is presented to the commission. McPhee said MTSU "plans to return to the state building commission in November for the ground lease approval request."

Commissioner Bridal asked about affordability and contract provisions if enrollment falls. McPhee said the project will include a committee of the developer and the university to make rate recommendations and that the developer and university anticipate the rates will be "very much competitive, but not as high as what we see around the university campus." She said there is no contract provision that would require an adjustment or a clause that the space must be filled first if student enrollment were to drop.

The commission made a motion that was seconded and approved by roll call of "aye"; no roll-call tally or individual votes were recorded in the meeting transcript. The commission’s approval allows design work and negotiations to proceed under the predevelopment agreement; the ground lease and final contract terms will return for commission approval in November.

The record shows the university described the developer as the Annex Group and the agreement as a predevelopment agreement permitting design activities and negotiations. The commission did not specify housing rates, and McPhee characterized the anticipated rents only in comparative terms relative to private off-campus housing.