Board authorizes intent to lease for 900-bed student housing project, citing timeline and financing rationale

The LSU Board of Supervisors authorized university leaders to proceed with an intent-to-lease agreement to develop about 900 new student beds on campus through a public–private partnership, with planning documents and final agreements to return to the board for approval.

What was approved: The board agreed to authorize staff to enter an intent-to-lease with the LSU Real Estate and Facilities Foundation to study and develop a 900-bed residence-hall project intended primarily for first-year students. University presenters said the project would be delivered using the same public–private partnership (PPP) model used for prior phases of student housing and would not require new state operating dollars.

Details, timeline and rationale

Patrick Martin, assistant vice president for real estate and public partnerships, and Peter Trinitost, executive director of residential life, presented the plan and financial rationale. Martin and Trinitost said the master plan built from prior successful PPP phases that added roughly 3,100 beds over the last decade and used tax-exempt bond financing. The team recommended keeping the existing developer, RISE, and construction manager at risk, LeMoyne, arguing that rebidding could delay opening by a year and raise per-student costs substantially.

Presenters provided fee and cost detail: they said the developer’s previously bid development fee is about 4% of construction costs and that the operator (RISE) receives approximately 2.25% of gross revenues for ongoing operations and maintenance. The board heard that the LSU Real Estate and Facilities Foundation’s direct compensation for out-of-pocket costs related to prior phases is small (presenters cited roughly $2,400 for phases 2 and 3) and that the university’s net housing revenue would remain with the housing program rather than being diverted to foundations beyond reimbursement of foundation costs.

Presenters described a compressed schedule: the project-management and design team would work for about six to seven months to complete financing and schematic designs, with a target construction start in October and an opening in fall 2027 if the board approves final agreements on schedule. The team said delaying construction a year could increase student costs by an estimated $40 per semester because of inflation on construction costs.

Governance and oversight

The board was told the project-management committee would include members appointed by the Real Estate and Facilities Foundation, the LSU Foundation and the university president; presenters said the committee’s composition could be adjusted and that a board member could be added at the board’s request. The board appended a direction ensuring appropriate representation: a motion authorizing the intent-to-lease included language directing the president and chair to ensure the project-management committee includes appropriate board representation.

Vote and next steps

A motion to accept the intent-to-lease, with direction that the president and chair ensure proper representation on the project committee, passed by voice vote with no objections. Board members asked for continued stakeholder engagement on site selection and demolition/replacement planning for older residence halls. Presenters said final financing, design and legal agreements would return to the board for approval before construction begins.

Ending

The board authorized moving forward with the intent-to-lease and tasked administration and the foundation to advance financing and schematic design work under the oversight structure described; final agreements will come back to the board for formal approval.