State Building Commission approves MTSU P3 residence hall to add 554 student beds

Middle Tennessee State University secured commission approval for a public‑private partnership residence hall that will provide 554 student housing beds on approximately 2.5 acres.

President Sydney McPhee told the State Building Commission the P3 residence hall will be delivered through a public‑private partnership and is intended to expand affordable, on‑campus housing for MTSU students. "The P 3 residence hall project will provide 554 student housing beds on MTSU campus via a public private partnership delivery method and will help address the growing needs to provide affordable and convenient on campus housing options to serve the growing MTSU students," McPhee said.

Under the terms presented, the commission approved a disposal by ground lease with a waiver of advertisement and appraisal for a 40‑year term. Ground rents will be paid from surplus cash flow remaining after project expenses, debt service, and required reserves. MTSU has an option to purchase the ground lease and project improvements at any time after the first 10 years for an amount equal to the full repayment of existing debt; at the end of the lease term all improvements will become the property of MTSU. McPhee asked commissioners to contact her with any questions about the request.

The commission moved, seconded and approved the item by voice vote. The action was recorded as adopted by the commission; no roll‑call tally was recorded in the transcript.

The project financing model, lease term, and purchase option as described in the presentation were the material terms recorded for the commission's approval. Questions about final financing mechanics, developer selection and any subsequent approvals were not detailed in the record and were not resolved at this meeting.