FGCU committee recommends financing for pilot employee housing project, citing recruitment and retention benefits

The Finance, Facilities and Administration Committee of the Florida Gulf Coast University Board of Trustees on Sept. 2 recommended that the full Board approve financing and a university cash contribution for a pilot employee housing project.

David Vazquez, FGCU’s vice president for administrative services and finance and executive director of the FGCU Financing Corporation, said the financing package includes a proposed debt issuance of “approximately $23 million,” with the resolution permitting borrowing up to $25 million, plus a university cash contribution in the range of $3.9 million to $5.7 million. He described projections that put the project’s internal rate of return at roughly 7.5 percent and noted a sample financing-rate assumption near 5.5 percent.

Committee members framed the project as a recruitment and retention tool for faculty and staff rather than a purely revenue-generating venture. Chair Richard Eide said the Trustees had discussed affordable housing for employees for several years and that the project had been narrowed to a pilot model to test viability while limiting financial risk. Vazquez said the package submitted for Board and Board of Governors review includes a Financing Corporation resolution authorizing debt issuance and a draft Board resolution authorizing financing, purchase and development, with the FGCU Foundation identified to underwrite and support the project.

Trustee Paul Applegarth and others pressed for clarity on financial metrics and on how the benefit would be recognized in faculty negotiations. Applegarth noted the project’s modest projected IRR and asked how the faculty and staff benefit would be acknowledged; Vazquez said operational efficiencies and non‑quantified recruitment value factored into the proposal. Applegarth said he wanted FGCU to get credit for the benefit in negotiations.

The Committee voted unanimously (Trustees Richard Eide, Larry Antonucci, Paul Applegarth and Peter Sulick voting “Yea”) to recommend approval by the full Board of Trustees. Chair Eide and Vazquez said FGCU BOT approval would be the next step; the financing and implementation would also require any necessary approvals by the State’s Board of Governors and other financing authorities.

The committee recorded no public comments on the item. The FGCU BOT must consider the Financing Corporation resolution and the draft Board resolution at a future meeting before any debt is issued or construction contracts are executed.