1. Universities and Real Estate Development – Implications for Brownfield Area Reclamation Peter B. Meyer, PhD The E.P. Systems Group, Inc. Covington, KY and New Hope, PA

2. Overview Motivation(s) Acquisition Processes Financing Mechanisms Some Case Examples Collaborative Potentials Implications

3. Motivation(s) Self-defense concerns – Student recruitment and safety – Property and property value maintenance Expansion pressures – Need for flexibility Investment potentials – Real estate speculation – Provision of goods and services to university Public relations Community development contributions

4. Acquisition Processes Donations Direct Purchases City condemnations and repurchases Abandonments; tax delinquencies; sales Eminent domain takings Collaborative projects with other owners and developers

5. Financing Mechanisms Capital in hand (easy for $1 purchases) Endowment funds invested in RE development Foundation Mission-Related Investments TIF contracts with municipalities Owner financing of unmortgageable sites Mortgages Equity finance from venture capital pools

6. Some Case Examples University of Pennsylvania Clark University, Worcester, MA University of Louisville, KY Penn State’s Commonwealth Campuses – and most Community Colleges across the country St. Louis University, MO Swarthmore College, PA

7. University of Pennsylvania Probably the first major university neighborhood development initiative Initially motivated by safety concerns Also need for local retail to serve their students Eventually developed major commercial and business facilities, many with tech businesses spun-off from university R&D

8. Clark University, Worcester, MA Neighborhood was so bad, it was hurting their student recruitment Worked closely in collaboration with existing CBOs and city redevelopment agencies Has not involved major acquisitions of sites, but participation in reclamation and paying to use facilities such as playing fields Also involves local HS student incentives as part of community involvement

9. University of Louisville, KY Got Phoenix Award for Papa John’s Stadium, that was built on an old rail yard site Coordinated street, rail overpass and other developments with the city, transforming an old industrial area with donated funds Successful experience led to construction of student apartments on another brownfield Spent 10 years negotiating with Reynolds over cleanup of a factory site next to campus Self-financed, driven by expansion needs Medical campus expansion included incubator for spin-off equipment, supplies firms

10. Penn State’s Commonwealth Campuses – and many Community Colleges across the country Built on donated land or adaptive reuse of donated or abandoned/under-used buildings Supported by local business associations Siting may have been designed to promote area regeneration and/or site reclamation Expansions and branch sites driven by need for facilities, siting done with local agencies, financing often reliant on new donations

11. St. Louis University, MO Massive expansion, turning isolated buildings into a spreading campus Creating open space and parklands, fenced off Was surrounded by deteriorating housing and commercial sites; creating local arts complex Using endowment purchasing powers to buy sites and create the transformation Repeated conflict over destruction of local neighborhood facilities, community connections Minimal coordination with city – which suffered abandonment in 1970s like Detroit in 2000’s.

12. Swarthmore College, PA Tiny liberal arts college in an affluent suburb Fought 20 yrs+ against the “Blue Route” that intruded on its pristine woodlands Has massive endowment (over $1 B with 1500 students) Recently began active collaboration with its (dry) borough on new developments, including a hotel, using underutilized land in the small commercial center and the campus

13. Collaborative Potentials Local rezoning for redevelopment Needed permitting by local government Shared use of newly developed facilities with others – general public or other organizations Multi-jurisdiction coordination to assure property value returns in small municipalities Education capacity sharing, with university providing services to surrounding community Public participation in financing, providing funds or lowering costs of acquiring them

14. Implications Assessing development potentials should include review of local institutions’ needs Needed capital may be available locally – in endowments and contributions to universities Facilitating partnerships may be an important municipal role, not requiring major funding Land banking and other acquisitions should be coordinated for transfers to local institutions CBOs can be important assets to expanding institutions – or major impediments, but local governments can help to shape relationships Don’t forget your educational institutions!

15. Thank you!! Contact info: Peter B. Meyer 502-435-3240 Additional Info: