The University of Illinois at Urbana-Champaign engaged a team led by Johnson Consulting in association with The Scion Group, DESMAN Parking, and Cotter Consulting to examine the potential of utilizing a public-private partnership (P3) for uses that include: campus housing, student union, recreation centers, and parking. Scion was focused on the campus housing analysis, and DESMAN’s area of focus was the parking system.
The process to date has included campus engagement that includes on-campus meetings and weekly conference calls. It began with a highly interactive session with Auxiliary leadership to identify the key strategic objectives. Subsequently the Consulting Team returned to campus for client working sessions, stakeholder interviews, campus tours, and off-campus market analysis. As part of the analysis, the Team performed benchmarking and case study analysis. Utilizing the current Facilities Master Plan, the Team developed financial models to test various scenarios utilizing different variables for both a university funded and a public-private partnership delivery. The purpose of these analyses was to determine the sufficiency of the University’s existing rate structures to support P3 development.
A focus of Scion’s engagement was the redevelopment of the 150-acre Orchard Downs parcel, which contained low-density graduate housing and little else. Located at the southeast corner of the site and abutting residential neighborhoods to the north and east, Orchard Downs represented a magnificent opportunity for campus expansion, the development of much-needed housing and other academic facilities, and the creation of new revenue streams through ground lease partnerships with private developers and investors.
DESMAN evaluated the physical and financial health of the University’s parking assets and operations and subsequently developed long-term financial projections for the University’s parking system under a variety of operating and pricing scenarios.