At a Glance

Sector:  Higher Education / Science / Infrastructure

Location:  Lawrence, KS

Delivery:  Public-Private Partnership

Scale:  55 Acres | 975,000 SF | 7 Buildings | $383 Million 

Result: Delivered Early and Under Budget | P3 Bulletin Best Social Infrastructure Project Finalist (2016)

The Situation

The University of Kansas needed to transform 55 acres of its campus and deliver seven new buildings to strengthen student and faculty recruitment, expand its research capabilities, and compete more effectively with peer institutions. Through the normal process of requesting funding from the state or the Kansas Board of Regents, a project of this scope would have taken close to 20 years. The university didn't have that kind of time.

They needed a partner who could help them find a different path forward, one that could move at the pace the university required while navigating the political and financial complexities that come with being a public institution in the state of Kansas.

How We Got Involved

The relationship started in the most unlikely of places. At a conference in Denver, one of our partners struck up a conversation with two people from the University of Kansas while waiting in line at a cocktail party. Business cards were exchanged, a campus visit followed that fall, and over the next several months a rapport developed between the two teams. 

We won the project in the summer of 2015, and the clock started immediately.

Six Months to Get It Right

The university had an aggressive timeline from the start. They wanted the full scope of the project designed, priced, and under contract within six months, a pace that would have been ambitious for a single building, let alone seven.

In that window, we designed all seven buildings to a level of detail sufficient to guarantee a price and a schedule. We structured the financing around tax-exempt bonds, working collaboratively with the university to navigate a unique set of requirements under Kansas law around building ownership, credit implications, and debt structure. The university had roughly $350 million in existing debt and a strong credit rating, and they were genuinely concerned that taking on another significant bond issuance could impact their standing with the rating agencies.

It didn't. Through a collaborative pitch to the rating agencies and investors, the university's existing debt rating was unaffected, and the new bonds came in just one step below, an outcome the university was thrilled with. We signed the contract on a Friday, six months after we started, right on target.

Managing the Complexity

The scope of this project was unlike anything we had taken on before. Seven buildings, two separate general contractors working simultaneously on the same 55-acre site, two different architectural teams, and a wide range of stakeholder groups, from academic departments to housing and dining to student life, all with different needs and different expectations.

We organized stakeholder engagement around a carefully sequenced schedule, meeting with different groups throughout the day to make sure every voice was heard and every program requirement was addressed without allowing any single group's process to slow the overall effort.

The project also operated without a traditional contingency budget, which meant that every change required finding an offsetting savings somewhere else in the project. That dynamic kept our team in constant communication with the university's leadership and demanded a level of creative problem-solving and mutual trust that ultimately made the partnership stronger.

Running Toward Problems

One week into construction, on a Friday afternoon, the team accidentally cut through what turned out to be the main fiber optic line serving the entire university campus. In an instant, the university lost internet, data, building card access, and, as it turned out, the network that the state of Kansas was relying on for standardized testing that weekend.

We could have stepped back, investigated, and promised to get back to the university on Monday. Instead, our team, Edgemoor, Clark, and the subcontractor, stayed up through the night splicing the line. By 7 AM the next morning, roughly 80 percent of the university's internet was restored. By Monday, everything was back to full capacity.

That moment, early as it was, set the tone for the entire project. The university saw that when something went wrong, even something we caused, we didn't point fingers or allow it to slow down progress. We ran toward the problem and fixed it. The trust that came out of that single incident carried through the rest of the project in ways we never could have anticipated.

Going Beyond What Was Required

Throughout the project, there were moments where we chose to invest our own resources for the good of the project. One example that stands out: the central utility plant. Most utility plants have standard white or gray painted pipes for hot and cold water. The university had expressed interest in using the plant as a teaching lab for engineering students, and we saw an opportunity to make that vision tangible. We knew the impact it would have on the students and faculty who would use that space every day, so we made the decision to fund it ourselves. We installed red insulation on all hot water pipes and blue insulation on all cold water lines, so that students walking through the facility could visually follow each system from start to finish.

In the grand scheme of a $383 million project, it was a modest investment. But when you see an opportunity to make the project better for the people who will use it every day, and you have the ability to do it, you do it.

What Happened Next

We continue to operate and maintain the Central District today, ensuring the quality and performance of the facilities as a long-term partner to the university. But what has happened since delivery may say more about this project than the delivery itself.

The relationships we built at KU have led to multiple additional projects, including work at another university where one of our primary KU contacts left and personally called us to come help with a project on his new campus, a second major project back at KU where the university told us directly that the trust and track record from the first time is why they chose us again, and our introduction to the Kansas City airport opportunity that ultimately became the largest project in our history.

And just recently, a prospective client toured the Central District with one of the university's team members who has been there since the beginning. The next day, they awarded us the project, in part based on walking through the buildings we delivered and still maintain, and hearing unprompted praise from the people who use them every day.

What led to all of this comes down to something pretty simple: keep your promises, do what you say you'll do, and treat people the way you'd want to be treated. The relationships that come from that are the most important thing we have, and they mean more to us than any single project ever could.

Recognition

The University of Kansas Central District was recognized as a Finalist for P3 Bulletin's Best Social Infrastructure Project (2016).

The Bigger Picture

This project started with two strangers meeting in a buffet line at a conference. A decade later, it has produced four projects, a long-term operating partnership, and relationships that we cherish. The general counsel at KU still runs over and gives our team a hug every time we're on campus. That's not something you put in a proposal, but it says more about the quality of the partnership than any metric ever could.

We are proud of what was built at KU, proud of the seven buildings and the 55 acres and the fact that it was all delivered on time and under budget. But what we are most proud of is what this project has become over time. It started as a construction project and became a lasting partnership, one that has grown stronger with every year and every new challenge we've taken on together. KU trusted us once, and that trust has only deepened since. We don't take that for granted, and we never will.