This concept drawing from Kansas University's 2014-2024 Master Plan shows Innovation

To fund its $350 million Central District redevelopment project, Kansas University has set up a public-private partnership, known as a “P-3” for short.

An increasing number of universities nationwide are beginning to use such a funding model. Though Wichita State University has used a similar model to construct at least one of its residence halls, KU is the first in Kansas to use this type of P-3. The Kansas Board of Regents gave its approval in November.

Attorney Jeff Gans, special counsel for KU on the Central District project, answered some questions about the KU Campus Development Corporation (KUCDC), newly created to enable the P-3 deal.

Type of entity: The KUCDC is a Kansas nonprofit corporation organized as a Limited Liability Company, or LLC. As a controlled affiliated corporation of KU, it’s subject to the Kansas Open Records Act and will be audited annually by an independent certified public accountant.

Board: Five KU administrators make up the KUCDC board. They meet on an as-needed basis, and have met several times already. The administrator positions on the board, followed by the names of the people currently in those positions, are the chancellor, Bernadette Gray-Little; acting provost, Sara Rosen; chief financial officer, Theresa Gordzica; vice provost for administration and finance, Diane Goddard; and vice chancellor for administration and finance at KU Medical Center, David Vranicar.

Other players: The bonds were issued by the Wisconsin Public Finance Authority, and U.S. Bank is the bond trustee in the deal. Edgemoor Infrastructure and Real Estate LLC, following a request for proposals and negotiations with KU, was selected to oversee development, construction, operations and maintenance of the Central District property — including the lease and sublease between KU and the KUCDC.

Dollar figures: According to a project overview from the university, KUCDC borrowed $326.9 million from the Public Finance Authority. The effective interest cost on the bonds is 3.76 percent. KU will use the bond proceeds of $326.9 million and the original issue premiums of $56 million to pay for project development and construction ($350 million), interest costs during construction ($30.8 million) and costs of issuance including the fee paid to Public Finance Authority ($2.1 million).