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Higher Education Capital Project

In response to increased enrollment and heightened expectations of today's college student, recent years have seen unprecedented capital development by and for colleges and universities, resulting in the construction of record numbers of new dormitories, student apartments, classrooms, sporting venues, and food service facilities for institutions of higher education. While these projects are, undoubtedly, of great operational benefit to the colleges and universities they service, higher education capital projects present many unique and challenging legal issues.

In addition to the concerns normally associated with any commercial real estate development project (e.g., site control and acquisition, title examination, financing, environmental, zoning/land use, permitting, construction, etc.), because colleges and universities and their affiliated entities are generally organized as federally tax exempt, nonprofit, or educational corporations, these types of projects often require very specialized legal disciplines, requiring the assistance of a diverse group of highly skilled practitioners with knowledge of, among other things, nonprofit corporate law, federal and state tax law, municipal finance, tax-exempt bond financing, administrative law, real estate taxation, government contracting, and labor law.

In recognition of the unique challenges faced by institutions of higher education when developing capital projects, Hodgson Russ has created its Higher Education Capital Project Practice Group, comprised of ten attorneys who regularly counsel higher education clients and their affiliated for-profit and nonprofit corporations and limited liability companies on capital development. Our Higher Education Capital Project Practice Group includes among its clients research universities, public and private colleges and universities, community colleges, foundations, educational corporations, and college auxiliary service corporations.

Several notable accomplishments of Hodgson Russ’s Higher Education Capital Project Practice Group include:

  • Representation of a major research university in conjunction with the planning, development, and implementation of a first-of-its-kind, multibillion-dollar expansion program, including academic facilities, infrastructure development, and student housing, as well as research, business incubator, and retail facilities. This representation includes authoring comprehensive legislation providing the broad legal authority for the implementation of this expansion program.
  • Pioneering the legal structure used for over $300 million of privately financed student dormitories at numerous public college campuses throughout New York State. These projects have been featured in articles appearing in The Wall Street Journal, The Bond Buyer, and Standard & Poor's Municipal Credit Weekly.

Other significant examples of projects handled by the group include:

  • Representation of public college auxiliary service corporations in the development and private financing of recreational, retail, and food service facilities.
  • Representation of numerous educational foundations and nonprofit corporations in conjunction with development, ownership, and operation of a variety of real estate projects, including agricultural facilities, retail facilities, incubator facilities, theaters, art galleries, and office buildings.
  • Representation of numerous universities, colleges, community colleges, and affiliated foundations and nonprofit corporations in conjunction with the development and financing of student housing projects.
  • Service as underwriter’s counsel and bond counsel on multiple higher education institution projects, including dormitories, student apartments, educational facilities, and libraries.
  • Representation of higher education institutions in public-private partnership development, both on and off campus, including a $200 million state-of-the-art medical/research condominium facility and a $60 million "clean" room facility.
  • Representation of higher education institutions in conjunction with historic preservation issues related to real estate development.
  • Successful representation of several college campuses in SEQRA/environmental impact statement lawsuits challenging campus-sponsored construction projects.

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