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VRANESKI DEVELOPMENT LLC
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THE B.O.T. SYSTEM
The B.O.T. system is based on the principle that the developer plans, finances, builds and operates the dormitory project. The university finds and makes available suitable land to the developer free of charge or at a nominal annual rent. The developer receives the income from renting the dormitory space (directly to the student and/or the university or some combination thereof) for an agreed period at the end of which the project is turned over to the university. For example, in a recent project that we successfully completed in Cyprus the agreed period of operation was 25 years. The facilities that we constructed far surpassed the existing dormitory space in attractiveness, quality, comfort, and amenities. Our initial analysis of the situation at some Universities Nationwide gives every indication that there is a strong need for on/off campus dormitory space and that a B.O.T. project could be profitably realized.
PLANNING AND FINANCING Statistical data from comparable universities around the world shows there to be an average requirement of at least 25 on and off campus dorm beds for each 100 students (The remaining 75% of students is comprised of day students or those who make their own off campus living arrangements.) Our plan is to build at least 300 beds per project. The rooms will be furnish with, beds, wardrobe, refrigerator, television and high quality inside doors and bathroom gadgetry. One of our main issues is to improve the acoustic insulation by building concrete floors, using outside/inside wall brick as zoning between rooms. All rooms will be provided with a full individual cooling and heating system. We have few alternative architecture plans ready, and can promise implementation of the building process within 8 month after receiving the permits license. In case the university would like to operate the dormitory project by itself, we will plan and build the project. The financing of the project in the case mentioned above will be by LaSalle Bank. In the last year we were fortunate to conclude a strategic financing partnership with LaSalle National Leasing Corp. LaSalle, a subsidiary of LaSalle Bank in Chicago, is part of the ABN worldwide AMRO banking group. Last year LaSalle did about $1B in municipal lease/sales financing. They are thus well aware of the legislative and fiscal restrictions facing state and municipal financed institutions (universities, counties, cities, etc.) and the various ways of structuring "tax-exempt" transactions. LaSalle is prepared to enter into a tax-exempt "site lease transaction" under which the University would receive a 10-15 year loan that would cover all construction costs (dorms and infrastructure), operations, maintenance and perhaps interest. We would be pleased to explore the entire subject in greater detail, and for each college/university customize the project to its specific needs. |
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