Back to School: Integrating Educational Development Into a Company's Business

[ By Gary Paetau ]

Carter developed a specialized 123,000-square-foot, $36.5 million research facility for the University of Georgia in Athens, Georgia.

In 1993, Carter began seeking out educational development projects as a way to maintain revenue during the times when the economy was not favorable for commercial development. Now, 12 years later, educational development projects, from private secondary school campuses to college and university campuses, have become much more than a way to maintain revenue. Carter presently has 2.7 million square feet of education projects in various stages of development throughout the Southeast, making educational developments an integral part of Carter's development business.

Carter was program manager/owner representative to implement a $115 million capital improvement program at Agnes Scott College in Decatur, Georgia. Shown here: the library.

The processes involved in developing an office building are quite different than those required by an educational facility. An education project almost always requires working with a group -- or several groups -- of decision makers, such as boards of regents, university administration, faculty, staff and/or real estate foundations, whereas for office or industrial projects, there may be only a few individuals as the points of contact. Because of the increased number of people involved, decisions typically are not made as quickly or as easily as with other development projects. Therefore, a significant effort is required to ensure that all constituents involved in the project are being kept informed and that their directions fit into the overall program and budget for the project.

Managing by "Shepherding" A Project
At Agnes Scott College, a 116-year-old private women's liberal arts college in Decatur, Georgia, where Carter was selected as program manager/owner representative to implement a $115 million capital improvement program, Carter formed a project team, known as the "Shepherds' Group," for each project. These teams were formed to streamline the decision-making process and were comprised of a smaller assembly of the college's decision makers. For example, a team was established for the renovation and expansion of the college library; that was the only project this group focused on. This narrow focus enabled the team to make better decisions regarding that particular project.

By having the smaller Shepherds' Group work through the details of the project, advancing to the next steps was an easier process than it would have been, had the entire administration been involved. Consequently, the development, design and construction teams were able to move forward with the project at a fast-track pace. This management style worked so well at Agnes Scott College that Carter has since implemented this approach for other educational projects. Being able to work within the project timeline not only helps a developer deliver a project on time, but also plays a significant role in a developer's ability to keep a project within budget.

In order for the Agnes Scott College Master Plan to be executed, the city had to be consulted on such issues as historic preservation, zoning variances, storm-water management and building codes. When managing the "town/gown" relationship, the developer must demonstrate to the community that the synergy that can result between the institution and the community can be beneficial to both. If you can successfully accomplish this, you will reduce resistance from the community. Carter was successful in doing that and the college and community are reaping the rewards. The esthetics and quality of the buildings included in the improvement plan and the landscape improvements are a beautiful addition to the Decatur community. Residents can dine in the renovated and expanded dining hall and can enjoy theatrical programs at the college's theater.

Demonstrating Town/Gown Synergy
Throughout the $115 million capital improvement program for Agnes Scott College, Carter faced the challenge of reducing the impact of construction on the campus and, ultimately, on the student body. With the total capital improvement program expected to last five years, Carter executed a plan that delivered one building each year, in order to give each graduating class the opportunity to benefit from a new facility. This major program also had an impact on the community, another group that needed to be communicated with and whose input had to be considered. The relationship between an institution and the community, often known as "town/gown," is an important aspect that cannot be overlooked during a project.

Staying on Budget and Schedule
Each development project presents unique issues that a developer must address and mitigate. The University of Georgia in Athens, Georgia, tapped Carter to develop a specialized 123,000-square-foot, $36.5 million research facility and requested that the facility be developed according to the university's master plan. This is typical and can be executed easily, but a developer should be aware of what impact this may have on the project's budget and schedule. Because the research facility was intended for a specialized use, the users of the facility played an integral role in the program and design. There were more decision makers, and more design time was required in order to determine which program items could or could not fit within the budget laid out by the university. In this particular case Carter had to closely manage user expectations and focus on the program needs that were imperative versus the ones that were not. In order to coordinate with the university's master plan, the university's Architects' Office was also intimately involved throughout the project. Carter had to consider all input from the architects and incorporate appropriate aspects into the overall design process.

Carter's focused objective during this time was to manage the expectations of the end users while managing the budget. By fully understanding the client's needs for the facility, the project was completed earlier than planned, resulting in a significant cost savings for the university.

A developer is often called on to be creative with the available funding for a project. For Agnes Scott College, each component of the project was budgeted and therefore managed and reported on, monthly. For this program, the institution obtained bond financing for half the cost and then developed a capital campaign to raise the rest of the project funding.

Some institutions have established real estate foundations to assist in financing and funding projects. The University of Georgia, for example, used its Real Estate Foundation for several unique projects. In these cases, there is an elaborate team structure well versed in the financial processes and procedures involved in campus development. The foundation essentially manages the process of obtaining the necessary financing for any given project for the institution, thereby simplifying the project delivery process.

After years of developing projects specifically for secondary schools, colleges and universities, Carter has learned how crucial it is to have a knowledgeable staff that understands the building type involved and can communicate with the end users and institution. Additionally, Carter has learned never to underestimate the time and effort needed to keep all parties informed of the progress of the project. Finally, you can call a project a success when you have demonstrated to the institution the value you bring to it.