Southeast Arkansas College board members Wednesday voted to move into the second phase of an estimated $36 million project to build a student center and residential hall.
The unanimous decision allows architectural firm The P3 Group to begin a feasibility study to determine whether proposed student housing fees are "achievable" and demand for the proposed 316 residential units is sufficient, P3 Group CEO Dee Brown said. The estimation is inclusive of both hard and soft costs, terms that Brown used to describe costs either directly or indirectly related to physical construction.
"The market study will take approximately six weeks," Brown said. "We create municipal bonds that are sold into the tax exempt bond market. The entire process, inclusive of the feasibility study, will take about 120 days."
The vote did not require the board to take financial action, President Steven Bloomberg explained.
"The feasibility study is probably one of the most critical parts of this entire project, to confirm the actual need for this level of housing," Bloomberg said.
If constructed, the student center and residential hall would replace two of the campus's original buildings dating back to about 1959-60.
Should the board elect to go into the construction phase, Bloomberg estimates that portion of the project could take 18 months.
The first phase actually began when Bloomberg began his role as president in January 2018. He clarified that no official action was taken then.
"Phase one really consisted of identifying the scope of the project," Bloomberg said. "That meant that we identified the programs and the scope of work for the new student center, as well as what we thought would be an appropriate number of housing."
Southeast Arkansas College enrolled as many as 1,028 students for the spring 2021 semester, but campus officials have cited a need for student housing to remove a barrier between some students and a college degree.
The two-year Pine Bluff college has received $3 million in American Recovery Plan funding allocated by Jefferson County Judge Gerald Robinson, who attended the board meeting. Robinson told the board he has a "good relationship" with P3, adding the firm has met all timelines related to its projects.
Bloomberg said the college will contribute about $8 million in equity with the potential to increase that to $13 million or $14 million with the addition of corporate donations.
"Obviously the county was a big part of that," Bloomberg said. "We're making the same request of the city as well. We're seeking help not only from private donors but public entities as well."
The P3 Group specializes in construction projects that benefit similar historically Black colleges and universities as well as minority-serving institutions such as Southeast Arkansas College. The firm is also involved in other developments in Pine Bluff including downtown housing and a new Jefferson County Health Department.
The campus could receive about $278,000 annually through a nonprofit organization The P3 Group supports, Brown said.
"We create a nonprofit special purpose entity that issues debt and finances the project," he said. "The net cash flow is split 50% to SEARK and 50% will be used to fund an endowment that will be created by our nonprofit Brown Foundation Community Development Corp. We project that SEARK will receive approximately $278,000 annually. We also anticipate creating an endowment worth approximately $10 million that will be funded over 35 years."
Similar projects by P3 have netted $130,000 endowments to the Jackson State University Endowment Fund and the Florida A&M University Foundation, as well as a $10,000 donation to the Jackson State band.
For his work, the National Bar Association is honoring Brown with the Presidential Outstanding Corporate Philanthropy Award at its Congressional Black Caucus reception in Washington, D.C., on Sept. 16.