A Public/Private Partnership (P3)
The hotel project will be a public/private partnership (P3) which is considered low risk for the university because no university funds will be used. Typically P3 projects are handled by a campus auxiliary; in this case, the auxiliary is The University Corporation (TUC). The development partner is Corvias. The hotel operator will be Evolution Hospitality.
TUC is a 501(c)(3) nonprofit auxiliary corporation, providing commercial and administrative services to CSUN. TUC operates for the sole benefit of CSUN and does not receive any state support. Surplus generated through TUC’s commercial endeavors is provided to the university.
For the hotel project, TUC will hold the ground lease (CSUN will lease the ground, on which the hotel will sit to TUC, and TUC will sublease it to the developer). TUC will also continue to provide catering services to CSUN from a different location on campus.
In order for the developer to obtain financing, and to make the developer’s financial return feasible, the term of the lease will be 65 years. The developer will be fully responsible for the financing, construction and management of the project during the term of the sublease. No campus or auxiliary funds will be committed to the project. The ground lease and sublease will be structured to ensure that the campus receives rent based upon the fair market value of the site, at minimum.
The developer will also be responsible for funding all associated costs, and will ensure that the facility is well maintained and funded by maintenance reserves throughout the life of the agreement.
Click here for more information on project oversight.
THIS WEBSITE WILL BE UPDATED AS NEW INFORMATION BECOMES AVAILABLE AND THE PROPOSED PROJECT MOVES FORWARD.