The State Building Commission voted to approve Middle Tennessee State University’s request to dispose of about 2.5 acres by ground lease so a public‑private partner can build a 554‑bed residence hall on the MTSU campus.
"The p 3 residence hall project will provide 554 student housing beds on MTSU campus via a public private partnership delivery method," President Sydney McPhee said, presenting the item to the commission. McPhee told commissioners the project is intended to address growing needs for affordable, convenient on‑campus housing for MTSU students.
Under the proposal, the ground lease term would be 40 years with a waiver of advertisement and appraisal requested; ground rents would come from surplus cash flow remaining after payment of project expenses, debt service and required reserves. MTSU would have the option to purchase the ground lease and improvements at any time after the first 10 years by paying the full repayment of existing debt, and all improvements would revert to MTSU at the end of the term.
A commissioner moved the item, it was seconded, and with no discussion the commission approved the request by voice vote.
The commission did not record a roll‑call tally in the transcript; the approval was taken by voice. President McPhee thanked the commission after the vote. The university may proceed with the ground‑lease transaction and subsequent project steps outlined in the materials provided to the commission.