Months after the University System of Georgia involved in a financial proposal on a financial proposal with the company that operates some of its bedrooms, the contractor said it would not be properly cleaning to comply with the Guidelines of the State Health Department for the Pandemic , according to the emails and newly revealed notes of the members of the University staff. The company cut the staff of it, and university employees began noteding maintenance problems in the dormitories operated by the company, the documents indicate.

Documents, obtained by a faculty and a personnel union in Georgia through a request for public records, provide a detailed view of sometimes tense relationships between universities and companies that pay for services . As the pandemic hit the sources of income and banking accounts, Corvias, a private company based on Rhode Island that contracts with universities to provide housing services, proposed a plan that would improve key financial indicators for their campus bedrooms . But the university system said no, and the company did not like its reasons.

making a deal

The Association between Corvias and the University System of Georgia began in 2014, when the two signed a 65-year agreement covering nine campus. Public-private associations, also calls P3, like this, often allow the operator to obtain a rental revenue cut in exchange for providing the capital's capital for a project. When a university does not want to borrow money by a great project, such as building a bedroom, a company like corvias can borrow.

The documents suggest that the relationship between corvias and the university system began to grow. March 2020. The pandemic meant that students in the residences of Corvias operated on the Georgia campuses were sent home. Refunds were provided to students who were made to leave, but under the terms of public-private association, the university system, not corvias, covered reimbursements.

Later in the month, Corvias sent a proposal to a university system of Georgia officials.

"Given the current crisis related to the Covid-19 pandemic, the ability to generate summer revenues in P3 student housing is enormously committed and is doubtful that any significant housing income will be a result of the program P3 unless a creative solution is implemented. Corvias has that creative solution, "said the proposal. "Specifically, corvias and their affiliates are exploring ways to lease such beds directly or to provide such beds to the USG Foundation through a charitable contribution."

The company proposed injecting more than $ 5 million in the project of a new source. The company itself or an affiliate could spend the money to lease all the beds during the summer, increasing the income for the project. Or Corvias could give the beds to the University System of the Georgia Foundation. The university system could then give the rooms free of charge to students if I wanted. The proposal would not cost anything from the university system and would also mean that it could unlock other funds.

"The result will be a victory for all parts: USG will have beds available to assist in the Covid-19 crisis; the P3 program will have a healthy balance; Corvias will meet with its financial covenants with its notebooks; and the [Regent Board] / USG will receive approximately $ 1.4 million in additional retained services, reserves for reservations and reinvestment contingent, "said the proposal.

Another option: lease the beds to an affiliate or giving them to the Foundation, it would have allowed Corvias to report income for the project and not having to use project reserves. When the cash flow of a project decreases, that affects a metric called its debt service coverage ratio. If the coverage index of the debt service falls below a certain threshold, which can trigger the reduction of the low agency. It may also mean that a project is violating the terms of your loan contract, creating tension with lenders.

Documents of the

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