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http://www.miami.com/mld/miamiherald/13393521.htm

BOCA RATON

FAU opts to build dorms now, fund stadium later

Instead of picking a developer for a stadium complex to include shops, dormitories and other uses, FAU decided to go it alone for now, building dorms while raising money for a stadium.

BY KIMBERLY MILLER

Palm Beach Post

A six-month sale of box seats and stadium suites could decide the future of FAU's proposed football stadium, after officials decided Monday to try to raise money on their own for the 40,000-seat dome.

A committee looking at whether Florida Atlantic University could support and afford a stadium at its main Boca Raton campus along with retail shops, dormitories and restaurants had planned to pick a developer for the project Monday.

Three companies presented plans for the ''athletic village'' last month.

Instead, FAU Athletic Director Craig Angelos said the university will go forward with the construction of needed dormitories, while at the same time spending six months raising money for the stadium.

''Maybe we come back with the whole $100 million, and we say we can do it on our own,'' Angelos said. ``We're broadening our approach.''

The original idea was to have a developer pay for the construction of the dorms, stadium and shops. In return, the developer would keep the profits from ticket sales and rentals.

That could still be an option, Angelos said. But first the school will ask one of the three developers to work with them on building dorms and retail space -- which will be revenue sources -- and then consider doing the stadium. By then, the university will know how much can be raised by selling things such as naming rights and suites.

Stadiums typically cannot sustain themselves and are being built now with other money-makers such as restaurants and shops that can supplement stadium costs.

Just one developer came up with a plan that would be financially risk-free for the university, but it would also require FAU to give up control of the stadium for up to 30 years. The other two companies said the school would have to come up with some money on its own.

Some committee members were concerned Monday that without a promise of a stadium, developers would be less interested in working with FAU.

'We can't just say, `We'll go ahead and do the housing and if the stars are in alignment and everything falls into place, you can build a stadium,' '' said Ken Jessell, FAU's vice president for finance. ``Clearly we'll have to sit down and do significant negotiations.''

Angelos said he's already been working to sell naming rights, suites, and box seats for the stadium, but he didn't have estimates yet on what each of those will cost.

At the University of Central Florida, which is also trying to build a stadium, large suites sell for $40,000 a year and require a five-year commitment. Regular suites cost $30,000 a year, also with a five-year commitment. Club seats cost $2,500 for a pair and can be bought annually.

Stadium naming rights at UCF have not been negotiated. FAU's committee will meet again in early January to pick a developer begin building dorms and shops.

''Every project takes on a life of its own,'' Angelos said. ``We're just trying to keep the train moving.''

Edited by MeanGreen61

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