'Dormzilla' spat underscores California student housing tensions

Controversial plans for a massive dormitory at the University of California Santa Barbara come amid the backdrop of conflict over scarce housing resources at and near the state's universities.

The neighboring city of Goleta's city council plans to file a lawsuit against the university for failing to provide adequate student housing, a further sign of the impact the state’s housing crisis has had on its university and college communities.

The Goleta City Council voted Friday to ask the city attorney to file the lawsuit.

A rendering of the proposed 11-floor, 4,500-resident Munger Hall dormitory at the University of California Santa Barbara.
UCSB

It comes a decade after the city and university reached an agreement that UCSB would build student housing to prepare for an expected increase in enrollment. City leaders claim the university has breached that agreement.

The planned suit comes amid a blast of negative publicity over UCSB's plans to build a 4,500 bed dorm with a design that leaves many bedrooms windowless to favor large, well-lit common areas.

The building, "Dormzilla" to critics, will be named Munger Hall, after 97-year-old billionaire Charles Munger, the Berkshire Hathaway vice chairman who donated $200 million toward the $1.5 billion project in 2016 stipulating that the residence be built to his design, according to the Santa Barbara Independent.

“UCSB’s currently proposed student housing project, Munger Hall, a 4,500-unit dorm, has recently received harsh scrutiny in the national press. In light of this, we, at the City, are concerned that there may be no certainty as to whether the needed student housing will be built in a reasonable time frame,” City of Goleta Mayor Paula Perotte said in a statement.

The university plans to move forward with the project despite the beating the design has taken in the media.

"The university has not seen the lawsuit yet, but is deeply disappointed that the City of Goleta felt it necessary to resort to divisive litigation that forces both parties to spend public funds in this manner," according to a university statement provided by Spokeswoman Andrea Estrada. "The courts are not always the best place to resolve disputes, but when parties are entrenched in their individual positions, it may be best left to the courts to determine the merits of the respective legal arguments."

Former chancellor Gene Lucas and the project team, which includes the architectural firm Van Tilburg, Banvard & Soderbergh, highlighted the dorms planned common areas, private bathrooms for each resident, and eight-room suites in a question-and-answer page on the university's website.

Munger has been unyielding to suggestions, even from the university’s design advisory committee, to modify the design, according to press reports. A smaller Munger-financed dorm has been open at the University of Michigan since 2015.

The situation in Santa Barbara is a microcosm of problems facing California universities located in areas with high housing costs.

A windowless bedroom may look like a good alternative to UCSB students living in vehicles because of the lack of on- and off-campus housing. Thousands of dorm rooms could alleviate some of the pressure UCSB students create for the local housing market.

Leaders of Goleta, a city of 30,000, contend that the university is harming the eight-square-mile coastal city. To deal with its housing shortage, UCSB has placed students in Goleta hotels, “depriving the city of critical tax revenues that are the mainstay of the City’s budget," according to the city’s statement.

UCSB students residing in Goleta also occupy housing that is needed for the city’s workforce and drive up the cost of housing, forcing its nurses, teachers, and public safety officers to commute long distances, according to the city.

“Increased enrollment at UCSB also generates a greater demand on Goleta’s public resources and services,” according to the mayor. “There is no foreseeable end in sight for these negative impacts on Goleta.”

Nearly one in three college students in California faces food and housing insecurity, according to the California Student Aid Commission's 2018-19 Student Expense and Resource Survey. The survey, which sampled 150,000 college students from four-year institutions in 2018 and community colleges in 2019, found that students' financial concerns extend far beyond tuition and fees. All CSU and UC campuses were represented in the study, according to the report.

The size, scope and layout of the proposed dormitory were demanded by 97-year-old billionaire Charles Munger when he donated $200 million for the project.
Bloomberg News

Former University of California system president Janet Napolitano crafted a student housing initiative in January 2016 "aimed at supporting current students and future enrollment growth across the UC system."

The aim was to expand the pool of student housing over four years, and to accelerate the timetable for completing student housing developments that are already in the planning phase. The university also put out a request for information to developers to aid its 10 campuses spread across the state.

The University of California system has been one of the state's largest issuers over the past few years. In March, a 21-bank syndicate led by Jefferies and Citigroup priced $1.5 billion limited project revenue bonds in three tranches including a $739 million tax exempt series, a $392 million taxable series and $411 in forward delivery refunding bonds.

Among the projects the debt will support are student housing projects across its campuses, according to the offering documents.

In response to Goleta's complaints, the university responded that "it has never exceeded the enrollment target" in the agreement with the city, and added 1,515 student beds from 2015 to 2017.

"Finally, based on a recent economic impact analysis prepared by UCSB in conjunction with CSUCI (Cal State University Channel Islands)'s Institute for Global Economic Research, UCSB's direct positive economic impact on the local economy is $1.3 billion annually," according to the statement.

Gov. Gavin Newsom signed Assembly Bill 1377 on Oct. 7, requiring California State University and the University of California to provide a five-year needs assessment on student housing for each campus in their respective systems.

The first assessments are due July 1. The reports are to include a student housing plan outlining the universities plans for student housing to prepare for enrollment growth.

Such efforts are not coming soon enough for UCSB students or Goleta.

“I am disappointed that it has come to this because the City of Goleta has always had a good relationship with UCSB," Perotte said. "However, the failure of UCSB to meet its obligations under the 2010 Long Range Development Plan Settlement Agreement to provide housing has made us reach a breaking point."

In 2010, Goleta, Santa Barbara County and UCSB entered into the settlement agreement over enrollment growth and housing.

UCSB has breached the agreement since 2015 by failing to provide sufficient housing for its students, according to the city.

"The university hopes the most efficient resolution of this dispute can be achieved so all energies can be devoted to serving California students and families and supporting the community through transformative research endeavors," the university said in a statement.

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