COMPREHENSIVE FACILITY & INFRASTRUCTURE DEVELOPMENT

Knott Development is a comprehensive facility and infrastructure development firm serving the higher education, municipal, state and corporate markets. With its unique understanding of the development, construction, accounting, legal and financing aspects of credit-rated real estate development, combined with a nationally-recognized team, Knott Development customizes individual projects based on each client’s distinct development and economic requirements. Based on the founding principles of the construction and development business my family began in 1908, Knott Development operates from an “outside-in” perspective. Instead of imposing preordained concepts, we start the development process by asking “What job does your facility need to accomplish?” – allowing us to focus on your unique facility demands and restrictions. We then look for creative ways to combine our team’s capabilities to artfully craft thoughtful facility design and operational solutions to fully address your needs. With the ability to execute on a wide range of facility, infrastructure and deferred maintenance requirements in multiple structural and economic formats, Knott Development is well-positioned to address your facility and infrastructure needs.

DEVELOPMENT SERVCES

CREDIT TENANT LEASE DEVELOPMENT

Making facility development more efficient.

Credit Tenant Lease Development addresses multiple types of facilities development, whether by higher education, municipal, state or corporate clients. With a team experienced in a broad array of facility types, Knott Development is able to provide an alternative to traditional development, replacing fragmented management, financing and execution with an efficient all-in-one solution.

By using a ground lease, build-to-suit, leaseback mechanism, Knott Development achieves more flexible terms than bond financing, eliminates client development financial obligations and provides client-exclusive operational and revenue control and management of developed facilities.

SERVICE CONCESSION DEVELOPMENT

Flexible development of municipal and state facilities.

Service Concession Development addresses the development of revenue-generating facilities by municipal and state clients without incurring indebtedness stemming from capital lease obligations.

In a unique twist, the financial burden of not only development, but also maintenance, repair and replacement of mechanical and structural systems as well as furniture, fixtures and equipment is absorbed by Knott Development, not the client. Using a customizable partnership and management arrangement, clients substantially share in development revenues and ultimately obtain the developed facility in like-new condition.

As our most flexible development option combined with its non-debt status, Service Concession Development often provides scale and opportunity for energy-savings equipment and technologies such as geothermal and solar system implementation. Available for a broad array of to-be constructed or renovated facilities, Service Concession Development provides a viable alternative to debt-oriented development.

CREDIT MANAGED DEVELOPMENT

Flexible development of private and public higher education facilities.

Credit Managed Development addresses the revenue-producing facilities development needs of private and public higher education institutions without incurring indebtedness and while preserving future facility and land-use options.

Under a Credit Managed Development package, the financial burden of not only development, but also maintenance, repair and replacement of mechanical and structural systems as well as furniture, fixtures and equipment is absorbed solely by Knott Development. Using a customizable partnership and management arrangement, clients substantially share in development revenues and obtain control and management of the facility at the end of the development ownership term.

Using revenue-producing facilities as the basis for development also offers opportunities for implementation of a multiple facility development package – for example, concurrently developing residence hall, athletic and academic facilities. While preserving land-use optionality for clients, Credit Managed Development often provides scale for energy-savings equipment and technologies such as geothermal and solar system implementation. Available for a broad array of facilities, Credit Managed Development provides a viable alternative to segmented, long-term, debt-oriented development.

DEFERRED MAINTENANCE DEVELOPMENT

Addressing the unavoidable.

Deferred Maintenance Development addresses the often delayed, but universally critical, need to perform facilities deferred maintenance. While financially imposing, maintenance backlogs create systemic liabilities that are more logically addressed in an all-in-one mechanism. Instead of piecemeal repair, replacement and structure intrusion, Knott Development provides an efficient process for confronting deferred maintenance backlogs at one or across multiple facilities concurrently.

Using the basic concepts of a credit tenant lease, we implement a customized deferred maintenance program for one or multiple facilities. In a long-term, multiple-facility program, clients accrue the benefits of per-building completion without financial obligation until the entire project is complete. In addition to its tangible benefits, our development structure abates the frustrating process of annually seeking deferred maintenance appropriations.

While Deferred Maintenance Development focuses on immediate relief of large-scale maintenance backlogs, it also provides a platform for long-term planning and efficiencies. By providing modular system expansion paths and utilizing energy-saving equipment and technologies, Knott Development positions clients to efficiently address the financial and operational components of future maintenance demands.

CAMPUS INFRASTRUCTURE DEVELOPMENT

Upgrading the backbone of higher education.

Campus Infrastructure Development addresses the conflicting operational and financial demands associated with upgrading, repairing and stabilizing the physical and system infrastructure of an entire higher education, municipal, state or corporate campus. Instead of piecemeal repair and replacement, Knott Development provides an efficient mechanism for total physical plant, distributive systems, lighting and energy controls upgrade and replacement.

Using the basic concepts of a credit tenant lease, we implement a multi-year, customized physical plant and systems infrastructure upgrade. While careful scheduling avoids campus disruption, it likewise provides per-building completion and accruing operational benefits. Maximizing the return on investment, our development structure eliminates fiscal obligations until total project completion.

By focusing on long-term planning and efficiencies through the use of modular system expansion paths and utilization of energy-saving equipment and technologies, including cogeneration, geothermal and photovoltaic systems, Campus Infrastructure Development positions clients to more adeptly manage future infrastructure demands.

SERVICE CONCESSION COMBINED DEVELOPMENT

Combining student housing with deferred maintenance and infrastructure development.

Service Concession Combined Development features the development of revenue-producing residence hall facilities while confronting deferred maintenance backlogs and/or undertaking infrastructure development by public higher education clients without capital lease indebtedness.

In a unique structure, the financial responsibility of not only residence hall construction or renovation, but capital repair and replacement (including furniture, fixtures and equipment) is absorbed by Knott Development under a service concession arrangement.  While residence hall financial responsibilities lie with Knott Development, facility operations, student selection and administrative functions are client-managed and staffed pursuant to a market-rate property management agreement plus a dedicated share of residence hall cash flow. Knott Development simultaneously leverages the residual service concession cash flow stream to provide funding for deferred maintenance and/or infrastructure development initiatives. At the conclusion of the service concession arrangement, all developed facilities revert to the client.

NETWORK INFRASTRUCTURE DEVELOPMENT

Centralizing the protection of information systems, personal data and intellectual property.

Network Infrastructure Development addresses the development of secure operations centers and network operations centers focused on the monitoring, assessment and defense of enterprise information systems managed by higher education institutions, municipalities, states and corporations.

Under a leasing-service hybrid model, Knott Development ground leases client property and designs,  constructs and equips the client-specific operations center in conjunction with our managed security service team members. Upon completion, the facility is leased to our technical services partner with a simultaneous, coterminous client-only consulting agreement to provide outsourced SOC/NOC services. Upon expiration of the consulting agreement and the facility lease, the property and the developed facility revert to the client.

To enhance the financial efficiency of the Network Infrastructure Development model, multiple-institution, shared service options are configurable. In multiple client designs, Knott Development has the ability to acquire independent, geographically suitable property as part of the development.

The Network Infrastructure Development model enables the creation of an information security operations nucleus, providing continuous prevention, protection, detection and response capabilities against threats, remotely exploitable vulnerabilities and real-time incidents. By implementing an outsourced, yet client-exclusive management model, Knott Development helps clients develop enhanced incident detection, investigation and mitigation capabilities without incurring capital lease indebtedness.

COORDINATED DEVELOPMENT

Providing consulting and joint development services.

Our Coordinated Development services provide joint development opportunities for developers seeking solutions for predevelopment or construction-stage projects as well as remedial consulting services for developers, lenders or investors experiencing financing, development and/or construction planning or execution difficulties. Whether you require master planning, predevelopment, construction, construction administration, or overall development assistance, Knott Development is able to customize solutions to accommodate the size, type and ownership structure of your facility or infrastructure development project.

SERVING THE HIGHER EDUCATION,
MUNICIPAL, STATE AND CORPORATE MARKETS

MANAGEMENT

Francis J. Knott, Jr.
President

Frank oversees all aspects of Knott Development’s business, including development structuring and management, project finance and our credit rating agency relationships. Mr. Knott also coordinates the development and construction process with The Beck Group and Hensel Phelps Construction, our respective design-builder and general contractor. Frank brings a unique perspective to facility and infrastructure development, with a comprehensive understanding of not only development and construction, but structured finance and real estate-based accounting for private, government and non-profit sponsors.

After being raised in a family-owned, Baltimore-based residential and commercial construction and development business founded in 1908, Frank spent a decade as a corporate finance lawyer with three prominent East Coast firms. He began his career at Piper & Marbury where he practiced in the Creditors’ Rights & Bankruptcy Group, specializing in commercial real estate loan workouts and corporate reorganizations. Following his tenure with Piper & Marbury, Mr. Knott was a Senior Associate with McGuireWoods where he focused on the origination side of a variety of corporate finance transactions. Frank then served as Of Counsel with Morris Manning & Martin, co-leading both its Alternative Investment & Hedge Fund Group and Washington corporate finance practice, representing private investment funds with over $130 billion under management, as well as developing a reputational proficiency for financial and development structuring. Leaving the practice of law to better utilize his multifaceted background, Frank spent a decade independently arranging traditional and complex financings and developments for small and middle-market issuers and asset managers prior to being retained by a Maryland-based developer to remedy a floundering university housing project – arranging construction and permanent financing, providing development management oversight and delivering the 300,000 square foot project on time and under budget.

B.A. College of Wooster
J.D. University of Baltimore School of Law

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