Towson University also initiated a plan to “de-densify” rooms in Paca House, Tubman House and Millennium Hall, all properties managed by Capstone On-Campus Management.

Towson’s student newspaper reported in October that the university has tentatively selected Capstone as the developer of two dormitories to be built next to Millennium Hall.

A dispute at Towson University shows how P3s, as the popular partnerships are called, can sometimes fail to meet their core premise: spreading reputational and financial risk.