Building projects get boost
UM issues bonds for $332 million.
By Janese Heavin
Published July 16, 2009 at 4:37 p.m.
Updated July 17, 2009 at 1:26 p.m.
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jheavin@columbiatribune.com | 815-1705
The University of Missouri System has issued $332 million in bonds to finance more than a dozen facility projects throughout its four campuses, with the majority of the money benefiting the Columbia campus.
The fixed-rate bonds — which comprise $256.3 million in Build America Bonds and $75.76 million in tax-exempt bonds — will fund new construction and facility upgrades.
Build America Bonds, part of the federal stimulus package, are intended to give local entities a chance to finance projects at lower borrowing costs. The bonds are taxable and give borrowers a 35 percent federal rebate on the interest paid. The overall interest cost of the university’s bond issue is 3.843 percent.
“I can’t think of a better time for the university to explore new and creative mechanisms than now, and the Build America Bonds are an ideal fit for the university,” system President Gary Forsee said in a prepared statement. “Through the federal stimulus package, the university is able to use debt financing for revenue-generating facilities such as student housing and a new patient-care tower.”
In Columbia, $120 million from the bond package will help construct a new health care facility. The four-story Missouri Orthopedic Institute will provide surgery, diagnostic and treatment spaces, and an eight-floor patient tower will provide space for operating and patient rooms, as well as Ellis Fischel Cancer Center.
The university expects to issue another $20 million in bonds to continue that project and is relying on donations and state funds as well. Lawmakers allocated $31 million for Ellis Fischel this past legislative session; however, Gov. Jay Nixon has since frozen that appropriation.
“Obviously, the bonding is just a portion” of the total, “so we’re depending on supplemental funding from the state for Ellis Fischel to pay for that part of the project,” UM Health System spokeswoman Mary Jenkins said.
The bond package also will pay for other projects on the Columbia campus, including:
? Energy management improvements and additions, $62.1 million.
? Renovation of Hudson Hall and Gillett Hall residential facilities, $33.1 million.
? Construction of a new 526-bed residence hall and renovating Defoe and Graham residence halls, $4.3 million.
Additionally, the university will use $35 million from the bonds to make repairs and renovations at several buildings throughout the four campuses.
The system pays about $65 million in annual debt service on roughly $836 million in outstanding debt. The new bonds will increase that debt to almost $1.2 billion and annual debt service to $85 million.
Reach Janese Heavin at 573-815-1705 or e-mail jheavin@columbiatribune.com.
http://www.columbiatribune.com/news/200 ... ion-bonds/
UM issues bonds for $332 million.
By Janese Heavin
Published July 16, 2009 at 4:37 p.m.
Updated July 17, 2009 at 1:26 p.m.
Advertisement
jheavin@columbiatribune.com | 815-1705
The University of Missouri System has issued $332 million in bonds to finance more than a dozen facility projects throughout its four campuses, with the majority of the money benefiting the Columbia campus.
The fixed-rate bonds — which comprise $256.3 million in Build America Bonds and $75.76 million in tax-exempt bonds — will fund new construction and facility upgrades.
Build America Bonds, part of the federal stimulus package, are intended to give local entities a chance to finance projects at lower borrowing costs. The bonds are taxable and give borrowers a 35 percent federal rebate on the interest paid. The overall interest cost of the university’s bond issue is 3.843 percent.
“I can’t think of a better time for the university to explore new and creative mechanisms than now, and the Build America Bonds are an ideal fit for the university,” system President Gary Forsee said in a prepared statement. “Through the federal stimulus package, the university is able to use debt financing for revenue-generating facilities such as student housing and a new patient-care tower.”
In Columbia, $120 million from the bond package will help construct a new health care facility. The four-story Missouri Orthopedic Institute will provide surgery, diagnostic and treatment spaces, and an eight-floor patient tower will provide space for operating and patient rooms, as well as Ellis Fischel Cancer Center.
The university expects to issue another $20 million in bonds to continue that project and is relying on donations and state funds as well. Lawmakers allocated $31 million for Ellis Fischel this past legislative session; however, Gov. Jay Nixon has since frozen that appropriation.
“Obviously, the bonding is just a portion” of the total, “so we’re depending on supplemental funding from the state for Ellis Fischel to pay for that part of the project,” UM Health System spokeswoman Mary Jenkins said.
The bond package also will pay for other projects on the Columbia campus, including:
? Energy management improvements and additions, $62.1 million.
? Renovation of Hudson Hall and Gillett Hall residential facilities, $33.1 million.
? Construction of a new 526-bed residence hall and renovating Defoe and Graham residence halls, $4.3 million.
Additionally, the university will use $35 million from the bonds to make repairs and renovations at several buildings throughout the four campuses.
The system pays about $65 million in annual debt service on roughly $836 million in outstanding debt. The new bonds will increase that debt to almost $1.2 billion and annual debt service to $85 million.
Reach Janese Heavin at 573-815-1705 or e-mail jheavin@columbiatribune.com.
http://www.columbiatribune.com/news/200 ... ion-bonds/