UM system issues $332 million in bonds for facility projects
The UM system has issued $332 million in bonds to fund more than a dozen facility projects on the system’s four campuses, a Thursday news release from the university stated. The Board of Curators approved the projects at their June meeting.
Four of the projects in the bond initiative affect Columbia or MU and deal with the construction or renovation of university facilities.
The initiative includes financial support for energy management improvements and additions, including power plant heat and power upgrades and the replacement of cooling towers and steam lines for $62.1 million.
The renovation of Hudson and Gillett residence halls for $33.1 million was also included. The completion dates for Hudson and Gillett are May 2010 and May 2011, respectively.
The projects also include the construction of the new mid-campus residence hall and the renovation of Defoe and Graham residence halls. The renovation will include a new link between the north ends of Defoe and Graham. These projects will require $4.3 million in bonds.
Construction projects for the Missouri Orthopedic Institute and a new patient care tower, as well as the relocation and construction of the Children’s Hospital Health System are also included in the bond initiative. The projects will require $120 million in bonds now and $40 million more in the future.
The fixed-rate bonds will be comprised of $75.76 million in tax-exempt bonds and $256.3 million in Build America Bonds through the federal stimulus package.
"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,” UM system President Gary Forsee said in the news release. “This affords the university the opportunity to reduce the debt service and represents a win-win for the university and those it serves."
The university has an outstanding system facilities debt of $836 million, for which it pays roughly $65 million in annual debt service. The new bonds will increase the system facilities debt to $1.2 billion and the annual debt service to $85 million.