Missouri State considers bonds for capital improvements

Missouri State University is considering issuing bonds to fund improvements to academic and auxiliary facilities on its campuses, the school announced at its Board of Governors meeting Friday.
 
The board formally approved an Intent to Issue Bonds, the first legal step in the bonding process. The resolution allowed for up to $52 million in bonds - $40 million for auxiliary facilities and $12 million for academic facilities. After spending the coming months researching the feasibility of bonds, the board could issue bonds before the end of 2010, according to a university news release.

University President Michael Nietzel told the board that there are three reasons for the bonds: a growing need for renovated and new facilities with limited state assistance, favorable bond rates, and a combination of options for servicing the bond debt.

The auxiliary facilities being considered for bond funding are:
• renovation and refurbishing multiple residence halls - $16.4 million;
• university recreation center in Springfield - $21.8 million; and
• West Plains multipurpose center and Federal Emergency Management Agency shelter - $982,710.

Nietzel said bond debt for those facilities would be paid through dedicated student fees and residence hall fees.

Academic facilities on the list for improvement:
• renovation of the former Willow Brook Foods facility as part of the IDEA Commons concept - $3.5 million;
• Darr Agricultural Center, Phase III - $3.7 million;
• Animal Research Compliance facility - $600,000;
• Looney Hall and related renovation at West Plains - $600,000;
• addition to the Physical Therapy building - $900,000; and
• other academic projects yet to be determined - $1.1 million.

Debt service for those bonds would be paid through reallocation of already budgeted debt service, private gifts and reallocation of university reserves.

"While we must address the immediate funding challenges, we must also continue to work to make the university better and more attractive in the long term," Nietzel said in a news release. "While there is no final commitment on our part or the board’s part, we do believe (bonds are) a good enough idea to explore. That’s what we intend to do in the coming months. It is unlikely that we will see interest rates that are any more favorable than what is currently available.”