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Under a proposal before the MSU Board of Governors, Capital One would fund the majority of the school’s Brick City acquisition through bond purchases.
Photo provided by Missouri State University
Under a proposal before the MSU Board of Governors, Capital One would fund the majority of the school’s Brick City acquisition through bond purchases.

MSU board to vote on Capital One bond agreement

Posted online

The Missouri State University Board of Governors today is scheduled to vote to sell bonds to Capital One Public Funding LLC to pay for the school’s purchase of downtown’s Brick City.

If approved, the resolution up for vote this afternoon would authorize MSU officials to move forward on a proposal received from Capital One for $15.73 million in bonds, according to the board agenda.

The MSU governors on Oct. 19 adopted a resolution of intent to issue $17.7 million in educational facilities revenue bonds for buildings at 215, 327 and 305 W. Mill St. and 420 S. Campbell Ave. from Brick City LP and Brick City Two LP. MSU also has a two-year option to buy the property described in a previous board agenda as “Building 6,” 440 N. Campbell Ave., as well as the Brick City parking lot. Matt E. Miller, the representative for the two selling companies, previously told Springfield Business Journal the sale is slated to close Jan. 23, 2019.

The resolution today would give the green light for Capital One to pay for the vast majority of the Brick City acquisition through bond purchases, leaving a $1.97 million balance.

“The university will use cash reserves to cover the difference between purchase price and issued bonds,” MSU Chief Financial Officer Steve Foucart said via email this morning.

A Capital One term sheet included with the board agenda points to a fixed interest rate of 3.53 percent and indicates payments of principal would be due annually and payments of interest would be due semiannually.

Brick City is home to MSU’s Department of Art and Design and a cooperative pharmacy program with the University of Missouri-Kansas City. The university has leased portions of the downtown development since 2009.

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