Agenda Item No. _________
Washburn University Board of Regents
SUBJECT: Authority to Bond the Student Wellness/Fitness Center, Moore Bowl improvements, KTWU tower project, and Student Union remodeling
DESCRIPTION: Current projects call for the issuance of $8,500,000 in bonds as follows: Student Wellness/Fitness Center, $5,000,000; Moore Bowl improvements, $2,000,000; KTWU tower project, $1,500,000. The security for this bond issue will be a pledge of revenues from the various buildings along with the Sales Tax Capital Improvement Fund in an amount not to exceed $850,000 per annum as required, and funds available in the Debt Retirement and Construction Fund (3 mill fund), as needed.
Don Jensen, Bond Counsel at Cosgrove, Webb and Oman, recommends a second revenue bond issue of $2,440,000 for the Student Union remodeling project. This bond issue will be issued as a parity obligation along with the Series 1999 Revenue Bonds and will be secured by the gross revenues from Student Union and Living Learning Center operations and funds available in the Debt Retirement and Construction Fund (3 mill fund), as needed.
Volatility in the market calls for precise timing on the sale of the bonds. A negotiated sale of the bonds allows for the timing of the sale to coincide with favorable market conditions. In order to time the sale of the bonds, the Board should vest authority in a committee that can, in concert with John McArthur and Don Jensen, judge the market and act swiftly and effectively. That committee should include the Board Chair, Vice Chair, President and Treasurer. That committee should have the authority of the Board to select the most opportune date on which to sell the bonds. The committee will return a recommendation to the Board at a regular or special meeting for passage of the resolution authorizing and directing the issuance and sale of the revenue bonds.
Included as part of this action is the approval of the Board to:
1. Authorize publication of the intent of the Board to issue revenue bonds for the Student Union remodeling project;
2. Authorize publication of the intent of the Board to issue revenue bonds for the Student Wellness/Fitness Center project, Moore Bowl improvements and KTWU tower project; and
3. Create the committee authorized to negotiate the sale of the bonds.
FINANCIAL IMPLICATIONS: As outlined in the project financial schedules.
RECOMMENDATION: President Farley recommends the Board of Regents approve the action listed above.
Date Jerry B. Farley, President