The University of Richmond last spring started an expansion and renovation project at the Boatwright Memorial Library. (BizSense file)
Eyeing several capital projects around its campus, the University of Richmond is seeking financing for the projects through the state.
The university has requested $51 million in bond proceeds from the Virginia College Building Authority, a state authority that provides financing for public and private colleges in Virginia, to fund improvements at the campus library, a renovation of the university’s steam plant and a student housing project.
UR’s application is due to be considered by the authority’s board Thursday afternoon (today). As part of the same application, UR also is requesting $60 million to refinance a series of bonds from 2012 that were provided by the same state authority.
As part of the request, the authority would lend the proceeds of the bond issuance to UR. The negotiated public sale of the bonds would take place on or around Feb. 19. The bonds would have a fixed-rate structure.
The $51 million request includes $28 million for UR’s library project, $10 million for the steam plant renovation, and $13 million for the housing project, according to its application.
UR spokeswoman Sunni Brown said in an email that the funds requested are expected to cover the entire costs of the projects.
The funding for the library would be used for an ongoing project to enclose an interior courtyard, relocate the university-operated cafe and add new study spaces, among other efforts. The project’s completion date is summer 2025.
The student residence project, which also is already underway, involves the conversion of the North Court Academic Building into undergraduate student housing. The university plans to have 63 beds in what most recently was home to the school’s humanities programs.
Brown said those academic programs have been relocated to other buildings on campus.
Construction on the residence project started in May. The plan is to finish it this summer to allow students to occupy the rooms beginning with the fall semester.
As for the steam plant, which provides hot water for cleaning and heating, the university is seeking funds to replace two boilers “at risk of failure” with new units, and upgrade the facility’s electrical systems and other projects, according to the application. The facility also provides steam for heating.
The upgrades to the steam plant are anticipated to be completed in the winter of 2024-2025. The university’s board of trustees approved the project in December, and design documents are expected in late January.
The refinancing effort for the 2012 bonds would involve a restructuring to make them amortizing bonds, according to the application. The so-called Series 2012 bonds have maturities between March 1, 2027, and March 1, 2032, or March 1, 2042. Projects financed with the Series 2012 bonds included renovations at Gateway Village Apartments, Westhampton Residence Hall and University Forest Apartments, in addition to other projects.
The 2024 Series bond would be amortized up to 30 years, with principal payments to start annually from March 1, 2032, to March 1, 2054.
The Virginia College Building Authority, which is part of the state’s Department of the Treasury, is able to use proceeds from its bonds and notes to fund projects at private, nonprofit colleges such as UR through loans to those institutions. The authority acts as a conduit borrower for the university, and thereby allows private higher education institutions to reap the perks of issuing bonds at tax-exempt rates, according to the authority’s website.
The university’s financial adviser in the bond request is the Yuba Group and its bond counsel McGuireWoods.
The University of Richmond last spring started an expansion and renovation project at the Boatwright Memorial Library. (BizSense file)
Eyeing several capital projects around its campus, the University of Richmond is seeking financing for the projects through the state.
The university has requested $51 million in bond proceeds from the Virginia College Building Authority, a state authority that provides financing for public and private colleges in Virginia, to fund improvements at the campus library, a renovation of the university’s steam plant and a student housing project.
UR’s application is due to be considered by the authority’s board Thursday afternoon (today). As part of the same application, UR also is requesting $60 million to refinance a series of bonds from 2012 that were provided by the same state authority.
As part of the request, the authority would lend the proceeds of the bond issuance to UR. The negotiated public sale of the bonds would take place on or around Feb. 19. The bonds would have a fixed-rate structure.
The $51 million request includes $28 million for UR’s library project, $10 million for the steam plant renovation, and $13 million for the housing project, according to its application.
UR spokeswoman Sunni Brown said in an email that the funds requested are expected to cover the entire costs of the projects.
The funding for the library would be used for an ongoing project to enclose an interior courtyard, relocate the university-operated cafe and add new study spaces, among other efforts. The project’s completion date is summer 2025.
The student residence project, which also is already underway, involves the conversion of the North Court Academic Building into undergraduate student housing. The university plans to have 63 beds in what most recently was home to the school’s humanities programs.
Brown said those academic programs have been relocated to other buildings on campus.
Construction on the residence project started in May. The plan is to finish it this summer to allow students to occupy the rooms beginning with the fall semester.
As for the steam plant, which provides hot water for cleaning and heating, the university is seeking funds to replace two boilers “at risk of failure” with new units, and upgrade the facility’s electrical systems and other projects, according to the application. The facility also provides steam for heating.
The upgrades to the steam plant are anticipated to be completed in the winter of 2024-2025. The university’s board of trustees approved the project in December, and design documents are expected in late January.
The refinancing effort for the 2012 bonds would involve a restructuring to make them amortizing bonds, according to the application. The so-called Series 2012 bonds have maturities between March 1, 2027, and March 1, 2032, or March 1, 2042. Projects financed with the Series 2012 bonds included renovations at Gateway Village Apartments, Westhampton Residence Hall and University Forest Apartments, in addition to other projects.
The 2024 Series bond would be amortized up to 30 years, with principal payments to start annually from March 1, 2032, to March 1, 2054.
The Virginia College Building Authority, which is part of the state’s Department of the Treasury, is able to use proceeds from its bonds and notes to fund projects at private, nonprofit colleges such as UR through loans to those institutions. The authority acts as a conduit borrower for the university, and thereby allows private higher education institutions to reap the perks of issuing bonds at tax-exempt rates, according to the authority’s website.
The university’s financial adviser in the bond request is the Yuba Group and its bond counsel McGuireWoods.
Renovating the academic side of North Court will cost $13 million??? for 63 beds? That’s over $206k per bed. As a UR alumnus, it is disappointing to watch the school constantly looking for ways to spend money on never-ending building projects.
With a cost of attendance of over $80,000 per bed, that should be paid off in short order. As a point of comparison, your average suburban home 4br, 500,000 is about 125,000 per bed on an average income of $54,000 per year, and that McMansion is built to last 15 years. I suspect these are higher quality designed to be 100 year buildings.
Why tap into your +$3 billion endowment when you can access corporate welfare?
In the late 1 960s UR was on the verge of going belly up and probably would have if not for the timely $50 million gift from the Robins family!
Hopefully they don’t give them the T.C. Williams treatment.