News
Board Of Trustees Discuss Plan For $250 Million Bond Issuance
By: Atish Baidya
Posted on:
The Ohio University Board of Trustees is expected to vote on a resolution that creates guiding principles and policies for the investment of $250 million in bonds the university will issue to pay for deferred maintenance costs and other projects.
Under the program the university will set aside $100 million for immediate needs over the next three to four years. The remaining $150 million will be invested and managed by the Ohio University Foundation Investment Committee. The funds will be used under a central bank model, which would allow Century bond funds to be loaned out internally a number of times over the 100-year period. For example, a $90 million infrastructure project funded with Century Bond proceeds would be loaned internally from the central bank for a set term. As principal and interest are paid back to the central bank those fund can then be loaned to other departments.
The university will also create a $7 million reserve fund, which will be invested, in order to pay off the $264 million in principal and interest in 2214.
Also as part of Thursday’s meeting, the Resources committee tabled discussion on declaring property owned by the university on East State Street as surplus until its meeting Friday. The resolution was taken off the consent agenda in order for the board to discuss a real estate acquisition matter related to the resolution in executive session.
The board is also expected to approve $350,000 in funding to pay for design schematics for the renovation of Jefferson Hall. The $44 million project should to be completed in August 2016. Trustees are also expected to approve $10.95 million to pay for renovations to Boyd dining hall. The $12 million project will be completed in August 2015.
Trustees will meet again Friday at 10 a.m.