Print |
E-mail to a friend
NEWS
MU Board of Governors takes first step bond refinancing
HUNTINGTON -- Less than a month after closing on the refinance of the bonds that built the Recreation Center and First Year Residence Halls, the Marshall University Board of Governors approved a resolution to move forward with the refinancing of another.
The board approved the first step in the process, giving financial representatives the green light to start the four- to six-week process. Refinancing the 2001 bond at considerably lower and fixed interest rate could save about $2 million. The bond is responsible for building Marshall Commons, Harless Dining Hall and the 3rd Avenue parking garage.
Financial representatives told the board a closing on the bond could take place in about 60 days, but the executive committee will have to make one more decision on one of three refinancing options.
The first entails taking a check at closing, which, at present, would be about $1.89 million. But that would constitute bond proceeds and would tie the funds to the three projects listed in the bond.
The second option is an upfront savings, which could be worth about $1.8 million. It means the bond payment two years out would be about $1.3 million less, and about $500,000 cheaper on the third year.
The third option is taking the savings through the life of the bond, which would be paid off in May 2031. It would save, on average, about $140,000 a year that the board could use to issue another bond for about $2 million or simply have $140,000 in additional revenues for building maintenance until the bond is retired in 2031.
Other issues before the board include:
Marshall President Stephen Kopp briefly addressed last week's purchase of the former Stone & Thomas Building on 3rd Avenue in Huntington. He said university officials are pursuing federal funding and other possible grants to come up with the estimated $8 million needed to bring the building up to a fully functional facility for the graphic arts and design program. Currently, there is no timetable for when the building might be ready.
But the university will do some maintenance this fall on the building. Kopp said the fire marshal ordered installation of some type of temperature control system to keep the sprinkler system from freezing in the winter.
Marshall paid $1.15 million for the property.
West Virginia Supreme Court Justice Brent D. Benjamin swore in new board members. They included student representative Edward Pride, Joseph McDonie and Oshel Craigo. Michael Sellards, who is president of St. Mary's Medical Center, is serving another term on the board.
Craigo, a former West Virginia senator, is owner and operator of Better Foods, Inc. He lives in Winfield. McDonie is chief executive officer of Rock Branch Community Bank, Inc., in Nitro, W.Va. He lives in Milton.
The board also gave its conditional approval to fee changes for the 6-year-old Marshall University-India Master's of Business Administration program.
Provost Gayle Ormiston informed the board about a bill being considered by Indian Parliament that require foreign universities teaching in India to make substantial financial deposits to the government. If the Foreign Educational Institutions Bill passes later this year, the Lewis College of Business would cease the current structure of the program, which includes professors traveling to Bangalore during semester breaks and in the summers to teach core courses.
Instead, the students would be welcome to take the three semesters of courses in Huntington, with the first class starting May 2011 and graduating in May 2012. If it proves successful, Ormiston said they would like to see it continue.
But the fees for the Indian students would be a bit higher. They currently pay $3,000 per semester, but it would increase to a total of $15,000 for the entire three semesters.
