Regents Approve Design, Budget, Bond Issue for New Residence Hall

CAPE GIRARDEAU, Mo.,

April 22, 2008 – The Southeast Missouri State University Board of Regents today approved the design and budget for a new residence hall and agreed to issue bonds to finance construction of the new facility.

Jacobs Engineering Group, in partnership with Treanor Architects, has been selected to provide architectural services for the building to be constructed at Broadway and Henderson. KAI Design & Build has been engaged to provide construction administration services.

The Regents approved a $23.2 million budget for the new facility to be situated adjacent to Myers Hall and Vandiver Hall near the main entrance to the campus. In addition to construction costs, the budget includes architectural and engineering fees, construction administration services, telecommunications and furnishings, said Kathy Mangels, vice president for business and finance.

The current design calls for an 82,000-square-foot, L-shaped structure expected to house 306 beds. The building will feature a suite-style community design with double occupancy student rooms connected by shared bathrooms, she said. The building will have multiple small living rooms throughout, a large game room and a laundry room, she said. Study lounges will be located on each floor, and a dining facility will be located on the first floor. Part of the ground level that opens on to Houck Field will be used for a locker room for the University’s football and soccer programs. Mangels said a series of paved courtyards that will include an outdoor eating area will be constructed in the open area between the new residence hall and Vandiver Hall.

She said the budget approved today does not include the interior finish and furnishings of a dining facility and the locker room, which will be completed separately.

Major construction packages are anticipated to be bid in June, with the residence hall expected to be ready for occupancy by fall 2009, Mangels said.

In related action, the Board approved a resolution to issue System Facilities Revenue Bonds Series 2008 to finance construction of the new building, establish a debt service reserve fund and cover the associated costs of the bond issue. Edward Jones has been engaged as the bond underwriter, Mangels said.

The sale of Series 2008 bonds will generate $23.2 million in proceeds for the design, construction and furnishing of the new residence hall, she said. In addition, $2.2 million of the bond proceeds will be used to renovate and furnish Henderson House, a former apartment building at 373 N. Henderson that will be converted into a University residence hall with suite style housing. The debt service for both projects will be funded with additional housing contract and meal plan commission revenues.

Another portion of the bond proceeds — $10.2 million — will be used to fund other system projects as approved by the Board in February, including expanded residential parking, residence hall security upgrades and installation of fire sprinklers in all residence halls, Mangels said. The debt service on this portion of the project will be paid from capital improvement funds budgeted annually by Residence Life, she said.

Mangels says using these funds to finance bond proceeds will allow the projects to be completed sooner than annual allocations would have allowed.

She says market conditions, from time to time, pave the way for refunding opportunities for existing system facilities bonds in which changes in interest rates may result in annual debt service savings. Series 1998A and Series 1998B bonds are eligible for current refunding, Mangels said. Series 1998A bonds, which financed the addition to the Student Recreation Center, have $7 million in outstanding principal. Series 1998B bonds, which financed renovations to Group Housing facilities, have $8.4 million in outstanding principal. The University will recognize a reduction in debt service payments on these two bond issues of $41,000 to $51,000 annually over the remaining 20-year life of these bonds, she said.