May 20-21, 2004
ITEM 123-2002-R0504 Authorization to Construct a Student Facilities Enhancement Project; Montana State University-Bozeman
THAT: Consistent with the provisions of MCA 18-2-102 (b), the Board of Regents of the Montana University System authorizes MSU-Bozeman to construct a Student Facilities Enhancement Project at MSU-Bozeman. The estimated cost for this project is $28,000,000.
EXPLANATION: 1. MSU's Strand Union Building, Health & Physical Education facility and Theater facility have obsolete spaces, significant deferred maintenance, and require major renovation to meet student needs for the next decade. MSU crafted a 3-element project to address the needs in these facilities and student government approved the concept and put a referendum before the students.
2. In April, 2004, the MSU student body passed the referendum approving the Student Facilities Enhancement Project and assessing a student fee which will generate sufficient revenue to retire a significant portion of the project debt and to cover associated O&M costs.
3. This project will be financed through the sale of bonds that will be repaid with a combination of non-state funds from Auxiliary Operations Revenues (Renewal and Replacement Budget) in excess of debt service obligations and student fees recently approved for the purpose by the student body.
This Item provides MSU the authorization to proceed with the design and construction of this facility. However, construction will not proceed until satisfactory funding, primarily through the sale of bonds, has been secured. This Item does not authorize the sale of bonds. MSU must request that authorization from the Board of Regents at a future meeting.