University of Georgia Regents OK Projects Needing $1.7B of Debt

BRADENTON, Fla. — The University System of Georgia Board of Regents Tuesday approved more than 100 projects for which $1.7 billion of general obligation bonds are expected to be sold over the next six years. The debt is part of the university system’s first comprehensive strategic process to develop a multiyear plan for new construction, renovation, and infrastructure projects needed to meet a projected additional 100,000 students in the state’s 35 public college and university campuses by 2020.The capital planning model, approved by the board in August, is designed to build capacity in key areas around the state to provide facilities to accommodate higher enrollment in future years.The system includes four research universities, two regional universities, 13 state universities, seven state colleges, and nine two-year colleges. There currently are more than 260,000 students and approximately 11,000 faculty and 28,600 staff at various campuses, including the University of Georgia in Athens and Georgia Institute of Technology in Atlanta.“The new strategic capital model enables us to better integrate planning for buildings on our campuses into the board’s strategic plan as well as with individual institutions’ long-term campus master plans,” Linda Daniels, vice chancellor for facilities, explained in a presentation to the board on Tuesday. “With this new planning model, we are moving away from a year-to-year view to a more strategic, long-term approach that will result in a more efficient and effective use of state resources.”The six-year capital implementation program is designed to provide the board with a comprehensive, long-term view of needed general obligation bond capital investment, university officials said. The capital implementation program will be reviewed annually.GO debt requested by the Board of Regents is sold through the Georgia State Financing and Investment Commission. In addition to approving the new CIP, the board on Tuesday also approved the issuance of $78 million of GO bonds by the commission for various projects. No details were available about when the bonds would be sold.The board also approved the issuance of $75 million of revenue bonds by the Georgia Higher Education Facilities Authority. Bond proceeds will be used at six colleges and universities for revenue-generating projects such as student housing and parking facilities. The transaction represents GHEFA’s first bond sale. However, no other details were immediately available.The authority was created by an act approved by the 2006 General Assembly and signed by the governor. By law, GHEFA can issue up to $300 million of revenue bonds to finance various self-supporting capital projects for the Board of Regents and the Department of Technical and Adult Education.