DALLAS — Laredo Community College District is preparing to start construction of a health sciences center, a health clinic, and other campus additions after it issues $100 million of general obligation bonds July 16.
The deal will price through negotiation with Wells Fargo Securities as senior manager. Estrada Hinojosa & Co. is the district's financial advisor.
The bonds will carry ratings of AA-minus from both Standard & Poor's and Fitch Ratings, with stable outlooks.
"The district's financial position remains sound despite a small deficit in the most recent fiscal year due to state funding cuts, counter-cyclic enrollment losses above budget, and some non-recurring costs," said Fitch analyst Rebecca Moses. "Operations are aided by the college's diverse revenue base, ample taxing margin, and tuition-raising flexibility."
Laredo voters approved the bonds May 10 with nearly 64% in favor.
Funds from the bond issuance will allow LCC to move forward with its plans to bring new technology, construct new facilities and renovate of many of the college's current buildings at its two campuses, according to LCC President Dr. Juan L. Maldonado.
Among the projects funded by the bonds is a three-story health sciences center with a community clinic at LCCD's South Campus, and an oil and gas program facility at its Fort McIntosh Campus.
Other projects include a new student union building at the LCC South Campus and the renovation of the Harold R. Yeary Library, including added space and expanded tutoring services.
The bond funds also will provide for renovations to the Cigarroa Science Building and Guadalupe and Lilia Martinez Fine Arts Center at the Fort McIntosh Campus, and the construction of a new science building, as well as general infrastructure, safety and technology projects at both campuses, officials said.
The city of Laredo continues to grow rapidly, with an estimated 2014 population of 267,000 with an average annual increase of nearly 3% since the 2000 census, slightly higher than the state's 2% growth rate. The population of its nearby sister city in Mexico, Nuevo Laredo, is estimated to add another 300,000 to the combined metropolitan center.
The South Texas region is experiencing an economic boom from oil and gas production in the Eagle Ford Shale play that ranks as one of the top sources of energy in the United States.
