DALLAS -- Kansas State University is launching a $65 million redesign of the north end zone of its Bill Snyder Family Football Stadium in Manhattan, Kansas, the third phase of an expansion plan announced in 2010.
The university expects to fund the next phase of its stadium expansion through contributions, about 70% of which have already been raised, according to KSU athletic director John Currie.
In 2012, K-State Athletics Inc. issued $56 million of revenue bonds through the Kansas Development Finance Authority for the now-completed Phases 1 and 2 of the project, valued at $75 million. Those bonds carried ratings of A-minus from Standard & Poor's and A1 from Moody's Investors Service.
K-State Athletics, Inc., formerly known as the Intercollegiate Athletic Council of Kansas State University, was formed in 1933 to support all of KSU's athletic programs. Though the council is a separate corporation, the property, business, and affairs of the corporation are under the supervision of the KSU Athletics Board. Athletic facilities are owned by the state and used by the corporation.
The bonds are a general obligation of the corporation secured by an unrestricted, gross revenue pledge of the athletics program and a negative mortgage lien on the project property, according to S&P, which has a negative outlook on the debt.
K-State Athletics Inc. has about $83.3 million dollars of outstanding debt, according to analysts.
KSU completed redevelopment of the stadium's west stands for the 2013 football season.
The north end zone project will more than double the size of the Wildcats' Vanier Football Complex and add 1,000 seats, along with video boards.
K-State expects to break ground on the project immediately after its final home game against Kansas on Nov. 29. Most of the construction is expected to be completed for the 2015 home opener, but portions of the northeast section and video board will not be completed until 2016, officials said.
KSU is the state's second-largest public university behind the University of Kansas.
