SBHE Committee OKs UND deferred maintenance project
Pat Sweeney | Jan 15, 2019 AT 4:59 pm
A revised UND proposal for an $80 million capital project addressing deferred maintenance was approved today (Tue) by the State Board of Higher Education’s Budget and Finance Committee.
The project would be funded with North Dakota Building Authority Bonds, paid back with UND operating funds.
A previous proposal to repay the bonds with money from tuition rate increases was rejected late last year.
UND also outlined specific core academic buildings to be addressed, many in the “quad” area, including Twamley Hall, which will include more academic and student affairs activities.
In all, UND says it faces more than $500 million in deferred maintenance.
Board member Nick Hacker said, “If we don’t do something, the project continues to get worse, the dollar amount will continue to go up.”
Hacker added, “I appreciate that UND is willing to address these deficiencies and internally pay for the bond servicing.”
Hacker called the proposal “much more responsible” than the previous one, and said he believes “UND has the ability to afford the service on this debt.”
UND says the project’s debt service is estimated at about $5.3 million a year for 25 years.
The project must still be approved by the State Board, then the Legislature.