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2004 Session

Budget Amendments - SB30 (Member Request)

Chief Patron: Norment
CWM - New School of Business Facility

Item C-15.1 #3s

Item C-15.1 #3s

First Year - FY2005 Second Year - FY2006
Education: Higher Education
The College of William and Mary in Virginia FY2005 $40,000,000 FY2006 $0 NGF

Language
Page 395, line 13
"1.  Subject to Section 4-4.01x of this act and approval of a Final Project Proposal by the Commonwealth of Virginia, the General Assembly authorizes the College of William and Mary with the approval of the Governor, to explore and evaluate an alternative financing scenario to support construction of a new school of business facility or facilities on the main campus of the College.
2.  The General Assembly authorizes the College of William and Mary to enter into a written agreement with the School of Business Foundation or other private entity to design, construct and finance a facility or facilities to provide classroom, faculty office, and other operational related academic and support space for the College's School of Business.  The facility, or facilities, may be located on property owned by the Commonwealth of Virginia.  The College of William and Mary is also authorized to enter into a written agreement with the School of Business Foundation or other private entity to lease a suitable site to the Foundation or private entity and to lease the facility or facilities from the Foundation or private entity once constructed.
3.  The General Assembly further authorizes the College of William and Mary to enter into a written agreement with the School of Business Foundation or other private entity for the support of the facility or facilities by including the facility or facilities in the College's facility inventory and managing its operation and maintenance, and by otherwise supporting the facility or facilities consistent with law, provided that the College shall not be required to take any action that would constitute a breach of the College's obligations under any documents or other instruments constituting or securing bonds or other indebtedness of the College or the Commonwealth of Virginia.
4.  The General Assembly further states its intent to permit construction of this project in accordance with state law but without central agency review with agreement by the School of Business Foundation or other private entity to provide from private funds a substantial majority of the cost of the project and the funds necessary to retire any related debt service."

                             
"C-15.1 School of Business Building (16648)
$40,000,000
 
 
Fund Sources: Higher Education Operating
Bond Proceeds
$40,000,000"
 
 



Explanation
(This amendment authorizes the College to issue up to $40 million in 9(d) debt for the construction of a new School of Business. With this debt authorization, the College anticipates reducing the need for previously authorized NGF cash by $15.0 million. With these adjustments, in total, the project is expected to cost $60 million to be paid for with $20 million in NGF cash and $40 million in 9(d) Bonds. Debt service on the bonds will be paid from private funds and student fees.)