Austin Community College has decided to issue $45 million in bonds for the construction of its campus in Kyle. ACC news release:
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The Austin Community College District Board of Trustees has approved the issuance of lease revenue bonds for Hays Campus. The action finalizes the financing for construction of the campus in Hays CISD.
“This allows ACC to take major steps forward, and we are now on the road to breaking ground,” says Ben Ferrell, executive vice president for finance and administration. “We are extremely pleased with the terms of the bonds and look forward to getting the campus under construction.”
The bond issuance will be approximately $45 million, with $10 million to cover the cost of the 96-acre land purchase in Kyle and associated fees. The remaining $35 million will constitute the project budget. ACC secured an interest rate of 4.17 percent, the lowest for a construction project in the college’s history.
“The interest rate is a great benefit to the college and a reflection of our strong fiscal position,” says Ferrell. “While the legal challenge recently resolved in the college’s favor led to a smaller bond issuance than originally planned, this campus will deliver on all of the college’s promises to Hays CISD voters. It will be a source of pride for both ACC and the community.”
With the budget for the project set, ACC next will negotiate a contract with the construction manager-at-risk, Flintco Constructive Solutions. The college expects to break ground in late summer or early fall.
When the groundbreaking is determined, the college will be able to set a projected opening date for the campus.
The bonds received an AA rating from Standard & Poor’s and an Aa2 rating from Moody’s. The rating agencies cited factors including ACC’s history of sound financial performance, growth in the district’s tax base, and continued demand for college offerings.