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FAU Board of Trustees Meeting (Stadium on agenda)

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FAU Board of Trustees Meeting (Stadium on agenda)

Source: Ted Hutton's Sun-Sentinel Blog

So, why am I here, at the FAU BOT Audit and Finance Committee meeting?

Because AF:1-2 on the agenda is titled – Update on the Status of the Stadium Project.

(If anyone wants to listen live – dial 888-207-9997 Password: FAU Owls, but I have no idea when stadium will come, other than it should be before noon)

That comes after what should be a scintillating review of four audits, including employee time cards, and Financial Reporting and Federal Awards in Accordance with OMB Circular, among other things.

Then, if I remain awake, David Kian is supposed to update the BOT on the stadium.

The meeting was supposed to start at 10, but folks are slow in gathering because there was a groundbreaking for Innovation Village that all the honchos were at.

To get folks caught up – This was supposed to be the meeting where the finalized financing plan was to be submitted to the BOT.

But, as followers of the stadium project are keenly aware, nothing with this project gets done on time, so this is now just an update, with next month's meeting the big one.

And they have to make that deadline, because they have to have the finalized plan to the state Board of Governors for its June meeting for what will be the final approval needed in order to get a shovel in the ground.

If they don't make that, they won't start construction in time to be open by the start of the 2011 season.

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Re: FAU Board of Trustees Meeting (Stadium on agenda)

Part II

Amazingly remained awake during review of audits. Do you want FAU to tag every piece of property, or just that worth more than $1,000, which is what they now do?

Oh, wait, I am here a more important reason….

Here's the Reader's Digest version of what just went down…I will be back with more after chatting with some of the individuals….

"We are on track, we are on schedule, we are moving forward," said David Kian, who has been heading up the stadium project.

What is going to happen is FAU is going to make Regions Bank the lead lender, and build a syndicate of banks who will loan FAU $62 million (no bonds will be sold).

The overall project is expected to cost $74 million, with FAU using $12 million from the lease of land for the dorms being built at Innovation Village to cover the rest.

FAU has already spent $7 million to this point, paying architects and others to keep working.

Kian said Craig Dunlap, the outside financial consultant (who did the same thing for UCF when they built their stadium), is "very comfortable" with the current proposal, and will recommend the BOT to approve in next month.

That recommendation carries a lot of weight and pretty much cinches the deal.

What's next is negotiations will continue to put together the banks that will make the loans and also to get some concrete pledges from donors and come back to this same Finance and Audit Committee to get approval before the May 26 full BOT meeting.

After that comes state approval in June.

And after that, shovels can start moving earth.

If they start work in July, the stadium will be ready for a Sept. 2011 opening.
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Re: FAU Board of Trustees Meeting (Stadium on agenda)

Link to the blog! ;D
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Re: FAU Board of Trustees Meeting (Stadium on agenda)

Rick said

Link to the blog! ;D

in case anyone does not trust my copy and pasting skills…  ;D
http://weblogs.sun-sentinel.com/sports/college/fau/blog/2010/04/live_fau_board_of_trustees_mee.html
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Re: FAU Board of Trustees Meeting (Stadium on agenda)

Part III

Some quotes from the movers and shakers who were breaking for lunch after hearing the update on the stadium….

Board of Trustee member Armand Grossman: "We are on track and I am looking forward to opening kickoff in September 2011 and that will absolutely dramatically change the complexion of Florida Atlantic University".

"I have often stated that game day on an American college campus is one of the most unique events in the lore of Americana. It builds such an affinity with the alumni, with the community, with student athletes."

"I am very much energized about having a stadium on campus."

Howard Schnellenberger: "I think it's a wonderful thing that we have been able to move the process to what you just heard. Now it is going to come to a vote and we'll see what happens. I am cautiously optimistic." (said with a smile).

The big nut for FAU is this – a $4 million mortgage due each year for 30 years to pay off the $62 million loan.

That comes through ticket sales, donations, etc.

Bottom line, doable.

One potential glitch: State Board of Governors has to approve if money generated by one area (in this case the $12 mill from housing) is shifted to fund another area (in this case the stadium).

But Kian said they have provided state with all the material they have requested and gotten favorable reaction. (And, remember, ex FAU Prez Frank Brogan is in charge of the BOG. Don't think he would let them cut FAU off at the knees this late in the process).


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Re: FAU Board of Trustees Meeting (Stadium on agenda)

Good stuff. Thanks for the info. I too am cautiously optimistic. Emphasis on the cautiously.  ;)


GO OWLS!!!

You can run kitties, but you can't hide!!!
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Re: FAU Board of Trustees Meeting (Stadium on agenda)

I really think people should link to blogs instead of posting their content here and citing them. Ted's blog survives on the amount of traffic his writing gets. No traffic, eventually no Ted.

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Re: FAU Board of Trustees Meeting (Stadium on agenda)

I definitely agree that Ted's blog traffic is important. Moreover, I'm 100% sure that everyone here reads Ted's blog on a consistent basis, so they've seen it already.

P.S. I don't respond to guest posts. All guests are encouraged to register with the site.
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Re: FAU Board of Trustees Meeting (Stadium on agenda)

owlcountry said

I definitely agree that Ted's blog traffic is important. Moreover, I'm 100% sure that everyone here reads Ted's blog on a consistent basis, so they've seen it already.

I'm not so sure. I think 100% of the regulars here do, but those just passing through on occasion do not.
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Re: FAU Board of Trustees Meeting (Stadium on agenda)

What gets me VERY excited is this line:
"What is going to happen is FAU is going to make Regions Bank the lead lender, and build a syndicate of banks who will loan FAU $62 million (no bonds will be sold)."

To me, this means that FAU has evaluated all of our revenue sources and feels VERY confident that we don't need to get tied up in the bond market. We'll be able to come to the table with enough cash to just get a loan.

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