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FAU trustees approve $44.6 million loan for football stadium construction

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FAU trustees approve $44.6 million loan for football stadium construction

LINK:  FAU trustees approve $44.6 million loan for football stadium cons | www.palmbeachpost.com


FAU trustees approve $44.6 million loan for football stadium construction

By Samantha Frank Palm Beach Post Staff Writer

Posted: 4:05 p.m. Wednesday, July 21, 2010

The building of a 30,000-seat football stadium at Florida Atlantic University is one step closer to reality.

The board of trustees today voted to approve a financing plan for the stadium, in which the university will borrow about $44.6 million from Regions Bank.

The project is expected to cost a total of about $70 million, with about $20 million coming from the university and University Foundation and $5 million from the related Innovation Village student housing project budget.

Assuming the board of governors approves the financing plan at its Sept. 16 meeting, construction will begin immediately and is expected to be complete by either September or October 2011. The first home football game in 2011 is scheduled for Sept. 25, so it's unclear if they will be able to play in the new stadium. Preliminary site work for the stadium has already begun, including laying foundations and infrastructure.

University General Counsel David Kian said that the university has six years of operating experience at Lockhart Stadium in Fort Lauderdale, where the football team plays many of its home games.

FAU is required to pay back about $2.6 million per year for the loan, which shouldn't be a problem, according Kian, who said the university's revenue projections are "exceptionally conservative." The 2012-2013 school year projections show the stadium bringing in about $6.9 million, and that number is expected to rise each year.

If for some reason the university can't pay back its debt, the burden will not fall on taxpayers, Kian said, because it's a non-recourse operating revenue loan, meaning that the bank doesn't have access to FAU's other assets, which are state assets, and must depend solely on revenue from the stadium.

It's considered a high-risk form of financing, which is why it took FAU so long to secure a proposal, Kian said.

"(The bank) has nothing other than pledged revenues," he said, which include all of the money generated from the stadium (tickets sales, concessions, naming rights, etc.), and 5 percent of student athletic fees, as allowed by state law.

* Sun Belt Champions & New Orleans Bowl Champions-2007
* Motor City Bowl/Little Ceasers Pizza Bowl Champions-2008
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Re: FAU trustees approve $44.6 million loan for football stadium construction

Am I the only person grinning like an idiot while reading this?

Teambeer is the most knowledgeable FAU sports fan I know, way smarter than me.
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Re: FAU trustees approve $44.6 million loan for football stadium construction

walty12 said

Am I the only person grinning like an idiot while reading this?

NOPE!

* Sun Belt Champions & New Orleans Bowl Champions-2007
* Motor City Bowl/Little Ceasers Pizza Bowl Champions-2008
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Re: FAU trustees approve $44.6 million loan for football stadium construction

walty12 said

Am I the only person grinning like an idiot while reading this?

Absolutely not!!!

I know there was a lot of frustration along the way and a lot of "just get it done already" shouts from the gallery but it looks like we've arranged a great deal for the University.

This is so freaking awesome!!!
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Re: FAU trustees approve $44.6 million loan for football stadium construction

Does anyone remember the "Blue Shovel Campaign" to convince the BOT to approve a stadium?

FAU - THE REAL SLEEPING GIANT
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