WILLIAMSBURG –The College of William & Mary’s plan to replace 80 percent of its student housing and build a new dining hall moved a step forward with the approval of a request from the city’s Economic Development Authority to allow for the issuance of up to $350 million in tax-exempt bonds to fund construction. The City Council unanimously approved the sale at its May 11 meeting.
Neither the city nor the EDA are responsible in any way for repaying the bond debt, which is being orchestrated by the Provident Resources Group Inc., a nonprofit whose “primary mission is to assist higher education institutions with financing capital projects,” according to Steve Hicks, president and CEO of the firm, which is headquartered in Baton Rouge, LA.
“The bonds must be issued by a duly authorized entity in the state they are being offered, which is why we went through the EDA,” Hicks said. “But they are secured by a ground lease with the college, and the improvements which will be constructed on the grounds. The city is just serving as the conduit through which the bonds are issued.”
The bonds will be repaid with the revenue generated from student housing and dining fees. Hicks expects the bond sale to take place by June 30.
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