University of Virginia Library

State Plan Finances Building

Under the state's plan to finance
dormitories and other facilities at five
state colleges and universities by the
issuance of $23.6 million in revenue
bonds, the University would receive
$800,000, as repayment for planed
construction.

Both Gwathney House, a 118 bed
addition to Mary Munford Hall, which
was completed in 1970 at a cost of
$600,000, and a new Nursing School
garage now under construction will be
paid for by the state in the proposed bond
issue.

According to a Memorandum from State
Treasurer Walter W. Craigie, "We have limited
this issue to projects where engineering and
revenue estimates already have been completed
and where the total costs of the project could be
ascertained." The only University projects
covered by the bond issue, therefore, would be
the dormitory and garage.

The proposed bill called for the issuance of
$23.6 million in revenue bonds, backed by the
full faith and credit of the state. According to
Mr. Craigie, the new financing method would
mean an estimated savings of $6.5 million to
$10 million in interest charges over the
maximum 30-year span of the bonds.

The proposed bond issue would cover
projects already authorized by the 1970
General Assembly as separate revenue bond
projects of the various institutions.

Other state colleges and universities
benefiting from the new bond issue include
Longwood College which will receive $4.25
million for dormitories for 800 students, and
Madison College which would receive $9.85
million for dormitories, a physical education
building, and a student activities center.