University of Virginia Library

APPROVAL OF INTENT TO ISSUE BONDS FOR CAPITAL PROJECTS

WHEREAS, the University intends to undertake the following capital projects with bond financing as a funding source:

• 1. Advanced Research and Technology Building (acquisition)


• 2. Alderman Road Housing, Phase I


• 3. Main Heating Plant Modification


• 4. Hospital Expansion (supplement)


• 5. MR-6


• 6. Performing Arts Center


• 7. Rouss Hall Renovation and Addition


• 8. Wise Residence Hall II


• 9. Children’s Medical Center; and

WHEREAS, the United States Department of the Treasury has promulgated final regulations in Section l.l50-2 of the Treasury Regulations governing when the allocation of bond proceeds to reimburse expenditures previously made by a borrower shall be treated as an expenditure of the bond proceeds; and

WHEREAS, the Regulations require a declaration of official intent by a borrower to provide evidence that the borrower intended to reimburse such expenditures with proceeds of its bonds; and

WHEREAS, the Board of Visitors of the University of Virginia desires to make such a declaration of official intent as required by the Regulations; and

WHEREAS, the University may be required to provide shortterm financing to the projects prior to issuing long-term debt

in order to implement an efficient and timely construction schedule; and

WHEREAS, the University has funding mechanisms to accommodate short-term financing needs, defined as a period of less than sixty months; and

WHEREAS, the authority for the University to enter into financing arrangements exceeding sixty months in maturity for the projects listed is not included in this resolution; and

WHEREAS, if the University arranges short-term financing for a particular project, and if the project is not ultimately completed, or if the project utilizes funding sources other than bonds, then the appropriate school or unit remains responsible for refunding the short-term obligation;

RESOLVED that, pursuant to the terms of the Treasury Regulations, the University of Virginia declares its intent to reimburse expenditures in accordance with the following:

• 1. The University reasonably expects to reimburse expenditures from the issuance of tax-exempt bonds to be issued by the University incurred for the projects;


• 2. This resolution is a declaration of official intent under Section 1.150-2 of the Regulations;

3. The maximum principal amount of bonds expected to be issued for the purpose of reimbursing expenditures relating to these projects is as follows:
• a. Acquisition of the Advanced Research and Technology Building -- $15.0 million


• b. Construction and replacement of Alderman Road Housing (Phase I) -- $22.5 million


• c. Renovations to the Main Heating Plant -- $19.8 million


• d. Construction of Hospital Expansion (Supplement) -- $31.6 million


• e. Construction of MR-6 -- $41.5 million


• f. Construction of the Performing Arts Center -- $13.2 million

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• g. Renovation and construction of Rouss Hall/Commerce School Project -- $33.0 million


• h. Construction of a new residence hall at The University of Virginia’s College at Wise -- $6.4 million


• i. Construction of a new Children’s Medical Center -- $11.0 million; and

RESOLVED FURTHER that these enumerated projects are separate enterprises independent of one another, and that the authorization for funding relates to each individually; and

RESOLVED FURTHER that funds may be borrowed for the projects on a short-term basis, but only if the following conditions are met:

• 1. The Board of Visitors approves the current resolution;


• 2. The Commonwealth of Virginia specifically authorizes the use of debt financing for the enumerated projects;


• 3. A comprehensive and detailed financial plan for the school/unit project is submitted;


• 4. Short-term financing shall not exceed sixty months in maturity;


• 5. The school or unit remains responsible for any debt obligation incurred regardless of the status of the capital project or whether or not a bond issuance actually occurs.