Board of Visitors minutes :: February 9, 2007 :: University of Virginia Library

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 debt; 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 short-term financing to each project 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

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WHEREAS, the authority for the University to enter into financing arrangements exceeding sixty months in maturity for each project 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 debt, 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 debt to be issued by the University incurred for each project;

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

3. The maximum principal amount of debt expected to be issued for the purpose of reimbursing expenditures relating to each project is as follows:

ACADEMIC DIVISION

Upgrade Main Heat Plant (requested) = $3,500,000
(total of all requests = $32,464,000)

Renovate and Expand Rouss Hall (requested) = $3,500,000
(total of all requests = $43,400,000)

Acquire Advanced Research and Technology Building (requested) = $6,530,000
(total of all requests = $45,400,000)

Acquire Advanced Research and Technology Life Sciences Annex = $35,100,000

Construct Arts Parking Garage (requested) = $1,300,000
(total of all requests = $11,900,000)

Upgrade Jordan Hall HVAC = $28,900,000

Construct Printing and Copying Services Addition = $1,000,000

Acquire 214 Sprigg Lane = $4,700,000

Construct Gateway to the Arts = $57,500,000

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Construct JAG School Addition = $50,000,000

Construct Alderman Road Residences = $29,400,000

Construct ITC Data Center Building = $12,900,000

Expand University Bookstore = $3,600,000

Construct University Center = $30,000,000

Acquire Health System North Parking Garage (requested) = $15,000,000
(total of all requests = $43,000,000)

MEDICAL CENTER

Acquire Blake Center = $3,700,000

Construct University Hospital Mixing Box = $23,890,000

COLLEGE AT WISE

Renovate Greear Gym & Pool and Construct
Recreation Center = $13,050,000

RESOLVED FURTHER, that each project is a separate enterprise independent of other projects, and that the authorization for funding relates to each individual project; and

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

1. The Board of Visitors approves the current resolution;

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

3. Short-term financing shall not exceed sixty months in maturity; and

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