Revenue Bond Issuance Series 2022 for NMSU Campus, Features New Improvement Projects
Earlier this semester, NMSU officials proposed and approved a $28 million revenue bond that will be allocated to improve certain major spaces on campus. From the Corbett Center to the athletics locker room, this link is designed to directly benefit student spaces on campus.
The revenue bond targets four separate projects, the University Recreation Centers, Aggie Memorial Stadium, the Corbett Student Union and the Pan American Center. The first project targeting university recreation is allocating $3.8 million to upgrade and improve the activity center and the aquatic center.
Revenue bonds can only be used to finance public projects and by public projects such as the construction, reconstruction, maintenance, repairs and/or improvement of a facility. Typically, facilities that generate revenue like the Pan Am Center or football stadium, and these restrictions are imposed on NMSU at the state level.
Elements of this project include outdoor fitness center expansion, locker room renovations, pool filtration system replacement, fitness equipment replacement and upgrade, new pool lighting interior and the addition of an outdoor shower.
The second project allocates $15 million to Aggie Memorial Stadium, which will provide all NMSU athletes with a new track and field locker room addition, regardless of the sport they play. This addition will give athletes direct access to the field and provide emergency access for security reasons.
There will also be a training area and larger equipment room to promote good health, mental health and nutrition services for student-athletes. Office space for staff and graduate assistants will also be made available in addition to a student athlete lounge to enhance recruitment. Finally, there will be a video and film viewing room for NFL teams and scouts to view plays and conduct official business.
The third project is designed to make improvements to the Corbett Student Union. Since Corbett is the most used student space on campus, $5.9 million is allocated to upgrade fire alarm and HVAC systems. In addition, the Esports team will benefit from an expansion and renovation of its lounge. Finally, there will be a variety of student-recommended projects that are designed to directly enhance the student experience.
Finally, project four will provide upgrades to the Pan Am Center, replacing the sound system, upper bowl, lower bowl, and telescoping platform seats, which total $3.3 million.
NMSU Regent Neil Bitsy, the student representative on NMSU’s top governing body, furthered the connection. “I’m very happy with it personally. So there is always a level of debt service that we are able to repay. And there is right now especially this period of time.
Regent Bitsy developed revenue bonds, “[These bonds are] issued for capital improvement projects that may generate revenue to repay the obligation. He went on to detail that these types of bonds had previously been used by NMSU and pointed to the Chamisa apartments on campus which were opened in 2007.
On August 24, 2022, the NMSU Board of Directors passed the bond and approved it the following day.
The following week, a notice was published announcing the adoption of the resolution. The bond was subsequently approved on September 15, 2022 by the Higher Education Capital Projects Committee. It now awaits final approval from the New Mexico State Board of Finance.
The tax liability that was issued will have to be repaid over the next 30 years. The revenues generated by the facilities directly benefiting from this obligation will be used to repay this obligation over time.
Regent Bitsy talked about the refund process. “Thirty years is a long time. That’s what we expected because interest rates are so high right now. We don’t expect interest rates to be that high over the next decade. At another time the board, when I’m long gone, will probably want to refinance. Bitsy said.
Regent Bitsy expects the revenue obligation to be paid off well before the 30-year waiting date with the sequel that these facilities will generate.
As a guarantee and guarantee that this deposit can be refunded by the university, the tuition fee will be used to show exactly that. Tuition fees are generally flexible on what exactly they can be used for.
If approved, most of these projects are expected to begin construction in the summer of 2023. Nevaeh Torres, a junior and member of several campus organizations, said, “I think it’s a good idea, in order to make the campus the best we can do is we have to invest in it!