Trustees consider borrowing 58 million for improvements

The university has already completed other projects totaling 26 million.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- The Youngstown State University Board of Trustees is looking at borrowing more than 58 million to help finance 101 million in campus improvements.
That's the projected share of the total program cost that the university will have to come up with, if the trustees decide to move forward with the centennial master plan as proposed by the administration.
The plan isn't final yet, and the trustee's Finance and Facilities Committee is scheduled to address the issue at a meeting Thursday.
Other major financing sources include nearly 30.5 million in state capital funds and more than 8 million in philanthropic gifts.
A new Williamson College of Business Administration to be built off the southern edge of campus, providing a closer campus link to the downtown business district, is the largest single item on the project list with a cost estimate of 30 million.
But new buildings aren't the only thing on the master plan. There are property maintenance projects, athletic field improvements and extensive campus parking and gateway improvements and more on the list.
Overall outlook
The 101 million isn't even the entire list of improvements YSU is contemplating.
The university has already completed nearly 26 million worth of work, bringing the total package to 127 million.
The campus bookstore project and the new 12.1 million Andrews Student Recreation and Wellness Center (which was financed entirely from philanthropic gifts) are items that have already been completed. Both opened in fall 2005.
Trustees, reviewing the 101 million project list at a recent retreat meeting, appeared to be generally enthused about the plan.
"I'm very excited about this," said Trustee Millicent Counts. It's wonderful both for the university and for the city, she said.
It's important to invest in the university, to show the community that we are going to be here, said Trustee Dr. H.S. Wang.
Still, there was some caution expressed about the scope of the work.
Trustee Dr. Sudershan Garg questioned how realistic the cost estimates are for the remaining 101 million worth of work.
They are "target budget numbers," said Hunter Morrison, director of the university's Center for Urban and Regional Studies.
The estimates were carefully derived and should be close to actual costs, he said.
The university is in good shape financially in terms of borrowing money for the program.
It has low debt now and a solid bond rating that will get it a good interest rate for borrowing the money, according to a report presented to the board by NatCity Investments Inc.
The investment counseling firm told the trustees that YSU could comfortably handle a 40 million to 60 million bond issue.
Dr. David C. Sweet, YSU president, made it clear that all of the items on the list are still just proposals until the trustees finalize the centennial master plan. There are no surprises on the list, he said, explaining that all of the work has been talked about before.
Now, the university has to put together a financing package to make it happen, he said.
gwin@vindy.com