ASU System Board of Trustees Approves Measures to Advance, Fund Capital Projects
LITTLE ROCK – Creation and exploration of new financing options to fund and advance campus capital projects were approved today during a special meeting of the Arkansas State University System Board of Trustees.
The board also agreed to a $15 million investment in phase one of construction of
the Career Readiness Education & Skills Training (CREST) Center at Arkansas State
in Jonesboro. Phase one will be the first 26,000 square feet of a planned 70,000-square-foot
facility designed to enhance workforce training opportunities in advanced manufacturing,
food processing and steel production.
The ASU System will pursue the use of New Market Tax Credits (NMTC) to help finance
both the CREST Center and development of the Health Sciences Center at Arkansas State
University-Newport, said Dr. Robin Myers, interim president of the ASU System.
The federal NMTC program, authorized under Section 45D of the Internal Revenue Service
Code, provides incentives for private investment in projects located in qualifying
low-income communities. Use of the program may provide access to private investment
capital that would reduce the overall financing cost of the A-State and ASU-Newport
projects.
The board authorized the ASU System to obtain a bridge loan of up to $5 million to
assist in the financing of campus projects funded by federal, local and private sources.
Myers said the loan was a matter of cash flow to meet construction deadlines and the
timing of funds from government sources.
Trustees also approved a resolution to allow creation of corporate structures such
as limited liability companies by system institutions to potentially finance projects
including housing, academic buildings, research partnerships and intercollegiate athletics.
The move could lead to public-private partnership agreements with new or existing
private entities and the issuance of debt or other financial structures to address
capital needs. Any such agreements would require additional approval by the board.
In other business, the board:
- Authorized the board chair to appoint a task force to work on a strategic plan and define the role, scope and work of the ASU System.
- Approved A-State to grant a permanent right-of-way easement to the City of Jonesboro to construct and maintain pedestrian and bicycle infrastructure improvements.
- Approved ASU Three Rivers to grant a permanent right-of-way easement to the City of
Malvern to construct and maintain a water service line extension.
