VC sells $22 million in limited bonds for construction of Emerging Technology Center
Victoria College's board of trustees approved selling $22 million in bonds to a Chicago investment banking firm Monday.
The bonds will pay for the construction of the Emerging Technology Center.
Voters approved the bond project in May.
During its regular board meeting Monday, trustees approved a financing plan offered by Hutchinson, Shockey, Erley & Company.
The Illinois firm outbid eight other investors with the lowest proposed interest and sinking rate at 2.69 percent.
The approved rate is lower than the 2.97 percent rate predicted during the 2012 bond campaign.
"This means there will be less of an impact on taxpayers," said Victoria College President Tom Butler.
With the initially predicted higher rate, the owner of a $100,000 home would have paid about $30 more per year in property taxes.
Vice President of Administrative Services Keith Blundell reported improved bond ratings by two rating agencies since the issuance of bonds in 2006. Both place the college's bonds in the "high grade" category.
The center will be constructed on 16 acres of land donated by the city of Victoria, across from Caterpillar's new hydraulic excavator manufacturing facility.
"All taxpayers will benefit from the potential jobs that will come with the construction of the new center," Butler said.
Funding will be received in February, and construction on the 80,000-square-foot facility is expected to begin in the spring.