The E.J. Ourso Business College’s funding proposal for its $60 million Business Education Complex was unanimously passed Thursday by the LSU Board of Supervisors.The complex will receive $30 million from the Capital Outlay funding state match, $21.9 million from the LSU Foundation and $8.1 million in internal bridge loans from revenue generated by the Southeastern Conference TV rights contract, according to documents submitted to the Board.Plans for the new facility will allow the College of Engineering to entirely take over Patrick F. Taylor Hall — which currently also houses the Business College. It also allows the University to take advantage of the $30 million state match, and it would help to increase confidence in potential donors, according to Chancellor Michael Martin.”This is great for the state of Louisiana to have a flagship with something like this,” said Eli Jones, Business College dean. “This will help us retain our star faculty and to recruit new faculty — this will be a huge draw for potential new faculty members.”The Business College hopes to take bids from contractors during the next two to three months and to break ground in the beginning of 2010, Jones said. Once ground is broken, Jones said he hopes the school will move into the facility within 18 to 24 months. The bridge loan from the SEC TV rights contract outlined in the proposal is needed to bridge the gap between the actual amount of funds raised and the fundraising goal — actual construction costs cannot be determined until the project is bid, but according to Martin, bidding can’t occur until proof of funding is established.”Fundraising has slowed because many donors, I’m convinced, are not convinced they will have a project,” Martin said. “Once we convince ourselves and donors that the project is a go, we don’t have to use the [SEC TV rights contract loan].”The SEC TV rights contract generates between $5 million and $6 million per year for the University, according to the proposal. The University initially received $1 million when the contract was signed.The loan will be paid back within 18 years with an interest rate of 4.38 percent, according to the proposal. Once the New Markets Tax Credit was deemed insufficient, administrators began a search for another plan, said System President John Lombardi.”The tax credit plan turned out to be more complicated than we anticipated,” Lombardi said. “So the [LSU Foundation] worked with donors and friends to make this new system.”____
Contact Lindsey Meaux at [email protected]