Pratt Community College is one step closer to a new track and field facility.
A new track and field facility is one step closer to reality and Dec. 3 is an important date in that process.
On Monday, Nov. 19, the Pratt Community College Trustees passed a resolution authorizing the sale of City of Pratt revenue bonds to finance that track and field facility, said PCC Vice President of Finance and Operations Kent Adams.
Stifel Nicolaus was chosen out of nine bids as the underwriter company to finance the bonds because of their lowest interest rate, Adams said.
The resolution sets limits to the principal and interest for the bonds. The principal on the bonds must not exceed $2.9 million and the interest rate must not exceed 4.25 percent, Adams said.
As of Nov. 19, both the principal and interest rate are below the limits but those numbers could change before the bonds are marketed. As long as the principal and interest stay below the resolution limits, the bond issue will move forward, Adams said.
Payments on the revenue bonds will go through the PCC Foundation. The college will send payments to the Foundation that will in turn send the payments to the bond trustee.
The college will continue its fund raising efforts to finance payments for the revenue bonds. Currently, the college has received several major gifts. They have raised $2 million in federal grants, received $250,000 from the Sunderland Foundation and have a $1 million challenge grant. Other gifts have come in and the college will continue to raise funds for the project, Adams said.
On Dec. 3, several important parts of the process will take place. The final price for the revenue bonds will be set, the city of Pratt will approve the bond ordinance and resolution, the PCC Foundation will approve the lease agreement with the city of Pratt, the PCC Trustees will approve the lease agreement with the foundation.
The college is working with the city of Pratt to issue the revenue bonds on this project because the city has the authority to issue the bonds but PCC does not. Financial responsibility for the bonds is entirely up to PCC. The city of Pratt has no financial responsibility, they are the conduit for the bonds, Adams said.
Since the track and field facility is on city property, they will own the facility and college will lease it, Adams said.
Trustees also approved the Law Company, a construction company, to start the design phase of the project. The Law Company will work with EBH in Pratt on the design of the field. Cost of the design portion of the project is $106,000 and the anticipated design completion date is Jan. 21, 2019, Adams said.
Bids for the project will go out immediately after the design is completed with Feb. 11, 2019 as the anticipated date to open bids that are not to exceed $3.5 million for the total project. On Feb. 18, 2019, the Trustees are anticipated to approve moving forward with construction on the project. Substantial completion of the project is projected for Oct. 16, 2019, Adams said.
Trustees also got some good financial news for the college. Standard and Poor Financial Services, a company that provides financial research and ratings, has given Pratt Community College an A+ stable rating that means the college is in very good financial health and its ability to meet its financial obligation is strong.
“Its a pretty good rating,” Adams said.