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TSSBA approves $16 million financing for MTSU Floyd Stadium west grandstand renovation
Summary
The Tennessee State School Bond Authority approved Middle Tennessee State University’s request for $16 million in TSSBA financing to replace part of Floyd Stadium’s West Grandstand and associated systems. The 30-year financing will be repaid from athletics fees; the board voted unanimously.
The Tennessee State School Bond Authority on July 21 approved Middle Tennessee State University’s request for $16,000,000 in TSSBA financing to renovate a portion of Floyd Stadium, including replacement of part of the West Grandstand, related electrical and lighting work, and a fire sprinkler system.
The financing request, presented by Bill Waits, assistant vice president of campus planning at MTSU, and Drew Harpool, interim vice president for business and finance at MTSU, asks the authority to provide a 30-year loan. MTSU will contribute $500,000 in plant funds toward the project; the university requested $16,000,000 from the TSSBA. The estimated annual financing charge is approximately $1,317,000, which MTSU said will be paid from revenues generated by student athletics fees.
Why it matters: The project targets portions of the West Grandstand and supports that MTSU described as at the end of their useful life; the authority’s financing will allow replacement with new steel supports and aluminum bleachers to match existing seating. The board’s approval clears a major funding step for the renovation.
Details of the project and funding: Waits said the work covers replacement of a portion of the West Grandstand bleachers and structural supports, and includes replacement of associated electrical wiring and lighting and installation of a fire sprinkler system. Harpool confirmed the university is requesting $16,000,000 from TSSBA and contributing $500,000 in plant funds toward an overall project cost the chair referenced as $16,500,000.
On questions from members, Commissioner Bryson asked how large the athletics-fee revenue stream is relative to the annual payment. Harpool said the athletics fee component allocated to this payment is $42 per semester of a roughly $377 athletics fee and that the university’s overall athletics-fee pool is “just over a thousand dollars” per student at the moment, leaving room to support other projects. "We are not" using those same fee proceeds for a separate planned Murphy Center project, Harpool said, indicating the two projects will draw on different sources.
Vote and outcome: After a motion and second to consider the item, the authority approved the financing on a roll-call vote. Members recorded as voting aye were David Miller, Kevin Gentry, Secretary Hargett, Comptroller Mumpower, Commissioner Bryson, and Mr. Tracy. The chair announced the item approved.
Next steps and timeline: Presenters did not give a specific construction start date in the meeting. MTSU staff thanked the authority for consideration; the authority provided approval to proceed with the financing terms described.
