Century Signs Off On $40 Million Bond Issue For UWF Conference Center, Hotel

June 27, 2013

For an update to this story, click here.

The Town of Century signed off Wednesday on a $40 million bond issue that will allow the University of West Florida’s development arm to move forward with plans for a hotel, conference center, new student housing and more.  The University of West Florida Business Enterprises, Inc. has entered into an affiliation agreement with Vieste, LLC, for the project.

A bond issue totaling about $40 million by the Capital Trust Agency was approved Wednesday by the Century Town Council and was previously approved by the Gulf Breeze Town Council as members of the Capital Trust Agency, an independent public body for the purpose of financing or otherwise accomplishing development programs. Century entered into the Capital Trust Agency with Gulf Breeze in 1999 with Century essentially serving as the “second signature” for CTA.

Century has received over $650,000 in fees since the inception of CTA. Wednesday’s approval of a $40 million bond issue for UWF will earn Century about $14,000 in fees upon closing.

The CTA is structured in such a way to indemnify Century from any financial risk, whether it be from a company that defaults on repayment or any other legal liabilities, according to Matt Dannheisser, attorney for both Century and Gulf Breeze. The funds used for the bonds are from the CTA’s coffers, not from Century or Gulf Breeze.

The $40 million UWF project will include 356 student housing beds plus 54 beds dedicated to guest housing, a conference and academic center and parking amenities. The 18 acres at the east entrance of the campus on Davis Highway will also include space for retail development.

UWF will receive acertain percentage of gross revenue from the annual income generated from the student housing, hotel, conference center, restaurants and retail.
The private developer will fund,design, construct and develop the project. There will be no state or university funds utilized. UWF will continue to own the land and will execute a 50 year lease with the development partner. After the 50 years lease term, UWF BEI will own the improvements.

Vieste originally approached the Escambia County Housing Authority looking for a bond issue, the the authority declined to finance the development, but the authority won’t finance bonds that are not investment grade, Matt Dannheisser, attorney for both Century and Gulf Breeze, said.

Dannheisser said the bond issue could close within a week, depending on the bond market.

Pictured top: Development plans for the east entrance of the University of West Florida. Pictured inset: Attorney Matt Dannheisser explains the project to the Century Town Council Wednesday afternoon. Pictured below: (L-R) Dannheisser, Century Clerk Leslie Gonzalez, and Century council members Gary Riley, Ann Brooks and Sandra McMurray Jackson.  Council member Annie Savage participated in the meeting by phone. NorthEscambia.com photos, click to enlarge.

Comments

3 Responses to “Century Signs Off On $40 Million Bond Issue For UWF Conference Center, Hotel”

  1. Jeff on June 27th, 2013 11:19 am

    Oversight– that image of the site plan is cropped. The complete conceptual lay-out can be found at the web address below:

    http://uwf.edu/bei/documents_projects/East_Development_Site_Plan_4-17-13.pdf

  2. Oversight on June 27th, 2013 10:53 am

    I see that UWF’s lack of proper planning for adequate parking will continue with this project too. Over four hundred units/beds for guests and students, a conference center, and retail space? Where will they all park with 270 or so spaces in the drawing?

  3. jeeperman on June 27th, 2013 8:30 am

    when something sounds to good to be true……………………
    It baffles me as to how Century ended up involved with this Capital Trust Agency.
    So far so good, but still seems to be to good to be true.

Written by William Reynolds · Filed Under Archive