Century Set To Consider New $55 Million Bond Issue For UWF Expansion

July 12, 2013

The Town of Century is set to consider a  bond issue up to $55 million to fund expansions at the University of West Florida. A previous $40 million bond issue for the project essentially collapsed late last month to due to unfavorable changes in the bond market.

The $40 million was to come from the Capital Trust Agency, a bond conduit partnership between Century and Gulf Breeze, for a hotel, conference center, new student housing and more at the Davis Highway entrance to UWF. The college’s development arm, University of West Florida Business Enterprises, Inc., had previously entered into an affiliation agreement with Vieste, LLC, for the project.

Capital Trust Agency is set to ask the Century Town Council next Monday night to approve a $55 million bond issue with a different developer — Provident Resources Group, a Georgia non-profit. Vieste is no longer involved in the project.

The increased financed amount — from $40 to $55 million — is due to a different planned relationship between the developer and the university, according to Matt Dannheisser, attorney for both Century and Gulf Breeze. He said that while the project bottom line may come in at $47-48 million, $55 million will be requested. Vieste was to have contributed about $7 million to the project and shared in the profits for the next 50 years, while Provident will not. The bond issued for Provident will be tax-free.

Once Century approves the CTA funding for the UWF project, it will be presented to Gulf Breeze with a projected closing date of August 1. Provident Resources is still considering the proposal and has not signed a formal contract, Dannheisser said, but going ahead and obtaining Century’s approval for the project will speed the process along.

If all $55 million is issued, Century will receive a fee of $19,250.

The $55 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. The expansion has a target opening date of August 2014.

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. The approval of a $40 million bond issue for UWF would have earned 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 Dannheisser. The funds used for the bonds are from the CTA’s coffers, not from Century or Gulf Breeze.

An additional development project at the University of West Florida also moved forward Thursday. Click here for details.

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 during a June special meeting. NorthEscambia.com file photo, click to enlarge.

Comments

One Response to “Century Set To Consider New $55 Million Bond Issue For UWF Expansion”

  1. Anne on July 12th, 2013 12:21 pm

    OK, I’ll bite. UWF needs to work on their people skills as far as the students go or all the money in the world won’t stop good students from taking a permanent walk off campus.
    Too many of us parents have watched our college kids quit because of professor problems. My own quit and finished at the University of Chicago. UWF lost a good, cash paying student. He was a Vet when he decided to get his Masters degree at UWF so he was used to taking orders. Sad story.

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