Regents approve University’s debt buy-down plan for Fire Science Academy
Allows redirection of student per-credit fee to campus-wide capital projects that directly benefit students
The Nevada Board of Regents today approved the University of Nevada, Reno's plan by which to reduce the $24 million capital debt on its Fire Science Academy in Carlin, Nev. The plan will free up $4.10 of the $6.50 per-credit capital-improvement fee that students pay, and redirect these monies to capital programs and funds that directly benefit students.
Students pay a $6.50 per-credit, capital-improvement fee, and this fee is currently directed entirely toward the Academy's debt service. The University's Fire Science Academy closed in December, but its capital debt carries forward.
"This situation must be improved, and we appreciate the Regents' support," said University President Marc Johnson, who presented the proposal at the meeting, held at the College of Southern Nevada in Las Vegas. "This plan will allow us to redirect much of the capital-improvement fee paid by students to support investment in campus-wide capital improvements funds and projects that directly benefit all 18,000 students."
The approved debt buy-down plan includes proceeds from the sale of the Academy to the Nevada Division of State Lands and the allocation of funds from other University assets, already approved by the Board of Regents. Through this plan, the Academy's capital debt will be reduced to $6.5 million. Johnson noted the University is committed to paying this remaining amount down and freeing up the remaining $2.40 of the $6.50 per-credit fee for other projects as soon as possible.
The Regents also approved the University's request for an additional allocation of funds realized through the 2005 sale of property at Mill Street and McCarran Boulevard to fund the restoration costs associated with the sale of the Fire Science Academy. This, too, supports the continued buy-down of the Academy's debt.