NU Secures Funding to Address Aging Facilities

  • By Matt Jones
  • 06/02/21

Last week, the University of Nebraska sold $345 million in municipal bonds to begin renovating and replacing aging campus facilities throughout the system. The university gained $400 million to begin addressing a backlog of projects at its Lincoln, Omaha and Kearney campuses, as well as the Nebraska College of Technical Agriculture in Curtis, Neb. The estimated total cost of work to be done is about $800 million, and the sale marked the largest issuance of new bonds in the university’s history.

The issuance came after state lawmakers passed a plan (LB384) to increase university and state funding for deferred maintenance projects until 2062. The passage allows the university to take advantage of unusually low interest rates and potentially save a total of $1.5 billion across 40 years.

“We really couldn’t ask for a better opportunity, as for what interest rates are,” said Chris Kabourek, University of Nebraska vice president for business and finance. “We were pushing to get the legislation done this session so we could go to work. The whole goal was to get this deal done as quickly as we could to lock in rates.”

The funding will be applied to a prepared list of 20 projects that require “major building improvements.” At the University of Nebraska-Lincoln, the Westbrook Music Building will be demolished in favor of a $75 million replacement. The Neihardt Complex, Kimball Hall, Architecture Hall, the Pershing Military & Naval Sciences Building, and four other buildings are all slated for major renovations, and the entire campus will see improvements to HVAC, electrical, fire safety, and plumbing system improvements.

Meanwhile, at the University of Nebraska Medical Center, there are plans for a new $37.5-million building College of Allied Health Professions. The College of Nursing and Eppley Science Hall will also see significant upgrades, as will two facilities at the University of Nebraska at Omaha.

The university is also reserving about a quarter of the bond’s proceeds for “environmentally sustainable projects” like replacing HVAC systems, electronic controls, carbon-dioxide monitors, and air-filtration systems.

As part of the legislation, a monetary value of 2% of each project will be placed into a depreciation fund dedicated to funding future deferred maintenance projects. “That’s key, because then we’ll get out of this cycle of having to borrow every 10–20 years, and we can just start funding those projects internally,” Kabourek said. “It will require discipline, but it’s a high priority for the [Board of Regents] and the chancellors.”

About the Author

Matt Jones is senior editor of Spaces4Learning. He can be reached at [email protected].

Featured

  • Image credit: O

    Strategic Campus Assessment: Moving Beyond Reactive Maintenance in Educational Facilities

    While campuses may appear stable on the surface, building systems naturally evolve over time, and proactive assessment can identify developing issues before they become expensive emergencies. The question isn't whether aging educational facilities need attention. It's how institutions can transition from costly reactive maintenance to strategic asset management in a way that protects both budgets and communities.

  • Pittsburgh High School Upgrades Athletics Facilities’ Technology

    Plum Senior High School in Pittsburgh, Penn., recently partnered with South-Dakota-based Daktronics through the We’re All Mustangs Here Foundation to upgrade the technology in its athletics facilities, according to a news release. Daktronics designed, built, and installed new LED video displays and finished the project in time for the beginning of the 2025 high-school football season.

  • Creating Long-Term Sustainability on College Campuses Through Fair Student Housing

    The quality of student housing can have a significant impact on an individual’s college experience. Today’s higher education institutions face mounting challenges, including declining enrollment, low retention rates between the first and second years, and a rise in student mental health concerns. Thoughtfully designed living spaces can help address these issues by creating environments that promote both academic focus and personal well-being.

  • KI Launches K–12 Classroom Furniture Giveaway

    Contract furniture company KI recently announced the launch of its fourth-annual Classroom Furniture Giveaway, which awards $50,000 each to four K–12 educators across the U.S., according to a news release. The goal is to address decreasing student engagement and increasing teacher burnout numbers by updating learning spaces to accommodate modern needs.

Digital Edition