U of R gets OK to borrow $37M for College West renovations
The University of Regina is set to borrow almost $37 million for its College West renovation.
The Ministry of Advanced Education has given the U of R board of governors the go-ahead to borrow $36,750,000 for the project.
Built in 1973, College West has seen minor improvements over the years.
This renovation, which began about nine months ago, involves renewing the plumbing, electrical, heating and air conditioning, ventilation, roofing, walls and windows.
“Basically we took it back to the bare structural bones of the building and we’re renewing it totally, every part of it,” said Dave Button, the U of R’s vice-president administration.
The project should be finished by May, in time for the U of R to host more than 8,000 attendees for an international conference, the Congress of the Humanities and Social Sciences.
Button said so far the project is ahead of schedule and under budget.
Per the University of Regina Act, the university board of governors must apply to the provincial government with plans to borrow money. Cabinet grants approval through an order-in-council. According to a ministry spokesperson, requests can be denied.
The ministry considers the need and scope of the project, and the ability for the university to repay the loan. It does internal consultations before the minister takes a recommendation to cabinet.
The university didn’t ask for capital funding from the provincial government, which provided $109.5 million in operating grants this year.
The university will work with financial adviser KPMG to figure out the best financing stream, similar to a mortgage. Button said the U of R will pay off the loan with future revenues from ancillary services — revenue-generating services on campus including residence rent, parking fees, food services and bookstore sales.
Interest rates on loans are “incredible,” said Button, as are construction costs — the lowest in at least a decade.
The U of R had a tough time budgeting for its 2017-18 year, with a $7-million provincial funding cut since November. The university laid off 13 staff and planned to eliminate 19 faculty positions, among other cuts.
Button said the operating budget challenges have nothing to do with the infrastructure project.
“Having residences on our campus is critical for recruitment, retention, student success,” said Button. “Not having residences … would have impacted in a negative way our operating budget.”
Ledcor Construction is overseeing the project.
College West has 274 beds.
The residence was closed to students in the 2016-17 school year, and will remain so until September 2018. The building ’s non-residence tenants — including the bookstore and the police college — have continued operating throughout the renovation.
Button said rent will “definitely go up” once the residence reopens, due to inflation and the “much higher” building quality.
Residence rates on campus currently range from $2,040 per semester for a single dorm at Luther College to $4,887 for a one-bedroom apartment in the Paskwaw and Wakpa Towers.