Florida Gulf Coast University Board of Trustees June 19, 2012

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1 ITEM: 13 Florida Gulf Coast University Board of Trustees June 19, 2012 SUBJECT: A Resolution of the Board of Trustees Approving the Issuance of Revenue Bonds by the Florida Gulf Coast University Financing Corporation to Finance Student Residences Phase XIII, and Associated Construction and Costs. PROPOSED BOARD ACTION Adoption of a resolution approving the issuance of fixed rate, revenue bonds, by the Florida Gulf Coast University Financing Corporation ( Corporation ), in an amount not to exceed $30,000,000 for the purpose of financing and constructing Student Residences, Phase XIII and associated equipment and costs. BACKGROUND INFORMATION The project will be the thirteenth in a series of student housing projects which began in The proposed project is a 520-bed student residence facility, and associated improvements, equipment, furnishings, and site work, located on the main campus of Florida Gulf Coast University. The University currently has 3,693 available student housing beds. The proposed project will provide an additional 520 beds which will be available fall With the growth of FGCU in the fall of 2012 and projected growth in 2013 and beyond, the FGCU Financing Corporation requests the financing and construction of an additional 520-bed suite style private bedroom student residence facility. The housing system is healthy and the FGCU Financing Corporation believes the expansion of additional student housing facilities is warranted based upon existing and projected demand. In order to meet future demand, the FGCU Financing Corporation is requesting authority to proceed with financing and construction of Phase XIII student housing. The FGCU Financing Corporation requests that the FGCU Board of Trustees approve a resolution authorizing the acquisition of Phase XIII student housing and financing in the amount not to exceed $30,000,000. The estimated project cost inclusive of financing, closing, construction and equipment is $30,000,000. The debt service payments will be funded from gross revenues generated from the operations of the University student housing system, after payments of 1

2 operations and maintenance costs. Revenues include, but are not limited to, room rentals, summer camp rentals, damage assessments, and late payment charges. The Series Bonds will be issued on parity with Florida Gulf Coast University Financing Corporation Capital Improvement Revenue Bonds, Series 2003, Series 2005A, Series 2007A, Series 2008A, Series 2010A, Series 2010B and Series 2011A currently outstanding in the total principal amount of $170,180,000.. The term of the financing agreement will be for 30 years and upon retirement of the debt, ownership of the facilities will be transferred to the University. The Florida Gulf Coast Financing Corporation Board of Directors, at meetings held on March 7, 2012 and June 6, 2012, approved the Project and the financing thereof. Supporting Documentation Included: Requesting Resolutions Appendix A Tab a. the project program, feasibility study, or consultant report; Tab b. a draw schedule for the project; Tab c. sources and uses of funds for the project; Tab d. an estimated debt service schedule; Tab e. debt service schedules for any outstanding debt with a lien on the pledged revenues; Tab f. a schedule showing estimated compliance with any additional bonds requirement set forth in the documents governing the outstanding debt; and copies of the applicable provisions of the documents relating to outstanding debt; Tab g. a description of the security supporting repayment and the lien position the debt will have on that security; Tab h. a five year history, if available, and a five year projection, of the pledged revenues and the debt service coverage; Tab i. Campus master plan compliance; Tab j. profile of outstanding debt Cover Sheet Prepared by: Assistant to the President, and Executive Director of FGCU Financing Corporation Curtis Bullock Legal Review: General Counsel Vee Leonard (May 23, 2012) Submitted by: Vice President for Administrative Services and Finance Steve Magiera 2

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