The Board of Regents met Tuesday in the SUB to discuss issues ranging from SRC renovations to student tuition and fees. The most important decisions are highlighted below.
Casas del Rio rent:
After six months of construction on Casas del Rio with no finalized rental agreement, American Campus Communities’ rent was approved by the Board of Regents.
The regents voted unanimously Tuesday to set the ground rent at $478,000 for the first fiscal year, which will be due in August 2012.
UNM Real Estate Director Kim Murphy said ACC needed to start the project shortly after the ground lease was approved in May of last year, even though not all of the construction contracts were in place. He said this is why the final rental price wasn’t approved earlier.
“The ground lease provided for a formula by which we would calculate the ground rent, depending on where their project costs came in after they got final construction pricing,” Murphy said.
He said the amount is on target with the rent expected in the ground lease. The rent will increase by 3 percent per year until the fifth year, and from the sixth year onward rent will be a currently unspecified percentage of Casas Del Rio’s profits.
Bonds to be re-funded:
The regents approved a bond re-funding proposal for $35.2 million to be refinanced at a lower interest rate. Andrew Cullen, associate vice president in the Office of Planning, Budget and Analysis, said this will ultimately save the University money.
“What it might enable us to do is issue bonds in the future without having to raise any other monies to pay the debt service,” Cullen said. “We will be able to use the savings to fund new projects.”
The bonds, which provide funding to build and update buildings on campus, were issued in 1992 at a 5.25 percent interest rate and will be refinanced at a 3.1 percent interest rate. The bonds are scheduled to be paid back by 2032. Cullen said refinancing will not lower the yearly student facility fee of $516.50.
Abdallah appointed provost:
Interim Provost Chaouki Abdallah can now drop the “interim” before his title, as he was appointed provost to serve under future president Robert Frank.
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Abdallah said his selection will not bring any changes in his policy as provost.
“It doesn’t affect anything with what I’m doing,” he said. “I was acting as the provost and I’m still acting as the provost.”
Abdallah said he will continue developing an academic plan for the University as his primary goal.
“To try to do an academic plan, to try to work with the deans on long-term planning, to try to work on student advising and student success, all of those are things I started before and I’m going to continue doing,” he said.
Abdallah was the only candidate for the permanent provost position, he said.
Sen. Bingaman given honorary degree:
UNM also bestowed an honorary degree to Sen. Jeff Bingaman for his service to the state, Regent Bradley Hosmer said.
“Sen. Bingaman represents extensive and effective public service to New Mexicans and the nation,” Hosmer said. “UNM’s recognition of his service by award of an honorary degree is as much an honor for UNM as for Senator Bingaman. We should hope to have such exemplary candidates every year.”
