Trustees approve funding

Board of Trustees finalize Science Center loan with bond sales

The Board of Trustees approved a $50 million financing plan for the new Science Center at their meeting Saturday. The plan will allow the College to raise $50 million for the construction of the Science Center by selling bonds.

Vice President for Finance Andy Evans said it is normal for such a large capital spending project to be financed through borrowing. The new science facility, estimated to cost the College $65 million, will begin construction next fall.

"When you raise money you don't get it all at once," Evans said. "But you have as collateral the representation that you will raise it over time." Evans said the College is still confident it will raise more than $20 million toward the center, as has been planned. Evans also said it is a good time to borrow money, since interest rates are very low. "If you're going to borrow money now's the time to do it," he said. The College's non-profit and tax-exempt status makes the plan even more beneficial.

The bonds will be underwritten by Morgan Stanley. Evans said the bank is very experienced in deals like this one.

In addition to passing the bond issue the trustees approved the final design of the new Science Center, allowing construction plans to move forward. One change in the model was the elimination of a tower that had been part of the original plans.

In discussion the trustees found pleasure in dubbing the new center "the Science Village." Trustee Chair Bill Perlik said that "henceforth [it] will be know as the Science Village."

The rest of the meeting was very routine. The trustees welcomed three new members: Clyde McGregor, OC '74, Stephen Roundtree and Andreas Pape, OC '98. Pape was elected to be class trustee this fall. McGregor is a partner in Harris Associates, a mutual find manager in Chicago. Roundtree is president of the J. Paul Getty Trust.

The trustees also approved a minor bylaws change that will remove the cap on the number of years a trustee can serve if it interrupts chairmanship of the body. The change would allow the board to choose a more senior member to replace current chairman Perlick when his term ends in July.

The trustees also heard plans to refurbish the Oberlin Inn, which is a property of the College. More details will be presented in March.

Honorary degree nominations and this year's Commencement speaker were announced but will not be made public until the invitations have been confirmed.

Finally, in the Budget and Finance Committee presentation, the trustees heard that the College's 1997-98 budget had been approved by auditors, that this year's budget was on track and the preliminary budget guidelines for the 1999-00 fiscal year have been developed.