Plan to pay off Fire Science Academy debt going to regents
February 15, 2012
In March, University of Nevada, Reno, President Marc Johnson will present a debt reduction plan to the Board of Regents for the $24 million capital debt on the Fire Science Academy in Carlin. If approved, the plan will free up $4.10 of the $6.50 per-credit capital-improvement fee that students pay and redirect these monies to capital programs funds that directly benefit students.
Students pay a per-credit, capital-improvement fee of which $6.50 is currently used entirely toward the Academy’s debt service. The University’s Fire Science Academy closed in December, but its capital debt carries forward.
“This situation must be addressed and improved,” Johnson said. “This plan will allow us to redirect much of the capital-improvement fee paid by students to support investment in campus-wide capital improvements funds and projects that directly benefit all 18,000 students.”
The debt buy-down plan includes proceeds from the sale of the Academy to the Nevada Division of State Lands and the allocation of funds from other University assets, already approved by the Board of Regents. Through this plan, the Academy’s capital debt will be reduced to $6.5 million. Johnson noted the University is committed to paying this remaining amount down and freeing up the remaining $2.40 of the $6.50 per-credit fee for other projects as soon as possible.
At the Regents’ March meeting, the University will also request to use funds realized through the 2005 sale of the Mill and McCarran property for site restoration costs associated with the sale of the Fire Science Academy. This proposal is consistent with prior actions by the Regents and supports the continued buy-down of the Academy’s debt.
The Board of Regents meeting is March 1-2 at the College of Southern Nevada in Las Vegas.