ZANESVILLE, Ohio — Ohio University is looking for ways to guarantee debt its foundation issued in 2000 to pay for construction of off-campus housing.
University Courtyard, located on Richland Avenue, is a 580-bed apartment complex built by Housing for Ohio, Inc., part of the OU Foundation. In 2000, Wachovia Corp. provided OU with a letter of credit to pay for the construction of University Courtyard.
Now, OU has plans to take on the debt itself, said Mike Angelini, associate vice president for Finance, at the Board of Trustee’s resources committee meeting yesterday.
“There’s no reason that the university couldn’t provide the credit … it would just take time,” Angelini said.
Because the guarantee will be considered a liability, OU’s Senate Bill 6 viability ratio will be impacted; however, the change will not be enough to impact the composite ratio negatively.
Ohio Senate Bill 6 ratios determine the financial stability of a public university.
“It absolutely impacts the Senate Bill 6 ratios … it doesn’t, however, effect our credit,” Angelini said.
Although the OU Foundation is open to any plans the university would have for the University Courtyard property, the foundation board is curious how the property fits into OU’s overall housing situation, said Trustee Frank Krasovec, who also chairs the OU Foundation Board.
“The foundation would like to be cooperative with the university and ask the university if this fits into the university’s housing needs,” Krasovec said at yesterday’s meeting. “I just think it needs to be a part of the strategy.”
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