Ohio University trustees approved a $977.5 million capital improvement plan for the next six years, which will continue to $2.57 billion in the next 20 years.
The plan includes the replacement of old equipment and renovation of old facilities, and OU’s Board of Trustees will review it on a yearly basis.
“We are excited about this… it will allow us to look at both the academic facilities as well as residential housing,” OU President Roderick McDavis said at the full board meeting Friday.
The plan addresses many projects, including a new building for the Scripps College of Communication, an OU Heritage College of Osteopathic Medicine branch in Columbus, the Violet L. Patton Center for Arts Education, an aviation hanger, a replacement for the Lausche Heating Plant and an indoor multipurpose facility, which will all be funded throughout 2014.
The most costly upgrade will be the Lausche Heating Plant replacement, which will require a $100 million investment from the university.
“In six years, many of our capital needs will be addressed through our manageable debt service plan,” Trustee Gene Harris said.
The upgrades will be funded in part by taking in debt. The university will borrow no more than $160 million, according to a separate resolution. Of that sum, $75 million will refinance existing debt.
“We’re probably pretty comfortable for the next few years, but the reality is we are going to have to look at the plan every year,” Harris said.
If OU fails to invest money into capital improvement, the university would reach $1 billion in deferred maintenance backlog by 2032, and 99 percent of the university’s buildings would be 26 years or older, according to the capital improvement plan.
“The trustees absolutely believe that you’ve got to plan ahead,” Harris said.
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