{"id":658,"date":"2018-09-08T15:18:48","date_gmt":"2018-09-08T19:18:48","guid":{"rendered":"https:\/\/lakerlog.lssu.edu\/fall2018\/?p=658"},"modified":"2018-09-26T08:21:53","modified_gmt":"2018-09-26T12:21:53","slug":"financing-in-place-work-begins-on-infrastructure-upgrades-to-net-71-million-in-savings","status":"publish","type":"post","link":"https:\/\/lakerlog.lssu.edu\/fall2018\/financing-in-place-work-begins-on-infrastructure-upgrades-to-net-71-million-in-savings\/","title":{"rendered":"Financing In Place, Work Begins On Infrastructure Upgrades To Net $71 Million In Savings"},"content":{"rendered":"L<\/span>ake Superior State University has successfully sold bonds to finance a $23.6 million infrastructure upgrade that will ultimately improve safety, security and sustainability, and even install a more robust wireless IT network across LSSU\u2019s 115-acre campus. The bonding milestone begins a multi-decade commitment to reduce LSSU\u2019s use of water, electricity, and natural gas, resulting in substantial energy-cost savings.<\/p>\n

Upgrades throughout the 41-building campus \u2013 such as new roofing, lighting, and upgraded heating, ventilation, and air conditioning systems (HVAC) systems \u2013 should be completed by winter 2020. These front-loaded upgrades will transition into a long-term performance contract with Milwaukee-based Johnson Controls (JCI) that is expected to generate $71 million in energy and operational savings over the course of 30 years.<\/p>\n

The savings will be used to finance the bonds, but a majority of it will be rolled into initiatives like improving fire\/safety systems, expanding keyless entry, and enhancing instructional facilities.<\/p>\n

\u201cThis collaborative project with JCI is designed to serve as an example for our students and the community, as LSSU makes great progress in reducing its carbon footprint and reducing its energy costs,\u201d said Rodney Hanley, president of Lake Superior State University. \u201cInvestment by LSSU into its infrastructure is focused on student safety and the educational environment.\u201d<\/p>\n

The project goes beyond energy savings. JCI and LSSU might team up on sustainability-based educational programs, internships, and community outreach projects.<\/p>\n

The project\u2019s bonding and smooth transaction translates into considerable savings right out of the gate that speak highly of LSSU\u2019s fiscal health.<\/p>\n

\u201cStandard and Poor\u2019s Financial Services assigned the University a rating of BBB+ and stable,\u201d said Morrie Walworth, LSSU\u2019s vice president for finance.\u00a0 \u201cThe rating agency cited the University\u2019s positive operating results for the last two years, recent increases in state funding, and low debt burden in their rationale for rating of the University at this level.\u201d<\/p>\n

\u201cWe saw good demand and were able to take advantage of current low interest rates that met the goals of the University,\u201d said Brenda Voutyras, whose firm brokered the bond sale. \u201cThis resulted in a lower cost of borrowing than originally anticipated.\u201d<\/p>\n

The General Revenue Bonds, Series 2018, were sold at a true interest rate of 4.30% with a final maturity of 2050, a repayment term of approximately 32\u00a0years. These costs and other incremental expenses will be more than offset by savings the infrastructure upgrade will generate.<\/p>\n

 <\/p>\n

About the Author<\/span><\/h4>\"JohnJohn Shibley<\/a>
Photographer\/Staff Writer<\/span>

Shibley has been a writer, editor, photographer, and videographer in the public relations office since 1991, except for a five-year stint as hobby and planetary science editor at Astronomy magazine in the mid-90s, where he was a finalist for the American Astronomical Society\u2019s Jonathan Eberhart Planetary Sciences Journalism Award.<\/p>\r\n<\/div> <\/div><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"

ake Superior State University has successfully sold bonds to finance a $23.6 million infrastructure upgrade that will ultimately improve safety, security and sustainability, and even install a more robust wireless …<\/p>\n","protected":false},"author":5,"featured_media":659,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[14,2],"tags":[],"_links":{"self":[{"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/posts\/658"}],"collection":[{"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/comments?post=658"}],"version-history":[{"count":0,"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/posts\/658\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/media\/659"}],"wp:attachment":[{"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/media?parent=658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/categories?post=658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakerlog.lssu.edu\/fall2018\/wp-json\/wp\/v2\/tags?post=658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}