City Council will hold bond issuance hearing Construction workers are making good progress on the renovation of The University of South Dakota Foundation building located near the DakotaDome at 1110 North Dakota Street. The Vermillion City Council will hold a hearing Oct. 18 on the proposed issuance of Industrial Development Bonds to be borrowed by the Foundation to help pay for the building project. by David Lias The Vermillion City Council will hold a hearing at its Oct. 18 meeting for the proposed financing of the corporate headquarters of The University of South Dakota Foundation.
The council, during a special meeting held Sept. 27, passed a resolution setting the date and time of the hearing. The special meeting was called so that the hearing, and consequentially the issuance of Industrial Development Bonds, could be scheduled as soon as possible.
The University of South Dakota Foundation is requesting the city to act as the conduit to provide tax-exempt bond financing. The funds will be used to help pay for the expansion and remodeling of the Foundation building, located at 1110 North Dakota Street near the DakotaDome, that began early last summer.
The city of Vermillion will not be a source of any of the funds. Should the proposed financing resolution be approved, the city will act merely as a conduit and will pledge no property, taxing power or credit.
�What the council will be doing is authorize the Foundation to issue bonds using the city�s tax-exempt Industrial Development Bonds,� said City Finance Officer Mike Carlson.
State law gives cities the power to channel tax-exempt bonds to certain borrowers. The last time Vermillion acted as a conduit and issues Industrial Development Bonds was for the financing of the construction of the Pamida building.
The construction project includes 3,340 square feet of additional finished space and 1,188 square feet of newly constructed storage space, which can be finished for future office use.
The existing 4,100 square foot office building, which originally served as a doctor�s clinic, will be renovated, bringing the total completed facility to 8,628 square feet.
The Foundation and Alumni offices are continuing to operate in the building during the construction, which is scheduled to be completed in early December.
New facilities in the building include a multi-purpose �Legacy Room� for special events and displays of university memorabilia, a telemarketing center, conference room, workrooms and office space.
A major architectural feature of the building will be a drive-through entrance canopy with a peaked metal roof suitable for use during outdoor special events.
Welfl Construction of Yankton is the general contractor and Architecture, Inc. of Sioux Falls is the design architect.
The construction cost of the project is $528,000, including a contribution from the Alumni Association. It was noted in a news report last summer that one way the Foundation may retire the construction debt is through a capital fund drive.