news-record.com

GREENSBORO — Last month, UNCG announced the renovation of its historic quad buildings and a new dormitory — first steps in its plan to have more students live on campus. The projected cost for the projects: more than $85 million.

But as state funding cuts forced layoffs and ground projects to a halt at all 16 UNC campuses, some wondered how the school could find money for new buildings.

“Some people do think it all comes from the same pot,” said Reade Taylor, vice chancellor for business affairs. “But it’s a little more complicated than that.”

Some university building gets state funding, Taylor said. The Joint School of Nanoscience and Nanoengineering, a project with N.C. A&T, is an example. It topped the Capital Priorities List the schools submitted for approval by the legislature. The new School of Education building in front of UNCG’s Bryan School of Business is another.

But for projects such as the baseball stadium, recreation center, parking decks and new dorms, the school takes on debt, usually through long-term bonds.

Those loans are usually repaid through fees paid by students, staff and faculty who use the buildings.

The school estimates the quad renovation will cost $52.2 million, the new dorm from $30 million to $33 million.

“We’ll issue long-term bonds for the quad building and likely take out a short-term construction loan,” Taylor said. “Then, that debt will be serviced through the money students pay in rent.”

Taylor said the school would shy away from projects that can’t be paid off in at least 25 years, the point at which most new construction would need major renovations.

UNCG’s last new dormitory was its Spring Garden Apartments building at Spring Garden and Aycock streets. The building opened in 2006 and cost $27 million. It was the school’s first new dorm since the nearby Tower Village dorms opened 13 years earlier.

The new dorm will likely be on property in front of Tower Village, space now undeveloped or used as a parking lot.

The school plans to begin construction in May, as soon as classes are out.

“We hope to have the new residence hall near Tower Village open in the fall of 2011, before the quad goes down for renovations,” Taylor said. “That way the students who would be on the quad will have some place to go. Then new students will move in there in the fall of 2012.”

Contact Joe Killian at 373-7023 or joe.killian@news-record.com