Gannon University is seeking financial help from an infrequently-active city authority that helps Erie-area colleges and universities finance capital projects.
A public hearing before the City of Erie Higher Education Building Authority is set for Tuesday at 10 a.m. in the Bagnoni Council Chambers at City Hall, 626 State St.
Gannon is seeking to refinance $14 million in previously-received bond financing from the authority. That money was used in 2013 for extensive renovations/expansion of Gannon’s recreational facilities, which included the construction of a new field house and indoor turf field.
Gannon spokesman Doug Oathout said the move provides “the opportunity to refinance with slightly better terms,” and to also use $2.5 million from the refinancing “for deferred maintenance around our downtown campus. We have a couple of things that need attention and that’s what the money will be used for.”
Oathout said the exact savings and interest rates/terms of the refinancing would be determined after the refinancing is approved.
What is the Higher Education Building Authority?
Created via ordinance in 1985 under the provisions of the state’s Municipal Authorities Act, the authority helps finance capital projects for colleges/universities in the city via low-interest bonds.
The authority’s five current members are City Council President Mel Witherspoon; City Treasurer Cas Kwitowski; and local residents Desmond McDonald, Katrina Byrd and Richard Makowski.
Two of the authority’s seats are currently vacant.
City Council’s president and the city treasurer are ex-officio members of the authority, while the other five members are appointed by Erie’s mayor.
Authority members typically meet only when there is a project/financing request to consider. The authority has provided funding to capital improvement projects at both Gannon and Mercyhurst universities in the past, including $16 million that was used in 2016 to renovate Gannon’s Nash Library.
A public hearing on the refinancing request is required under U.S. Treasury regulations because the financing involves tax-exempt bonds. Citizens can voice support or opposition to the request.
The authority could vote on Gannon’s request at the conclusion of Tuesday’s public hearing.
Kevin Flowers can be reached at 870-1693 or by email. Follow him on X, formerly Twitter, at x.com/ETNflowers.…Read more by Kevin Flowers