By Nicarlyle Hanchard and John Ostapowicz / The Jambar
The Youngstown State University board of trustees held a special meeting Jan. 28 as the committee approved two motions to support the construction of the planned student center.
The first motion approved a pledge of student fees to support a bond issuance not exceeding $40 million. The other motion authorized the issuance and sale of general receipt bonds by YSU.
YSU President Bill Johnson said the $40 million in bond authority provides a cushion for the budget as construction bids for the student center are made.
“As we go through the construction process, there will inevitably be change orders. We thought we could do this, but we could actually do this and it would be a lot nicer,” Johnson said. “But we would just have to have a little bit more money.”
The previous construction estimate was upwards of $40 million with donations and fundraising accounting for $22 million of the pledges.
A few of the bids from construction companies were higher than expected, with some estimates totaling $50 million for the project. The projection is 21% more than the initial construction cost.
Johnson said the potential cost increase was expected because of inflation, material and labor costs, but it could remain at the original protection when the contractors rebid Feb. 10.
“Those bids came in higher than what our construction costs were estimated. We did some refining to the construction costs, looking at the costs of those core systems,” Johnson said.
Johnson said when a university raises money through a foundation to allocate funds for projects, such as the YSU Foundation, the money comes in increments over a prolonged period of time.
“The contractor is not going to wait seven years to get their money. Under state law as a public system and as a public institution, we have to prove that we have all of the money necessary to execute the terms and conditions of a construction contract before we can enter that contract,” Johnson said.
Johnson said it’s not the first time the university has relied on student fees to help fund university projects. In recent years, the University Courtyard Apartments and the Andrews Wellness and Recreation Center were constructed using bond allocations.
In light of borrowing bonds, the Kilcawley: Centered on the Future Campaign is still receiving donations.
The John S. and Doris M. Andrews Memorial Fund donated $500,000 Jan. 14, and Jim and Melissa DiBacco made a $100,000 donation to the campaign Jan. 22.
The Andrews donation will go towards the construction of the black box theater on the first floor and a second-floor lounge. Both rooms will be named in honor of the Andrews to further cement their philanthropic support for YSU.
Scott Schulick, a trustee of the Andrews Memorial Fund and chairman of the campaign, said the fund’s advisors felt the campaign was deserving of donations.
“The fund advisors believed the advancement of the Kilcawley Center project is critical for students at YSU,” Schulick said. “Having been a supporter of YSU initiatives for a long time, [we] recognized the importance of this gift and wanted to do something significant.”
The DiBacco’s donation will support the naming of one of the basketball courts in the Rec Center, a key space that promotes student health and wellness on campus. It was initially constructed through donations from the Andrews Memorial Fund.
Schulick said the message going forward is to continue encouraging alumni, community members and other supporters of YSU to donate to the campaign.
Construction for the new Kilcawley Center is set to begin in May and its projected completion is September 2027.