Millikin University recently secured the City of Decatur's approval for up to $53 million in revenue bonds. This agreement allows Millikin to refinance current debt, fund campus renovations, and potentially add new student housing. The bond deal was approved without using taxpayer money or impacting the city's borrowing capacity, as Millikin University is solely responsible for repayment, covered by its operating revenue from tuition, housing, and fees.
The university plans to use a portion of the funds for major upgrades to its academic and athletic facilities, staff housing, and parking areas. Additionally, the funds will support a comprehensive update to Millikin's campus master plan, which includes evaluating existing structures for necessary modernizations and deferred maintenance. While the headline mentions 600-bed student apartments, the article indicates that Millikin is still in the planning stages for specific renovations and capital projects, with a focus on improving overall campus infrastructure.
Millikin's administration, including President Dr. Dean Pribbenow and Executive Vice President Sarah Kottich, emphasized that the bond issuance signifies investor confidence in the university's financial health and future prospects. The process involved the City of Decatur acting as an issuer, making it more cost-effective and timely for Millikin compared to other options. This collaboration is also seen as strengthening the relationship between Millikin and the Decatur community, aiming to boost enrollment numbers back to pre-pandemic levels of around 2,000 students from the current 1,500.
While the bond deal has been approved, Millikin University has not yet received the funds from investors. The next step involves engaging with underwriters to sell the bonds to investors, a process anticipated to begin in late April or early May. The repayment period for these bonds is typically between 30 to 35 years, with the university's operating revenue earmarked for principal and interest payments, as well as covering professional fees for bond counsel and advisors.
