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ASU Trustees Approve Lease For $29M North End Zone Project

2 min read

The Arkansas State University Board of Trustees in a special meeting Monday approved a lease that will kick-start the $29 million north end zone expansion project at Centennial Bank Stadium on the Jonesboro campus.

The board approved of A-State and the Red Wolves Foundation entering into a 20-year ground lease and space lease agreement, enabling the foundation to pay for the previously announced 66,533-SF athletics operations facility, premium seating and for other enhancements.

No public funds will be used for the project. The $29 million will come from private donors and the foundation’s other revenue streams. 

ASU System President Chuck Welch said the project would help address potential Title IX issues. He also thanked Athletics Director Terry Mohajir and his team for raising private funds and the foundation’s donors for supporting the project. 

The special meeting was needed because of timing. Welch said the department and foundation wanted to begin construction as soon as possible so that the revenue-generating seating will be ready for the Fall 2018 season.

The rest of the project is expected to be completed a few months after that, Adam Haukap, the foundation’s executive director, told Arkansas Business. He also said the plan was for the seating to be finished in time for the first football game, which is set for September. 

The project includes replacing bleacher seats with 150 four-person lodge boxes (about 600 seats total) and 60 individual terrace premium seats, as well as adding a new weight room and training/rehabilitation area, a new team locker room, position meeting rooms, players’ lounge, academic rooms and a team-theater meeting area to the football stadium. 

The contractor for the project is Ramsons Construction Co. of Jonesboro. Haukap said they could break ground within the next week or so. 

The architect for the project is AECOM of Los Angeles. The foundation is working with the global company’s office in Kansas City, Missouri. AECOM also designed the stadium’s Johnny Allison Tower. 

Bonds Refinanced
Also at Monday’s meeting, the board approved the refinancing of $12.28 million in housing bonds in anticipation of pending federal tax legislation that would discontinue the practice of refunding tax-exempt bonds. The two resolutions the board approved Monday are unrelated, Welch said. 

The bond refinancing resolution requires that the refinancing save the system at least 4 percent of the refunded balance, which is $491,200. But long-term savings are expected to better than that, at 11 percent, or $2.6 million.

Stephens Inc. of Little Rock and Crews & Associates Inc. of Little Rock will be the bond underwriters. Friday Eldredge & Clark LLP of Little Rock is the bond counsel.

Trustee Price Gardner of Little Rock, an attorney for the Friday firm, abstained from the vote.

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