OSPREY, Fla. — After acquiring the campus of USF Sarasota-Manatee via legislative action earlier this year, New College now intends to finance associated debt via a ballooning payment schedule. Materials related to the financing proposal will be considered at an October 30th meeting of the New College Board of Trustees, Finance Committee (see the 13th through 101st pages of the packet for that meeting, attached hereto). At the October 28, NCF Development Corporation Board of Directors Meeting, after no discussion of any substance, the proposal was passed.
While most of the lenders who will participate in the transaction are named, about $ 4.3 million of the total debt is to be financed by a party described only as an "accredited investor" (page 13 of the packet) and "private investor" (page 98 of the packet).
Then, New College's full Board of Trustees is likely to consider the proposal at a meeting scheduled for November 3rd. Final approval will be considered by the Board of Governors on November 12th.
The proposal appears designed to immediately finance approximately $ 44 million in debt associated with a dormitory building on the former USF Sarasota-Manatee campus and refinance existing debt on New College's original campus, while delaying the impact of the full annualized costs of debt service.
For example, over the first six years of the deal, New College's anticipated payments increase as follows:
FY 2026 $ 1,779,107
FY 2027 $ 2,403,571
FY 2028 $ 3,784,742
FY 2029 $ 3,963,529
FY 2030 $ 4,163,284
FY 2031 $ 4,163,284
The above figures are taken directly from a "Projected Debt Service Coverage" schedule appearing on the 98th page of the packet of materials for the October 30th Finance Committee meeting (attached).
The proposed deal terms also pose a major hurdle in 2032, when New College would be forced to refinance the debt—on whatever terms are available at that time—or otherwise simply tender $ 36,960,636 to one of its lenders (see the footnotes on the 96th page of the packet).
Among alumni, the proposal for a ballooning payment schedule is driving speculation that New College President Richard Corcoran may depart New College soon. The schedule clearly delays the true fiscal impacts of the financing until 2028, with another hurdle posed by mandatory refinancing in 2032.
Interview Availability
The Novo Collegian Alliance has the following representatives available for media interviews:
William Rosenberg
President, Novo Collegian Alliance
Available to speak on NCA’s mission, alumni response, organizational history, and the ongoing work of preserving New College’s history and traditions.
Ben Brown, Esq.
NCA Board Member; Host of HAM Radio, the NCA podcast
Available to speak on public accountability, the national implications of the New College takeover for higher education in the USA, and the broader stakes for the New College community.
Brian Cody
Secretary, Novo Collegian Alliance
Available to speak on policy, public records, and institutional accountability.
Juliana Paré
NCA Board Member; past president, Hopkins AAUP Chapter
Available to speak on the role of alums nationally in addressing the weakening of institutional autonomy in higher education, the relationship between attacks on higher education and public k-12 and the intentional engriftification of the US educational system with New College and the Florida k-12 system being particularly powerful examples.
Media inquiries may be directed to contact@novocollegian.org.
