Regents authorize construction and bond financing for 600‑bed residence hall at University of Montana

The Board of Regents authorized construction and a financing plan for a new 600‑bed residence hall at the University of Montana, a project officials said will replace three aging dorms and advance a broader campus revitalization.

Deputy commissioner Trevor summarized the multi‑year facilities planning that identified modernization of student housing as a need. He said bids returned with a low construction cost of roughly $67,000,000 and a total project cost listed at $89,000,000; after accounting for prior planning authorization of $5,600,000, Trevor described the new incremental spend as approximately $83,000,000.

Funding sources outlined included housing operating and plant funds, previously issued bond proceeds (used to pay for earlier planning and design) and a proposed new bond issue. Trevor said the campus will return to the board within the calendar year for formal approval to issue $63,000,000 par in new bonds, which staff estimate would produce about $69,000,000 of net project funds; the remaining roughly $14,000,000 would come from plant/housing operating sources.

Financial advisers Morgan Stanley and Janney were engaged to assess the university’s debt capacity; Trevor said both advisers concluded the new debt would not likely affect Moody’s rating for the institution. The analysis was done on $85,000,000 of new debt earlier in the process; bids came in lower, reducing the anticipated new debt to about $63,000,000.

Regents on the infrastructure subcommittee described several years of campus planning and on‑site review; board members also asked about parking and short‑term mitigation plans tied to the new residence hall. President Bodnar acknowledged geographic constraints around the campus and said substantial value engineering helped bring bids down.

Chair Buchanan called the motion; the board approved authorization for the project and financing plan by voice vote recorded as unanimous passage.