FOR IMMEDIATE RELEASE
May 24, 2007
First Measure M Bonds Sold, Yield Nearly $80 Million
The first bonds from Measure M, the College of the Canyons general obligation bonds approved by voters in November 2006, were sold last week, yielding nearly $80 million for new buildings and facilities upgrades at both campuses.
The bonds went to market May 17 with 40-year maturities overall and a rate of 4.825 percent, which is a very good rate and a low cost of borrowing for the college. The net proceeds to the district will be $79,997,270 on May 30.
The bonds are a combination of serial and term bonds (interest paid semi-annually and principle annually), with maturities between 2007 and 2025. Capital Appreciation Bonds (CABs), which only pay interest to the investor until maturity when the full principle is paid, were also sold. These will mature between 2012 and 2046.
"Now that we the money we need, we can get busy building new state-of-the-art learning spaces and provide students access to top-notch transfer courses and highly skilled technical training," said Superintendent-President Dr. Dianne Van Hook. "Whatever course of study our students choose, we want to ensure they are prepared to move on to four-year colleges and universities, or to land good paying jobs in high demand industries."
The funding will also position College of the Canyons to leverage millions of dollars in state resources that can be spent in the Santa Clarita Valley. "Having local bond funds gives us a crucial advantage in competing for money at the statewide level," Van Hook said. "And gaining those state resources allows us to stretch our Measure M dollars further and get more bang for our buck."
Among the work planned for the Valencia campus is an expansion of the Library, updating aging classroom and laboratory facilities, and constructing a new Student Services building.
The proceeds from Measure M will also provide for permanent facilities at the Canyon Country Campus, which will open for the fall 2007 semester in modular buildings. Plans call for six 40,000-square-foot structures to house classrooms, labs, and student support facilities.
"None of this would be possible without the support of local voters," Van Hook said. "Thanks to them, and their belief in what we do, we are able to create a campus that matches the high expectations of the community we serve."
The total value of Measure M bonds is $160 million. The additional bonds will be sold at a later date.