State Technical College of Missouri finalized its contract with First State Community Bank to finance the construction of its multi-million dollar golf course clubhouse.
The State Tech Board of Regents met Monday to give the final approval for a new lender after learning in March that UMB Bank rejected its financing plan. The board began discussing working with First State Community Bank about two weeks ago.
The college was searching for a lender to finance the construction of a golf course clubhouse expected to cost more than $11 million.
State Tech is replacing the Osage Country Club clubhouse with a multipurpose event and entertainment venue and awarded the renovation contract to Professional Contractors & Engineers, based in Columbia, earlier this year.
The new 31,000-square-foot clubhouse will house golf simulators, esports systems, duckpin bowling, a 50-seat theater, a sports bar, a pro shop and a 250-person event center, among other attractions. The project is expected to be complete by May 2023.
Instead of dividing the loan into $10 million this year and $3 million next year as it had previously discussed, the board approved a revised plan to draw out $9.75 million this year and $3.25 million next year.
The college is receiving the same amount of funding, but the money is further split up to capture tax exemptions, said Jenny Jacobs, State Tech's vice president of finance.
Jason Terry, a bond attorney for Gilmore Bell working with State Tech, said the bond documents and terms for the $9.75 million and $3.25 million loans are the same, with the exception of the amount.
The board on Monday also approved the selection of Aladdin Campus Dining as the new food vendor for campus.
Jacobs said she expects the new contract to bring in more revenue for the college as State Tech will receive money from meal plans and sales, which used to go to the previous food service provider. The new vendor will bill State Tech for the direct cost of food and labor, and any other allocation it provides the college.
State Tech is recommending Aladdin keep the existing food service staff, Jacobs said, and the new vendor will make an initial capital investment worth $50,000 to update campus dining areas.