WKU intends to borrow an additional $43.4 million to cover cost overruns on two major construction projects now under way: the new Gordon Ford College of Business building and the Hilltopper Fieldhouse and press box project.
The request for additional money will come before members of the WKU Board of Regents as they meet Thursday for an annual retreat and Friday for their quarterly meeting.
The increased costs would push the Gordon Ford building to $99.4 million, or 34% more than its original scope, and the Fieldhouse and press box project to $70.4, or 35% more than initially projected.
According to the regent’s meeting packet released on Aug. 1, President Timothy Caboni recommended the regents to approve borrowing, through issuing agency bonds, an additional $25 million for the Gordon Ford building and $18.4 million for the fieldhouse and press box project.
The Gordon Ford building, originally approved by legislators in House Bill 1 in April 2022, was provided $74.4 million by the state in its 2022-24 budget.
WKU’s request to the regents said the university tried to bring its costs for the building down, even reducing the original design by 30,000 square feet, but “escalating costs due to inflation, supply chain disruptions, labor shortages and increased demand for construction materials” have affected Kentucky higher education institutions.
When the project broke ground in June 2023, the cost of steel was reaching a period of stability. According to Gordian, a company that provides construction data for organizations, experts currently believe there’s little fear of supply shortages and that price declines are “likely to continue.”
In 2022, the regents approved allotting $52 million for the renovation of the press box and construction of the Hilltopper Fieldhouse, an indoor practice facility with space for the Big Red Marching Band and for WKU’s forensics and e-sports teams. But WKU cited material, labor and overall construction costs as factors in requesting the additional $18.4 million.
WKU’s request states industry reports indicate overall construction costs have increased by about 5-15% annually, with higher education being on the upper end of the spectrum. Labor costs have also risen, the request said, due to shortages and increased demand, with average construction wages increasing from 5-10%. The request did not specify the time frame of these increases.
The Houchens-Smith Stadium press box is one that faces a hard deadline of Sep. 7, the first home football game of the season against Eastern Kentucky University.
According to information shared by WKU last fall, changes to the press box include:
- Be constructed within the stadium as a new floor level above the existing Harbaugh Club.
- Include updated media and press facilities for better broadcasts.
- Provide “state-of-the-art” coaching facilities.
- House multiple suites for premium viewing.
WKU will also seek the regents’ approval of raising the asset preservation scope for the remodeling of Cherry Hall from $30 million to $70 million.
According to the request, a feasibility study was conducted and it was determined that the original $30 million would not be enough to preserve, renovate and modernize Cherry Hall.
In the new state budget bill for 2024-26, requirements for institutions to pull from the asset preservation pool have lightened significantly since the previous year.
According to the request, for 2024-26 “no match is required for comprehensive institutions or Kentucky Community and Technical College System institutions” to pull from the pool.
In the 2022-24 state budget, projects at comprehensive institutions had to match 15% to be able to pull from the pool.
News reporter Cameron Shaw can be reached at [email protected].
