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MIT's construction and renovation plan is being substantially funded by the sale of $250 million in tax-exempt bonds through the Massachusetts Health and Educational Facilities Authority (HEFA). The AAA-rated, variable-rate bond sale took advantage of declining market interest rates and achieved a very low cost of capital with an initial rate of 2.30 percent.
"MIT's superb credit strength helped to make this a very successful bond sale," said Robert J. Ciolek, executive director of HEFA. "This is one of the largest bond issues in HEFA's history and will help realize MIT's vision for continued preeminence."
"We're very pleased with the results of the bond sale and the role that HEFA played," said Treasurer Allan S. Bufferd. "The bond proceeds will combine with our very successful fundraising efforts to complete these important projects."
The projects will help finance five new buildings, related expansion of utilities and parking, and renovations on two existing buildings. New buildings under construction are the Zesiger Sports and Fitness Center; Simmons Hall, an undergraduate residence on Vassar Street; the Stata Center for Computer, Information and Intelligence Sciences, which includes the William H. Gates Building and the Alexander Dreyfoos Building; and a graduate student dormitory at 70 Pacific St. Renovations include Building NW30, which is becoming another graduate residence, and the Dreyfus chemistry building.
"MIT is reshaping the landscape of Cambridge with visually significant buildings designed by some of the preeminent architects of our time," said Mr. Ciolek. "These structures will indeed become instant landmarks and even destination buildings for tourists."
"These projects will transform the campus," said Mr. Bufferd. "It will be exciting to see the final form of these striking structures."
HEFA, established by the legislature in 1968, is an independent public authority that works with nonprofit institutions in Massachusetts to cost-effectively finance capital projects. The self-supporting organization also provides financial services, group purchasing and other programs to nonprofits.
A version of this article appeared in MIT Tech Talk on June 13, 2001.