VC buys warehouse for industrial training
Feb. 22, 2012 at 11:02 p.m.
Updated Feb. 21, 2012 at 8:22 p.m.
REFINANCING 2006 BOND
The VC board also approved refinancing its 2006 bond, which funded the construction of the Health Sciences Center. Interest on the current $8.48 million balance is about 4.9 percent.
The college could secure a 2.15-percent interest rate by refinancing, said Victor Quiroga Jr., senior vice president of public finance with Southwest Securities. That could give VC a net savings of $958,704. The refinancing agreement is expected to be finalized in April. The original pay-off date of 2026 will remain.
The Victoria College Board on Wednesday approved buying a 7,200-square-foot warehouse at 1404 N. Liberty St.
The purchase marks the first time the college has purchased property away from its main campus, where the college has been since 1948.
The warehouse is the former Elder Distributing Co., owned by the Mutschler family estate. The board authorized Victoria President Tom Butler to buy the vacant warehouse for $200,000.
About the building, Butler said, "It allows us to make the changes that are needed to address the specific training needs pretty easily. It's a blank slate."
The building will be used to provide industrial training for multiple employers, including Caterpillar, Butler said.
"We (will purchase) it with the idea that we could train long-term for multiple companies in Victoria," he said. "There will be things like welding training, safety training, logistics training."
Butler said VC hopes to begin using the building in April.
"We'll conclude the sale pretty quickly, and we'll start doing renovations right after that," he said.
The college will renovate the space for an estimated $100,000 more, adding bathrooms, classrooms, updating the electrical system and possibly walls.
Money for the purchase and renovations will come from VC's fund balance.