Important week for Tech’s future

Next week could be important for the future of Georgia Tech athletics.

At that time, the Georgia Tech Athletics Association plans to sell an approximately $90-million, 30-year bond that will fund the construction of the Hank McCamish Pavilion, the John and Mary Brock Indoor Practice Facility, and possibly the new indoor tennis facility.If the bond is issued, the GTAA’s projected debt will increase to approximately $190 million and will give Tech an annual debt service of as much as $13.7 million by 2014. The GTAA’s current annual debt is $7.2 million.

“It will set our financial course for the next 30 years,” according to Frank Hardymon, an associate athletics director who has been planning and modeling this bond for the past 1 1/2 years.

However, if the bond rates are projected to be high next week, the GTAA may decide to delay the issuance. That scenario has occurred once already. The bond was going to be issued in November, but rates had increased dramatically and the issuance was shelved to allow for analysis of other options.  Hardymon said the GTAA can wait until as long as March to issue the bond because construction on the basketball facility wouldn’t begin until April. However, interest rates have been steadily rising over the past few months. Any further delays in issuing the bond could impact the start of construction, which would increase those costs.

The Fulton County Development Authority is issuing the bond on the GTAA’s behalf and it will go out on the municipal market.

The issuance of next week’s bond would cover the cost of the renovations to the basketball arena, which is approximately $47 million, the football facility ($9 million), possibly the tennis center ($9 million) and $20 million toward a bond issued in 2008. There are other costs associated with issuance and interest payments that the remaining balance of the bond would help fund.

Hardymon said the GTAA has approximately $35 million in unrestricted donations whose projected earnings can be used toward paying a portion of the annual debt. They are also counting on the extra revenue that the ACC’s new contract with ESPN will provide to each school.

68 comments Add your comment

Golden White

January 21st, 2011
5:06 am

Goldrenrod

January 21st, 2011
7:40 am

I am STILL pi$$ed about losing our first ever 5-star recruit after his momma wanted him to go play beneath Touchdown Jesus!

Even so we’ll still end up with a better recruiting class than UGaG!

Wolley Stekcaj

January 21st, 2011
7:49 am

Goldenrod,
Do you actually keep up with recruiting? UGA has kicked us again. Paul Johnson’s arrogant attitude about his offense has crippled us. No skilled offensive players will come here and play this gimic offense. Teams now know how to stop us, hell, we scored 7 against Air Force!!!! Scout has rated us at 41 this year in recruiting and Rivals has us at 45! Do your homework! You have no idea what is going on. Next year 4-8 at best, and then maybe someone will have the balls to fire this goof ball coach.

Bark Madly

January 21st, 2011
7:51 am

Goldenrod, at this pace, you will be lucky to have a better recruiting class than Ga Southern.

Wolley Stekcaj

January 21st, 2011
7:52 am

Trust me, donations will continue to drop as long as Hewitt and Johnson are at Tech.

Wolley Stekcaj

January 21st, 2011
7:54 am

Bark Madly,

You just insulted Georgia Southern. Wolley

John

January 21st, 2011
8:08 am

If Georgia Tech is to compete, they have to upgrade their facilities. That’s a fact. Bobby Dodd Stadium got its upgrade ten years ago along with Russ Chandler Stadium. The basketball arena is in much need of renovation, and while most of us aren’t happy with the name change, it is necessary.

Losing Tuitt was a big blow. It shows the ignorance of ordinary Georgians toward Georgia Tech. This is thanks to 50+ years of anti-Tech bias in the state of Georgia from the media to the political and business leaders as well as the education leaders. Poor Stephon never had a chance as his mom decided that Georgia Tech is not where she wants to send her kid. So….off to the frozen tundra of North Indiana where he will go…..only to transfer back in a year or two.

Its really sad that Georgia Tech gets far more respect world-wide as well as nation-wide than in the state of Georgia.

Big Ol Stinger

January 21st, 2011
8:12 am

Can’t we toss another $7MM in to the bond issuance to get rid of Phew?

D A DoubleU G

January 21st, 2011
8:14 am

I think a lot of people would like Tech more if you guys dropped the pompous attitude, thinking that the only people worthy of breathing were those who have an interest in Engineering.

At first, I thought it was great that Stephon Tuitt switched to Tech, so he would stay in state. Then when he changed that back, there was a VERY damning comment by Mama Tuitt. Something to the effect of,

“Remember these are 17 year old kids. They read what you write…..”

I cannot help but to think she was referring to the way you Techies acted when he originally committed to Notre Dame a few months ago. Go pull up that old blog and read the way you guys bashed him, and told him he was not worthy of stepping foot on Tech’s campus. Then go look how you switcharoo’d when he decided to switch to Tech.

I don’t think that sat well with Mama.

And frankly, you guys deserve it. Drop the pompousness, and maybe things will change for the better for you.

THWGT

Big Ol Stinger

January 21st, 2011
8:20 am

Nobody gives a rip what you think DA Double UG. You’re a poodle, therefor your thoughts are irrelevant here (and most other places).

D A DoubleU G

January 21st, 2011
8:22 am

Big Ol Stinger,

Thanks for helping me prove my point.

9-1, Mark Richt is YOUR DADDY

John

January 21st, 2011
8:23 am

Double-A: You make a good point. But you should also read what the Domers posted on his Facebook wall after he briefly switched. They were far, FAR more brutal and ugly to the young man that the Tech fans were. 99% of the Tech fans were excited when he committed…but rightfully so, insulted at his mom’s comments.

Georgia Tech simply has to change its perception toward average Georgians in this state…yet maintain its mission. And that’s a tough task.

I didn’t attend Ga Tech…just a fan. But seeing how different Ga Tech is treated locally is very telling. And it has affected recruiting over the years.

D A DoubleU G

January 21st, 2011
8:29 am

John,

I HONESTLY think it’s the attitude Techies have. If they want to change that in non-Tech Alum’s eyes, quit acting like they are a higher being.

Tech students and alum chose to go to Tech, and pursue Engineering, which interested them. Tech did not chose them, like they think.

Also, it wouldn’t hurt to drop the “To Hell with Georgia” crap, that makes you look VERY obsessive over a school that owns you in every facet of athletics. And before you say “Athletics don’t matter”, remember this is an Athletics blog.

Tech is a FINE school, with world renowned education. But when it comes to Athletic suppport and recognition, it all starts with Techies taking a nice look in the mirror.

9-1

Doug

January 21st, 2011
8:40 am

I’d keep the “To hell with Georgia”. It’s a great line and there is nothing wrong some nastiness in a rivalry.

Also, I’m a Georgia grad and I think both fan bases act poorly on the AJC blogs. We can all do better.

Bond Rating

January 21st, 2011
8:48 am

Bond Rating for teck athletics = JUNK

John

January 21st, 2011
8:49 am

Well, DA…if we are going to quibble over that….then ya’ll can also drop the “To hell with Georgia Tech” in your Battle Hymm of the Republic ripoff.

But seriously….yes you are right. A lot of the problems in perceptions that Tech faces is due to their own actions. Sticking with tough majors that only the top 5% can graduate from does not help.

There is a quiet movement among the younger Tech alumni. They are trying to change that perception by getting the BOR to allow Tech to open up more majors that will appeal to more Georgians. It won’t happen overnight…but it is happening.

Georgia Tech will continue to be a fine Institute…a huge plus for the State of Georgia. But if 80% of Georgians cannot stand the place—with or without sports—it will die on the vine.

[...] This post was mentioned on Twitter by ajc sports editor, Michael Kelly. Michael Kelly said: Important week for Tech’s future http://t.co/jTqpdyp [...]

OLDGOLD

January 21st, 2011
8:53 am

Bond Rating for U(sic)GA = BAIL Bond

Notre Dame Fan

January 21st, 2011
8:53 am

HA! HA! HA! HA!

YOU’RE HC SUCKS AT RECRUITING!!!

Hello from a Navy airfield in Barain

January 21st, 2011
8:57 am

Dobbins tower to Navy Hornet, Pull up, pull up. Yes, that was The Vasity that you just buzzed. Yes, the Dobbins flight commander wants to see you two fools in his office. You two Techies are going to Saudia Arabia to pump gas …………you two are busted.

GT ……….. WE are the right stuff. AAAAAAAAAAAAAAAAAAAAHAHAHHAHAHAHHA

Road Scholar

January 21st, 2011
8:59 am

John: Does Tech have a class for underage drinking like UGA? Does it also include a class on leaving the scene of an accident and stealing other students things!?

I find it interesting that the coliseum is being redecorated when attendance has slipped to new lows! Where are they going to get the revenue to pay back the bonds? Another surcharge on tickets; that will REALLY get us to buy tickets!

John

January 21st, 2011
9:02 am

Lord..why do I even bother trying to have a civil conversation on the AJC blogs. Sheesh.

D

January 21st, 2011
9:08 am

To Notre Dame Fan: “YOU’RE” (sic) bad at engrish. Come back with a proper education… you’re = you are; your = possessive case of you (ie. The one you would use if you paid attention in 9th grade English class).

Yes, the bond...

January 21st, 2011
9:37 am

…does include an amount to payoff Hewitt in order to bring in a new basketball coach – that is why it is such an important item.

And, Tech continues to be the only school around whose whole existence is consumed with its rival – as long as their fight song continues to have the line in the song (not like UGA’s Battle Hymn where they change the words to “To Hell with (fill in the blank being that week’s opponent) that is PART of the song (”To Hell with Georgia”), AND their “Good Word”, as in “What’s the Good Word” is “To Hell with Georgia” then you can see why Tech is so bitten with UGA thoughts…

dawgfan

January 21st, 2011
9:38 am

Techies, UGA might open up its vast coffers and loan you $90 mil, but unfortunately we don’t like you. Tough break. Best of luck though.

dawgfan

January 21st, 2011
9:46 am

Oh, and LMAO at the involvement of the Fulton County Development Authority.

Georgia Tech athletics=welfare case.

Techies, when you’re crying likt little girls about what big fat meanies UGA fans are, remember that a lot of us own homes in Fulton County and our taxes are apparently propping up your utterly pathetic athletic program. I think you need to show some respect and gratitude.

Thanks.

GTBob

January 21st, 2011
10:16 am

It’s always funny when UGA fans come on our blog and tell us how obsessed we are with them. I’m not sure they realize how dumb it looks when they do that.

Holding my Golden Rod

January 21st, 2011
10:28 am

It is ashame that we cannot fund our athletics by donations and ticket sales so we do not have to borrow so much money. There are so many other important things for our institution, state and country to be funding and paying off instead of tennis practice facilities. If our teams were actually WINNING (wow, what an idea!), maybe we would fund this ourselves. The leadership at Georgia Tech and the AD should be embarrassed and knock this off immediately. I encourage other alumni to not buy these bonds.

blazer

January 21st, 2011
10:43 am

their Dream Team will still be third in Mighty sec east

don't wanna be a dog

January 21st, 2011
10:50 am

Tech family, listen to me. Here are some facts. I am the biggest Tech fan in the world. I have two sons there now. I love Ga Tech. Now listen carefully. We can be relatively competitive in football from time to time but we will never consistently beat georgie and we all know why. It is what makes Ga Tech special (the “why” not the losing) so deal with it with wisdom and class. The absolute worst thing you can do is go back and forth with these georgie jerks. Restrain yourselves. Ignore them. Don’t respond in any way whatsoever and they will disappear. They will go back to jerking off in their outhouses and not on our blog.

GTBob

January 21st, 2011
10:59 am

@Holding, you sell bonds to cover the up front costs of doing such major projects. You don’t really expect the GT Athletic Association to just have 90 million sitting in the bank do you? If they did then they would be a pretty poorly run organization, and they still wouldn’t blow all of it on these projects. Ticket sales and the record of our sports teams could influence how quickly we pay back the debt but have little to do with the initial funding.

Wolley Stekcaj

January 21st, 2011
11:00 am

don’t wanna be a dog,

You have no clue! You cannot be real, you are in neverland. You are not allowed to ever speak again. I hope you are just joking because if you are serious you are an idiot. I am a true Tech fan who knows that knows wer are in serious trouble.

Wolley Stekcaj

January 21st, 2011
11:03 am

GTbob,

How many times have we beaten UGA in football the last ten years? Think about that and then post an ignorant comment!

GTBob

January 21st, 2011
11:14 am

@Wolley/FirePaulJohnson

Do you really think anyone believes that you are actually a Tech fan? Give it up man. Just be proud of whoever your real team is. No need to put on a charade for the sake of trolling.

fire paul hewitt

January 21st, 2011
11:53 am

Make damn sure the $7 million to put Hewitt on the road is in the bond.

So we missed the 5 star..the Sky is not falling….Lets see what happens in 2012..give’m hell Coach Johnson and Yellow Jackets.
How about those LADY JACKETS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Jimbo

January 21st, 2011
11:59 am

@John

Agreed, don’t waste your time. If the AJC would actually take the time to really moderate comments (rather than rely on users to submit requests for deletion), I think the quality of the entire sports section would improve dramatically. Instead, you get fans from both sides visiting their rival’s pages and filling them with hateful garbage. I don’t really bother parsing comments anymore, as a result.

GTfan2011

January 21st, 2011
1:28 pm

Unbelievable,
I was actually impressed with some of the classy comments made by UGA fans after Tuitt switched back to ND. But of course the civility was short-lived. And Wolley Stekcaj (you sound just like FPJ), I have a hard time believing you are really a Tech fan. Maybe you are, but if so you have NO sense of history. GT has NEVER attracted the ELITE athletes to play football here. We have ALWAYS done more with less due to good coaching and good scheme. That is why we fired Chan Gailey one year after he produced his best recruiting class. We expect to be competitive and not mediocre, but we do not expect to be an elite football power every year.

GTfan2011

January 21st, 2011
1:31 pm

Oh and for those knocking this bond deal, I’d like to point out that D-Rad has significantly improved the financial position of the GTAA snce taking over, moving us from a loss to a profit. He has put us in a fiscal position to even do a deal like this.

dawgfan

January 21st, 2011
2:34 pm

Jimbo, the AJC does not do that because this is America and you do not have a right not to be offended. As long as someone is not cursing or saying bigoted things, you’re just going to have to suck it up and deal with it like a man, or just leave. I am always astonished at how Tech fans think that they are immune from trash talk and bragging rights. Who in the hell do you think you are Techies? Every sports fan base on earth has to deal with haters, but nobody whines and cries about it more than you do. Get over yourselves. You are no better than anyone else. If I want to come over here and take a verbal dump all over your complete and utter joke of a football program, guess what? I’m going to do it. Go cry to mommy sissies.

Thanks.

2HLLWGA

January 21st, 2011
2:53 pm

Doug, you are right on. I like to tease, but the level of comments on here is offensive!

GTBob

January 21st, 2011
3:18 pm

If anyone is looking for actual conversation about sports or GT or UGA or anything else then the AJC is probably not the best place for it. The AJC is pretty much just a handful of people posting under many names and talking trash to each other. There are a few legitimate posters from each side but they are hard to find. The AJC doesn’t really have any motivation to improve that. Afterall, the idiots generate hits.

Born2Buzz

January 21st, 2011
5:32 pm

http://dlisted.com/node/40486

This is UGA fans idea of heaven. Nadlickers!

Dooner

January 21st, 2011
7:00 pm

What’s the latest on McCollum, Garrett and Carter? We need to get these guys.

Truth

January 21st, 2011
7:22 pm

Techies, UGA might open up its vast coffers and loan you $90 mil, but unfortunately we don’t like you. Tough break. Best of luck though.

I didnt know it was your money to distribute?

dawgfan

January 21st, 2011
7:24 pm

Please allow me to translate.

“Actual conversation”=things that Techies agree with. See also, things that don’t damage the hyper-sensitive Techie psyche.

Here’s some actual conversation for you: Why can’t your coach win a bowl game?

Tech fans only want to answer the easy questions. Ask them a hard one and you’re not “classy” and just attacking them. These clowns are the biggest effing joke I have ever seen. Its almost sad.

dawgfan

January 21st, 2011
7:33 pm

Truth, I didn’t know anyone existed that was painfully stupid enough to take that literally. Learn something new everyday, eh?

Wolley Stekcaj

January 21st, 2011
9:55 pm

GT Bob, You just can’t handle the truth. There is no one more faithful to Georgia Tech than I am, you may be a close second. Truth is we are in trouble. Georgia Tech is not relevant in college football or basketball. Is that what you want as a fan and supporter? If so , you should be ashamed of yourself!

Maryland Jacket

January 21st, 2011
10:24 pm

It’s a bit vitriolic tonight.

Back to the matter at hand, I’m a little surprised that the following statement:
“There are other costs associated with issuance and interest payments that the remaining balance of the bond would help fund.”
This “remaining balance” totals approximately $5m. Perhaps interest payments could take this much, or I’m not thinking of the matter at a large enough scale. Does anyone who has some experience in the matter know if $5m would be about right, too low, too high, etc.?

dawgfan, since you don’t seem to be contributing to the conversation about the basketball costs right now, I’m going to ask an unrelated question. Why don’t y’all bring your band to hockey games? We do, and it’s great fun.

Wolley Stekcaj

January 21st, 2011
11:19 pm

Maryland Jacket,

The entire primise assumes fans contributions and attendance will provide funding, also that investors will see this as an opportunity to make a buck due to our ESPN contract and other TV revenues. Problem is if we do not improve our performance on the field a negative effect will occur. In this economy Tech will take on serious debt. Our current revenue producing sports, football and basketball suck,!Could be in for a revenue disaster, when they say we may delay the offering simply means, Holy smokes, how are we going to pay this debt with Johnson and Hewitt in control of our most important programs. I was a contributor for 25 years, no more until changes are made. Just tired of being non- relevant in B Ball and F Ball.

ronyo

January 22nd, 2011
1:56 am

Coach Johnson has the best 3 year record for wins than any coach in Tech history. Give me a break you who profess to be tech fans / supporters. CPJ will take a bunch of 3 star guys with brains and beat the 4 star brain dead . GO JACKETS !!!!