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V O L . X X I I N O. V I I I A P R I L 1 8 , 2 0 1 6 22 Additional funds will allow Colby to move forward on construction of an athletics complex and performing arts center. e projects are expected to provide a substantial lift to those programs, benefi ting students and the larger community through state-of- the-art facilities, while also enhancing the school's ability to attract donors, increase its national profi le to draw a larger and more diverse pool of applications, and cement its place as a preeminent liberal arts college. Both projects are still in the planning phase, although the athletics complex is further along, with London-based Hopkins Architects retained for design and Consigli Construction's Portland offi ce has been on-site for pre-construc- tion consultation. While parts of the existing athletic facilities, including fi elds, have been updated, parts of the athletic complex date to the 1940s and fail to meet today's competition standards. Performing arts is divided among two buildings that fail to meet programmatic and performance aspirations, the university says. e athletics center is projected to cost close to $200 million. For the arts facility, early estimates are $50 million to $75 million. College on a mission When Greene arrived at Colby in 2014, he immediately moved forward on the two projects, which had been on the books as part of a suite of construction and renovation proj- ects. Many of those other projects have been completed, including new alumni and science centers, an expan- sion of the art museum and, on the athletic fi elds, the addition of artifi cial turf. ese and smaller projects were paid for from a combination of a $370 million capital campaign, bonds, cash reserves and endowment funding. For the two larger projects, the administration and trustees pursued debt fi nancing, issuing $100 million in taxable bonds with a fi xed interest rate of 4.25% and deferred amortization that will allow the college to pay back the bonds' face value in 40 years. "We looked at what we expected for expenditures over the next several years, a projected plan of how we might get there, and what's a reasonable amount for the college to borrow at this particular moment, knowing that, if needed, we could borrow more money over time," says Greene. " is was an amount that seemed appropriate, knowing that we'll be building in the next several years. It also creates a hedge, if there's some sig- nifi cant downdraft in the economy. So it made sense to go into the market while rates were very cheap and be able to then have support for capital projects." Low-interest rates were the key incentive. "It made sense, given where interest rates were, to go ahead and lock in the debt at the time," says Douglas C. Terp, Colby's chief fi nancial offi cer and vice president for administration. (Terp is also a Colby graduate.) "Traditionally, you set a project budget, nail down what you think your fundraising is going to be, then go to the debt market for that par- ticular project. Our concern was about the potential for rising interest rates. We thought it made sense to lock it in." Taxable bonds provide the fl ex- ibility missing in tax-exempt bonds, which face Internal Revenue Service spending restrictions. "You have to lay out your exact purpose, and it has to be used in three years," Greene says of tax-exempt bonds. "With taxable bonds, those Colby College has issued bonds to fi nance its ambitious growth plans. Its growth has included expansion of its art museum. President David Greene, left, and Douglas C. Terp, the vice president for administration at Colby, are shown in the Sally and Michael Gordon Gallery at the Alfond-Lunder Family Pavilion on campus. P H O T O / T I M G R E E N WAY Taking advantage of low rates Colby looks to bonds to finance growth F O C U S » C O N T I N U E D F R O M C O V E R It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, It made sense, given where interest rates were, to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. to go ahead and lock in the debt at the time. — Douglas C. Terp CFO and vice president for administration

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