Western Kentucky University plans for borrow more than $43 million to cover cost overruns on two major construction projects. The Board of Regents approved additional money on Friday for the new Gordon Ford College of Business building and the Hilltopper Fieldhouse and press box.
The university will borrow, through agency bonds, an additional $25 million for the business school and more than $18 million for the athletics project, which will include an indoor practice facility with space for the WKU Big Red Marching Band, as well as the forensics and e-sports teams.
The Kentucky General Assembly approved $74.4 million for the Gordon Ford College of Business as part of the 2022-24 state budget. WKU’s request to borrow additional funds came despite reducing the original design by 30,000 square feet.
WKU President Timothy Caboni said Friday that every university is dealing with inflation, higher labor costs, and increased demand for materials.
“I’m proud of the work we’ve done historically as an institution. In 15 years, we’ve not had any cost overruns in any project,” Caboni told WKU Public Radio. “This is really a once in a lifetime inflationary environment in which we find ourselves.”
WKU Regents received industry reports citing construction costs increasing 5-15% annually since the pandemic.
The increased costs will push the Gordon Ford College of Business building to more than $99 million, a 34% increase from the original estimate. The fieldhouse and press box project will grow to more than $70 million, or 35% more than initially projected.
Caboni called the projects “transformational” for the university. The press box at Houchens-Smith Stadium is scheduled for completion this fall in time for the start of football season. The business school is scheduled to open in the fall of 2025, while the fieldhouse is expected to be finished by late 2025.
Regents also approved increasing funds to renovate Cherry Hall to $75 million after a feasibility study determined the original $30 million budgeted wasn’t sufficient. Work on Cherry Hall is expected to begin in 2026.
In other business, Regents Derrick Helm of Jamestown and Staff Regent Jennifer Hammonds of Bowling Green were sworn in as new members of the WKU Board of Regents. Helm replaces Linda Ball and Hammonds replaces former Staff Regent David Brinkley, whose terms both ended June 30.
The Board also approved naming Garrett Plaza located at the former site of the Garrett Conference Center in honor of WKU’s second president, Dr. Paul Garrett, and his wife, Virginia.
