LINCOLN -- The NU Board of Regents was offered explanations Friday why, even after the state kicked in $50 million, University of Nebraska officials now need $40 million in local tax dollars for the comprehensive cancer care center envisioned for Omaha in 2016.
Gov. Dave Heineman on Thursday questioned the move for local tax support, saying he had understood that $50 million was the total amount of tax dollars required for the project.
At President J.B. Milliken's request, the agenda for Friday's Regents meeting was amended to include a briefing on the topic from NU Medical Center Chancellor Harold Maurer.
Maurer made several points about the project:
? At $370 million, it is the largest project the Med Center has ever undertaken.
? The $50 million from the state would be used to help finance a $110 million academic research tower. Milliken assured the regents that the remaining $60 million of the tower's cost will be raised from private donors, even though legislation approving the tower was worded to allow for fund raising from "other" sources.
? The Nebraska Medical Center -- the privately owned hospital affiliated with the university facilities -- would borrow $120 million toward the project, to be repaid through patient revenues. A financial consulting firm has reviewed and approved that plan, although it has not yet been approved by the Nebraska Medical Center board.
After the legislation was passed last spring, a campaign committee organized through the NU Foundation and headed by Omaha businessman Mike Yanney and his wife, Gail, began developing a fundraising plan for the remaining $140 million needed for the project. That plan included seeking $40 million from the City of Omaha and Douglas County. Earlier this week, the County Board agreed to provide $5 million over 10 years.
"Our intent is to raise $100 million more in private dollars," Maurer told the board. "We have a detailed plan on how that will be raised."
Maurer said there were never any promises that NU would not seek additional public funding for the project.
"It was public and private all along," he said. "It was never totaly private. The (local) elected officials themselves feel like they would like to chip in on the project. It is an important project for the city and the state. "
He also stressed that local officials, not NU leaders, are making the decisions on how to contribute to the project.
Regents offered no criticism of administrators for seeking additional public funds. They asked for more clarification about how Douglas County's contributions would be used and the status of the project.
However, Regents Tim Clare and Jim McClurg, both of Lincoln, emphasized the importance of maintaining a good relationship with the governor.
"We appreciate the governor, who has indicated his strong support for an important project," said McClurg.
State Sen. Brad Ashford of Omaha, in a telephone interview, said he wished he would have known earlier that NU would seek additional tax dollars from local government.
"I would have fought harder to get more state money," he said. "I don't want the city to have to contribute money. I fully support the project and I want it to be built."
Source: http://www.omaha.com/article/20120914/NEWS/120919816
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