Reese to be able to repair, build again

Thursday, February 28, 2008
Story last updated at 2/28/2008 - 2:00 am

Some of its buildings need to be repaired - some outright replaced.

But by law, the Lubbock Reese Redevelopment Authority, a subdivision of the state that oversees Reese Technology Center, can't borrow money.

"We have buildings on this campus that were constructed a long time ago that have gone without maintenance," said board Chairman John Tye.

Tye said the new development corporation was set up as a nonprofit 501(c)(25) corporation.

"As LRRA we cannot go to a bank and borrow money to do renovations or build buildings," he said, adding the redevelopment authority would have to get state approval to borrow money. The establishment of a separate development corporation, however, unties the redevelopment authority's hands to borrow money as needed.

"There have been a number of deals we haven't been able to pursue because we weren't in a position to invest money (in buildings) the clients wanted to lease," he said, adding he believes the development corporation addresses those concerns.

The development corporation will borrow funds only as needed and where the tenant has clearly been secured. Any money borrowed by the development corporation will be paid back through future lease contracts.

"Every other building on this campus needs some type of repair, whether it's a roof, electrical or plumbing," Tye said.

He said it's impractical to borrow funds to repair every building, which is why LRRA took the new approach.

"That would be like eating an elephant in one bite," he said.

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This story first appeared on our Web site at 4:14 p.m. Wednesday.

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