University of Minnesota President Eric Kaler said Sunday that the $150 million athletic fundraising project to improve facilities and build new football and basketball practice facilities is going fine, and there is no concern that the school will be unable to complete the project. He also said that anyone complaining about a lack of fundraising on the project needs to look at things differently.
"It is by no means in jeopardy, whatsoever," Kaler said. "I think you need to put a little perspective on this. We have raised about $70 million in less than a year. Most places I know would be jumping up and down with a great story, instead we get rumors that we're slowing down and we're not committed. We are 100 percent committed to this project. Our donors have been wonderful in stepping up and they'll continue to do that. I have complete confidence in [athletic director] Norwood Teague and his team, which includes me, that we'll raise the money and get this building built."
Kaler said that while the project is being financed entirely by private donations, there is still the possibility that the athletic department could get a loan from the university to have 80 percent of the cost of the project raised to start construction on time.
"We'll ultimately raise it all privately or with already-allocated money," he said. "If we need to bridge a loan to get going more quickly we'd be willing to look at that, but at the end of the day there won't be tuition dollars or new state money in this."
Kaler added that a loan still would be counted toward the necessary 80 percent of total money raised on the project in order to go forward with construction.
"We have a very prudent budget process, we clearly are not going to start building anything we don't think we can pay for today," he said. "The rule of thumb we have is we want to understand where 80 percent of funding for a project is before we break ground. We'll be willing to not know where the last 20 percent is going to come from as we move forward in the fundraising. But part of that 80 percent can be a bridge loan or a structure against future revenues in the athletic program. The need to be concrete and prudent while we move forward while at the same time being sensitive to the fact that we want to move as quickly as possible."
While the fundraising needs to have that 80 percent matched by the June 11-12 Board of Regents meeting in order for construction to begin in October, Kaler believes that the work already done in getting the $70 million in donations in a year should be praised.
"I think if you raise $70 million in a year it's a pretty good pace," he said.