Troy

The city's Capital Resource Corp. approved refinancing $80 million in bonds Friday to provide relief for Rensselaer Polytechnic Institute's debt burden.

The $80 million is a bit less than one-fourth the size of the last refinancing of RPI debt by the Troy CRC, which refinanced $358 million of the school's debt when it applied in 2010.

RPI had $816 million in outstanding debt at the end of 2013, according to its federal tax filings for that year, which show overall liabilities of $1 billion and assets of $1.4 billion.

Sue Proskine, RPI's assistant treasurer, said the refinancing would make possible a lower interest rate that would be known when RPI issues the new bonds.

The bonds RPI will refinance were issued in 1999 and 2006 when there was an expansion on the campus with new buildings and renovations to existing facilities and landscaping.

Some of the projects included in those bond issues included the Mueller Center, which is used for fitness, athletics and wellness; renovations to the student union; and the EMPAC Center.

The size of RPI's debt has raised concern among rating agencies, including both Moody's and Standard & Poor's, which issued negative outlooks a year ago.

The Troy CRC will receive $480,000 in fees for handling the refinancing. These funds could be used for such things as installing more surveillance cameras on city streets as has been done previously.

"I see it as a good for the CRC. It's going to help RPI. I hope for RPI it's a good financial decision," said Councilman Dean Bodnar, a CRC board member.

Councilman Jim Gordon said in a release that RPI should increase its contributions to the financially challenged city.

As RPI finds itself in need of support of the city, Troy is in need of support from RPI and the other large nonprofit entities that call Troy home, Gordon said.

The original debt that RPI is refinancing came through the Rensselaer County Industrial Development Agency, according to Bill Dunne, the city's commissioner of planning and economic development. The county IDA supported $103.49 million in bonds for RPI in 1999 and 2006.

A change in the public authorities law means an IDA can no longer issue bonds for an institution like RPI, and the university needed to turn to the CRC for the financing, Dunne said.

kcrowe@timesunion.com • 518-454-5084 • @KennethCrowe